H.—l7

24

The Black's Point Low-Level Tunnel Company, of which I made mention in my last report, has since started work and driven a tunnel a distance of some 270 feet, at a cost of £1 9s. 6d. per foot. This sum is of course exclusive of the cost of the iron rails laid down. A small broken gold-bearing reef was crossed after about 200 feet had been driven, but, as it has not been opened out, nothing can be said at present of the discovery It is contemplated shortly letting a much larger contract, as rockboring apparatus will be required. A director of the company is now on a visit to Victoria, where he will inspect the principal mines in the several mining districts, with a view to reporting upon the rockboring machinery in use there. Having in view the advantages, &c, to be derived from this tunnel, it has been proposed that a low-level tunnel should be driven at Boatman's, and that the operations should be carried out by the several companies whose mines are in that locality There are two courses open : one is to drive from the Fiery Cross Company's shaft, which, if adopted, would follow the line of reef north; the other is from Little Boatman's Creek, which would cross-cut the reefing country and would consequently be more of a prospecting nature. The latter course, however, would have the drawback of being of greater length, and would also require greater expense than the other in order to connect with the batteries already erected. The Welcome Company has erected a splendid ten-head battery at a cost of about £4,000, and, as during its erection the mine was well opened up, the battery is likely to be fully occupied, and good returns may be expected for a considerable time to come. The great cost entailed upon companies in this field in erection of machinery has more than once been commented upon in previous reports; and to show what advantages may be derived from cheap carriage, &c, I may mention that a battery similar to that erected for the Welcome Company was recently erected at Te Aroha at a cost of under £1,000. A new industry, so far as this field is concerned, has been started in the Boatman's District, a plant having been erected for the treatment of quartz-tailings that had, during the past eight years, accumulated in the creek, and, I believe, with payable results. Other undertakings of a similar character will shortly be started. The Just-in-Time battery has for some time past been profitably engaged in treating the tailings stacked there. The yield of gold for the year ended 31st March, 1881, is as follows: Quartz mines, 17,802 ozs. 7 dwts. 4grs. ; alluvial workings, 5,812 ozs. 19 dwts. 8 grs. : total, 23,615 ozs. 6 dvvts. 12 grs. The gold from the mines, at £3 17s. per ounce, would amount to about £68,541 lis., and the alluvial gold at £3 16s. to £22,089 Bs., making a total of £90,630 19s. The above yield is made up as stated in the following table, showing the amount of " calls made," " dividends declared," &c, in Inangahua District from Ist April, 1880, to 31st March, 1881.

Name of Company. Calls Made. Dividends Declared. Quartz Crushed. Yield. Welcome Gold-Mining Company Hopeful Gold-mining Company Fiery Cross Extended Gold-Mining Company Specimen Hill Extended Gold-Mining Com- £ s. d. £ 3,750 0 d. 0 Tons. 1,100 Oz. dwt. gr. 3,209 0 0 512 12 600 0 6 0 600 0 0 860 859 0 0 pany Oriental Gold-Mining Company Phcenix Extended Gold-Mining Company Golden Treasure Gold-Mining Company .. Eureka Gold-Mining Company United Inglewrood and North Star GoldMining Company Nil Desperandum Gold-Mining Company Homeward Bound Gold-Mining Company Golden Eleece Extended Gold-Mining Com500 0 900 0 233 6 1,650 0 133 6 0 0 8 0 8 2,300 994 5 21 237 10 335 8 166 13 0 4 4 192 74 7 22 pany Energetic Gold-Mining Company Dauntless Extended Gold-Mining Company Inangahua Low-Level Tunnel Gold-Mining Company ...( Just-in-Time Gold-Mining Company Caledonian Extended Gold-Mining Company Inkermann Gold-Mining Company South Hopeful Gold-Mining Company Orlando Gold-Mining Company Keep-it-Dark Gold-Mining Company Result Gold-Mining Company Wealth of Nations Gold-Mining Company 100 0 0 10,800 1,800 0 0 0 0 4,620 8,423 5,572 6 0 3,311 19 15 600 0 466 13 1,333 6 291 13 266 13 66 13 0 4 8 4 4 4 700 0 0 938 783 13 0 2,000 0 0 1,989 0 0 850 0 975 0 0 0 5,115 2,378 804 2 0 Suit dries 10,218 17 6 19,650 0 0 25,926 17,597 14 10 204 12 18 Alluvial gold 17,802 7 5,812 19 4 8 23,615 6 12