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of the returns, the reefs being apparently worked out. £6,964 worth of gold was obtained during the year. In cleaning up the battery and scaling the amalgamating-plates £21,024 worth of gold was obtained. In the Maratoto district only two companies are at work—viz., the Silver Stream and the Tellurides. In the former claim the chief work has been stoping in the Julia and Queen reefs. The ore is occasionally very rich, but is of a refractory nature (chiefly sulphides), and cannot be treated by any process in operation in this district. 31 tons of ore was sent to Australia for treatment, and yielded £1,115 worth of bullion. In the Tellurides claims the chief work has been driving a low-level tunnel to cut the Julia and the Queen lodes now being worked in the Silver Stream. No returns have been obtained. At the Te Aroha end of the district very little mining has been done throughout the year. Work in the Hardy Mines has been suspended owing to want of capital to carry out the scheme of development decided on. The claims are at present protected, pending the raising of the necessary capital to continue operations. In the meantime the company has erected a small cyanide plant on the flat for the purpose of treating the deposit of tailings which have been accumulating for many years. Waitawheta Syndicate's Claim. —About two years ago, just when the mine appeared to be on the road to success, the whole of the crushing machinery and plant was destroyed by a fire which burnt down the battery-house. Operations in the mine were suspended beyond what was necessary to keep the drives and working-ways of the mine in order. The owners have since been employing a number of men in the erection of a new ten-stamp mill and cyanide plant, which is now completed, and the compan}' will soon be in a position to resume active work in the mine. Deep Levels Crosscut. —This work is still in hand, though recent progress has been slow. To avoid the danger of contact with the Moanataiari main slide, which was being approached, a deviation was decided on from a point under the Waiotahi shaft. This it was expected would avoid all danger, but at a distance of 490 ft. a strong volume of water burst through the floor of the drive, and the men at work were compelled by the water and gas to cease operations and hurriedly leave their work. At the end of the year operations had not been resumed. So far no veins or lodes have been met with. The crosscut will, however, assist the operations of such mines as the Saxon, Waiotahi, and Victoria, as it will now be possible to work these mines to a depth of 1,000 ft., with good ventilation and freedom from water. In the Saxon Mine a crosscut has been driven 500 ft. from No. 7 level, with the object of intersecting the Cardigan reefs. Progress was somewhat delayed by a hard bar unexpectedly met with at this level. The crosscut is now in 500 ft., and the work is progressing favourably. The Waiotahi Company has been employed in driving and crosscutting, and the shaft is being sunk to meet the crosscut driven from the main Deep Levels crosscut, from which an uprise to a height of 92 ft. has been constructed from the 1,000 ft. level. In furtherance of the project for sinking the shaft to the main crosscut at the 1,000 ft. level, boring with a Government diamond drill was started from the bottom of the shaft for the purpose of draining off the water. When the bore had gone down 320 ft. the boring-rods broke off, and it was found impossible to recover the lost parts. The water was, however, drained off, and the shaft has been sunk about 740 ft. from the surface. In the Moanataiari Claim a drive has been constructed through the main slide at 300 ft. level, with the object of prospecting on the hillward side for a continuation of the old Caledonian and Moanataiari No. 4 reefs, which on the seaward side were remarkable for their rich yields. Kuranui-Caledonian Claim. —No work of any importance has been done in this mine, operations being suspended until the work in the Deep Levels crosscut has advanced sufficiently to enable the company to take advantage of the opportunity to prospect their mine at a deeper level. Kuranui Claim. —The principal work for the year has been the continuation of the Magazine tunnel, which passes practically through previously untried country. The tunnel is now in a distance of 890 ft. Victoria Claim,. —No work is at present being carried on upon this claim. The owners are acting in conjunction with the Waiotahi Company in sinking the latter company's shaft, from which it is intended eventually to work both mines. May Queen Claim. —During the earlier part of the year operations were carried on at the 1,000 ft. level, but the eruption of water and gas which followed the cutting of the main slide in the main crosscut made it impossible for men to continue longer to work there. Waitangi Claim— Development-work is being energetically carried on in this mine, and a large amount of driving, stoping, and rising has been done, and a quantity of ore broken out. The directors have in contemplation the purchase of a battery for the treatment of their quartz! Watchman Claim. —The company owning this claim is conspicuous for the energy it has displayed in the development of the mine, and in procuring and erecting plant and machinery. A trial parcel of quartz of 750 tons gave a return of £2,241. Encouraged by the proved value of the ore, the company purchased the battery and plant of an English company known as the New Day Dawn and Norfolk Company, situated at Tararu Creek, together with the water rights and races. The battery has been renovated, and more modern appliances erected, and will shortly be in a condition to commence operations. A ground and aerial tram-line has been constructed to connect the mine with the battery. The mine is well opened up, and as soon as the battery is in working-order there will be an adequate supply of ore to keep the battery constantly employed" New Sylvia. —Work has been maintained throughout the year with a staff of about sixty men. 10,103 tons of ore was treated, for a yield of £16,351.' A large amount of work of a developmental and prospecting nature has been done. The ore from the mine is treated at the company's own battery, situated near the claim.