H.—s

16

menced. The second reef to the northward has also been driven on from a cross-cut put in from the level near the top of the witize, and a run of gold proved for about the same distance as that on the first reef. In a few weeks the winze will be sunk to the drive at the low-level; the mine will be then sufficiently opened up, so that they will be in a position to keep from ten to twenty stamps at work for several months on the blocks of payable reefs that are now ready to be stoped out. The Colonist. —Driving on the reef at the low-level, the quartz looking well, gold being seen freely every time it is broken down. About 5 feet of quartz is taken out in the drive from the side of the large reef, which is here of great thickness. About 50 feet above the low-level gold was found in about 7 feet of quartz on one side of the large reef. A winze will be sunk from there to connect with the low-level, where a large block of payable reef will be ready for stoping. A shoot from the low-level of this mine connects with a hopper built near that of the Premier. Neiv Find. —This company have put in a low-level cross-cut to work the reef at a level 100 feet below where the prospecting drive was put in, immediately under where the gold was first discovered. A shaft is being sunk to enable them to send down all the surface quartz, and a great quantity of payable stone can then be forwarded to the mill. A considerable length of tramway will have to be made to connect with the horse-grade, as it is several hundred feet below the level. Werahiko and Waitoki. —These two companies have jointly driven a low-level cross-cut to prove these reefs at a greater depth, and are now sinking a shaft from the intermediate level to accommodate both mines in sending quartz down to the low-level. The Werahiko has proved that the run of rich quartz extends from the surface down to the intermediate, and when the connection is made with the horse-grade they will be in a position to stope a large block on their reef. The Waitoki have also a good run of gold in the reef at the intermediate level. Eureka. —The low-level drive along the reef has been through some very hard ground, and they have not been able to reach the point under the shaft sunk on the reef from the surface. It will be a considerable time before the drive and shaft are connected, and until that has been effected no quartz can be sent to the mill. Diamond Gully. —Work has been confined to driving and putting a rise up on the north-east reef lying between the two large reefs. A considerable quantity of picked stone and specimens have been got, but small progress has been made in opening up the mine. Welcome. —Have got very rich prospects in a small leader at the surface. A drive to cut this at a depth of about 30 feet is progressing slowly, as the rock is very hard. The Three Fools, Provincial, Virginia City, Golden Gate, and Empire licensees have agreed to amalgamate, and to arrange with the owner of Cook's water-race and machine-site to form a company to work the ground and erect a battery for crushing quartz, and steps are now being taken to arrange to commence the battery without delay. Other claims in different parts of the field have found gold in reefs, some of which are payable; but sufficient work has not yet been done to prove their value. When the tramway is completed the Premier, Colonist, New Find, Werahiko, and Waitoki Companies will be in a position to keep the mill of forty stamps fully employed on payable quartz for several months, and the returns will no doubt be of such value as to establish the character of this part of the gold field. Several parties have been prospecting on the western side of the mountain, and a number of licenses taken up for claims about the old Prospector's Claim. One party crushed a small parcel at the Thames, and got about i 0 oz. of gold; but they are not very sanguine of getting any more. McLean and party have taken up the old United Claim, not far from the Hot Springs Reserve, and have had such an encouraging prospect from a ton of quartz sent to the Thames for treatment that they have purchased the battery .erected in Te Aroha for the purpose of crushing a large quantity. It will be seen that another three or four months imist yet elapse before any return can be expected from the past year's work and expenditure. I trust to be able, in my next report, to state that results have justified the confidence reposed in the future of the field. During the year ended the 31st March, 1883, 56 cases have been disposed of in the Warden's Court, 119 civil and 42 criminal cases in the Resident Magistrate's Court, 149 miners' rights have been issued, 153 claims notified as pegged out, 53 licensed holdings granted, 37 business licenses granted, 151 business sites granted, 217 residence sites granted, 725 registrations of various kinds effected, 3 water-race rights granted. Herewith I enclose forms of statistical returns from Mining Inspector, with required information. I have, &c., Harry Kenrick, . The Under-Secretary for Gold Fields, Wellington. Warden.

No. 4 Mr. Mining Inspector McLaren to the Under-Secretary for Gold Fields. Sir, — Mining Inspector's Office, Thames, 30th April, 1883. I have the honour to forward herewith report on mining operations carried on in the Hauraki North and South Gold-Mining District for the year ending the 31st March, 1883,