H.—s

14

proved to be erroneous money is forthcoming to prospect at a greater depth than has yet been done. The levels of the Queen of Beauty and Deep Level Cross are about the same depth below the sea level (about 625 feet), though the depth of the two shafts differ, being 679 feet in the Queen of Beauty to 640 feet in the Deep Level Cross. The Mining Inspector having reported fully upon the operations being carried on in the various claims, it will be unnecessary for me to refer in detail to the prospects of individual claims. Generally it may be assumed that the prospects of the present year will, as far as regards the older mines within the vicinity of the town, depend upon the result of the operations being carried on in the deeper levels. Though a steady yield of gold is still forthcoming from many of the older mines, won from the upper workings, a large amount of dead work in driving, &c, to prove untried ground is still being done in the Kuranui, Golden Crown, and other mines, with good prospects of a payable return, and, as a matter of course on this gold field, the prospect of coming across richer runs of gold. The Deep Level Cross Companies are steadily pushing on their long drive at the 640-feet level in an excellent class of country, and may at any moment come aci'oss payable stone. The dip of the gold in the lower levels being towards the west, many experienced men hold the belief that it will pay to prospect under the foreshore outside the boundaries of the present proclaimed gold field. Acting on this supposition application has been made for prospecting licenses under section 184 of the Gold Mining District Act of 1873. Three have been granted. The licensees propose to run a drive from the 640-feet level of the Deep Level Cross Company, and from the lowest levels of the Prince Imperial Company, in a westerly direction under the foreshore. No work has been clone in this direction as yet. At Otanui, the battery not being completed, but little work has been done in the claims. Small parcels of picked stone have been crushed at the Thames batteries, giving excellent returns, but until a general crushing has taken place no reliable opinion can be given as to the prospects of the mines. The yield of gold from Owharoa continues good, considering the small number of claims being worked. The Smile of Fortune Claim still continues to furnish the larger portion of the gold won in this part of the district. At Waitekauri there is nothing fresh to record; but few of the old mines are now at work. At Karangahake a very large number of claims,.have been taken up and licenses applied for during the year. Here the prospects of the various mines upon which any work has been done are very good. As at the Aroha, there is. a great body of lo'.y-grade quartz that, with cheap carriage and crushing, will undoubtedly prove payable. Some small richer leaders have also been opened up. The stone carries a very large percentage of silver; as much as 300 oz. to the ton has been the result of more than one test. The value of the gold is very low : £2 7s. per ounce. This district, like the Aroha, will be but slowly developed : the difficult nature of the country, coupled with the large outlay of money required to open up the mines, build tramways, and erect batteries will all tend to retard its progress. I have no hesitation in saying that I believe this portion of the field will in the future afford employment for a large number of men, and prove to be a steady gold-producer. I think there can be but little doubt that the reefs are a continuation of those at the Aroha, and that the intervening country will in the near future be occupied for mining. The battery at present being put into working order will be of use to a portion of the claims only. The principal claims, I think, will require a battery on the Waitawhita Creek, to enable them to crush. At the Waihi the year has been wasted, through some mistakes having been made in the levels of the water-race, and consequent loss of power to the turbine. The mistake has proved a costly one to the shareholders, who have been put -to great expense in rectifying it. At the present time (May, 1883,) the battery is at work; the result of last year's work will therefore be to the credit of this year. Having fully described those mines in my previous report, I need only now add that the very large quantity of stone, good water-power, and inexpensive nature of the workings should make even poor-grade stuff payable. It is expected that this stone will run at least \ oz. to the ton. Should this portion of the field prove payable and permanent, I anticipate that future prospecting will run the line of reefs from here and Te Aroha still further in the direction of Tauranga. The yield of gold for the year from the Thames district (Hauraki South) has been 43,310 oz. 12 dwt. 4 gr., as against 45,803 oz. 19 dwt. 6 gr. the preceding year. Herewith I have the honour to forward the usual statistical returns. Following is a statement of applications made and cases dealt with in the Warden's Court and office : Miners' rights issued, 426; claims notified as marked out, 260; licensed holdings grauted, 72; agricultural leases, 4; water-races, 5 ; machine site, 1; residence sites, 26; registrations, 588. Warden's Court cases —commenced, 235; lapsed or discontinued, 485; heard, 86. (The larger number of these casSs were at the suit of the Mining Inspector for forfeiture or payment of rents in arrear.) Resident Magistrate's Court, Thames : Criminal cases, 412; civil cases, 384; amount sued for, £3,358 75.; amount recovered, £2,097 Bs. Resident Magistrate's Court, Paeroa: Criminal cases, 22; civil cases, 92. I have, &c, Harry Kenrick, The Under-Secretary for Gold Fields, Wellington. Warden.