H.—ll

24

When my last report was written, the Macetown lodes were classed in three lines of reef. Further explorations of the various mines appear to have definitely fixed their number at four —the All Nations line, on which are situate the following claims, starting east and going west: —The Dan O'Connell, Tipperary, South Tipperary, Geraldine, Caledonian, Dunnolly, Duke of AVellington, Morning Star, All Nations, and Black Angel. The Maryborough line comprises Macetown or Finn's Lease,lnvercargill, Victor Emmanuel, Garibaldi, and Maryborough. The Homeward-Bound line has the Homeward-Bound, Ladye Fayre, Golden Link, Duke of Batlitust, Gladstone, Premier, and others. Lastly, is the main lode on Advance Peak, on which three claims have been taken up. A Dunedin company have two men prospecting this reef on the summit, by sinking and driving cross-cuts. If the difficulty of trausport of the quartz can be overcome, and at a reasonable rate, tbere is little doubt of the main lode, at a future date, making a stir in the mining world. A trial crushing of one ton from the lode was taken to the Carrick Range battery about four years ago, and yielded over 5 oz. The Tipperary seems to be the claim par excellence, at present: the reef in the faces now opened, and being stoped, is from 6 to 14 feet wide, carrying gold throughout. Indeed, the supply of stone at present revealed, to a casual observer, looks practically inexhaustible. The mine is in excellent working order, and, from the natural facilities of its position, the stone is easily taken out and sent down to the paddock. Little has been done beyond prospecting in the Geraldine, Caledonian, Dunnolly, or Morning Star. Probably the want of roads has something to do with this ; but as the tracks gradually ascend, as they arc bound to do, these claims will come in for their share of attention. The All Nations Company have been steadily prosecuting work, and have recommenced crushing, having been unable, until a very recent date, owing to damage from floods, to get their stone to the mill. Fresh, and apparently very rich, discoveries have been made in tho mine duriug the past few months, the value of which will be determined when the present crushing is finished. The last stone crushed before the winter, some 40 tons, yielded over 1_ oz. to the ton. The Black Angel Company, adjoining the above, like too many others on the field, shows little or no signs of vitality ; but really, when the precipitous nature of the country, the total absence of timber or firing, aud other drawbacks, are taken into consideration, there may be found some slight excuse for delay. The same remarks apply to the Macetown and Invercargill Companies. The Victor Emmanuel have let their mine on tribute of 12 _ per cent. The tributers crushed 58 tons, which yielded about 1 oz. to the ton. This return will barely pay, as the reef at present is very thin, and the country hard. The Garibaldi Company have a tunnel driven over 150 feet on the line of reef, but have struck nothing of value on its course, although gold-bearing stone exists over head, at the surface ; further prospecting may, however, meet with a better reward. Tho Maryborough Company have been engaged raising stone and erecting a crushing-mill of five stampers, driven by a 30-feet water-wheel, iv Sawyers' Gully. Hero again the destruction of the roads and other causes have delayed the completion of this necessary work; and it is hardly likely that the battery will get to work this summer. There are nearly 400 tons of quartz broken out and ready for sending down, which are estimated to yield about 1 oz. per ton. The reef is well defined in this claim, and large quantities of stone have proved to exist within the boundaries. Next season we may fairly hope to see this company in full working order. The Homeward Bound Company have been busily engaged for months past erecting a more powerful battery, and constructing a tramway from the mine to the mill. These are now completed, and stampers at work. The stone is expected to yield, as hitherto, 1 oz. to the ton, aud will pay good dividends at that. The Ladye Fayre Company, adjoining to the westward, are prospecting their property by driving a tunnel along the supposed lino of the reef. Excellent prospects have been obtained in places, but nothing of a very permanent nature has yet been met with. I think a deeper level will be necessary to prove this mine thoroughly. The Golden Link, or Mackay's Lease, is in statu quo. The Duke cf Bathurst, after some desultory prospecting, has been allowed to stand over also. The Gladstone Company have driven a level of 160 feet on the reef past the shaft, from whence the crushing before alluded to was taken, and are now stoping out stone, of which there is plenty of apparently excellent quality overhead. They have also laid down a tramway to their paddock in Sawyers' Gully. The Premier is also being prospected by two men ; gold is obtained, but some time will elapse ere the mine is developed and brought into full work. The want of mining-timber is severely felt at Macetown, nearly all that is used being brought from the head of Lake Wakatipu. A capital bush of considerable extent exists in the Matatapu A'alley, distant about eight miles from the reefs. AVere a rough bullock dray-track constructed to this place the greatest boon possible would be bestowed on the district. Seeing the absolute necessity, in furtherance of the prosperity of the mines, for a cheaper aud better supply of mining timber, I beg respectfully to call the special attention of the Government to this memorandum. AVere this want supplied, all other minor difficulties could be overcome or put up with cheerfully. Prices have varied little at the mines since my last report. They are as follow : Mining props, 6to 8 inches diameter, Is. per foot ; laths, 4s. each ; sawn timber, 40s. per 100 feet; firewood, 170s. per cord ; blasting powder, Is. per lb. ; fuse, Is. 3d. per coil; steel, Is. per lb.; candles, Is. 3d. per lb.; coal, 16s. to 20s. per cwt. ; packing from Arrow, 655. per ton; cartage from Arrow, heavy material, 120s. per ton. The number of men has slightly increased, and is being added to daily. There are employed at the mines 52 ; batteries, 14 ; packing, 4 ; carting, 4; 4 drays and 8 horses ; and 15 horses engaged in packing. There are six batteries on the field, of 24 stampers; one of them is not completed, and one is disused. They can reduce 350 tons of quartz per week. Wages rule for mining managers £4 to £5 ; battery managers, £4 to £5 ; miners, £3 ; packers, 50s. per week; mill-feeders, Is. per hour.