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the conversion of their battery to " wet " crushing if the experiments now being conducted in the Woodstock are a success. The Talisman Extended are driving for a lode which is supposed to exist close to their eastern boundary. A good deal of prospecting work has been done in this mine. The Victor Waihou Company, of which great things were expected, as it is supposed to carry the Talisman, Woodstock, and Grown reefs, has been closed down pending reconstruction. The Woodstock Main Beefs Company has also closed down, having met with no success, after having done a lot of driving and prospecting work. The Stanley, Sterling, Waverley, Ivanhoe, and Excelsior Mines are all more or less protected, and have done but little work. At Waitekauri, the big Waitekauri Company have shown considerable improvement in the output last year. The mine is now well opened up, and a large number of men are employed. Both batteries (dry crushing) are working smoothly. I understand that the Krupp mill has not been run during the dry season. In the Te-Ao-Maramara section of the mine the prospecting tunnel is being continued from both ends. Although nothing of importance has yet been struck the prospects are good. The Alpha Company are now erecting their battery, which should be ready by the end of the year. The mine has been well opened up, and the lode assays exceedingly well. I hope to have something better to report of the company next year. The Waitekauri Union Claims have accomplished a lot of prospecting and work of a preparatory nature, such as road-making, &c. No reefs to my knowledge have yet been struck. Although the ground holds a very good position for obtaining likely lodes it is difficult to say what the prospects are likely to be. A large amount of capital is being spent on this ground. The Waitekauri United Company, I regret to say, has decided to shut down, as after carrying their low-level tunnel right through their property they struck nothing. The Jubilee Company, which is one of the oldest mines in Waitekauri, and on which a great amount of work has been accomplished, have at last struck a better class of ore, which, although slightly refractory, assays well. They intend starting crushing with their ten heads of stamps in June. It is to be hoped that they will meet with some encouragement. The Grafton and Grace Darling Companies have done prospecting and developing work. Both these companies should turn out good mines, but will need to start work in real earnest. In the Komata the Komata Eeefs Company has been very successful from the day they started crushing, at the latter end of last year. The ore has kept up a systematically high value, and a good extraction has been obtained. This company, I understand, intend to add an additional twenty head of stamps almost immediately, and other important works are also in contemplation, amongst which are putting in a low-level tunnel, 244 chains in length, through the Komata Eeefs Extended Special Claim; also the constructing of a water-race down to Hubbard's boundary, transmitting the power by electricity. The mine now is well developed, and its prospects are distinctly good. At Maratoto work is practically at a standstill. The Waitekauri Extended Company, after spending a large amount of capital in constructing a forty-head battery, roads to it, water-races, tramways, &c, found a change of management was necessary, as the mine itself had not been properly developed to warrant such an expenditure. This is being undertaken by the management, and I understand experiments are now taking place in the battery to ascertain if it shall be run on the wet or dry process. The Hikutaia Syndicate, in contradistinction to the last-mentioned company, have been fully opening up their property. Seven levels have been put in, and a large quantity of driving done on each of them; but the ore, which is plentiful, is so low grade as to hardly warrant the syndicate incurring the expense of erecting a large mill and water-races. To make this property pay it would be necessary to treat a large amount of ore per diem. Waihi District. The Waihi Gold-mining Company (Limited) have made great strides during the past year. Again it has put out a record return of gold for the year. Each year this great company increases its output, and it is expected for the year ending 1898-99 it will double the output of last year. Several important works have been finished, at a cost which must have run into six figures. The new 100-head battery at Waikino has been finished, and is now working as smoothly as could be wished. The two water-races to this battery alone cost £14,000. A new pump at the No. 2 shaft has been completed at great cost. This pump, I believe, is the biggest in New Zealand. It is capable of pumping 70,000 gallons an hour at a depth of 1,000 ft. It is at present only down 370 ft., and working at the rate of six strokes a minute. It can do nine strokes. The railway, of six miles, has also been completed. The company are now busy putting in two more levels at a depth of 370 ft. and 450 ft. respectively. Six hundred men are employed by the company, not including contractors, and the wages-sheet every month, excluding money paid to the contractors, totals up the very respectable sum of £5,500. The output per month, which is now close on £23,000, is expected to be increased to £25,000. The company have in contemplation the erection of another hundred head at Waikino as soon as the Union Waihi Company are in a position to take over the ninety-head battery at Waihi. The Union Waihi Company are doing steady work, and have put down two good shafts. From the No. 1 shaft cross-cutting both ways is being carried on to cut the Amaranth reefs on the one side and the Union on the other. Before the former reef will be cut 640 ft. have to be driven. It is a big lode, but apparently only contains one main shoot of gold through it. Thirty men are at present being employed by the company. The Waihi-Silverton Company have continued along steadily, their return averaging about £1,250 per month. In the new level opened up the ore shows slight improvement. It is quite