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C—3a.

No. 15. Mr. James Coutts, Inspector of Mines, to the Undeb-Seceetaby for Mines, Wellington. Sic, — Inspector of Mines' Office, Thames, 18th April, 1898. I have the honour to forward herewith the annual statistical returns and my report on the mining industry for the Auckland District for the year ending the 31st March, 1898. The gold-mining industry in this district has not turned out as well as was anticipated in the early part of the year. This, I consider, is due to the large areas of ground taken up where neither gold-bearing lodes or rock favourable for the precious metal existed, and consequently the prospecting operations in a number of cases have resulted very unsatisfactorily. There were also a number of men sent out to prospect who had no knowledge of the nature of the country in which gold-bearing lodes were to be found, and with no experience of the work; therefore a number of the claims were abandoned. There has also been a large amount of money spent recklessly in the erection of crushing plants where there was no payable ore in sight to warrant the outlay. However, it is pleasing to state a number of the companies have gone in for systematic mining and erected first-class machinery in the shape of pumping- and winding-engines; also batteries with the most modern appliances for saving gold and silver, some of which have already proved that the expenditure was warranted ; and this has, in my opinion, been the means of putting the mining industry on a more satisfactory basis on this goldfield. There is also every prospect of the gold returns being greatly increased in the coming year, as several batteries that were in course of construction have now been completed. CoBOMANDEL. Kapanga Mine. — The operations in this company's mine in the early part of the year were chiefly confined to the development of the low levels. A considerable amount of driving was done between the 500 ft. and I,oooft. levels, but without success. A bore was also put down with the diamond-drill from the bottom of the shaft to a depth of 225 ft., and as the bore proceeded assays of the core were taken regularly as it was brought up, and in some instances the gold obtained was most encouraging. Some six months since the management decided to let blocks of ground on the different leaders on tribute. Some of the miners at once took advantage of the opportunity, as they had reason to believe that payable gold could be obtained at the upper levels, and so far some of the tributers have been very successful. The blocks of ground let on tribute are from the 400 ft. level upwards, the company reserving every alternate block on the line of the reef, thus securing the company an opportunity of getting a share of anything good that may be discovered in the adjoining blocks. The prospect of the company looks more encouraging than it has done for years, as the lode is intact at the 400 ft. level for come considerable distance. Forty men are employed on wages and thirty on tribute. Scotty's Mine.— This company in the early part of the year was pressed for the want of funds, and it was found to be necessary to stop operations and apply for protection to enable the directors to raise money to carry on the works they contemplated doing to develop the mine. Since work has again been resumed the shaft has been sunk to a depth of 415 ft., and a level opened out at the 400 ft. level for the purpose of intersecting the Brewers' reef, which has been worked to a considerable extent in the upper levels. At the 300 ft. level, driving, sinking, and rising are being carried on the same reef, which is a strong body of quartz, and is all saved for treatment. Thirtythree men are employed in the mine. Britannia Mine. —The company's mine has been continuously worked during the year. The shaft has been sunk to a depth of 240 ft., and a chamber opened out at 220 ft., from which three cross-cuts have been driven. In the eastern drive a reef formation was met with 40 ft. from the chamber, and this was driven for a distance of 80 ft., but not meeting with any payable quartz this was discontinued. The cross-cut west was driven 220 ft., and a reef cut 2 ft. thick, which was driven on for a distance of 210 ft. The south-west cross-cut has been driven 280 ft., and a reef cut and driven on 100 ft. north and 90 ft. south. A little gold has been seen in this reef, which is 1 ft. in thickness. This reef is being worked on at an intermediate level, about 130 ft. above the bottom level, with very encouraging results. As the reef has carried gold for a distance of 70 ft. it will now be necessary to connect this level with the 220 ft. level for ventilating and to give better facilities for opening up this portion of the mine. A 10-horse-power steam-engine is used for winding, and steam is supplied from a 20-horse-power boiler to work the pumps. Twenty-three men are employed. No returns. Golden Lead Mine. —A considerable amount of work has been done in this company's mine. A surface-level was put in from the side of the creek, which intersected Scotty's reef, but as there was very little quartz over this level it was deemed advisable to drive a low level to open up the reef at a depth. The reef was met with at 280 ft., and has been driven on for some distance with most encouraging prospects, gold being freely seen in the quartz every time it is broken down. Five men are employed. New Hero Mine. —Prospecting works are being carried on in this mine. Two men are employed. Pigmy Mine. —This mine was protected, but the company have again resumed operations, and are now driving prospecting levels to intersect the West Tokatea reef. Three men employed. No returns. East Hauraki Mine. —This company has done a considerable amount of work, and are driving an intermediate level to cut the West Tokatea reef. A large quantity of gold has been taken out of this mine, and the manager is sanguine of meeting with quartz in payable quantities at any time, Three men are employed.