C.—s

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places, which the company intend to crush at the public battery as soon as the Wakatu Company's stone is crushed; but from what I saw of the quartz nothing great may be expected from it. Zealandia Company's Mine. —This company's workings are in a blind gully on the side of the range northwards of the main branch of the Owen Eiver, and about half way between the Enterprise and Wakatu Company's ground. The reef was first discovered cropping out in the gully, and some fair specimens, containing gold, were obtained. The company then drove an adit-level about 80ft. under the outcrop without cutting the lode, thus showing that it had cut out in this short distance. Even were payable quartz found in this ground the company would have to go to considerable expense to construct a tramway round the sideling to the public crushing-battery before they could get their stone properly tested. Golden Grown Company's Mine. —This mine is situated on the opposite side of the main branch of the Owen Eiver from any of the other company's mines. The reef was discovered at a high elevation cropping out on the surface, and like all the other claims, the prospects from the outcrop were very promising, but on a lower level being constructed it was found that the lode or vein had pinched out. Very little work has been done in either this or the Zealandia Company's mine. The quartz reefs or segregated veins of quartz occurring in this district contain a little gold, which near the outcrop is of a free character, being found in reddish veins or bands of decomposed iron pyrites ; but on sinking down a short distance into the reef large quantities of sulphur and arsenic are met with, which, in their raw state, would so sicken the quicksilver that it would scarcely have any affinity for gold. From what is known here of the proper process to treat ore of this character it requires roasting before it can be successfully treated with mercury to save the gold it contains. In this district assays require to be carefully made from time to time in order to know the quantity of gold that is in the stone; and having ascertained that, and the metals associated with the gold, the question is, what is the mode of treatment which will pay best for manipulating the ore ? If it is low grade and refractory it will not pay the expense of working. The Owen District is one well deserving of being prospected, as it is one where silver ores might be found; but as far as the quartz reefs at present being worked are concerned, there is no hope of them paying working expenses with the present method of treatment. It is a field where no doubt a deal of prospecting will be carried on, but it is also one which the largest portion of the present mining population will leave for a time. Since my visit to this district galena lodes have been found, some of which contain a fair percentage of silver, and a number of licensed holdings have been applied for along the line of these lodes with the view of working the galena only for the amount of silver it contains. These lodes occur near the junction of the limestone and slate, and extend through a belt of country between the Owen and Wangapeka. Galena was first found in the Wangapeka District in 1870. Specimens were forwarded to Nelson at that time for analysis, and found to contain such a percentage of silver that a company was formed to work the lode. Mr. J. Parkes, of the Geological Department, examined this portion of the country last summer, and states that the work done by the company formed in Nelson in 1870 consisted of making two small excavations, one of which shows a quartz-lode about 14in. wide, containing small nests of galena and iron pyrites. The other excavation showed two well-defined leaders of quartz, the largest of which was about 6in. in width, and contained a small irregular seam of galena, sometimes pinching out to the thickness of a thread and afterwards widening out again. The following is the result of several assays made at the Colonial Laboratory by Mr. Skey, showing the amount of silver per ton in the galena ore found in the Owen and Wangapeka Districts :— Schedule of Ores from the Owen and Wangapeka, lately assayed for Silver. Lot No. Contributor., Locality. Silver per Ton. 48200 ... H. H. Travers ... Wangapeka ... 8 10' 20 4820( 2) ... „ ... „ ... 221 4 11 4846 ... „ ... „ ... 8 0 0 4914 ... J. Grimmond, M.H.E. ... Owen ... 7 4 0 4906 ... J.Clark ... „ ... 13 12 0 4921 ... E. Eeeves, M.H.E. ... „ ... 51 13 0 4895 ... C. Longhurst ... „ ... 50 6 0 4893 ... E. Eeeves, M.M.E. ... „ ... 9 10 6 4910 ... H. Bannehr ... „ ... 14 2 0 49450 ■•• T. Dwan ... „ ... 91 14 8 4945( 2) ... „ ... „ ... 116 18 4 It has to be borne in mind that, although some of these assays show a fair percentage of silver in the ore, the veins of galena yet found are very narrow; and in choosing pieces for analysis, it is well known that nothing but the best samples are sent. It is, however, a formation where galena and silver ore are likely to be found; but there is nothing yet discovered that leads me to suppose any of the lodes can be worked at a profit. Lybll District. United Alpine Company. —This company was formed in 1883 with a nominal subscribed capital of £33,733, of which £16,000 is declared paid up, and £17,733 paid in calls, the company having paid £39,667 in dividends. The lode that is being blocked out from No. 6 Level has got very much broken up, and it contains a large amount of very low-grade ore. There was 2,837 tons of quartz taken out from this level from the 6th April to the 4th October last, which yielded 1,2410z. of gold, representing a value of £4,894 ; and during the month of October 515 tons were crushed, from which 6700z. of amalgam was obtained. This would be equal to about 2200z. of gold, or £853. This makes the total value of the gold £5,747, and the expenditure on the working of the mine during this period