H.—l9

2

Quartz mining in Wakatipu district, Otago, is being steadily developed at several points. At Macetown nearly fifty leases and extended claims have been taken up, and many of them are now being worked. Some rich reefs have recently been discovered on the south-west side of Advance Peak, and, continuing in the same line to Skipper's and the Rees River, we find several companies at work in these localities, with good prospects of success. The returns from quartz mining for the year ending 31st March, 1882, are as follows:— Tons of Ounces Quartz of Auckland,- — Crushed. G-old. Coromandel ... ... ... ... 3,447 7,348 Thames ... ... ... ... 30,698 45,804 West Coast, —• Eeefton ... ... ... ... 14,894 20,154 Lyell ... ... ... ... 8,200 4,444 Otago, — Cromwell ... ... ... ' ... 2,600 2,535 Arrow ... ... ... ... 3,839 3,796 Skipper's ... ... ... ... 2,034 711 65,712 84,792 from quartz. Lawrence ... ... ... ... ... 8,853 from cement and quartz. 93,645 from quartz and cement. The number of tons of quartz crushed is some 1-4,000 tons less than last year ; but the yield of gold from this source is within about 4,000 oz. of last year's return. This is apparently accounted for by rich finds in the Reefton and Otago mines; the former yielding this year 20,154 oz. from 14,894 tons of quartz, against 17,802 oz. from 25,926 tons of quartz last year; and the latter yielding this year 7,042 oz. from 8,473 tons of quartz, against 7,097 oz. from 13,925 tons of quartz last year. The following is a comparative return of quartz crushed, and relative yield of gold in New Zealand and Victoria for 1881: New Zealand, 65,712 tons, 84,792 oz., or 1 oz. 5 dwt. 19 gr. per ton; Victoria, 1,041,212 tons, 455,969 oz., or 8 dwt. 18 gr. per ton. The efficacy of the methods of promoting quartz mining referred to in last year's report—viz., the opening of roads, and the granting of large areas under difficult or exceptional circumstances—has been especially shown during the past year at Tiki, Coromandel, where the subsidies granted from the Mines Department's vote towards the construction of tracks appear to have led to direct results in promoting the opening of rich reefs, which have already yielded substantial returns; and at Reefton and Lyell, where several special claims exceeding the area of ordinary leases—in some cases including several old leases —have been granted, in order to encourage enterprise in cases in which large capital has been employed to overcome great difficulties, and this process has apparently contributed to the success of quartz - mining operations in these districts. The numerous points at which auriferous quartz is already opened out in the colony and the results so far attained are but the mere earnest of what is yet to come in this branch of mining. Alluvial Mining. The returns from this class of mining during the past year still maintain about the same proportion as for several years, the yield from this source contributing nearly two-thirds of the total yield of gold for the year. At Charleston during the year the Government w rater-race dam has been reconstructed, and steps have been taken to improve the feeder races supplying the reservoir, and the improvement of the main race by tunnelling and other works is now in hand. When the permanently-increased water supply expected from these improvements in the carrying capacity of the race is available, it is