(!.—3

28

This shows the average yield of gold out of the quartz crushed from those claims to be equal to a little over 7oz. 17dwt. per ton, or nearly 40oz. 16dwt. of gold per man for the number employed. There are several other claims on this range from which no returns have been obtained, and probably these did not turn out much gold ; but the above statement is sufficient to show that the range is still worth working. West Tokatea Company. —This company holds one of the claims mentioned in the foregoing statement. It is formed with English capital, and before going to any expense in erecting machinery it is their intention to construct several adit-levels and test the ground, especially the main Tokatea Beef, which runs through their claim. This reef is known to be auriferous, but the quartz that has hitherto been tested has proved to be of very low grade ; still, there is a great thickness of stone, and probably the lode will yet be proved payable for working with a large and efficient crushing-plant on the ground. It is only by carrying on mining in this manner, and prospecting the ground thoroughly before going to any expense in erecting expensive machinery, that mining ventures are likely to prove remunerative investments. Kapanga Company. —This company holds a claim comprising 60 acres. It is formed entirely with English capital, and the mine is worked on purely a commercial basis. No expense has been spared in putting the mine and plant in thorough working-order, while rigid economy is observed in carrying on their operations. If the venture does not recoup the shareholders for the capital invested, they will at least have the satisfaction of knowing that their money has not been unnecessarily expended. At the time of my visit, in December last, 3,000 tons of quartz had been crushed since this company commenced operations, which yielded 7,2230z. of gold, representing a value of £21,239; and for the twelvemonths ending the 24th of November last 2,291 tons of quartz had been crushed, which yielded 5,4220z. of gold, representing a value of £15,959. This shows that only l,Boloz. of gold was obtained by the company prior to the 24th November, 1888. In addition to the yield of gold mentioned, 401V>. of specimen-stone was obtained from Scotty's Lode, which was valued by the assayer of the Bank of New Zealand at Auckland at £400. These specimens were sent to the Melbourne Exhibition, and afterwards exhibited at Paris. Taking the last general annual balance-sheet of the company, their receipts from gold obtained amounted to £12,286, and their expenditure on mine and plant to £10,630 ; thus leaving a profit on the workings of £1,656. Por the twelve months ending the 31st March last they crushed 1,334 tons of quartz, which yielded 3,1530z. of gold, representing a value of £9,065. This would show that the return has of late been falling off. The principal workings are on Scotty's Lode, which is about 2ft. in thickness. These have been carried on from the 225ft., 300ft., 34.0ft., 420ft., and 500ft. levels respectively. The run or shot of gold on this lode is from 75ft. to 80ft. in length. The main shaft at the time of my visit was down to a depth of 540ft., and up to the end of March last it was down to a depth of 565ft., and they intend to carry on sinking until a depth of 600ft. is reached. There has been an average number of seventy men employed in the mine and about the works. There is not a great deal of water in this mine. The plungers, which are 12in. in diameter in the upper lifts and 9in. in diameter at the bottom, are sufficient to keep the water down, working with a 6ft. stroke, and making 3| strokes per minute. The crushing-plant is one of the very old type, and does not do the same duty that a more modern plant would, nor is it one that is likely to save a large percentage of the gold. However, this is a subject on which there is still a great deal to earn. The loss of gold through defective crushing-plants is something almost incredible; but more attention is now being directed to remedy this evil. Coromandel Company. —This company is formed principally with English capital, and is under the same management as the Kapanga Company. It holds the same ground that was formerly held by the Union Beach Company, comprising an area of about thirty-nine acres. At the time this company purchased the property, about two years ago, there was a shaft down to a depth of 180ft., and three lodes stoped out in places from this level to near the surface. A wi.nze was also sunk on one of the lodes for 60ft. below the 180ft. level, and some stoping done ; but the water was too much for the pump then used to lift. This company have sunk a new shaft on the face of the terrace, about 300ft. distant from the old shaft, and it is down 100ft. below the 180ft. leyel. The old shaft was sunk on the ocean-beach, alongside the edge of the water, and the distance to drive levels from this shaft at a greater depth was so great that it was less expensive to sink a new shaft f besides, the old one was too small for pumping and winding. They have also erected a direct-acting Cornish beam steam-engine, with a

...Name of Claim. Quartz crushed. Yield of Gold. Average Number of Men employed in Claim. Tokatea Queen of the North Eoyal Oak ... Bachelor's Eob Eoy . . Bismarck West Tokatea Lb. 300* Tons. 233* 20 7 2_ 3 2+ 4" Oz. 433 132 1,029 52 25 160 45 16 6 12 2 2 6 2 Total 300 272J1,876 46 * Speci: .ens.