C.—2

6

COMPAEATIVB VALUE OF EXPOBT OP GOLD AND SILVBE FOE THE FIEST SIX MONTHS OF THE YEAES 1899-1900. A return from the Customs shows that the export of gold for the first six months of this year was valued at £694,859, as compared with £750,499 for the corresponding period of last year, this being a decrease of £55,640. The value of silver exported shows a decrease of £3,420 for the same period. The decrease in the value of gold exported may be attributed to the transitory state of alluvial mining, caused by sluicing largely giving place to dredging, and the inability of engineers to build dredges quickly enough to meet requirements. "THE MINING ACT, 1898." Amended regulations framed under this Act were published in the Government Gazette, under date of 18th June, 1900, and have been referred to the Goldfields and Mines Committee. THE CYANIDE PEOCESS. Royalties amounting to £3,254 17s. have been paid to the Government by licensees in the colony during the two years and a half since the patent rights were acquired for New Zealand, or nearly one-third of the cost incurred. PEOSPECTING. During the year ended 31st March, 1900, the sum of £1,400 9s. 6d. was expended in subsidies to parties of miners and prospecting associations actually engaged in the work of prospecting for minerals. WATEECOUESES FOE TAILINGS, &c. Applications having been made to the Government for the proclamation of certain rivers and streams in Otago and Southland as watercourses into which tailings and waste water from mining operations may be discharged, Commissioners have been appointed by His Excellency the Governor to inspect the rivers and streams in question, and to take evidence in connection therewith. Two interim reports have been received. SCHOOLS OF MINES. The School of Mines at Reefton, which was closed for some time, has been reopened, and the schools at Thames, Coromandel, and Waihi, as well as that in connection with the Otago University at Dunedin, have been carried on as usual. Students to the number of 211 have attended the various schools, and are returned as follows : Thames, 69 ; Coromandel, 29; Waihi, 50; Reefton, 15; Dunedin, 48. Some instruction has also been given in blowpipe analysis and geology at Nelson. During the past fifteen years the total expenditure by the Government in connection with Schools of Mines, including grants to the school attached to the Otago University, has been £29,895 Is. 6d. WATER CONSEEVATION. The large storage reservoir at Eweburn, Otago, is now practically completed, and, as it has been partially filled for some time, the increased watersupply obtained from this source has already been of considerable benefit to mining operations around Naseby. The value of this reservoir will be more fully realised during the ensuing summer. Other sites for storage are receiving the attention of the department. GEOLOGICAL EXPLOEATIONS. During the past year the survey of Cape Colville Peninsula and Hauraki Goldfields was continued, and the collection of rocks and mineral specimens now made represents all parts of the peninsula from Cape Colville to Te Aroha. A typical set of the rocks from Coromandel and the northern part of Thames counties has been forwarded to England for description by a petrological expert, and a like representation of the southern goldfields is now being prepared.