QUARTZ-MINING, REEFTON DISTRICT. SUPPLEMENTARY REPORT.

Appendix to the Journals of the House of Representatives, 1895 Session I, C-03c

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1895. NEW ZEALAND.

QUARTZ-MINING, REEFTON DISTRICT. SUPPLEMENTARY REPORT.

Presented to both Houses of the General Assembly by Command of His Excellency.

H. A. Gokdon, F.G.S., Inspecting Engineer, to the Hon. A. J. Cadman, Minister of Mines. Sic, — Mines Department, Wellington, 16th September, 1895. I have the honour to submit a supplementary report on the state of quartz-mining in the Beefton District, as considerable developments have been made since writing my annual report on the goldtields. A deal of attention is at present being given to the mining industry, and mining properties generally have increased in value. The Mining Eegistrar has compiled a statement showing the results of the quartz-workings in the district from information received from the different managers, taken from their companies' books, which not only shows that a large quantity of gold has been produced, but also that a large sum has been paid in dividends to shareholders. The table referred to differs in some instances from that published in my last report, but the Mining Eegistrar having taken a great deal of trouble in collecting reliable information, the following table can be taken as practically correct. However, the totals of the two tables differ so slightly, that either of them is sufficiently correct to show approximately the total yield from the field and the amount of dividends paid:—

Returns, &c., from Quartz-mines from opening of District to 31st August, 1895. Larry's Creek.

Company, &c. Quartz. Gold. Value. Dividends. Caledonian No. 2 South Larry's Tons. 566 7,514 Oz. 2,080! 4,129 £ s. d. 8,065 10 0 13,999 17 6 S, 2,250 s. a. 0 0 8,080 6,209 J 22,065 7 6 2,250 0 0 Alexandra ... Argus Boatman's Creek Boatman's Tailings ... El Dorado ... Fiery Cross... ... Golden Arch Homeward Bound ... Hopeful Imperial and Eeform Italian Gully Just-in-Time Lady of the Lake Lone Star ... Pactolus Southern Cross South Hopeful Specimen Hill Walhalla Extended ... Welcome ... ... f Boatma: 394 82 138 478 27,691 149 62 12,898 1,624 897 12,489 10 220 108 21 48 2,265 238 27,030 'a. 168 105 122 617 653 30,476£ 139 213 21,129 1,020 512 15,394 3 75 498 43 52 1,105 354 63,784 651 0 0 407 5 4 472 15 0 1,068 19 0 2,530 7 6 119,839 11 9 538 12 6 859 13 7 81,698 0 7 3,959 16 11 1,984 0 0 59,832 2 10 11 2 6 291 12 0 1,929 15 0 166 12 6 207 1 9 4,222 14 4 1,396 5 3 249,091 4 11 32,268 40,425 146 15,666 0 0 0 0 0 0 0 0 1,000 0 0 110,250 0 0 1—0. 3c. 86,842 136,462£ 531,158 13 3 199,755 0 0

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Returns, &c., from Quartz-mines — continued.

Company, &c. Quartz. Gold. lue. livii tern Is. Painkill jEE. Tons. SirC. Eussell ... ... •■■ 498 MUEEAY CeEEK AND Oz. 339! & 1,333 s. 3 a. 7 & s. a. Crushing rTON. Ajax , 6,890 Anderson's Creek ... ... ••• 6,791 Band of Hope 390 Dauntless ... ... ■■• •■■ 400 Energetic ... ... ... ••• 59,080 Energy (private company) ... 4,766 Golden Fleece ... ... •- 26,547 Golden Hill 526 Golden Ledge ... • ■ ■ • • • 1,831 Golden Treasure ... ... ■■■ 9,217 Hercules ... ... ... ■•■ 6,646 Independent ... • • ■ • • • 2,345 Ingle wood, Inglewood Extended ... 10,358 Invincible ... ... ••• ••• 564 Keep-it-Dark ... ... ••• 114,979 No. 2 South Keep-it-Dark ... ... 9,138 Lankey'Creek ... ... 680 Mammon :.. ... ••• ••• 15 Nil Desperandum ... ... •• 6,858 Pandora ... ... ... ••• 699 Perseverance .... Phcenix ... ... ••• •■• 2,190 Eoyal 918 United Band of Hope ... ... 160 United Inglewood and North Star .. 1,591 Venus and Venus Extended ... ... 10,713 Victoria ... ... ••• ••• l>943 Victory ... ... ••• •• l>155 Vulcan ... ... ... ••• 919 Wealth of Nations and Wealth of Nations Extended ... ... ... 58,832 Westland ... ... ... ••• 150 347,438 6,441 5,363 25 44 30,811 2,375| 32,317 192 552 5,868! 4,065 1,179 6,304 657 60,834 6,187 73 15 3,393 664 19 2,913 775J 49 821 6,914 929 905 536 24,958 17 6 20,781 12 6 96 5 0 170 10 0 119,322 7 8 9,358 11 9 125,326 12 0 744 0 0 2,139 0 0 22,815 14 1 16,148 9 2 4,568 12 6 24,021 7 3 2,545 17 6 236,958 6 5 24,620 19 6 277 19 3 60 0 0 13,165 7 7 2,611 3 2 73 12 6 11,272 11 10 3,123 18 10 189 17 6 3,181 7 6 26,842 14 3 3,626 7 6 3,506 17 6 2,077 0 0 2,504 0 475 0 21,900 0 55,000 0 612 10 3,300 0 5,000 0 2,700 0 1,050 0 109,583 0 9,200 0 287 10 4,533 6 232 0 3,300 0 400 0 33,024 40 128,335 4 7 155 0 0 35,912 10 347,438 214,285 833,076 4 10 255,989 16 Devil's Ci Globe 73,438 Golden Point ... ... ••• . 1,160! Heather Bell ... ••■ •■• 60 Oriental .. ... ••• ••• 3,360 _ £E OK A 'evil's Ci 73,438 l,160| 60 3,360 55,354 600 WEEK. 34,848 376 10 1,190 25,870 64 138,283 0 1,468 3 38 17 4,603 2 103,706 15 248 0 0 5 6 6 9 0 40,050 0 19,200 0 Progress ... ••• ••• ■•• 55,354 Union 600 133,962! 133,96262,358 248,357 19 2 59,250 0 Eainy Ce Eainy Creek 1,782 Inkerman 28,492 _ Ani\ Eainy C: 1,782 28,492 400 IEEE. 209 11,968 17 809 17 6 46,272 10 10 51 0 0 4,000 0 Supreme ... ... ••■ ••• 400 30,674 30,674 12,194 47,133 8 4 4,000 0 Meeeijk AT-L.EJ.LVI-VJ.iJ i.\ Al 79 Cumberland ... •- ••• 12,655 Gallant 2,036 Golden Lead ... ... ••• 10,786 Happy Valley 127 Hard to Find ... ... ■•• 60 Merrijigs ... ... ■" ••• 85 Scotia ... ... ... •■• 713 Sir F.Drake 7,612 Mbeeijh 79 12,655 2,036 10,786 127 60 85 713 7,612 as. 692| 11,096 658| 2,216 29 17 35 1,301 1,728 2,787 8 6 45,420 3 1 2,623 7 8 8,885 0 7 110 19 1 67 0 0 167 0 0 5,130 17 6 6,653 19 0 13,800 0 0 600 0 0 3,000 0 0 34,153 17,773 71,845 15 5 17,400 0 0

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Returns, &c., from Quartz-mines— continued.

Laeey's Ceeek. Bosebery. This is a special claim of 100 acres, and comprises ground formerly held in mining leases, known as Dreadnought, Invincible, Guiding Star, Tasmania, and Ormuz. There are two lines of reefs here carrying gold—namely, the Caledonian and the No. 2 South Larry's, and further to the west there is another leader carrying gold; but there has been very little work done in any portion of this ground. A shaft was sunk on the north side of Larry's Creek with the view of working the Caledonian and No. 2 South 'Larry's Eeefs, both of which was found on the south side of this creek, striking at a high angle northwards. This shaft was not sunk to any great depth, as water was met with; and, moreover, these reefs having an underlie to eastward of about 50°, the shaft was sunk too far to the westward to strike any of these lodes. An adit-level has been constructed in the face of the range, on the north side of the creek, in a northerly direction for about 250 ft.; but, as this adit is nearly following the course of the lodes, it would be only by mere chance that any lode would be cut. No cross-cutting has been done to try and cut the line of the lode. Besides, from what is known of the strike of the lodes, they are not likely to be found at the level of this adit. Before any prospecting work can be done in this ground at any great depth pumping machinery will have to be erected. There is an ample supply of water to be got as motive-power for all purposes. Caledonian. This is a special claim, comprising an area of 100 acres, and includes ground formerly held in mining leases known as Larry's Creek, Argyle, and No. 2 South Larry's. There are two lines of reefs running through the grounds in a northerly and southerly direction. These lines should junction on the north side of the river, as they diverge for each other going southward. The whole of the area comprised in this claim is on the south side of Larry's Creek. A shaft was sunk near the side of this creek and four levels opened out from the shaft, the deepest of which was 183 ft. The ground is partially stoped out between No. 1 and No. 3 level to the south of the shaft, and between No. 3 and No. 4to the north of the shaft. The lode was found to be striking at a high angle northwards. Very rich auriferous stone was found under the bed of the creek, but in trying to get out this stone they got too near the surface, allowing the water to get into the workings and swamped the mine, the pumping machinery being far too small to lift the water there was to contend with. Some of the stone found in this mine yielded as much as SJozs. gold per ton. The lode at the lowest level was, however, small, although the stone was good. There was a rich leader cutting across the lode near the shaft heavily charged with iron pyrites and galena. Assays from the pyrites showed that it contained 10oz. 6dwt. of gold per ton, and the galena contained 4oz. bullion, of which 2Joz. was gold. The whole of the stone in the lodes in this locality contains a large percentage of pyrites, which is rich in gold. An adit level was constructed into the face of the range at about 500 ft. southward from the shaft, and cut a different lode to that worked in the levels. About 300 tons of stone was stoped from this adit, which was found to be payable for working. Another adit-level was constructed about 560 ft. further to the southward, and at about 40ft. higher than the level previously referred to, from which 7,514 tons was taken out, yielding 4,1290z. gold, giving an average of about lldwt. of gold per ton. Winzes were sunk from these levels, but the quantity of water in the ground prevented working from being proceeded with, as the company had not sufficient capital to test the ground at deeper levels. Taking the whole of the quartz obtained from this ground—namely, 8,080 tons—the yield of gold was 6,20&§0z., representing a value of £22,065, out of which dividends were paid to the extent of £2,250. This shows the average value of the ore to be about £2 14s. 6d. per ton. Before any useful work can be done in this ground a large pumping plant and also winding machinery will have to be erected; but, taking the stone obtained from the Caledonian shaft, which was 566 tons, yielding 2,080J0z. gold, having a value of about £8,060, thus showing the average value of the stone to be £14 ss. per ton,

Company, &c. Quartz. Gold. Value. Dividends. Big Eiv: IE. 3ig Eiver ... jrolden Hill jord Edward National it. George ... [ '.'.'. Tons. 11,255 39 30 66 15 Oz. 17,150 9 33J 1 12 35 £ s. 68,599 7 36 7 133 12 46 13 140 14 d. 9 1 2 9 1 £ s. d. 35,400 0 0 Total ... 11,405 68,956 14 10 466,861 1,823,927 6 11 35,400 0 0 653,052 573,994 16 0

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There is a peculiar feature in this locality that is not found in any other part of the Eeefton District. There is a certain quantity of gold in the mineralised slate. The same thing occurs in the Phoenix Mine at Skipper's, where gold is actually in the schist; but at Larry's the slate belongs to the Matai series, which is a more recent formation. It is highly carbonaceous, and contains a great deal of pyrites. Duffy Brothers are now crushing the whole of the mullock that came out of the adit levels, and the material yields on an average of gold per ton. From 175 tons of this material put through their crushing battery they obtained 25foz. of gold. If the pyrites from this material was collected and treated properly a great deal more gold would be obtained. There are good sites on both sides of Larry's Creek for the erection of machinery, and sufficient water can be obtained from this creek at an elevation capable of producing at least 1,000 horsepower if required. Boatman's. G adman. This is a special claim of 100 acres, and includes the ground formerly held in mining leases known as the Occidental, Comstock, Garden Gully, Specimen Hill, and Juno. It is on a continuation of the line of the Fiery Cross and Welcome Reefs. There were numerous quartz boulders lying about on the surface of the ground formerly held in the Specimen Hill Lease, some of which were extremely rich in gold. There is, however, a great depth of alluvial drift on surface of the rock that has made prospecting for lodes a very expensive undertaking in this locality. Several adit-levels have been driven into Specimen Hill ground, from which 2,265 tons of quartz have been taken, yielding 1,1050z. of gold, representing a value of about £4,223. There are two lines of reef running into this property, one of which contains a percentage of antimony, and in the other, the stone is almost free from base minerals. But although a large amount of work has been done in this ground, the workings have been principally confined to the upper levels, where the country is greatly disturbed ; the lodes are broken and intermixed with mullock, and are lying very flat? All the indications show that no solid lode will be found near the surface in this c'aim. The large quantity of rich specimen-stone found on the surface clearly indicates that they have come from some lode not yet discovered, and being on the same line of reef where very rich auriferous stone has been worked—striking in a northward direction —there are good reasons to believe that rich stone will yet be found in this ground at a considerable depth from the surface. The character of the lodes in Specimen Hill shows signs of being tilted over since their formation, but this disturbed ground is not likely to be met with in deeper levels. It may be stated that this claim is the highest on the range, being 2,535 ft. above the level of the sea. A low-level adit was commenced many years ago from Little Boatman's Creek to prospect different claims in this locality, which is constructed for a distance of 2,500 ft., but it requires to be extended for about another 400 ft. to cut the lodes that have been worked on upper levels in this ground. This would cut the lodes at about 600 ft. under the old workings. The strata at the far end of this adit is lying far more uniform and regular, indicating that a solid country will be met with, but even this depth may not prove sufficient to strike the best lodes that should run through the ground. There are large areas of coal close to the mouth of the low-level adit, which will enable steam machinery to be used very cheaply for winding, air-compressing, or for quartz-crushing, while sufficient water can be obtained from Boatman's Creek to produce 60 horse-power at the site where the late Specimen Hill Company's crushing plant was erected. Welcome. This is a special claim of 68 acres, and includes the ground formerly held by the Homeward Bound, Eureka, and Welcome Extended Companies. The portion of the ground held previously by the Welcome Extended Company has so far proved to be the richest in this district —27,092 tons of stone were crushed which yielded 64,6140z. of gold, representing a value of £251,020, out of which £110,250 was paid in dividends. This shows the average value of the stone taken out of this ground to be £9 ss. 3d. per ton. The lode is worked in the Welcome ground for a length of 675 ft., and in this distance there were three breaks of 15ft., 25ft., and 45ft. in length respectively, dividing the lode into three distinct blocks. Two of these breaks were found on all the levels at the same angle as the strike of the lode going northwards. The average thickness of the lode was about 2ft. 6in. The lode was first struck in the Welcome about 100 ft. below the surface, and after going through the ground to the boundary of the Homeward Bound claim it was at about I,oooft. lower level. The workings were carried on from nine levels, six of which were adits, constructed from the face of the range, and, as No. 6 level was the lowest that any adit could be constructed, a shaft was sunk in this level at about 2,700 ft. in from its mouth. This shaft was sunk to a depth of 450 ft., and three levels opened from it. A large chamber was constructed alongside the shaft in which steam winding-machinery was erected to haul the stone from the lower workings; but either through carelessness or otherwise a fire occurred in this chamber and destroyed all the machinery, and the timbering of the mine at this place being burnt, it completely closed all communication in this direction. The late Eureka Company constructed an inclined adit opposite the Welcome ground on the east side. This adit was carried down on an inclination of 1 in 3 for a distance of 1,800 ft., and from the end of this incline a level was constructed for a distance of 800 f t ,, which brought it near the boundary of the Welcome ground. A monkey-shaft was sunk at this place to a depth of about 230 ft., and a drive taken from the bottom of this shaft, running parallel with the Welcome boundary for a distance of 586 ft. in a northerly direction. Two cross-cuts were constructed to the westward

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—one at the end of the drive for a distance of 60ft., and another one at a point 50ft. nearer the shaft for 138 ft. A cross-cut was also put in from the end of the drive in an easterly direction for a distance of 56ft., but in none of these was any stone found. The western cross-cuts would be something like 215 ft. below the lowest working in the Welcome ground. The whole of the prospecting-works carried on from the monkey-shaft referred to was in a barren country, and shows that a break or dislocation has taken place. But at deeper levels another block of stone is likely to be found. The lodes occur in this district in shoots and ledges, the same as in many other countries, having blanks between them; and prospecting would be more likely to meet with success in the Homeward Bound ground, near the southern boundary, by continuing on the line of the lode worked on No. 9 level in the Welcome ground. To strike another block of stone below the block already taken out, the character of the country-rock at the bottom of the monkey-shaft shows that a greater depth will have to be reached before stone is likely to be found, but by following on the same line of the lode in a northerly direction there is a likelihood of good stone being found running through the Homeward Bound into the Cadman Special Claim. To open out this ground and carry on systematic operations will require a considerable capital; but the fact that there is scarcely any water to contend with will permit works being proceeded with expeditiously, and where stone of such richness has been worked on the upper levels, that is sufficient inducement to carry on operations at a greater depth. Many cases can be cited to bear out this in other countries besides New Zealand; and it may be well to mention that at Sandhurst, in Victoria, in Mr. George Landsell's 180 ft. shaft, the lode cut out at 750 ft., and another 750 ft. of barren ground had to be gone through before another lode was struck. There is no doubt but that good stone will be again found in the Welcome if mining operations are carried on in an intelligent manner. From the Homeward Bound ground 62 tons of stone was crushed, which yielded 2130z. gold, representing a value of £860. This was taken from the continuation of the Welcome lode, and shows that the ground should be opened out so as to allow this line of lode to be followed. The present company, however, has not sufficient capital to undertake any extensive operations to open up the mine in a proper manner. Fiery Cross. This is a special claim of 61 acres, and includes ground formerly held by the Alexandra, Hopeful Extended, and Fiery Cross Extended Companies, who have taken out about 40,983 tons of stone, which yielded 51,773-Joz. gold, representing a value of £202,189, out of which £72,693 have been paid in dividends, thus showing the average value of the ore to be about £4 18s. 7d. per ton. The lode in this claim, as far as at present known, appears to be a continuation on the same line as that worked in the Welcome ground ; but, as there is a considerable distance between the workings of the two mines, it has not been proved whether this is the same lode or a parallel one. There are, however, doubts regarding this being the same lode, as the character of the country-rock is entirely different in the Fiery ground to that in the Welcome. Although a great deal of work has been done in the Fiery ground the operations have been chiefly confined to opening up the lode and stoping it out. Comparatively little cross-cutting has ever been done to ascertain whether there is another lode parallel with the one worked going through the ground or not. In the Just-in-Time ground, which adjoins the southern boundary of the Fiery, there are three distinct lodes, but sufficient cross-cutting has not been done in the Fiery ground to prove whether these lodes continue in a northerly direction. The workings have been on what is termed the north and south blocks of stone, which have about 800 ft. of blank ground between them. Both of the blocks strike at a high angle northwards, and have been worked down to a depth of about 800 ft. below the surface. The lode was first discovered on the surface, and the first workings were carried on from an adit-level. Afterwards a shaft was sunk to a depth of 450 ft., and the stone taken out from this down to that depth, but as the blocks were striking at a high angle to the northwards an incline shaft was constructed from the 450 ft. level and the lode partially taken out. This incline shaft is sunk to a depth of 350 ft., or to No. 6 level, where there is stone left underfoot, and also in the face of the level going northwards. There is comparatively no water in the ground at the deep levels; the only water in the workings comes from the surface, which can be dammed back with very little expense. There is a good deal of stone left in the blocks that have been partially stoped, which has been left from time to time as being of too low grade to give sufficient returns for working, and there is a probability of other blocks of stone being found on the upper levels if the ground were prospected. Seddon. This is a special claim of 100 acres, and includes ground formerly belonging to the Just-in-Time, Eldorado, Imperial, Beform, South Hopeful, Walhalla Extended, and Boatman's Creek Companies. These companies crushed 15,015 tons of stone, which yielded 17,5950z. of gold, representing a value of £68,398, out of which £15,666 was paid in dividends; the average value of the ore crushed is therefore £4 9s. 9d. per ton. There are three distinct lines of reef running through this ground. The Just-in-Time opened out from an adit-level near the surface on the western lode, and took out 308 tons of stone, which yielded gold to the value of £6,285, equal to about £20 Bs. per ton. After taking out this stone they laid out a low-level adit to work this lode, but before commencing its construction another lode was discovered about 300 ft. further to the eastward, and all the mining operations have been entirely confined to this eastern lode ever since. Two adit-levels were constructed and the stone from this lode stoped out from these levels.

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After stoping out the stone from the adit levels on the eastern lode the Just-in-Time, Imperial, and Reform Companies arranged to sink a shaft conjointly on the boundary of their respective claims. This shaft is down to a depth of 200 ft., and on opening out from the bottom of the shaft another lode, known as Thomson's, was cut at about 90ft. further to the eastward than the eastern lode, where some good stone was obtained. An uprise was made by the Just-in-Time Company to strike the bottom of a winze which had previously been sunk in the lowest adit-level, and workings were carried on from this towards their northern boundary. A cross-cut was commenced to the westward, to cut the western lode, for a distance of 90ft., but it required to be carried for a further distance of 210 ft. before it would cut this lode. It is likely that a large quantity of stone will be got out of this ground at comparatively shallow depths, and the western lode being left intact below the adit-level, there is a high probability of rich stone being obtained from this lode when a lower level is constructed. A reversible overshot water-wheel is erected at the shaft, with poppet-heads and winding-gear, so that with very little outlay the cross-cut already commenced in a westerly direction can be extended to cut the western lode at least 400 ft. under the old workings. The mines in Boatman's district are well situated for timber and coal. The whole of the country in close proximity to the mines is covered with timber suitable for mining purposes, and water can be obtained from Boatman's main creek capable of producing considerable motive-power, while large coal areas exist within a mile of the workings, with dray-roads for transit, makes the cost of working steam machinery comparatively small. Muebay Creek. Golden Fleece. This is a special claim of 66 acres, including the ground formerly held by the Ajax and Golden Fleece Companies. At the present time the mine is let to a party of six tributers. There has been 33,437 tons of stone crushed from this claim, which yielded 38,7580z of gold, representing a value of £150;285,' thus showing the average value of the stone to be about £4 10s. per ton ; while dividends have been paid to the shareholders to the extent of £57,504. The mine is situated about 1,900 ft. above sea-level. The workings are carried on from a shaft, which has been sunk to a depth of 640 ft., and the lode has been worked in blocks here and there for a length of about 1,000 ft., that is about 700 ft. to the north of the shaft and 300 ft. towards the south. There is a very large body of stone intact in this mine. At the place where the tributers are working they have 300 ft. of the lode intact for a height of about 500 ft. from this level to the surface. This lode is from 2ft. to 2ft. 6in. in width, with the foot- and hanging-wall extremely well denned, and underlying to the west at almost a uniform angle of about 72 degrees from the horizon. The lode is far more clearly defined than in any other mine in the district, and gives indications that it will live down to a considerable depth. On the northern workings a slide was met with which cut the lode out. Very rich stone was obtained on the southern side of this slide, and, judging from its character, an angle that it made with the horizon, a considerable displacement has taken place downwards to the north, which will not only throw down the lode, but is likely to shift it a considerable distance to the westward. The place where prospecting operations should be carried on, with a view of striking the lode to the northwards of this slide, is from the lowest level and cross-cutting to the westward. There is a high probability of this rich stone being again found in this direction. The stone contains a good deal of pyrites, which is very rich in gold. 1 ton 1-Jcwt. of blanketings was forwarded to the Clyde Smelting and Chlorination Works near Granville, New South Wales, and from the returns that came back in January last it contained over 6oz. 4dwt. of gold, and by the treatment it yielded soz. 18dwt., having a value of £23 12s. The smelting and other charges came to about £4 75., leaving a net profit of £19 ss. The battery returns of gold from the stone that the tributers are crushing gives an average yield of about Bdwt. per ton, while the tailings from the battery that is running to waste gives an assay of lOdwt. per ton, thus showing that only about 40 per cent, of the gold is being extracted. A low-level adit is being constructed from Black's Point to come into this ground. This adit, when completed to the Golden Fleece shaft, will cut the lode about 600 ft. below the lowest workings, and greatly enhance the value of this property, as it will not only open up this mine at greater depths, but it will also be a highway whereby all the quartz can be taken at a minimum cost to a good site where a large crushing battery can be erected, alongside the main road from Eeefton to Crushington, with all the modern appliances for saving gold. This is the place where all the crushing machinery will have to be placed to crush the whole of the quartz from the Royal, Venus, Golden Treasure, Salisbury, and other claims on this range. Lillie. This is a special claim of 50 acres, adjoining the Inangahua Low Level Tunnel reserve to the north, the Golden Treasure to the east, and is bounded by the Beaconsfield on the west. It includes ground formerly held in claims known as the Perseverance, Republic, and Adonis. The only record of gold-returns from this ground is from the Perseverance Claim, where 57 tons of stone yielded 19oz. gold, representing a value of £74. Very little can be said respecting this ground. There are lodes running through the claim, but very little prospecting was ever carried on; the only work done was in the early days of the field.

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Royal.

This is a claim of 21 acres on the line of the Golden Fleece reef. It is at the present time worked by a party of four tributers from an adit-level going into the range for a distance of 1,300 ft. The workings on the lode are carried to within about 18ft. of the boundary of the Golden Fleece, while the workings in the Golden Fleece ground are within 95ft. of the boundary, thus showing that there is only about 113 ft. between the workings of these claims, the lowest adit-level in the Eoyal being about the same level as the No. 4 level in the Golden Fleece ground. The lode is, however, more broken, and not so well denned as it is in the Golden Fleece. The total quantity of quartz crushed from this claim up to the 31st August last has been 918 tons, which yielded 775J0z. gold, representing a value of £3,124, thus making the average value of the stone crushed to be about £3 Bs. per ton. Inangahua Low Level. This comprises two special claims, one of which is known as the Venus, and the other the Inangahua Low Level Claim, having an aggregate area of 134 acres. The total quantity of quartz crushed from this ground has so far been confined to an area of about 32 acres held by the Venus Company, amounting to 10,713 tons, yielding 6,9140z. gold, representing a value of £26,843, which shows the average value of the stone crushed to be about £2 10s. per ton. Dividends have been paid by this company to the extent of £3,300. A scheme was projected some twelve years ago to construct a low-level tunnel through the hill from Black's Point to the Waitahu Eiver; the line was laid off, which was over two miles in length. This tunnel was to go near the Golden Fleece shaft, and a connection made with it, so as to secure ventilation. A commencement was made to construct this tunnel from the Black's Point end, and a subsidy of £1 was given by the Government for every £1 contributed by the company who undertook its construction. The tunnel is now constructed for a distance of about 2,900 ft., still leaving a distance of about 2,300 ft. to get to the Golden Fleece shaft. This shaft would, have to be sunk an additional 600 ft. to get a connection with this tunnel. All operations have been suspended for many years in the tunnel, but recently a company has been 'formed and purchased the Venus Company's property, and also the right of the Inangahua Low Level Company's rights and special claim, with a view of extending the tunnel to work the lodes going through the Venus, Eoyal, and Golden Fleece ground. This tunnel can only be carried on from one end, and therefore its rate of progress depends on what can be driven from one face. If compressed-air rock-drills are used the distance to the Golden Fleece shaft should be driven in about twelve months. This tunnel will greatly enhance the value of the whole of the mining properties on the range between Black's Point and the Waitahu Eiver, as it will not only be the means of opening up the ground in the different claims at deep levels, but it will also be a main highway, where the whole of the quartz from the different claims can be taken to for treatment. At this place there is a good site for the erection of a large crushing battery, with all the most modern appliances. Salisbury. This is a special claim of 100 acres, and includes ground formerly held in mining leases, known as Anderson's, United Devonshire, and Invincible. The only work done in this ground was in the early days of the fields, when 7,355 tons of stone was crushed, which yielded 6,0200z. gold, representing a value of £23,328, of which £1,525 was paid in dividends. The average value of the stone crushed was about £3 3s. per ton. There are two lines of reef running through this ground, the one to the eastward being Anderson's line, and the one to the westward the Invincible line. Each party first drove an independent level, but those levels were constructed in such a serpentine course that it is hard now to say whether they were carried on the line of lode or not. The Anderson's and Invincible Companies combined, and constructed a lower adit-level between them; this adit is about 600 ft. in length, and at about 278 ft. lower level than where the first drive was put into the Invincible ground. A winze was sunk from the lowest adit-level to a depth of about 100 ft., but the lode cut out in the bottom of this winze, and no effort was made to look for it at deeper levels. The country rock here is favourable for the existence of lodes, but, all working being suspended many years ago, nothing has been done to prospect the ground. Some of the men working in the ground in the early days have a firm belief that there is a good lode of stone to the westward of the Invincible line, but no cross-cutting has been done in this direction. This ground can be prospected at considerably lower levels, by a cross-cut in a westerly direction from the Inangahua Low Level Tunnel, but, from all that can be learned about the reefs worked in this ground, a large amount of prospecting work will have to be done before the value of this property can be ascertained. Energy and Undaunted. These are two separate claims on the same line of country, and comprise an area of 54 acres. These claims include the ground formerly held by the Energetic and Dauntless Companies. A large amount of work has been done in this ground ; 64,246 tons of stone has been crushed, yielding 33,230J0z. gold, representing a value of £128,951, out of which dividends were paid to the extent of £21,900. The workings were carried on from an adit-level for the first 150 ft., and a shaft was theu sunk and to a depth of 350 ft., being 200 ft. below the adit-I'evel. There are two lines of reef running through the ground. These reefs were about 100 ft. apart near the boundary of the Wealth of Nations, but converged as they went north. The eastern lode cut out at the adit-level, but very little prospecting was ever done to see whether it existed at deeper levels. This lode above the adit-ievel was from sft. to 6ft. in thickness.

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The west lode was 20ft. in thickness for a length of about 100 ft., when it branched in two divisions going to the southward, but still carrying a fair amount of gold. At the No. 5 level, which was carried from the bottom of the shaft, a dislocation occurred similar to that found in the adjoining claim, the Wealth of Nations, on the southern boundary, and very little work was done to ascertain the nature of this dislocation beyond sinking a winze about 59ft. under this level and driving a cross-cut on each side—namely, 50ft. to the eastward and 30ft. to the westward. There is a considerable quantity of stone still left in this mine below the adit-level, which will pay to work. A large lode was left in the face by the Wealth of Nations Company going into this ground at the boundary, and from the recent developments in that company's ground there is every likelihood of good stone being again found if the shaft were sunk to a deeper level. The present workings in the Wealth of Nations is about 575 ft. below the deepest workings in the Energy, and the character of the ground passed through shows clearly that a large dislocation has taken place, which indicates that the Energy will have the same character of ground for a certain depth below the bottom of the shaft. The average value of the stone crushed from the Energy ground has been about £2 per ton, but when the crushing plant used and appliances for saving gold is taken into consideration there is good reason to believe that not more than 50 per cent, of the gold in the stone was recovered. The property is likely to become one of considerable value when it is properly opened out on deeper levels. Wealth of Nations. This is a special claim of 64 acres, and includes the ground formerly held in mining leases known as the Independent, Vulcan, and Wealth of Nations Extended, from which 62,096 tons of stone was crushed, yielding 34,7390z. gold, representing a value of £134,981, thus showing the average value of the stone crushed to be about £2 3s. per ton; while the amount of dividends paid was £36,312. The ground was worked from adit-levels from the top of the hill down to the battery-level. Some very good stone was found near the surface, but a dislocation took place on the same level as where it occurred-in the Energy Claim, on the northern boundary. An adit-level was constructed on the same level as the crushing battery. This was carried into the hill for a distance of 800 ft. to the line of the reef, and thence driven a further distance of 800 ft., making a total length of 1,600 ft. This level was constructed through barren ground ; a cliamber was constructed at 800 ft. from the mouth of the adit-level, and a shaft sunk at this place to a depth of 200 ft., and another level constructed for a distance of 960 ft., near the end of which a block of stone was struck, and went up for 50ft. above the 200 ft. level. The same block of stone was followed down to the 350 ft. level, when the dip or inclination of the block changed entirely, and went away at an opposite angle. A monkey shaft has been sunk in the 200 ft. level at a point about 500 ft. distant from the main shaft, and it is from this monkey shaft that the present workings are carried on. A level was driven from this shaft at 150 ft. under No. 2 level, and from this a winze was sunk on the lode, which proved to be 15ft. in thickness, and averaging about from 7dwt. to Bdwt. of gold per ton. The monkey shaft has since been sunk to a depth of 300 ft., and a level constructed at this depth. A commencement has been made to slope out the lode. At the lowest level the lode is from Bft. to 10ft. in width, but its length has not yet been determined. The lowest level in this mine is about 360 ft. above the deepest level in the adjoining claim— the Keep It Dark, where very good stone is now being worked. There is now a reasonable prospect of this mine being again placed on the list as a dividend-paying one. The company has a crushing plant consisting of twenty heads of stamps of the very old type, eight berdans, with the ordinary quicksilver and blanket-tables, which is driven by an over-shot water-wheel 50ft. in diameter. Attached to the crushing plant is a sawmill. There is also a reversible overshot water-wheel, 30ft. in diameter, used for winding purposes. It may be mentioned this is one of the few mines in the district that save the tailings, which have hitherto been treated in berdans, but this process does not extract anything like a fair percentage of the gold the tailings contain. Keep It Dark. This is a special claim of 57 acres, which has been held by the Keep It Dark Company since it was first taken up in the beginning of 1874. There has been 114,979 tons of stone crushed from this ground, which has yielded 60,8340z. of gold, representing a value of £236,958. Of this amount, £109,583 have been paid, in dividends, while only £6,208 have been made in calls. The average value of the stone crushed amounts to about £2-1 per ton. This is the deepest quartz workings in the Eeefton district. The lode running through this ground formed almost a right angle, one of the ends being about north and south, and the other nearly east and west. This lode was carried down to a depth of 500 ft., when it got greatly broken up. In some places in the upper levels it was about 400 ft. in length, having a maximum width of about 20ft. Below the 500 ft. level the lode became disturbed and broken, with isolated blocks of stone, which was of low grade ; but after going through about 250 ft. in depth a new lode was struck about 15ft. in thickness, which is averaging from lldwt. to 12dwt. of gold per ton. The main shaft is sunk to a depth of 503 ft., and the lowest level from the main shaft is opened out at about 490 ft. A monkey shaft was sunk in this level at a distance of 522 ft. from the main shaft to a depth of 375 ft., and from the bottom of this shaft a level has recently been constructed to work the new block of stone, which is 190 ft. distant to the westward, the depth of this level being about 1,090 ft. below the surface of the ground, or 860 ft. below the top of the main shaft which makes the workings about 200 ft. under sea-level, and at this depth there is no water in the ground. The upper workings are carried on from adit-levels to the height of 230 ft. above the level of the mouth of the main shaft.

9

Q,*=3ff.

The length of the new block of stone has not yet been proved, but it is known to be at least 70ft. in length, and to go up above the 860 ft. level for a distance of 100 ft. This new block has an easterly and westerly direction, having a branch in the centre going in a northerly direction. The country rock at this depth is far more favourable -for the existence of auriferous lodes than it was for 200 ft. below the 500 ft. level, and, seeing that this is in a belt of country where large auriferous lodes have been worked, there is every likelihood of a considerable quantity of gold being again obtained from this ground. The company has a crushing plant of twenty heads of stamps Bcwt. each, and three berdans, which are driven by two Pelton water-wheels 6ft. in diameter, working under a head of 28ft. A water-race is constructed to the Inangahua Biver for a distance of 1J miles, which has a carryingcapacity of about 20 cubic feet per second. The crushing battery has the ordinary quicksilver and blanket-tables for saving the gold, and the whole of the tailings from the stone crushed from the mine has been allowed to run into the Inangahua Eiver, and has been carried away with the stream. Gladstone. This is a special claim of 100 acres, and includes the ground formerly held in mining leases known as the Golden Bell, Eclipse, and Prince of Wales. Very little is known regarding this ground, as no prospecting has been done. Mr. T. Watson, manager of the Wealth of Nations Company, which is the adjoining claim, is, however, of opinion that there is a good run of stone going through this claim. The recent developments at deeper levels than hitherto worked gives a great incentive to carrying on prospecting operations, as it adjoins the western boundary of the Wealth of Nations, Energy, and Undaunted Claims. Beaconsfield. This is also a special claim, comprising an area of 100 acres, and includes the ground formerly held in mining leases known as the Bannockburn, Victory, Wellington, Band of Hope, and portion of the Formosa. This ground adjoins the eastern boundary of the Undaunted, Energy, Keep It Dark, and Wealth of Nations, and the northern corner of the Hercules. It is, therefore, favourably situated for auriferous lodes to be found. There are lodes running through the ground on which a little prospecting was done in the early days of the field, but no work has been carried on for many years. There were 1,545 tons of quartz crushed from the Victory and Band of Hope ground, which yielded 9300z. of gold, representing a value of £3,603. Of this amount, £400 was paid in dividends. As the Wealth of Nations, Keep It Dark, and Hercules Companies are all working lodes of a payable character, and also as a large quantity of gold was obtained from the Energy ground, it is reasonable to believe that payable lodes will be found in the Beaconsfield. It may be looked on as ground that is worth expending money to prospect with a fair chance of success. Very little work has, however, been done, with the exception of surface-work and working a lode at shallow levels in the Victory ground. Hercules. This is a special claim of 33 acres, and includes the ground formerly held by the Golden Ledge and Nil Desperandum Companies. There has been 9,335 tons of quartz crushed from this claim, which has yielded B,olooz. of gold, representing a value of £31,453 ; of this amount, £5,288 has been paid in dividends. From the Ist April of the present year to the 31st August last, 1,646 tons of stone has been crushed, which yielded 821oz. of gold, representing a value of £3,275, out of which £600 has been paid in dividends. This ground was worked for many years with poor results, from the surface downwards, by three adit-levels, and from the third adit-level a shaft was sunk for a distance of 420 ft., and a large amount of work done for very little gold. The shaft was then sunk to a depth of 560 ft., and the lode cut at this level, which gave good results for working, with rich auriferous stone underfoot in the level. Eecently a commencement has been made to sink a winze on the lode from the bottom level, which is carrying good stone as far as the sinking has proceeded. This shoot of gold-bearing stone is similar in character to that worked in the No. 2 Keep It Dark. It appears to be the same lode, but if so a displacement has taken place, and thrown it considerably to the westward. This, however, has not yet been definitely proved. Devil's Ceebk. Globe. This is a special claim of 53 acres, and three mining leases comprising an area of 35 acres, making an aggregate area of 88 acres, including ground formerly held by the Union Company. The Globe Company was formed in 1882, and since then the following statement will show the result of the workings: — 2—C. 3c.

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Taking this company's balance-sheet for the year ending the 30th May last, it shows that 72,340 tons of stone had been raised from the mine and crushed, and that the total expenditure in connection with the mine and crushing battery was as follows : — & s. d. £ a. d. ■ Mine and battery expenditure (13 years) ... 88,810 15 5= 1 4 6 - 6 per ton. Bent and taxes... ... ... ... 2,6571910 = 0 0 8-8 Office-expenses... ... ... ... 4,162 6 1 = 0 1 18 Total ... ... ...95,631 14 = 16 5-2 per ton. For the first four years the company expended nearly £15,000 of its capital without having got any return. A considerable amount of work was done, and gold obtained to the value of £11,543, but this was not sufficient to cover the expense of workings. Mining operations were therefore suspended for a considerable time, and prospecting carried on at the surface, where an outcrop of auriferous stone was found to the west of the ground formerly held in mining leases. A parcel of about 86 tons of stone from this outcrop yielded 1750z. gold. This discovery led to the special claim being taken up, and the workings confined for a time to this portion of the property. Workings were at first carried on from adit-levels, but after the discovery of the new lode a shaft was sunk, which is now down to a depth of 835 ft., and six levels have been opened out from the shaft. The line of lode has been traced for nearly 3,000 ft. in length, having several blocks of stone varying in length from 142 ft. to nearly 300 ft. At No. 1 level, which is 160 ft. below the surface, the block of stone was 179 ft. in length, having an average thickness of about 12ft., which has been taken out to the surface. This is termed " the Middle Block." On extending the level 150 ft. to the eastward, another block of stone was discovered, which proved to be 200 ft. in length, having an. average thickness of 6ft. This is only partially taken out. On the No. 2 level, which is 285 ft. below the surface, the middle block of stone was 182 ft. in length, having an average width of 12ft., the whole of which has been taken out. This level was extended for a distance of about 500 ft. in a westerly direction, when it cut what is termed the Dam Block, which was 180 ft. in length, having an average width of 12ft. This has also been taken out to the surface. This lode was underlaying into the Progress, which is the adjoining claim, and work on it was accordingly discontinued. The No. 3 level is 385 ft. below the surface, and the Middle Block is worked from this level to the one above. It was 184 ft. in length at this depth, and still retained an average width of 12ft. This level was extended to the East Block, but only a small portion of it was worked. At the No. 4 level, which is 510 ft. below the surface, the Middle Block was 142 ft. in length, still retaining its average width of 12ft., and the whole of the stone taken out. There has not been any work done on any other block of stone at this level. The No. 5. level is 635 ft. below the surface from which the whole of the Middle Block has been taken out, it being at this depth 148 ft. in length, having an average thickness of 10ft. On extending this level for a distance of 50ft. in an eastward direction another lode was cut, and this has now been driven on for a distance of 40ft., having a width of 10ft. in the face. Its length has not yet been determined, neither is it known what distance it will go upwards. At the No. 6 level, which is 835 ft. below the surface, the first block of stone is 180 ft. in length, when it went into the Progress ground, having an average width of 15ft. In extending the level in an easterly direction, the lode referred to in No. 5 level as being newly discovered was cut at 16ft. distant from the east end of the other block, which has an average width of 6ft.; but the length of this block has not yet been determined. It has been driven for a distance of 120 ft., and at this level stone still continues in the face. A winze has been commenced from this level on the large block of stone, which shows gold as it goes down, but the sinking here has recently been discontinued owing to the company having placed the mine under offer to Mr. D. Ziman to purchase.

Date and Year ending Tons of Quartz crushed. Yield of Gold. Value. Value per Ton. Dividends paid. Half-year, Nov., 1883 ... 30th May, 1884 1885 1886 1887 1888 1889 1890 1891 1892 1893 1894 1895 31st August, 1895 Tons. 1,160 4,750 4,000 606 1,556 6,530 8,295 8,242 7,439 9,800 9,292 6,135 4,535 1,098 Oz. dwt>. gr. 341 2 0 1,430 15 0 1,022 7 0 180 6 9 1,185 17 12 4,831 16 0 4,084 9 18 4,699 12 12 4,458 9 9 5,050 12 12 3,434 18 9 1,965 3 8 1,411 2 18 751 7 13 £ s. d. 1,334 11 0 5,582 0 7 3,963 6 5 663 10 5 4,679 10 2 19,055 17 6 16,134 14 10 18,532 12 3 17,652 12 0 20,472 13 0 13,857 17 1 7,914 11 10 5,721 18 0 2,717 4 11 £ s. d. 13 0 13 6 0 19 10 1 1 10 3 0 1 2 18 4 1 18 10 2 4 11 ■275 2 19 1 9 10 1 5 10 15 2 2 9 0 £ 11,250 3,600 4,950 10,350 8,100 1,800 Total ... 73,438 34,848 0 0 138,283 0 0 1 17 8 40,050

11

C—3g

This mine is situated at about 1,869 ft. above sea-level, and, although the shaft is already a great depth, there is very little water in the ground. The water, being hauled with tanks, does not exceed 1,080 gallons in twenty-four hours—about 45 gallons of water per hour—which is lifted with the winding-engine at slack time, when no quartz is being sent up. This company has a crushing plant erected at the foot of the range, facing the Inangahua Eiver, at a distance of about 97 chains from the mine, which is connected by an aerial tramway capable of transmitting about 50 tons of quartz in eight hours. The crushing battery consists of twenty heads of stamps 7|cwt. each, with two berdans, one Watson-Denny pan, and six Triumph concentrators. These are driven by a turbine water-wheel, the water being brought in an open conduit from the Inangahua Eiver for a distance of about If miles. This water-race gives a head when the turbine is erected of about 40ft. The crushing plant is one of the old type of crushing batteries, having the ordinary quicksilver and blanket tables ; but nothing like a fair percentage of the gold is extracted, and no steps appear to be yet taken to stop this waste of gold. Mill-proprietors are content to still adhere to the old system of saving gold, in the happy belief that their appliances for the extraction of the precious metals are all that can be desired, and that they have little to learn in this respect. The company are, however, saving the tailings, which now amount to at least 50,000 tons, and when these tailings come to be properly treated it will be found that a large loss in gold has been made in the first instance; besides, a portion of the gold is carried away with the muddy water from the tables, and conveyed by the stream beyond recovery. With regard to the value of the ore in the Globe Mine, Mr. P. Q. Gaples recently took samples promiscuously from the face of the lodes, and had them assayed at the School of Mines at Beefton, with the following results : — Oz. dwt. gr. (1.) Quartz from Bast Block, No. 5 level ... ... 0 17 15 gold per ton. (2.) Quartz from winze, East Block, No. 5 level ... 1 15 22 „ (3.) Quartz from Middle Block, No. 6 level ... 1 13 23 . (4.) Quartz from Middle Block, No. 6 level ... 1 12 0 These samples were taken at haphazard across the face, but still these assays cannot be taken as the average value of the lode. Merely taking a few samples in this manner gives little idea what the whole of the lode will average. If the ore were all pulverised and mixed, and assays made, the average value would be ascertained. Progress. This is a special claim of 90 acres, and includes ground formerly held by the Oriental Company and a claim known as the Jupiter. This ground adjoins the western boundary of the Globe special claim, the Globe Company's shaft being about 130 ft. east of the Progress boundary. There has been 58,714 tons of quartz crushed from this ground, which yielded 27,0600z. gold, representing a value of £108,310, of which dividends have been paid to the extent of £19,200. There are two lines of reefs in this ground, one having an easterly and westerly direction, which goes into the Globe, and one running in a northerly and southerly direction. The upper workings were carried on from adit-levels, and the present workings are carried on from a shaft, ■which is sunk at a point about 1,650 ft. in from the mouth of the No. 2 level. This shaft is sunk to a depth of 450 ft. The No. 1 level cuts the eastern and western lode about 130 ft. below the surface, and this level was carried to the Globe boundary. The lode in this level was about 20ft. in width, but its length was never determined, as stone was left in the faces at both ends, and it is only partially worked overhead, as the stone at that time was considered to be of two low grade. The north and south block was worked from an intermediate level above No. 1 to the surface, averaging about 7ft. in thickness. 1,000 tons was crushed from this block, which gave an average yield of 14dwt. of gold per ton, but it was not cut in No. 1 level. The No. 2 level is the deepest adit-level that can be constructed, and is 270 ft. under the surface where the east and west lode was cut. This level cut the lode at 1,470 ft. in from its mouth, where it was 32ft. in thickness. There are four distinct blocks on this line of reef—namely, the Dam, Black's, Adam's, and Smith's blocks. From No. Ito No. 2 level a large amount of work has been done on Smith's block, which is the most westerly one, but the whole of this stone has not been taken out, as it was considered of too low grade. The north and south lode was never cut in this level. The No. 3 level is 400 ft. below the surface, but very little work was done on the level. There was a great thickness of lode, but the stone was considered of too low grade, although it averaged Bfdwt. of gold per ton. Three distinct blocks of stone were cut in this level, having an aggregate length of 300 ft. It may seem strange that such a large lode as that opened up in this level would not pay for working when it gave an average of 8-Jdwt. of gold per ton. In the report submitted by the directors to the annual meeting of shareholders, dated 28th July, 1893, they state " that 4,130 tons of stone was crashed, which yielded 1,7610z. gold, equal to SJdwt. per ton, and the stone was so poor that the directors did not feel justified in working worthless quartz, and left thousands of tons behind." All that can be said with reference to this is, that if this large body of stone was crushed and treated in an intelligent manner there would be a considerable increase in the yield of gold, and leave a large profit to the shareholders. The No. 4 level is 550 ft. below the surface, where there are three distinct blocks of stone on the east and west line of reef. Two of these came all the way down from No. 3 level, and one was found in the foot-wall about midway between No. 3 and No. 4 levels, having a width of about 2ft. 6in., when cut and widened out to 3ft, showing gold freely. The whole of the blocks on this level are not yet taken out.

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The No. 5 level is carried from the bottom of the shaft, and is about 700 ft. below the level of the surface. The lode here varies from 4ft. to 40ft. in width, and would average about 25ft. thick for 118 ft. long. The stone underfoot in this level appears to be of better quality than that worked above this. A winze has been sunk on the lode from this level to a depth of about 100 ft., carrying good gold in the stone for this distance. There has been no working on the line of this reef at this level within 600 ft. of the Globe boundary. From all the information supplied me, the No. 5 level in the Progress is about 65ft. lower than the deepest working in the Globe. This ground is easily worked, and the cost of mining should be very small when the size of the lodes are taken into consideration, and the fact that only about 560 gallons of water have to be lifted per week. The following statement will show the result of the working in this mine from March, 1894, to July of the present year : —

* This leaves a net profit on the working of £4,083 7s. 3d., while £6,600 has been paid away in dividends. This shows that there must be a considerable reserve in hand. There is a great deal of pyrites in the stone, which is very rich in gold. Eecently 10 tons 18cwtof concentrates obtained from the washings of the blankets, after working the concentrates in the berdans, and taking all the gold that could be got. by this process by amalgamation, was sent to Melbourne for treatment. The returns for this showed that the concentrates contained gold to the value of £260, or equal to £23 16s. per ton. As stated in my annual report, the tailings are carried away by the water in Devil's Creek and strewed over its bed, and would now be difficult to recover; but it is certain that there has been in the past, and even at the present time, a very large loss of gold at this company's plant. The crushing plant and winding gear being fully described in my annual report, there is no need to refer to this again. It may, however, be stated that, notwithstanding anything that may be said to the contrary, this company has a valuable property, and from the large waste of gold that is still being made, until such time as a considerable change is made in the method of treating the ore, it is only by having very rich stone that any profit on the working of the mine can be expected. Larnach. This is a special claim of 100 acres, including ground held in mining leases known as the Empress, General Gordon, Heather Bell, Lone Hand, Pioneer, Albion Extended, Surprise, and Great Western. This claim adjoins the southern boundaries of the Globe and Progress. Very little can be said respecting this ground, with the exception that some rich specimen-stone was found on the surface, although very little has yet been got from any record of stone crushed. There was 60 tons of stone crushed from the Heather Bell, which yielded lOoz. gold, representing a value of £39. This claim is on the line of the gold-bearing belt of country, and, as there has not been any prospecting done at any great depth below the surface, there is a fair probability of auriferous lodes being found payable for working. Meeeijig's. Cumberland. This is a special claim of 30 acres, bounded on the north by the Success and Exchange holdings, on the west and south by the Golden Head and Durham Claims. There has been 12,655 tons of stone crushed from this ground, which yielded 11,0960z. of gold, representing a value of £45,420, out of which dividends have been paid to the extent of £13,800. The workings were carried on below the level of the surface to a depth of 230 ft. from three aditlevels. In the lowest of these a shaft was sunk at a point about 580 ft. from the mouth of the adit to a depth of 200 ft., where the present workings are now carried on. The length of the block of stone

Date. Returns. Expenditure. Dividends. 1894. Tons. 425 710 895 720 1,480 495 Oz. dwt. gr. 180 15 6 415 15 0 458 11 12 242 5 6 741 9 5 222 18 8 £ s. d. 732 1 9 1,685 2 3 1,859 2 8 984 3 9 3,011 15 5 905 13 7 £ s. d. 819 3 0 1,690 16 3 1,510 5 9 1,332 15 7 994 2 11 1,019 18 4 851 15 5 382 14 4 f 476 19 4 |l,388 4 1 £ s. d. 10 March 6 April 9 May 6 June 30 July 23 August ... 7 September 10 October ... 7 November 4 December 1895. :;:! 600 0 600 0 *600 0 0 0 0 1,375 783 17 23 3,169 10 11 600 0 600 0 0 0 17 January ... February' March April May 14 June July 760 715 815 374 11 4 380 8 0 374 18 0 319 15 22 337 16 9 308 10 8 1,516 19 2 1,540 12 4 1,518 15 0 1,295 3 6 1,365 7 0 1,243 1 4 165 11 5 1,811 17 6 705 0 0 844 7 5 757 12 1 855 8 10 1,146 9 2 600 0 600 0 600 0 600 0 600 0 600 0 0 0 0 0 0 0 860 875 10,120 5,141 12 7* 20,827 8 8 16,744 1 5 6,600 0 0

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now being worked is from 80ft. to 100 ft., having an average width of about 2ft., the direction of the lode being north-east and south-west. There are three reefs in this ground, one of which dips in a northerly direction towards the Exchange. The average value of the whole of the stone taken from this mine is about £3 11s. Bd. per ton, and the tailings at the crushing plant, which is stacked, contains from 6dwt. to 18dwt. of gold per ton, according to several tests that have been made. This company is at present carrying on prospecting operations, with the view of cutting another block of stone. Big Eivee. Big Biver Company. This company holds a special claim of 38 acres. This claim is situated about six miles in a southerly direction from Merrijig's, and about nineteen miles from the Town of Eeefton. There is a dray-road constructed for fifteen miles, and the remainder is a horse-track, constructed on dray-road grades. There has been 11,255 tons of stone crushed from this claim, which has yielded 17,1500z. gold, representing a value of £68,599, out of which dividends have been paid to the extent of £35,400, thus showing the average value of the stone crushed from this claim to be about £6 2s. 2d. per ton. This present company is a reconstruction of a former company having a similar name. Up to the 31st August last the present company have only paid up its capital to the extent of 6d. per share on 24,000 shares, which is equal to £600, while dividends have been paid to the shareholders to the extent of £34,200. This ground was worked to the surface from No. 1 adit-level, which is 200 ft. under the crown of the hill. A shaft was then sunk, which cut this level at about 670 ft. in from its mouth. This shaft is now sunk down to a depth of 780 ft., and four other levels constructed from it. A good deal of gold was taken out from No. 1 level, but below this for some distance the lodes were greatly broken. In No. 2 level a good block of stone was cut and followed down to No. 3 level, which is 540 ft. below the surface. It is between this level and No. 5 where the present workings are being carried on. A winze has been sunk from the No. 3 level on a large block of stone to a depth of 110 ft., which shows good gold, but at this depth the stone cut out. Wherever stone is got in this mine it is of good quality, but the country already passed through is greatly disturbed. There is a great quantity of stone now in sight, which it is expected will take about fifteen months to work out, and this will produce a large quantity of gold, as the average return for the past fifteen months is equal to nearly 1-Joz. gold to the ton, as the following statement will show :—

This shows a net profit on the workings of £11,523 10s. 10d. The elevation of this mine is about 2,2oCft. above sea-level, and at certain times during the winter months work has to be suspended, as the water for winding and crushing gets frozen up. Hitherto, the winding has been done with a reversible water-wheel; but the company have purchased a portable steam-engine which is in course of transit to the mine, and will shortly be erected to take the place of the water-wheel. A good supply of water can be obtained from the Big Eiver at a high elevation if required to work a large crushing-plant, and if other mines are opened out in this district the site of the present crushing-battery would be well suited for the erection of a central plant. The present water-supply has only a head of 45ft., which would be useless for a large battery; besides, the present plant is erected at too low a level to crush and treat the quartz economically. There is a good tailings-site, and about 8,000 tons of tailings are stacked on the ground, which will pay well for the working, as the tests made show that these tailings contain about lOdwt. of gold to the ton. In concluding my remarks on the Big Eiver district, this is likely to be a place where rich blocks of auriferous stone will be found, but the country being broken and greatly twisted about,

Date. Tons. Returns of Gold. Value. Expenses. Dividends. 1894. Oz. dwt. 401 18 219 17 153 13 gr0 0 0 £ s. d. 1,627 13 10 887 12 10 617 17 0 £ s. d. 579 19 2 558 4 10 925 14 6 549 13 6 443 11 5 175 15 5 347 3 11 350 17 1 511 9 2 £ a. d. 900 0 0 600 0 0 April 12 May 8 June 7 July 6 Aug. 8 Sept. 7 Oct. 6 Nov. 23 Dec. 24 1895. 250 200 160 110 79 11 12 309 12 5 90 220 270 111 0 282 11 436 1 0 12 12 450 7 8 1,139 14 4 1,681 12 8 900 0 0 Feb. 3 March 4 April 6 May 4 June 3 July 7 240 220 563 372 288 575 369 4 506 4 873 15 692 0 415 11 509 0 12 0 0 0 12 0 1,496 17 11 2,050 2 2 3,535 3 4 2,802 12 0 1,684 16 1 2,061 9 0 725 3 5 682 4 0 661 5 2 899 2 9 559 3 7 842 12 6 600 0 0 1,200 0 0 2,400 0 0 2,100 0 0 1,200 0 0 1,200 0 0 3,458 5,050 7 12 20,345 11 3 8,812 0 5 11,100 0 0

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there is far more likelihood of more permanent lodes being found at deeper levels,, and where such rich stone is found as in the Big Eiver Mine, there is no doubt other mines will be opened in this district which will give equally as large returns. Indeed, very little is yet known of the auriferous character of the ground in the district, as, with the exception of the Big River, all the prospecting that has been carried on is near the surface, and unless a slip is found in the side of the ranges, or a lode found cropping out above the surface —it is by mere chance that one is found, as the country is covered with a good depth of peaty soil as well as a dense scrubby bush. Cbushing-plants. Notwithstanding that quartz-crushing has been carried on in the Eeefton district for the last twenty-four years, there has scarcely been any improvement made in plants for the reduction and treatment of auriferous ores. The same old style of mill is seen working to-day as was erected when the field was first opened. A large amount of money has been paid in dividends from the quartz-mines in this district, which was only due to the very rich stone being found, for the method of extracting the gold from the ore has been the means of at least half of it being run to waste, portions of which is strewed on the river beaches and portions carried out to sea, and whatever is left lying about on the surface is practically beyond recovery. Quartz-mining in the future must be carried on more systematically than it has been in the past. More attention will have to be given to the process of extracting the gold from the ore. The principle of every small claim having a small crushing-plant erected in connection with it will have to be abandoned wherever it is practicable to get a cheap means of transit to a large central plant, which will reduce the cost of crushing and insure a far better return of gold; besides, one staff of men can carry on the work, which, in some cases, requires four times the number of men by the present method. In some places, in the Eeefton district, a large central plant could be erected to accommodate a number of mines. As for instance, the Wealth of Nations and Keep It Dark Companies have crushing-plants alongside each other, with two staffs of men, when one staff of equal number would do all the work required if a proper plant was erected under one building ; but even this saving is only small in comparison to what it would be if a proper system was established so as to connect a number of mines to one large central plant. A large plant could be erected in the vicinity of Crushington, which should crush and treat the ore in a far more intelligent manner than is now done at a much less cost, and extract a far higher percentage of the gold. For instance, the whole of the quartz from the mines at Crushington, including the No. 2 Keep It Dark, Hercules, Keep It Dark, Wealth of Nations, Energy, also from the Globe and Progress Mines at Devil's and Oriental Creeks, could be treated more economically at one large plant than by four separate plants as now used at the present time. The great advantage of having a large central plant is that a good metallurgist could be employed as superintendent. The plant would be erected with all the most modern appliances for saving manual labour as well as for the extraction of the gold. The ore would be carefully assayed, and mine-owners would be always in possession of the results of the assay value, so that they could tell whether their ore was being properly treated or not. It is a well-established fact that different classes of ore require different methods of treatment in order to produce the best results, and this requires a man having a good metallurgical training to ascertain the best method to adopt. At the present time there is no option as regards the class of treatment the ore has to go through in the Eeefton district. The stone is hand-fed direct into the stamps, coarse gratings or screens are used, and the pulverised ore has to pass over quicksilver or blanket-tables, and, in most cases, over both ; and if the gold has not been extracted, the amalgamator, or the man in charge of the battery, gets the blame for allowing the gold to run away, whereas he may have taken every precaution; and whatever blame there was rested with the mill-proprietors in not providing a proper means of treatment. Taking the whole of the gold obtained from quartz in the Eeefton district since the field was first opened, which represents a value of about £1,823,927, it may be safely asserted that gold to an equal value has been wasted—that is, lost in the process of extraction, or has been carried away in the streams. There are at the present time sixteen crushing-plants in the Eeefton district, comprising in the aggregate 255 heads of stamps, with a staff of men to each—men who may have been employed for years at this class of work, but, beyond the method used in the district for the recovery of gold by amalgamation, they may have little or no knowledge of any other process, or, possibly, may not even be able to make accurate assays of the ore under treatment to know what percentage of the gold in the ore was recovered. Taking the whole of the quartz crushed in the Eeefton district, and the yield of gold therefrom, it gives an average of 14dwt. 7gr. of gold per ton for the crushing-batteries. Comparing this with the returns given by the Minister of Mines for the Transvaal for the quarter ending 31st of March last, the average value of the quartz crushed at the Johannesburg mills, which are said to be of the most modern type, only gives an average of Bdwt. 15gr. of gold per ton, the gold at both these places being of equal value. The average value of the tailings treated at Johannesburg for the same period was 4dwt. 13gr. of gold per ton. The gold from the tailings, which is extracted by the cyanide process, is said to be only refined up to £3 per ounce. In the North Island milimen are becoming more alive to the great importance of gold-saving, and are much further advanced in that respect than those in the Eeefton district. Miners in that portion of the colony are now paying large dividends that formerly under the old methods adopted barely paid the cost of working. Careful assays are daily made of the ore under treatment at many of the plants, and the percentage of the bullion in the ore accurately ascertained. None of the crushing-plants in the Eeefton district are erected in such a manner that they can be economically worked. They are constructed at too low a level to permit of the ore passing

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through different stages of treatment by gravitation, although the character of the country is specially adapted for the erection of crushing-plants. The slopes of the terraces and hills adjoining the valleys are admirably suitable for the erection of plants. Where the stone taken from the mines can be emptied direct on to a grizzly, and what does not pass through goes down to a rockbreaker, where the ore is reduced to about lin. in diameter and falls into a hopper, which in turn feeds the ore-feeders; and on the lower side of the stamping-battery there should be sufficient elevation to admit of tables, concentrators, vats, and sumps, so that the ore in its different stages of manipulation may pass down from the time it is emptied on to the grizzly until the gold produce is ready for melting. The principal assays in connection with the mines in the Eeefton district are made by Mr. Aitken, instructor of the School of Mines. Many of these assays show that there is a great loss in gold. The following statement shows the results of some of the assays and tests made :—

There is every facility for working the mines and machinery in this district. There is an abundance of mining-timber on all the different claims. There are large areas containing coal of an excellent character for fuel in close proximity to the mines, while an abundant water-supply caD be obtained as a motive-power to work machinery, besides the fact that there is scarcely any water to contend with in working the mines. The fact that no pumping-machinery has ever been required demonstrates fully this statement. The country is well opened up by dray-roads and horse-tracks, and the Township of Eeefton being connected by railway with Greymouth the transit of goods and machinery from a seaport is accomplished at a comparatively low cost. With all these advantages quartz-mining in the Eeefton district, if carried on in an intelligent manner, should be a large field for the profitable investment of capital in mining enterprises. I have, &c, Henry A. Gordon, M.A.Inst.M.E., The Hon. the Minister of Mines. Inspecting Engineer. Approximate Cost of Paper.—Preparation, not given; printing (2,350 copies), £13 13s. 6d.

By Authority : Samuel Costall, Government Printer, Wellington.—1895. Price, 6d.]

Name of Company or Party. Character of Parcel assayed or tested. Quantity tested. Gold per Ton. 1. Progress Company 2. „ 3. „ 4- „ 5- „ 6. „ 7- „ 8. „ 910. . . .„ 11. Globe Company 12. „ 13. „ U. „ 15. „ 16. „ 17. Fiery Cross 18. , 20. Golden Fleece ... 21. Eoyal Fleece ... 22. Wealth of Nations 23. 24. Cumberland 25. 26. „ ... 27. Golden Fleece ..'. 28. United Alpine ... 29. Welcome Tailings, fire assay it it ''' Concentrates from blankets, fire assay a n it it Berdan blanketings, fire assay Tailings, cyanide extraction a a „ „ fire assay a a a Blanketings, fire assay Concentrates „ Berdan blanketing, fire assay Tons. Oz.dwt.gr. 0 12 19 0 9 12 2 16 8 2 2 18 3 6 15 2 16 12 5 4 3 8 2 1 0 6 12 0 6 1 0 6 6 0 4 14 0 5 21 1 13 5 2 10 7 6 10 16 5 5 19 5 16 5 10 10 0 11 3 2 10 18 2 1 12 0 5 10 0 12 10 2 8 0 0 7 20 0 7 4 0 7 20 Concentrates, fire assay Tailings „ Blanketings „ Tailings „ Blanketings „ Tailings • „ // it • • • • • • a a •' Treatment in Berdi ',ns with Chemicals. 4-75 5-35 31. Fiery Cross 32. „ Blanketings 4 10 4 5 2 1