0.—2

4

worked in past years, and in which it is probable further bonanzas may be discovered. Prospecting in the Waiotahi, Karaka, Una Hill, Hape and the out-districts is being continued, and the new battery at Whangamata, when completed, will be employed on quartz that is likely to prove remunerative. The Mahara Royal and other mines in the Tapu district in which the reefs are being worked should again give fair yields, and the mines in the Tararu district will also augment the Thames return. The return for the year was 31,338 tons 17 cwt. 97 lb. of quartz crushed for a yield of 18,003 oz. 17 dwt., valued at £47,580 6s. 3d. as against £32,177 14s. for the previous year, showing an increase of £15,402 12s. 3d. Ohinemuei County. There is every evidence that the returns from the various mines will next year be largely in excess of the amount of this year's yield, which considerably exceeds that of the preceding twelve months. Operations in the low levels in the Waihi Mine proved the existence of the different reefs at a greater depth, and show that they are not falling off in size nor diminishing in richness; while in the Waihi Grand Junction it has been clearly indicated that the line of the famous Martha Reef extends both to the eastward and westward, and that large quantities of payable quartz exist in the ground adjoining the Waihi Mine, which will no doubt give further encouragement to prospect along the line of reef in both directions. The returns from the Waihi-Silverton may still be expected to continue, and, as further prospecting is carried on, other lodes of payable quartz will most probably be discovered; while the developments in the UnionWaihi mine may also be expected to furnish large quantities of payable quartz. Important works have been carried on in the Waihi Consols; in the Ohinemuri Claim prospecting is carried on by boring with a diamond drill; and the discoveries at Waihi Beach promise to be of some importance. The Waitekauri Company are carrying on operations in the Golden Cross, Te Ao Marama, and old Waitekauri sections of the property. In the Waitekauri Mine the operations indicate a continuance of profitable returns. Important works are also being carried on in the Waitekauri Cross and the Waitekauri Extended Mines. The old mines at Maratoto are again being opened, and the result of operations has been sufficient to warrant the erection of a crushing mill, which will shortly be ready and be in a position for the treatment of the ore. At Komata the Komata Reefs Mine is being energetically opened up, and large quantities of quartz are available. The Crown, and the Talisman Mines at Karangahake are both developing valuable quartz at low levels, and producing excellent returns of bullion. The reef in the Crown Mine is now opened to a depth of 150 ft. below the bed of the Waitawheta River; it is of large size and of high value, giving an indication of future success at the deep levels. The total distance to which the No. 4 and No. 6 levels have been driven on the line of reef from their respective entrances is 2,847 ft. and 2,624 ft., showing that extensive blocks are being opened up. The Woodstock Mine'also continues to be a steady producer, and as improvements are being made in the methods of treatment better extraction may in future be expected. Important developments are also being made in the Talisman Extended Mine. In the Owharoa district, the Ohinemuri Syndicate are carrying on prospecting operations at a considerable depth below the old workings. Ohinemuri is, without question, the premier quartz-mining field in the colony, and bids fair to maintain its position for some time to come. The total returns for the year were 170,881 tons 11 cwt. of quartz crushed for a yield of 459,652 oz. 14 dwt. of bullion, valued at £473,397 18s. 2d., as against £300,107 17s. Bd. for the previous year, and showing an increase of £173,290 os. 6d. The following are some of the principal returns :—