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its shareholders. Quartz reefing is at a standstill, the Barewood Beefs being apparently too low grade to be profitably worked under present circumstances, and a number of areas have been surrendered. The miners generally are distributed over the field, and are fossicking and working ground about the old workings. , I have, &c, The Under-Secretary, Mines Department, Wellington. E. H. Caeew, Warden.

No. 13. Mr. Warden Poynton to the TJndee-Seceetaey for Mines, Wellington. Sic,— Warden's Office, Invercargill, 27th April, 1899. I forward herewith the annual statistics. I have nothing of interest to report concerning the subdivisions of this district. Peesekvation Inlet. . ■ I regret to have to state that this field has not developed according to expectations. The results from the three claims that have been crushing during the year are disappointing. No new discoveries have been reported. Oeepuki. This place still keeps up its gold yield. The lead west of the Eiver Waiau, discovered a couple of years ago, has yielded but little. Nothing fresh has been found in that locality. There is a revival of interest in Orepuki shale. A lease of about 1,700 acres has been applied for. It is believed that the gold- and shale-mining industries can be worked together without friction, the shale being at a considerable depth in most places, while the gold is near the surface. It will require tact on the part of the Shale Company's officials to avoid friction with the holders of rights for water-races, dams, &c, on the area applied for. Their rights, being prior to those of the lessees, must be safeguarded in every way. Provision will also have to be made for a.covenant in the lease to permit of mining rights being granted in future over the area to be leased. Wyndham. Very little is being done in this sub-district. The recent addition to the Otago Mining District to the west of Gore, known as the Croydon field, is auriferous to a payable extent, and rights have been granted relating to it. There will be serious difficulty if sluicing on anything approaching a large scale is attempted in disposing of the debris. The area proclaimed is small and completely isolated; the streams traversing it are small and sluggish, and along their banks there are many settlers who will strongly object to the streams being polluted and filled with tailings. The field is so small that it would not be advisable to proclaim these streams sludge-channels and pay a large sum to the numerous riparian proprietors for compensation. Eound Hill. :" : : ;J : . ■:,. , '.. Several more claims to be worked by hydraulic elevating have been taken up in this locality. The two at work have had satisfactory returns, but, the past summer having been rather dry, the yields were not so large as they otherwise would have been. Deedging. ■ . ■'■■■•"! ■ ■ ■ - - ■-■..; Much interest is taken by the Southland people in dredging. A number of claims have been taken up in the bed of the upper Waiau Eiver. A dredge is being built on one of them, and will be at work during the winter. If successful, others will be built. Prospects are said to be very good. Dredging claims have also been applied for at Lake George, near Eound Hill, and at Colac adjoining. Old miners who have worked in the neighbourhood say that rich leads traverse the area between those places, but are too deep to be worked otherwise than by dredging. .The beds of several streams outside the boundaries of the mining district are to be tested by means of dredging. Many of the river-beds and low terraces in Southland are gold-bearing. Dredging has some advantage over other forms of mining when applied to private lands. The tailings and debris can be kept on the land to a great extent, and the running water required.is but small. Golddredging in Southland promises to become an industry of great importance. I have, &c, ' ' J. W. Poynton, Warden. The Under-Secretary, Mines Department, Wellington.

No. 14. Mr. James Coutts, Inspector of Mines, to-the Undbk-Seceetaey for Mines, Wellington. Sic, — Inspector of Mines' Office, Thames, 29th April, 1899. I have the honour to forward herewith the annual statistical return and report on the mining industry in the Auckland District for the year ending 31st March, 1899. The gold-mining industry in the Auckland District for the year ended the 31st March has borne out the statement made in my last annualreport, and, it is gratifying to find, is now on a more satisfactory basis than ever before, due to systematic mining, gold-saving appliances, and improved machinery. It is true there are a number who complain that this district is in a worse state than it was previous to the boom in 1896 and. 1897, but in comparing the gold returns it will be seen that there was an increase in last year's return over 1897 of £51,489 14s. 2d., and this