171

C.—3

Te Aroha. The mining in this district is what may be termed dead. There are only one to two small holdings doing a little work, principally carried on by the owners. A small syndicate has taken up a portion of the old Tui Company's property, and is at present taking out lead and silver ore with a view to sending the same to New South Wales for treatment. It is said the ore can be treated there so as to remunerate those engaged in mining the same. Should this prove correct this should turn out a good speculation, as it is stated there is an abundance of such ore in the ground. The only real mining at present is that being carried on by Mr. Hardy at Waiorongoniai on a property which he has held for some time, and which formerly was owned by the New Zealand Exploration Company. He has reduced the area. During the time he has had the property he has put through his battery ore resulting in £8,250, this extraction being about £2 Bs. per ton. The process of treatment is wet crushing and concentration. The concentrates are sent to the Dapto Works, New South Wales, for treatment. Present indications show an abundant supply of ore. Ohinemuri County. Komata. The Komata Eeefs Company's mine, having resumed crushing, has during the past year succeeded in making returns every month to the value of about £2,500, which I trust will be permanent and gradually increase. This is the only mine in this locality which is paying its way. The total amount of gold produced since it commenced crushing is about £80,000. There are a few other claims in existence at the Komata. The Komata Bonanza is spoken of as being a likely piece of ground to be heard more of later on. The others are in a languishing state for want of means to carry on development-work. The Hikutaia Syndicate properties, which have been extensively prospected (a great deal of useful development-work having been done), have so far not proved remunerative, although small returns have been from time to time obtained at its five-stamper mill, but not sufficiently valuable to warrant a larger plant being erected. The ore is of poor grade, and so far none of a richer quality has been unearthed. A considerable amount of capital has been spent on this property, which so far has yielded nothing to the owners. The Maratoto Gold-mining Company has carried out a considerable amount of developmentwork, and possess a small crushing plant, but up to the present their efforts have not resulted in anything to warrant a large outlay of capital. The owners, however, are very persevering, and it is to be hoped they will meet with better fortune in the no-distant future. There are a few other claims iv this neighbourhood, which have not so far succeeded in unearthing anything payable. Waitekauri. The Waitekauri Gold-mining Company have been extremely unfortunate during the past year. They appear to have worked out the payable ore at hand, and have been devoting their time in developing and opening up their properties. I trust when next reporting to be in a position to chronicle some good returns from this company's mine. The Waitekauri Extended Company's properties have been taken over by the Waitekauri Company, as also those formerly owned by the Grace Darling Company. The Waitekauri Company possess plenty of crushing-power, if it could only drop upon some good-quality ore. The Waitekauri Cross Company have abandoned their property, and removed the machinery, which has been shipped away. The company spent some thousands of pounds in endeavouring to pick up the Waitekauri Company's chute of ore, without success. The New Zealand Jubilee Company's property has been further developed, but for the last few months it has been protected, to enable the general manager to proceed Home to interview the owners as to the course to be adopted for the future. It is reported that the development-works under the change of management have disclosed better prospects, which will probably lead to a further expenditure of capital. It is anticipated that with the return of the general manager mining operations will be continued in this mine, I trust with favourable results. Karangahake. Mining has been fairly active in this portion of the district, and the New Zealand Crown Mine continues to merit its name as a consistent gold-producer. The other mines, however, I regret to say, at times are not able to put out returns continuously. The New Zealand Crown Mine so far has proved itself to be the premier mine in this locality. The owners have spent a very large sum in development and machinery. Every year large sums are spent on improvements to the property and plant. During the last twelve months an engine and boiler have been added, besides more powerful pumps, and further air-compressing machinery is being erected. The decrease of water in the Ohinemuri Eiver has made it necessary to supplement the water-power with steam. I trust in the course of the next year or two, as the develop-ment-works extend, to be in a position to report this mine as being one of the best in the district. Should the developments realise present anticipations this mine has a great future before it, and I look to it to become one of the main supports of the field. It is now the second largest employer of labour on the peninsula. The Talisman Extended Company's properties were making no returns for some months, but during the past four or five months fairly good returns have been made, which is very encouraging, especially if they continue monthly. The crushing plant consists of a battery of fifty stamps, which I am informed has not been able to work with the full number of stamps since it resumed 19—C. 3.