H.—l7

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number of claims registered, 78 (780 men's ground); number of notices of pegging-out, 179 (1,969 men's ground) ; number of licensed holdings granted, 10 (115 men's ground) ; number of miners' rights issued, 762 ; number of business licenses, 195 ; number of registrations, 198. Haeey Keneick, 20th April, 1881. Warden.

No. 3. Mr. Mining Inspector McLaeeu to the TJudek-Secretaey for Gold Fields. Sie, — Mining Inspector's Office, Thames, 19th May, 1881. I have the honor to forward herewith statistics with report on mining operations carried on in the Hauraki North, Hauraki South, and Te Aroha Gold Mining Districts, for the year ending 31st March, 1881. Hauraki South. —Mining has not advanced so much as was anticipated during the year. This may be partly accounted for from the fact that at deep levels, where a number of men were employed, and the works of a very expensive character, there has as yet been no adequate return of gold, prospecting being much retarded on account of difficulties to be overcome, which are not felt where operations are carried on nearer the surface or above sea-level. The works which were also undertaken in the claims adjacent to the Alburnia and Whau mines, by extending their levels, have not yet been advanced sufficiently to cut the reefs, and the returns from that locality have been very limited so far. Towards the end of the year 1880 a considerable number of the Thames miners were present at the opening of Te Aroha Gold Field, consequently the return from the mines here was affected by skilled labour being withdrawn for a time. The excessive dry weather for the last three months reduced the quantity of water in the creeks, and the crushing mills for that time were mostly idle. The water from tho large race has been laid on as the motive-power for driving, either by turbines or water-engines, many of the crushing-machines that were formerly driven by steam-power. It therefore is to be expected that the effects of droughts will in future cause greater stoppage of work in the summer season, through being unable to get the quartz crushed, than was formerly the case. Kuranui Hill United Mine.- —A large amount of prospecting has been done at the No. 3 level; about 400 feet has been driven on the reef which was cut in the previous year, and it is to be regretted that this work has not given more satisfactory results ; small bunches of rich specimens have been found in several branch veins, but the main reef has not yet yielded payable quartz at this level, and further operations here are for a time suspended. From the workings of the mine near the surface the yield of gold has exceeded last year's returns. The company, on their own account, have had crushed 1,092 tons of quartz for 1,064 oz. of gold, value £2,725 16s. 10d., and for the tributers, 1,604 tons for 4,022 oz., value £11,359 Is. 9d., of which the company has received at tribute £2,142 18s. lid., the remainder, £8,672 18s. Id., being the men's share. The surface levels are by no means exhausted, and may be expected still to yield considerable quantities of gold, giving employment to numbers of men; and in the deep levels, although no extent of payable quartz has yet been found, the prospects have been such that no doubt further attempts will soon be made to prove the reefs at a greater depth. Southern Cross Mine. —The ground held by this company was formerly known as the " Tookey " Mine, and was purchased at the same time as those other properties were disposed of on which the County Council held mortgages. The surface portion has been worked with payable results ; 412J tons of quartz were crushed for a yield of 512 oz. of gold. An additional area of ground has been acquired by this Company, being a portion of the late Imperial Crown claim. The 100-feet level from the United Pumping Association shaft has been cleaned out and repaired, and the manager is engaged in prospecting several of the reefs and veins which were cut when that drive was made eleven years ago. It is also intended to prospect at the 400-feet level, now that the ground is drained to that level. Caledonian Mine. —The ground having been sold, the original proprietors became the purchasers and re-formed the company, calling it the New Caledonian Gold-mining Company Operations were commenced on No. 3 level as soon as the water was sufficiently drained, a great deal of driving was done on the reef, and a connection with No. 2 level made by a winze which ventilates the workings. A change was effected in the management, and the new manager confined his operations to prospecting at Nos. 1 and 2 levels, and a large reef has been found at No. 1 which has a very promising appearance. As the richest deposits of gold wrere obtained in former years at this level, further operations, it is to be hoped, may develop a rich patch in this reef, and when the mine is well opened up there is very little doubt that payable quartz will be got, and the Caledonian again come to the front as a goldproducing mine. Golden Calf Mine. —-Work was carried on at the No. 3, or lowest level of this mine, when the water was lowered sufficiently to admit of operations being resumed. The reef, which had been payable at the upper levels, was cut and driven on for about 200 feet, and prospects obtained shewing good returns may therefore be expected when the ground is sufficiently opened up and ventilated. The manager is now engaged in putting up a rise from the lower workings to No. 2 level, and when this is completed he will be able to send large quantities of quartz to the mill and employ an additional number of hands. Cure Mine. —Operations by this company have been confined to opening up No. 7 reef at the No. 2 level, and working those portions which were payable. The manager intends to further extend the No. 2 level cross-cut to prospect that portion of the ground lying to the south-east. The tributers have been very successful, getting excellent returns from small veins which have branched off from No. 5 reef. Red Queen, Manukau, Don Pedro, Inverness, and Prince Imperial Mines have been entirely worked by tributers, who have been only moderately successful. Waiotahi Mine. —This mine continues to be very successfully worked; 2,294 tons of quartz have been crushed, yielding 3,832 oz. of gold, value £10,000. Operations have been confined to working on the reefs and veins at Nos. 2 and 3 levels; 672 feet of driving has been done, and 456 fathoms stoped out on the different veins and reefs; 39 men are constantly employed. The prospects of the mine are very good ; there is more than twelve months' work to stope out the ground already opened