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work in the mine is confined to stoping on the No. 2 reef, and gold has been seen frequently in breaking out the quartz in the stopes for over 100 ft. in length. The reef varies from 1 in. to 18 in. in thickness, and has been driven on for a distance of 200 ft. 56 tons of ore was treated for 141 oz. 13 dwt. of gold ; value, £345 Bs. lOd. Mercury Bay District. Colorado Prospecting Claim. —This ground is held by a syndicate, who are carrying on work on the surface-level by contract. The reef has been driven on south of the crosscut for a distance of 100 ft. For the first 30 ft. the reef was 4 ft. thick, and assays made from time to time gave a value of from £1 to £1 ss. per ton; but as the drive proceeded a softer class of country was met with, which had the effect of causing the reef to split up into stringers, and the assays taken from here were not so good as where it was more compact. 25 ft. have been driven on the same reef north ; here it is from 18 in. to 3 ft. thick, and assays about the same as the reef on the south side of the crosscut. The shareholders are now considering the question of opening up the reef at a lower level, as it is more solid and compact (in tight country) and assays better. They are of opinion that where they have been working is too close to the surface. Two men have been employed. Mahakirau. Peep of Day Claim. —This claim has been worked by two men continuously, who have completed about 500 ft. of driving, and done a considerable amount of prospecting, in the shape of trenching, Ac In the first drive put in an excellent class of andesite, containing nice mineral veins, was cut; yet no leaders of an encouraging nature were met with. A drive was also put in from the level of the creek under a slip, where, some years ago, some very rich stone was got, but unfortunately this party found nothing but a few small stringers that would not pay to work. Day Dawn Mine. —This mine was worked by a syndicate, who did a large amount of prospecting, in the shape of driving and trenching on the various leaders that run through the claim. These vary from 4 in. to 4 ft. in thickness, and are running through an excellent class of country. Gold was frequently seen in the quartz, but it did not turn out as well as anticipated, and in consequence operations were suspended. In the month of October last 17 tons 10 cwt. of quartz was treated for 12 oz. 5 dwt. of gold ; value, £31 ss. Four men were employed. Nil Desperandum. —This is a claim lately taken up by A. Prescott and party, who, it is said, have made an important discovery. I have not seen the claim, but as soon as time permits I will visit it. lam informed it is situated about two miles up the creek from the Government public testing plant. They crushed 50 b. of specimens for 51 oz. of gold ; value, £137 14s. The Government public testing plant, I am sorry to say, only crushed 17 tons 10 cwt. during the last nine months. Gumtown. Big Beetle Mine. —The work that has been done in this mine is chiefly of a prospecting character, in the shape of driving and trenching. Drives on the reefs have been put in the following distances: On No. 1 reef—Top level 38ft., middle level 90ft., low level 50ft.; No. 2 reef— Upper level 43 ft., lower level 22 ft. This company intend to erect a small crushing plant as soon as the county road leading from Gumtown to the mine is completed. This will enable them to get the machinery on the ground. The prospects met with'are, lam informed, very encouraging. No returns. Kapowai. —The operations in this mine are chiefly prospecting and driving. The No. 1 drive was put in a distance of 63 ft. to intersect the No. 1 reef. The No. 2 level has been extended 112 ft. on what is termed No. 2 lode ; there is only a formation in the face of the drive, and, as it is carrying little or no gold, work here has been suspended for a time. A rise has been started over this level to see if it improves going upwards. A crosscut has been put in 44 ft. to cut the reef about 88 ft. above No. 2 level, but this is now stopped. A drive is being extended on what is supposed to be No. 2 lode, and so far nothing of importance has been met with. Five men are employed in this mine. Welcome Jack Mine. —This company has done a large amount of prospecting and driving on the reefs, the prospects met with being sufficiently encouraging to warrant the erection of a fivestamp battery, and a contract has been let for the cartage of the battery from Mercury Bay to the mine, which the owners intend to have erected and ready for crushing in the month of May. A crushing of 5 tons 18 cwt. 72 lb. was treated at Fraser and Sons' plant, Auckland, for a return of 227 oz. 18 dwt. of gold value, £263 10s. lOJd. Seven men have been employed. Prospecting operations are proceeding on the Rangihau, Prince Edward, Golden Reefs, and Perseverance Claims, in which very good surface-prospects are obtained ; but further development will be required to prove the value and permanency of the reefs. Two men are employed on each of those claims. Mata Creek. There have been a few men prospecting intermittently in this locality, but no discoveries of any importance have been reported, and no returns of gold received. Tapu. Mahara Royal. —Operations in this company's mine were directed for a time to opening up the Royal reef to the north of the crosscut at the lower level. In driving on the reef here the prospects were exceedingly encouraging, but in stoping it out over the back of the level the quartz obtained did not yield so well as anticipated, and in consequence the number of men was reduced. The few who were retained were put on to prospecting-work. 664 tons was crushed at the company's mill for a return of 368 oz. 7 dwt. of gold ; value £1,085 lis. Id.