C—3.

mine on tribute, but apparently the public had small faith in the value of the quartz, so the company put up a very rough five-stamp mill, and crushed the 240 tons for a free-gold yield of £1,923 13s. 9d., besides several pennyweights being left in the tailings. After this crushing was finished tenders were again called with a view to tnbuting the mine, but although many favourable tenders were received none were accepted; so in order to make the treatment of the quartz complete a small cyanide plant consisting of two 20 ft. diameter by 5 ft. wooden treatment-tanks were erected, and one sump of the same dimensions. These tanks were nearly finished at the end of the year. Meanwhile stoping was going on in the mine by eight men. It is our intention to take out all payable quartz in sight. Progress Mines of New Zealand (Limited). — In the mine, development-work comprising 3,326 ft. of driving and crosscutting and 492 ft. of sinking and rising has resulted in the opening up of large ore-reserves, so much so that the tonnage in sight at the end of the year exceeds that exposed at the corresponding period of the previous year by about 4,000, notwithstanding the fact that 55,000 tons has been milled. Developments have been carried on from No. 2 to No. 10 levels, but the principal ore-reserves opened up by such are on Nos. 5 and 8 east, where large tonnages have been partially exposed. Stoping likewise has been carried on in a general manner from No. 3 level downwards under the same conditions as heretofore. On surface a new headgear of red-pine has been erected at B shaft, and at A shaft an ore-bin of (approximately) 100 tons has been built, into which trucks are tipped as they come from the mine. At C shaft a small Lingerwood hoist has been installed and head-gear erected. The adit level has been repaired up to the face on the eastern side, and driving for the Union stone commenced. On the western side of the shaft the adit has been extended 100 ft. The aerial line has given very little trouble during the past twelve months, and the cost of transportation has been reduced to per ton. 55,207 tons of quartz has been milled during the year, yielding by amalgamation bullion to the value of £81,394 2s. 5d.; also 931 tons of concentrates, a portion of which was shipped to the smelter, but 738J tons was chlorinated at the works, yielding bullion to the value of £9,284 7s. Bd. At the cyanide-works 14,988 tons has been treated for a return of £4,585 10s. lid., or 6s. l-427d. per ton, Of this amount, 3s. 0'246d. is consumed in working-expenses, leaving a profit of 3s. riBld. per ton. These works have been enlarged by the addition of two 25ft. diameter by 6ft. steel tanks. The whole of the coal required for the hoisting-engines has been mined from the company's own leases, the workings of which are in a satisfactory condition, and show a good reserve of fair-quality coal in sight. The working-costs show a slight decrease as compared with the previous year of 2'845d. per ton. The cost of mining, milling, and transportation all stand at a lower figure than for 1900, but general charges, unfortunately, show a distinct increase, attributable largely to the increased local taxation, which now amounts to 7 p 39d. per ton milled. The works throughout have been maintained in good order, and a prosperous year for 1902 is anticipated. Beeves's Proprietary Gold-dredging Company (Limited). —Mr. H. A. Bruce, secretary, supplies the following : Considerable difficulties have been met with in working the claim, the dredge, through the roughness of the ground met with, being unable to cope with same without continuous alterations and breakages, which necessitated considerable delays and the outlay of a large amount of the dredge's earnings in repairs and reinstatements. However, the dredge is now working much more satisfactorily, nearly all the wearing-parts having been renewed and strengthened, and a good run is expected without further mishap. The ground has proved, so far as worked, uniformly good, and compares well with other good claims on the West Coast; and, had it not been for its excessive roughness and consequent breakages to machinery, would have paid very handsomely. The balance-sheet shows that the whole of the previous year's expenses, £1,392 Bs. 5d., including flotation of the company, have been wiped off, and the sum of £1,464 3s. Bd. off the first year's expenses account, leaving a debit to Profit and Loss Account of £1,100 11s. 2d. The whole of the liabilities have been paid, and there remains a cash balance in the bank of £115 19s. 10d. The amount of gold won since commencement of operations, November, 1900, to 30th November, 1901, is 709 oz. 13 dwt. 13 gr.; value, £2,829 2s. Id. In accordance with the resolution passed by the shareholders on the 28th October last, an option has been granted over the claim and property to Mr. A. P. Harper. Mr. Harper has left for England, and will place the company's property upon the market there. This option does not prevent the directors from purchasing a suitable dredge should the chance occur, as, in the event of the company being floated in London, the new company is to take over any dredge or dredges purchased during the term of option, provided the same have been submitted to their engineer and approved of by him as suitable for working the claim. Since the closing of accounts the returns for the two weeks ending the 6th and 13th December have been 26 oz. and oz. respectively. Alluvial Mining. Except in the Eiding of Antonio's and at Boatman's, alluvial mining is very slight. The Chinese are still numerous at Blackwater, although gradually decreasing in numbers. An equal number of Europeans also are occupied in sluicing and driving there. No new finds of gold are reported. At Antonio's Plat and Creek Chinese and Europeans are also to be found mining, but, as in other places, the numbers are growing less year by year. At Boatman's and at Soldier's Creek about forty miners are employed. During the last two years the returns from alluvial mining have greatly decreased, owing, no doubt, to the assistance derived from the old-age pension by the old miners who came to the Coast during the first " rushes," and who never changed their occupation.

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