C.—2.

Smile of Fortune. —This claim has been either taken up or purchased by an English syndicate, and mining operations resumed. A great deal of work was formerly done in this mine, and a large quantity of gold obtained. The old levels have been repaired, and the reefs are being prospected. There is reason to believe that this mine will again become a gold-producer. Some 20 tons of stone obtained from a leader last year yielded 450z. of gold. Adelaide Company. —This company's mine is situated on the Karaka Creek. During the last eight years six men have been constantly employed, and up to the beginning of September last 5,855 tons of quartz had been crushed, which yielded 6,3330z. of gold, representing a value of £18,569. The reef is about 2ft. in thickness, and had been stoped out to a depth of 300 ft. below the surface. Another level will have to bo constructed before the lode can be worked to a greater depth. City of Manchester Mine. —This mine adjoins the Adelaide, and the lode is of the same character. It has been worked by two men, who have obtained gold to the value of £10,000 from the mine ; but the upper levels are getting worked out, so that a now low adit will have to be constructed before the lode can be further worked. Lone Hand Mine. —This mine adjoins the City of Manchester, and these two mines have recently been amalgamated, so that they can bo worked from one adit-level. The Lone Hand has been worked down to a depth of 250 ft. from the surface, and gold obtained from small flinty leaders to the value of £9,500. It is now intended to construct a new adit-level, which will give about 90ft. of backs in both of those claims. From 1 ton of quartz taken from small leaders last year in the Lone Hand 58foz. of gold was obtained. There are a number of small claims in this locality which were worked last year with a fair amount of success. Una Hill and Te Papa. —There were two gold-producing claims last year in this locality— namely, the North Star and the Magnolia. They are chiefly worked on the tribute system, and employ about thirty-five men. They obtained 7990z. of gold last year, from numerous leaders and veins. Otanui. —The Eureka Mine is the only one that was worked here last year. A few years ago great expectations were formed respecting the mines here, and a dray-road was constructed to enable the quartz to be conveyed to the crushing-battery at the junction of the Otanui and Maungawherawhera Creeks, which cost £710, out of which a subsidy was given to the extent of £473; but since the road has been completed and the quartz tested none of the mines have proved payable for working with the exception of the Eureka, and the quartz from this mine is of very low grade, only averaging 4dwt. 19gr. to the ton. This mine is entirely worked by tributers. Pubiei Distbict. Several claims have been taken up here, and prospecting-work done, but very few of them have produced gold to any extent. The Surprise, or what is now known as the Puriri, Mine is the only one in which a payable lode has been found, and it is questionable if this can be termed a payable mine. Six men were employed last year, who obtained 140 tons of quartz, which yielded 1390z. gold, or an average of about 250z. per man. Whangamata Distbict. There is only one claim being worked here —namely, the Goldwater : all the others taken up when the discovery of silver and gold in the reefs here was made are now given up. The Goldwater still continues to be worked, but the large percentage of silver in proportion to the gold in the lode make the lode-material difficult to treat successfully. Thirty-one tons of stone was crushed last year, which yielded 1,2570z. bullion, or an average of over 41oz. to the ton. Even if this were all silver it ought to pay for working if there was a plant capable of properly treating the ore —that 'is, if there is a good thickness of a lode. The average yield from the Broken Hill Proprietary Mine, New South Wales, is only about 430z. silver to the ton; but the lode is 160 ft. in width in places. No small private company can afford to erect a plant capable of dealing with silver-ore. It is only by having a central reduction-plant, and the whole of the ore brought to it, that small lodes can be worked to a profit, and then the cost of transit of the ore will be a considerable element in the expense of treatment. Mabototo District. A large amount of prospecting has been done in this district since the discovery of rich silverore in the Marototo Mine ; but, with the exception of this mine, all the other claims and licensed holdings in the district are either abandoned or, at least, mining operations are suspended. When the discovery was first made by Mr. B. Mcßrin some extremely rich ore was found near the outcrop, assays of which gave at the rate of 2,2260z. of bullion to the ton —80oz. gold and the rest silver; but the vein which contained this rich ore very soon cut out. However, there has boon a considerable quantity of good ore got from this mine. Two small cases of ore were forwarded to the Melbourne Exhibition, one of which contained ore which assayed at the rate of 9440z. silver and 42^oz. gold per ton, which represented a value of £312 per ton. The other case contained ore of the value of £40 per ton. Both of these cases have been forwarded to the Paris Exhibition. This class of ore occurs in h*regular patches in the reef, from 2in. to nearly 2ft. in thickness, and is chiefly found on the hanging-wall of a large reef of low-grade quartz. The silver and gold seem to diminish in the reef as the adits go into the hill, and also as the lode goes down. The mine at the present time is not wdiat can be termed a valuable property, but jt is one worthy of money being expended in thoroughly prospecting it. The difficulty here is that

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