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Eoss Disteict. Zala's Claim. —The only work carried on has. been driving a tunnel to cut the reef at a deeper level. The tunnel is subsidised by Government, and is progressing very slowly, the ground being wet. Gagliardi and Sons are also driving a tunnel in their claim by the aid of a Government subsidy. Cedar Creek. Alpha Claim. —Very little work was done during the year. The two men employed were lately at work in laying a tramway and repairing the battery in order to test the reefs.

Battery Returns. The following statement, compiled from the monthly returns furnished by owners of quartzcrushing machines under section 308 of "The Mining Act, 1891," shows the quantity of stone crushed and the yield of gold from the various mines for year ending the 31st March, 1898: —

Tailings (Cyanide Treatment).

The foregoing returns, showing 7,411 oz. 10 dwt. 20 gr. of gold, made up of 6,066 oz. 18 dwt. 1 gr. from ordinary quartz and 1,344 oz. 12 dwt. 19 gr. by the cyanide process, is short of last year's return by 2,806 oz. This falling-off is chiefly from the mines owned by the Consolidated Goldfields Company, the Big Eiver, Sir Francis Drake, and Keep-it-Dark Mines, whilst the United Alpine and Golden Treasure show an increase. The decrease in the first-named mines is largely due to the nature of the work carried on during the year. Extensive exploration works were in hand, and much of the quartz won from the workings was tested to ascertain the value of the different blocks opened. Next year the tonnage that is to be treated will be very much more, as the new sixty-stamp mill can be kept going. Much cannot be said about increase in other mines, although recent discoveries tend to an increase in the yield from the Keep-it-Dark. The new battery at the Crcesus Mine will also add to the production when a fair start can be made. A great deal of exploration work must be done to enable other mines to develop the reefs so as to have a reserve of payable stone to work on. Otago and Southland Disteict. Quartz-workings are carried on in isolated parts of this extensive district from Skipper's and Macetown in the north to Preservation Inlet at the extreme south-western portion of the Middle Island. Attention is again being directed to some of the older mines, and fresh operations in mine development have been commenced.

Name of Mine. Ordinary Quartz crushed. Gold. Approximate Value. Progress Mine Tyrconnel ... Sir Francis Drake Sir Francis Drake, tributers Keep-it-Dark Wealth of Nations Globe United Alpine Green and party, tributers Eodder and party, tributers Big River Golden Lead Al, tributers Al, tributers Al, tributers Victory Tons cwt. qr. 1,285 0 0 61 0 0 1,010 0 0 107 0 0 3,281 0 0 932 0 0 2,360 0 0 4,093 0 0 66 0 0 20 0 0 170 0 0 480 0 0 14 0 0 22 10 0 10 0 0 255 0 0 Oz. dwt. gr. 509 19 0 97 14 0 349 7 5 49 11 9 1,131 7 12 189 1 8 963 18 0 1,795 2 5 39 3 0 20 6 0 263 9 0 196 9 22 58 17 0 58 10 0 21 15 0 322 7 12 £ a. d. 23,505 15 0 14,166 10 0 6,066 18 1

Quantity. Yield. Value. >ig Eiver Cyanide-works lumberland Cyanide-works Tons cwt. qr. 3,975 0 0 1,600 0 0 Oz. dwt. gr. £ 860 17 18 1, -„- 483 15 1 j d '^° s. d. 0 0

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