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examination of our auriferous lodes in the different mining districts. A report by Mr. R. A. F. Murray, F.G.S., of the Mines Department of Victoria, on this subject has been laid on the table. Encouragement should also be given to mining associations and local bodies to enable them to prospect the back-country. It is not to be assumed that every party will meet with success, but a great deal of useful work has been done in the past in this direction by prospecting associations. In particular, I may mention the Rimu Prospecting Association on the West Coast, which has carried on operations in a systematic and economical manner for several years, and has recently opened up a new field between the branches of the Kanieri River. The extent of this is not yet known, but sufficient gold has been got to warrant mining operations being carried on. It may also be noted that it was with Government assistance that the lode now being worked by the Waihi Gold-mining Company, at Waihi, from which excellent returns are being obtained, was first discovered. There is yet plenty of country comparatively unexplored, or where, at least, no prospecting has been done, which is likely to contain a vast amount of mineral wealth, and the large number of people employed in mining are entitled to some recognition of the benefits the colony has derived from their labours in the past, by granting them some assistance towards developing the industry in the future. The total amount expended in subsidies for prospecting during the past twelve years has been £15,713, the amount expended last year being £1,592. GEOLOGICAL EXPLORATION. During the past year, Mr. A. McKay, the Mining Geologist, was engaged in exploring and tracing the auriferous quartz drifts in Otago, and the result of his explorations is likely to be the opening-up of new ground in this locality. "Wherever these old quartz drifts occur they are found to be gold-bearing, and to contain layers or bands which are extremely rich. This has been the case at Mount Buster, St. Bathan's, Tinkers', and elsewhere. It is intended to get the whole of the goldfields of the colony carefully examined, and a geological map prepared showing the different formations, their sequence and major faults or displacements, as far as can be gathered from an examination of the country, so that in time we may have a reliable map which will be a great guide to those who carry on prospecting operations in search of gold or other minerals. A map of the Otago goldfield cast of Lake Wakatipu, explored last year, has been published with departmental reports. I would also call the attention of honourable members to a geological report and map prepared by Mr. James Park, who has been employed as Instructor and Lecturer at the Thames School of Mines for the last five years. The information was obtained in the prosecution of his duties, and while exploring the field with his students. The lodes with their displacements and breaks are shown on the map, and can be seen by any one at a glance. MINING MACHINERY. In order to give all the latest information with regard to mining machinery and appliances for the reduction and treatment of metalliferous ores, I have directed that full publicity be given in the departmental reports of any system brought under the notice of the department which would be likely to prove of interest to persons connected with mining. It is only by new appliances and improvements in mining machinery that we can hope to arrive at a more perfect and economical method for the recovery of metals so as to make our numerous low-grade ores pay for working. In the Inspecting Engineer's report on Goldfields, pages 125 to 150, will be found several descriptions and plans of mining machinery and processes for the treatment of auriferous ores. SCHOOLS OF MINES. The progress made by the students attending the Schools of Mines has induced the Government to grant a scholarship for a term of three years at the Otago University to one student from each of the schools at the Thames, Reefton, and Dunedin, on their getting the number of marks prescribed by the regulations. The subjects for examination are : Mining, Pumping and Winding, Ventilation of Mines, the Composition and Use of Explosives, Mining and Land-surveying, Geology, and Drawing. To be able to pass in some of these subjects, students will require to have a good knowledge of mathematics, and therefore this subject was not made compulsory. These scholarships are offered as an incentive to young men to continue their studies at these schools.