C—3.

REMARKS ON QUARTZ-MINES. Haueaki, Nelson, and West Coast Mining Disteicts. For the reasons given at the outset of this report, I have to refer to the reports of the Wardens and the Inspectors of Mines for details of the industry in the above-named districts. Otago and Southland Disteict. I have visited the principal mines during the year. With the exception of the developments at the O.P.Q. reefs, at Waipori, and, to a lesser degree, at the Bonanza Mine, Nenthorn district, there is very little new work to call for special mention. Some prospecting has been done at Merivale, near Otautau, in Southland. It is reported that a reef has been struck (and its continuance proved for 150 yards along the line) having well-defined walls 3-J-ft. apart, the stone being white crystalline quartz varying from 6 in. to 14 in. thick. A trial crushing is said to have yielded gold at the rate of 11 dwt. to the ton, after specimen-stone had been picked out. In the Hindon and Barewood districts quartz-mining is practically at a standstill. At Nenthorn and Macrae's work is on a very small scale, with the exception of the Bonanza and Donaldson's Mines. At the latter scheelite is found associated with the quartz, and is saved by concentration. It is a valuable product, and commands a ready sale. Cockerell and party are now reopening the old Mount Highlay Mine, expecting to obtain scheelite in addition to gold-bearing quartz. Most of the claims are dependent on water-power for crushing purposes, and at the end of March were unable to work their batteries owing to scarcity of water. Messrs. Peddie, White, and Phelan are excavating a site for a small battery at Mount Highlay, Mr. Garrett is driving on what is known as " The Ounce reef," and Mr. J. Davis has a small steam-power battery ready for work. Mount Highlay. The claim held by the Mount Highlay syndicate covers an area of 100 acres. Until recently all the stone got was from different points along the line of outcrop, and, so far as is seen, the reef appears to run more like a coal-seam, having a dip towards the north-west. An incline tunnel following the dip of the stone has been commenced, and at my visit was only a few yards in length, but was much too wide. Owing to the extreme weather and lateness of the winter, it had not been possible to get timber on the ground. I found it necessary to show the men engaged how to set timber to advantage, and to call the attention of the management to this and other matters. If the stone continues to dip as I saw it, I think (judging from the proved line of outcrop) that a large tract should be available, and would strongly recommend the mine being properly prospected by driving a dip tunnel in the quartz. If found to continue downwards (on the incline gradient) a level tunnel might be driven from a gully about half a mile away, which would open out a large body of stone. This would give free drainage, and the quartz could be opened out like a coalmine, underground haulage being largely by gravitation. A battery could be erected here, and electrical power for driving same be generated at the Taieri Eiver. At present there is a long and tortuous wooden tramway connecting the mine with the battery, which must be very costly to work. The present battery plant consists of ten heads of stamps, with blanket-tables and silvered plates. Motive-power, five heads of water at 150 ft. head, acting on a 6 ft. Pelton wheel. Two of Cockerell's stampers have been erected here experimentally; they have a combined stamping and grinding motion. Mount Highlay quartz is of comparatively low grade, but with a large body of it, and worked somewhat on the lines suggested, it should be made to pay fairly well, and particularly so if scheelite is associated with the quartz. Canada Beefs, via Milton. During the past year the work has been chiefly carried on upon what is known as Lawson's reef. The adit has been driven east upon the reef, and stoped out nearly to the surface. It is about 120 ft. from the surface to floor of. adit, and is good standing ground. The walls of the reef

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Name. Locality in which Operations are being carried on. Nominal Share Capital. London Office. Waitekauri Central Waitekauri Consolidated Gold-mines Waitekauri Cross Waitekauri Extended Waitekauri Gold-mining Company Waitekauri United Waitekauri Union Claims Wealth of Nations Waitekauri Hauraki Beefton £ 65,000 120,000 100,000 175,000 230,000 150,000 300,000 63, New Broad Street. Swan Chambers, E.C. 19a, Coleman Street. 63 and 64, New Broad Street. 11, Abchurch Lane. Finsbury House, E.C. 15 and 16, George Street, E.G. 77, Bishopsgate Street Within, E V 11, Cornhill, E.C. 28, Basinghall Street, E.C. 3-5, Queen Street, E.C. Welcome Gold-mining Company Westport Twins Gold-mines Westralia and New Zealand Gold-explorers West Tokatea Gold-mine Whangamata Gold Corporation Wheel of Fortune Winding Creek Gold-mining Company Woodstock Woodstock Main Beef Westport Macetown, OSago Coromandel Whangamata Stafford, Westland Otago Karangahake Ohinemuri 110,000 100,000 50,000 200,000 125,000 30,000 150,000 23, College Hill, E.C. 14, Sherborne Lane, E.C. 6, Drapers' Gardens, E.C. 3, Princes Street, E.C.