a—3a.

2

The Moanataiari Company has completed a magnificent crushing plant, and hope with it to successfully treat the low-grade ore which is to be found in the mine. It is probable that it will be at this battery that the ore from the Thames-Hauraki will be treated. In the Waiomo district the discovery of a process to successfully treat the Monowai ore should cause other companies to be formed for the purpose of working the different refractory ores which are found there. The failure of the Broken Hill Mine, at Tairua, caused that district to be deserted. The only mines now working at Whangamata are the Whangamata Proprietary and the Wentworth. Almost all the other claims have been forfeited or surrendered. Tapu Distbict. The most important mine in this locality is that of the Mahara Eoyal (Limited), an English company. A ten-stamp battery, driven by water, has been erected at a cost of £2,500. Abundance of payable quartz is being obtained to keep the mill going, and a large quantity of tailings, valued at £1 per ton, has been saved for future treatment. A low-level tunnel is about to be commenced to test the lode at a depth, and should the ore prove as valuable as in the upper workings an additional ten stamps will be erected. The prospects of this mine are considered excellent. Sheridan. —A company was formed in Napier with a capital of £10,000 to work this mine. Operations have been carried on vigorously in generally opening up the mine, but work is now being confined to developing the main reef on the low level. For some time past the reef has not turned out as well as was expected, but a change for the better has now occurred, and the outlook is much brighter. The company has actually spent £4,000 for a return of £160, and deserve better luck. The Jessie Company are erecting a small battery, and the Golden Band and Golden Horn Companies are prospecting their properties, but the results have not so far been satisfactory. Loose gold is obtained in the creek, and I understand that a syndicate intend working it by dredging. Waiomo Disteict. Monowai. —This mine is being systematically and vigorously developed under the able management of Mr. W. H. Williams, a gentleman of large experience in America and Australia. The ore is of a very refractory nature, and for years past efforts have been made without success to extract the precious metals. Mr. Williams claims that he can successfully treat the quartz, and has overhauled the battery. The ore will be treated by wet crushing, amalgamation, and Brown and Stanfield's concentrators. The tailings will be treated by cyanide, and the concentrates sent to Europe for special treatment. If this treatment is successful a large and complete plant will be erected. There is a good supply of ore to grass, and the mine is so well opened up that no difficulty will be found in keeping a forty-stamp mill fully employed. Professor Black has treated small parcels of the most refractory ore by his permanganate-of-potassium process, and claims that he extracted 94 per cent, of gold. In order to save the silver another treatment will be necessary. As a consequence of this discovery, several properties through which the Monowai reefs are known to run have been taken up. In the Comstock Claim, through which one of the Monowai reefs runs, operations have been resumed, and a cross-cut to intersect the reef is being driven. The Broken Hills Company are still prospecting their property, but the results so far have not been good. Most of the mines in this district have been forfeited or surrendered. Pueu District. The Puru Consolidated Gold-mining Company (Limited) have been carrying on' systematic works in opening up their mine and taking out quartz. A ten-stamp battery, water-race, and dam have been constructed. A considerable quantity of ore has been won, the assay results of which show it to be payable. The lode is still looking well. A new reef was recently discovered, giving at the outcrop an assay-value of £1 9s. per ton. It is intended shortly to cut this reef at some depth below for the purpose of ascertaining whether it improves as it goes down. This company deserves every success for the way in which it has carried on its operations. It is hoped that very soon the mine will repay what has been spent upon it. Nearly all the other claims held in this locality last year have been abandoned. Taeaeu Disteict. The Tararu Creek Company has been continuously at work. The battery-level is being driven to make connection with the City of Dunedin level, which is also being pushed on with from the opposite side of Tinker's Gully, the intention being to connect these levels so that the ore may be sent through the mine to the battery direct. The other works in progress are prospecting, driving, and rising to connect with the low level. This company had the misfortune to lose its battery by fire on the night of the 25th March. At the time the plant was undergoing extensive alterations. Nothing daunted by its loss the company at once decided to erect new and more suitable machinery, and Messrs. Price Brothers are at present engaged in erecting a thirty-stamp mill with all necessary plant. A water-race has been constructed three-quarters of a mile long, carrying eight heads of water, and having a fall of 95 ft. The Pelton wheel, which will replace the old water-wheel, will drive the battery, air-compressors, and rock-drills, judging from the work going on, the company must consider that the mine is payable. Chicago. —A company called the Chicago Gold-mining Company was formed in Christchurch for the purpose of working this mine, and is engaged in opening up the property. Plenty of quartz,