C.—3

172

crushing, owing to the ore not being at hand rapidly enough to keep the whole going continuously. The company also has erected an engine. The Woodstock Company appear to be remarkably unfortunate. A great amount of capital has been sunk in this mine without returning anything to the proprietors. The battery runs for a few months, when it ceases to crush. Fair returns are made for the time, but the supply of ore is not sufficient to keep it working. The quartz here is very hard, and evidently so far of low grade. Eecently boring operations have commenced, which it is hoped may result in finding something more workable and payable. A syndicate have taken up a greater part of the Ohinemuri from its junction with the Waihou as river claims, some eight or ten of which these gentlemen now hold. A treatment plant has been erected near Waihi. It is proposed to treat the river deposit by raising it with a suction pump, and after treatment return it to the river again. It is anticipated that 10s. per ton will be the amount recovered, which it is said will leave a small margin of profit after paying expenses. Conditions have been imposed so as to guard against injury to the banks of the river, or to the riparian landowners, or to the public interests, the Warden reserving to himself the right from time to ime to impose such conditions on the licensees as he may deem fit in the public interests. It is a new undertaking, which, if successful, will find employment for several men Owharoa. The Ohinemuri Syndicate's property here may almost be looked upon as abandoned. Very little work has been done upon the tunnels this year. The gold in these properties seems to have disappeared, and great difficulty is experienced in making a fresh discovery. Some good gold was obtained here in the early days of the field, and I presume will be again some day. The only other property in this locality upon which work is being carried on is the Eising Sun, the owners of which have very pluckily striven to make a mine of this claim, but so far their perseverance has resulted in nothing remunerative. A considerable quantity of useful developmentwork has been carried on for some years. Nothing is done except what is permanent and useful. Assay-tests have been made of the ore, some of which have proved satisfactory, but not sufficiently so to warrant any large expenditure upon the property. Any day, however, better prospects may develop, in which case this claim would be the means of reviving mining in this locality. There is an assay plant on the ground, and the owners only require the smallest encouragement in the grade of the ore to cause them to extend their workings. I believe this property will turn out a goldproducer shortly. Waihi. The Waihi Company's mine still maintains its character as one of the largest mines in the world; indeed, its output of gold per month for this year seems to rival that of any other mine I know of, the returns having averaged £53,000 monthly. It still continues to find employment for over a thousand men, and were it not for it the Town of Waihi would be deserted, as the other mines, unfortunately, are unable to employ more than a very limited number of men. So long as this mine continues to prosper there will always be hopes of some of the others securing payable reefs, which will encourage them to persevere with their uphill search for them. With the exception of the Waihi Company, none of the other mines have obtained any gold during the year. Waihi Grand Junction Gold-mining Company.- —Grand Junction Special Quartz Claim : At the beginning of the year this company were driving on the lode at the 500 ft. level of No. 1 shaft, and drove west another 92 ft., making a total of 161 ft. in that direction. A rise on the lode was put up 88 ft. from the main crosscut. The lode was driven on easterly 87 ft., making a total distance of 187 ft., and at a distance of 113 ft. a winze was put down 27 ft. To communicate with No. 2 shaft a crosscut was driven 86 ft. Waihi West Special Quartz Claim : The drive at the 500 ft. level on this property was continued north for another 465 ft., when a rise was put up 113 ft. to connect with the B shaft and to afford ventilation. A winze was also commenced at the B shaft and put down 93 ft., and connection made. By arrangement, the Waihi South Gold-mining Company commenced a drive at the 500 ft. level of the C shaft and drove 132 ft. During the year the company have therefore driven 880 ft., sunk 107 ft., and risen 143 ft. ; total, 1,130 ft. The Grand Junction Claim was under protection for six months, but during that time a building to contain a fitters', carpenters', and blacksmiths' shop was erected. Waihi South Gold-mining Company (Waihi South Special Quartz Claim). —Work was commenced again on this property about July. In August, arrangements having been made with the Waihi Grand Junction Company to use their C shaft in the Waihi West Claim, a drive was put in at the 500 ft. level in a south-easterly direction, and the reef was found and proved for 90ft. The drive was then continued in a southerly direction towards the Waihi South boundary, and work is still being carried on in that direction. Waihi Consols Gold-mining Company (Waihi Consols Special Quartz Claim). —Practically the only work done by this company was to test their property by boring operations, but through several unforeseen causes this was not successful. The company has since reconstructed and formed into a limited-liability concern. Waihi Extended Gold-mining Company (Waihi Extended Special Quartz Claim). —The shaft on this claim has been sunk another 136 ft., making a total depth of 520 ft. A drive was put in in a south-easterly direction and continued for 206 ft., and another in a north-westerly direction for 470 ft. from the shaft, but no reef was intersected. Work is being continued, and it is hoped before long that payable ore will be found. Waihi-Gladstone Gold-mining Company (Waihi-Gladstone Special Quartz Claim). —A considerable amount of work has been done on this claim, including the erection of a five-stamper