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The Pumping Association are now down 505 feet. A quartz reef here met with: being full of minerals, a parcel of 16 cwt. was crushed. This yielded at the rate of 5 dwts. to the ton. As portions of the Caledonian reef, at the time the richest stone was obtained, yielded from portions thereof about the same percentage, it may be that the same rich runs of gold may be found in the Pumping Association reefs when further explored. In Ohinemuri good payable reefs are found in the Karangahake Spur. In the Waitekauri Creek successful sluicing has led to the discovery and prospecting of reefs showing gold freely. Litigation, however, has greatly retarded the progress of this portion of the field. The evils resulting from the adoption of " The Gold Melds Act, 1866," soon developed themselves, showing that this part of the field should be joined to the South'Hauraki District under "The Gold Mining Districts Act, 1873," which has subsequently been accomplished with happy results. In Ohinemuri, Prospectors' Claim, two trial tons gave 4 oz. 1 dwt. Near Tapu, in the Mata Creek, very rich alluvial pockets are found, showing the proximity of a good reef. In Tairua, mining is much impeded owing to want of roads, the present tracks being mere bridletracks, through dense forest, up hills rising steeply, an altitude of 2,000 feet having to be attained in a distance of 4.j miles. The journey is performed by pack-horses with difficulty, several having died on the road, others have fallen over the rocky precipices forming the sides of the track. However, these dangers never daunted the miners, and in the Prospectors' and neighbouring claim rich gold in quantity showed. In the beginning of May water became short generally ; however, the most important works are progressing as usual, and profitable results accrue to mining companies in several parts of the field; indeed, lately operations have been marked by important finds. The Cure, in its No. 5 reef, has turned out rich beyond expectations. The Manakau gives good yields. In the Bright Smile, a new plunger is fixed in the bottom level. The further sinking of the shaft will enable adjoining companies—viz., the Queen of Beauty, the City of London, and others—to sink deeper and open fresh levels, these adjacent mines being drained by the pumps of the Bright Smile. The City of London has paid a dividend of £1,250, or ss. per share. Queen of Beauty has paid £71 10s. per share for a fortnight's crushing, there being seven full shares. Manakau realized 455 oz. for a month's crushing—a very payable yield. At the commencement of June, in consequence of inadequate contributions to the Waio-Karaka pumps, the subject of the drainage of the Waio-Karaka mines was raised by the Bright Smile calling a meeting of the directors and others interested, including Queen of Beauty, Queen of May, Bird in Hand, Exchange, Queen of the Thames, Pumping Association, and Imperial Crown. The whole question of the "Waio-Karaka drainage was here discussed, and the expenses laid before the meeting:— The cost of the pumping per week was ... ... ... ... £64 13 4 Ditto cost per annum ... ... ... ... ... 4,403 0 0 Cost of sinking 170 feet, dry shaft, per foot ... ... ... 3 17 0 Ditto 170 feet, wet shaft,per foot ... ... ... 29 0 0 From these facts a basis of contribution was arranged. In the Albion mine two good finds occurred—one, a continuation of the rich reefs worked in the upper level, was found 170 feet deeper with good results. The Manakau and Cure mines are still yielding well. Tlie Moanataiari mine having opened communication with the old Eureka —an adjoining claim which the company purchased—good gold has been found, bringing up the Moanataiari average above 10 dwts. The profits accruing have nearly wiped off the heavy cost of erecting their fine crushing plant. Operations in the Waio-Karaka, now containing the most important gold-producing mines on the Thames, have been extensive. The Bright Smile pumps, having been considerably added to, were started, and soon cleared its own ground, as well as that of the neighbouring mines, in which the water had risen considerably during the temporary stoppage. An immediate resumption of work in the main levels was made, the result of which was very satisfactory. In the Queen of Beauty, the first fortnight's return paid the shareholders each £120 per seventh share, and the second fortnight paid £67 per share. The City of London also has been very prosperous lately, having paid a dividend of 7s. 6d. per share —all expenses paid. About June 10th, at Ohinemuri, a rush occurred to Owharoa. Stuff of great richness was found ; 120 oz. gold sold by the prospectors. A number of claims were at once pegged out, and eventually licenses were applied for. In the Thames proper, yields very good. In "Waitekauri, the Dan Leahy, Golden Point, and Crown Claims having amalgamated under the name of the Waitekauri Gold Mining Company, area twenty-seven men's ground, have agreed with Mr. Bleazard for the erection of a 40-head battery, to cost not less than £10,000, driven by an overshot wheel 36ft. diameter, 10ft. broad, and 20in. shrouding, calculated to drive 100 head of stamps; and as a tramway conveys the stuff from the mine faces direct into the mill, a yield of 5 dwt. will give a profit. The Tairua litigation having ended, mining thereat proceeding. In July, good finds at Tapu, in the Bullion and adjoining claims. In August. —Two splendid gold-bearing reefs are found in the Cure ; in the Golden Calf also a rich and wide reef. The Waio-Karaka mines maintaining their pre-eminence—viz., Queen of Beauty, City of London, Queen of May, Bright Smile. In Tairua, large areas of ground taken up; two trial crushings from the prospector's claim hare induced this action, one trial parcel giving 48 oz. to the ton. Manakau giving good returns. Inverness pays the tributers (four) the handsome sum of £200 per man after paying expenses. Golden Crown resumes operations. During September, the engine shaft of the Bright Smile is sunk a depth of 70 ft., making a depth

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