C.—2

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percentage o£ the bullion is now recovered. The total yield from the Ohinemuri district last year was 68,6030;5. of bullion, representing a value of about £107,000; while 454 men were employed in the mines. Waiorongomai. There are very few men now working at Waiorongomai. There appears to be a considerable amount of bullion in the ore, but so far it has not been treated successfully. A fair percentage of the value cannot be recovered by the ordinary battery process, and the ore contains too large a percentage of copper to treat it economically with cyanide of potassium. There are a large number of lodes in the district known to contain gold, but most of the miners originally in this locality have left the field, and very little prospecting is done. The total yield from this field last year was 2,5150z. bullion, representing a value of about £2,500, while only twenty-nine men were employed in connection with the mine. Lyell. This was never a large quartz-reefing district, the principal gold-producing claim being the Alpine. In this claim the lode has been stoped out from the surface to a depth of 800 ft., and it still gives payable returns. Adjoining this claim the Larnach Company have constructed an adit-level for a distance of about 3,300 ft., and have succeeded in cutting the north block of the Alpine lode, which is said to show gold freely. This company has been about twelve years constructing this adit-level, and it is to be hoped it will yet be rewarded for its labour and perseverance. During the past year there were 9,876 tons of quartz crushed in this locality, yielding 9,1860z. of gold, valued at £36,744; while seventy-four men were employed in the mines. Inangahua. This is by far the largest quartz-reefing district in the Middle Island. It extends for a distance of forty miles, but the claims are greatly scattered, Reefton being in the centre ; but there are only a few claims working within a radius of three miles of the town. The workings are gradually extending from Devil's Creek to the Big River. At the latter place some very good auriferous stone was obtained last year in the Big River Company's claim. At Merrijigs, the Cumberland Company has been doing fairly well, but the adjacent companies—namely, the Golden Lead and Sir Francis Drake—-were not successful in their operations last year. The Progress and Globe Companies at Devil's Creek both have a large number of men employed, and the former company has been successful in paying dividends, but the other company has only been paying expenses. The Keep It Dark and Wealth of Nations mines at Crushington have been worked steadily during the year. The latter company has been fairly successful, but the former has had to make calls to carry on prospecting operations. The Keep It Dark is the deepest mine below sea-level in the district, being about 150 ft. below that datum. At the Sir Charles Russell Mine, at Painkiller, some good stone has been struck, and a crushing-battery is now being erected near the mine. Prospecting operations at the deep levels are being carried on at Boatman's by the Welcome Company, but no payable stone has yet been struck. During the past year 35,214 tons of stone were crushed and tailings treated in the Inangahua district, yielding 19,367|0z. gold, representing a value of about £77,470. The total quantity of quartz crushed in this district since it was opened amounts to 594,461 tons, which yielded 449,4860z. gold, having a value of £1,698,997, out of which dividends have been paid to the extent of £529,429; while the whole of the calls made by the mining companies amount to £305,379. This shows that there has been £221,050 returned to the shareholders more than has been paid in calls. The value of the dividends paid last year was £18,832, while 312 men were employed in the mines. Otago. The principal quartz-mining districts in Otago are Skippers, Macetown, Old Man Range, Nenthorn, and Barewood; but the two principal claims where operations were carried on last year were the Phoenix and the Premier, both of which are now held by English companies. It is to be hoped that both these companies have been floated on the London market in such a manner that those investing their capital will receive a fair percentage for their money. We require capital in our mining ventures to assist in the development of our lodes, and I wish to see all persons who invest their money in undertakings of this nature receive adequate returns.