C.—2.

Lake County. Rees Valley.—The only mining activities in this locality were the sluicing operations of Paulin Bros, in the Upper Rees, who had only a partial clean-up before the season ended in April, and a party of three subsidized men who were prospecting for scheelite in the vicinity of the Invincible Mine. Lower Rees Valley, Oxburn. —Five subsidized men, working in two parties, have consistently worked their claims, which are situated at the junction of the Oxburn and Rees Rivers. Peterson and mate have combined sluicing and driving operations. Some fine gold specimens have been recovered, but the return for the year's work is not commensurate with the labour put into the claim. A party of three men is ground-sluicing a deposit of wash 15 ft. thick. They have brought water in through pipes and fluming, and their claim will return good wages should all the ground prospect as favourably as the face now opened out. Glenorchy Scheelite Mining Go.—A small tonnage of ore has been produced during the year from No. 1 A level. The extension of the No. 1 B crosscut is being pushed on, and the lode should be cut early in the year. The development of this level, which will be the lowest in the mine, will provide a relatively large amount of ore. George Reid, manager. Average number of men employed, four. The ore won from the mine during the year amounted to 132 tons and yielded 10 tons 11 cwt. of CaW0 4 concentrates, which realized £1,055. Several small mines are operating in the Glenorchy Survey District, and produced 16 tons 13 cwt. of concentrates, which realized £1,665, from 59 tons of ore treated at the Glenorchy Scheelite Mining Co.'s mill. The price of scheelite has been payable for the whole year. Starting in January it was quoted at 275. per unit, reached a maximum of 475. in June, and for the remainder of the year has stood around 40s. The enhanced prices have not resulted in an active prosecution, of the industry by the numerous claimholders in a district where scheelite-bearing lodes occur over a wide area. Lake Walcatipu District. —The Twenty-five Mile, Twelve Mile, and Seven Mile Creeks bordering on the lake have been worked by subsidized miners with varying results. Some of the men have made a considerable addition to their subsidy where water could be utilized to break down the ground. Pick and shovel parties have not financially improved their position. Moke and, Moonlight Greeks. —Subsidized and private parties are working in the bed and terraces of Moke Creek, and have reached a stage where plant and capital are necessary to win any gold remaining in this area. Moonlight No. 1 Claim.—This claim is a consistent producer, the manager and three men recovered 138 oz. 8 dwt. 6 gr., which realized £1,016 4s. Bd., during the working season. As the face at the north end of the claim is nearing the storage dam, operations are now being confined to the Moke Creek side of the area. Moonlight Extended Gold-mining Co.—This company carried on with race-construction up to the end of March. Their financial position would not permit of the completion of the work, although it was within reasonable distance of reaching the stage whereby water could be put on the terraces they intended to sluice. Construction work has not been resumed, although the Unemployment Board, acting on the recommendation of the Mines Department, offered the company substantial assistance, with the object of bringing the claim to a producing stage. Upper Shotover Gold-mining Co.—Early in the year this company completed their diversion tunnel across the narrow neek which separates the Shielburn and Polnoon Creeks. The tunnel is approximately 800 ft. in length and 8 ft. by 8 ft. in cross-section. It carries the whole flow of the Polnoon, and leaves about 5 miles of creek bed exposed, except in flood-time. An average of six men is employed in the working season. Gold recovered, 163 oz. 2 dwt. 23 gr., valued at £1,160. Sandhills Gold-mining Co.—ln an effort to divert the Shotover through a cut put through the sandhill, in places 200 ft. deep, and from which it is estimated that ten million cubic yards of material were removed, a tunnel and side chambers were driven and charged with 1J tons of explosives. This charge was fired early in March, and a large mass of rook heaved across the river. Additional rock was added to complete a dam, and a strong flow of water was diverted through the cut. The remainder of the year was devoted to deepening the cut in order that the dried-up portion of the river-bed could be worked. This objective has not yet been attained, the flow of water in the natural channel having not been reduced to a quantity low enough to permit of mining operations being attempted. An average of five men was employed during the year, under the management of Mr. P. T. Lynch. White Crystal Mine, Skippers (J. Tripp, manager and owner). —Development work on this mine has been confined to driving the top, or No. 1 level, which has been 70 ft. west of the crosscut on an ore-body varying in width from 2 ft. to 6 ft., and the ore crushed from this lode has averaged approximately 1 oz. per ton. An eight-head stamp battery and oil-engine will be installed to replace the two-head water-driven plant now in use. Three men were employed in mine and battery. Although many lode-prospecting licenses are held in the Skippers District, the White Crystal Mine, with the exception of some prospecting on Advance Peak, is the only claim which has produced gold or carried out prospecting and development. The output from this mine was 145 tons, which (by amalgamation only) yielded 134 oz. 4 dwt. 10 gr., valued at £595 19s. lid. Mountain Terrace Mine, Skippers (Mr. R. McDonald). —This company has constructed three miles of race and 1J miles of fluming over difficult country, and the laying of a 3,000 ft. pipe-line 9 in. in diameter is nearly completed. Sluicing operations on a 30 ft. face of wash will commence early in the ensuing year. The prospects of this company are good, the capital is small, and mostly held by men employed on the claim. An average of seven men was employed during the year. Caspar's Flat, Skippers.—Scott and Beale laid 1,000 ft. of 13 in. and 11 in. pipe-line and reconditioned one of the old Bullendale races for the purpose of working this flat, which has never been prospected. A hydraulic elevator was used and a paddock sunk to a depth of 25 ft. Owing to a dry season the water failed before bottom was reached. Skippers Ltd., Shotover River. —R. Climie, manager, and twenty-five men employed. This company carried out extensive construction work with a gang of fifty men in the Shotover as a preliminary to exploiting the river-bed. Steel piling, 15 in. by 5 in., was driven in the river-bed to divert the stream through a sectional steel fluming 20 ft. wide and 8 ft. deep, capable of carrying 2,000 heads of water when running full. To supplement the race-water supply, which is stored in a dam on the terrace above the river, a 300-horse-power Diesel engine, coupled to a generator, provides power to operate a 200-horse-power motor direct-coupled to 10 in. " Mather and Piatt" pump, which delivers 2,600 gallons per minute at a pressure of 100 lb. to the square inch. Actual mining commenced in June and was carried, by three shifts, to the end of the year, except when the river was in flood and carrying more water than the capacity of the flume. The gold won amounted to 153 oz. 8 dwt. 19 gr., valued at £1,116 15s. Central Shotover Gold-mining Co., Ltd. (E. J. Whelan, Manager). —This claim is adjoining the south end of Skippers Ltd., and is worked by hydraulic elevator. An 18 in. pipe-line from Deep Creek conveys water under a head of 150 ft. to the plant r on the river-bed. A water-supply of fourteen heads is available at the nozzles. A 9 in. throat and 4| in. jet is used on the elevator and is doing satisfactory work. Seven men are employed. The gold return is 67 oz. 3 dwt. 12 gr., which realized £484 lis. 3d. Oxenbridge Shotover Gold-mining Co., Ltd. (E. Eitzpatrick, Manager).—Seven men employed. This claim is situated near the junction of the Shotover and Moonlight Creeks. This company constructed a concrete arch dam in Moke Creek, and installed a 36 in. and an 18 in. pipe-line to convey the water from the dam to the claim. Owing to the amount of construction work carried on, and the frequent flooding of the Shotover, no gold was won during the year, except when putting in dam foundations. The gold won amounted to loz 9 dwt. 10 gr., amounting to £10 12s. 7d.

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