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sump room, ventilation being maintained between the shaft-bottom and winze. The 800 ft. level (north and east) was vigorously pushed. The reef was tapped on this level at 142 ft. north of the shaft, from which point it was driven on to the eastern termination of the stone, and is now being continued north on a good width of reef. The total footage completed is 761 ft. driving and crosscutting, and 215 ft. of sinking and rising. Stoping commenced in December in a general manner on the 500 ft., 600 ft., 700 ft., and, more recently, the 800 ft. levels. The production of quartz milled, from development and otherwise, amounted in all to 1,979 tons, yielding 711 oz. 5 dwt. 23 gr. of gold, at a cash value of £2,834 7s. lid. Surface arrangements have undergone considerable alterations and extensions. The twenty-stamp battery was thoroughly overhauled and readjusted, and the 50 ft. diameter overshot water-wheel substituted by a 6 ft. Pelton for driving purposes. Directly in connection with the mill is an extensive cyanide plant, consisting of six wood-built tanks and two sumps. The pulp coming directly from the amalgamation-tables is lifted 13 ft. by an 18 ft. diameter elevatiug-wheel and discharged into a classifying-box, from whence the pyritic slimes are separated over a series of twelve concrete tables, 15 ft. by 12 ft. The coarse sands are then passed over two Wilfley tables, on which the concentrates are extracted, leaving the filtered sands to flow on down a launder into the cyanide-tanks for treatment. The water-race capacity has been increased to meet working requirements, and the reduction-works are provided with electric light from a Crompton dynamo. The average working-capacity of the mill is about 1,100 tons a month, which quantity the management anticipate to treat monthly during the ensuing year. Golden Fleece Group : Low-level Tunnel. —The amount of work done on this property during the year comprised 2,368 ft. of driving and crosscutting, and 598 ft. of rising. The following developments have been carried out since my last report: The winding-shaft from the low level to connect with Golden Fleece No. 6 level is completed, and fully equipped with a Ledgerwood double-geared drum engine (actuated by compressed air) installed in a chamber 24 ft. by 7 ft. by 11 ft., connected to the head of the shaft by an enclosed tapered rope-way. Other works—comprising excavation of chambers in Nos. 9, 8, 7, and 6 levels, building of engines, and connecting by 6,666 ft. of 5 in. and 1,815 ft. of 3 in. and 2\ in. compressed-air-pipe-line from the Murray Creek installation— were completed in October. During the construction of these works the various levels and rises were extended from the crosscut north and south on Nos. 9, 8, and 7 levels, the same being connected by rises where necessary. Stoping was started at the end of October, and milling operations operations have been going continuously since early in November. The tonnage crushed was 1,918 tons, yielding 1,946 oz. 15 dwt. 9gr., with a total cash value of £3,859 ss. The whole plant is in excellent order and working satisfactorily. Progress Mines of New Zealand (Limited). —Operations at the mine were carried on continuously during the year. Development-work, comprising 3,071 ft. of driving and crosscutting, and 913 ft. of sinking and rising, has resulted in opening out a large body of ore in sight, which, compared with the corresponding period of last year, shows an increase of 21,000 tons, in addition to the output of 40,564 tons quartz milled during the nine months of last year. This increased tonnage has decreased the cost of production by Is. 9-696 d. per ton on that of the preceding year. The eastern side of the mine was opened generally on levels Nos. 1,2, 3, 7, 8, 9, and 10, and the B winding-shaft sunk from No. 9 to No. 10, a depth of 187 ft. (including 37 ft. of water-storage), making a total depth of shaft of 1,286 ft. Transport : The quartz transport by aerial line has given very little trouble since the " lock-coil " ropes were adopted on the loaded side. Several sections on the return side have been renewed with portions of the original rope and the plant is in good working-condition. The cost of transport has been reduced to 4'556d. per ton milled. Chlorination : Owing to the refractory nature of the concentrates, the work of the chlori-nation-furnace has been chiefly confined to roasting, preparatory to shipping them to New South Wales for smelting. Cyanide plant: The percentage extraction from the cyanide plant has not come up to expectations, and greater trouble has been experienced with the refractory matter than was anticipated by the results of earlier experiments. However, by varying the process slightly, better results may be expected from this source. The cost per ton is also slightly above the original estimate, being practically 4s. per ton, of which cyanide accounts for 2s. Prospecting : The company propose to start energetic prospecting in the neighbourhood of the old Globe shaft, from the surface down. Hoisting machinery being necessary to clear out the old shaft, the County Council is now regrading and widening the country track to enable the machinery being brought to the ground. Keep-it-Dark Quartz-mine. —Mining and milling on this property were carried on steadily during the year, but outside the ordinary routine of work there are no fresh developments of importance to note. The ore-body west from main shaft is intersected and worked from three main levels, which form the centre of active operations. The output of quartz crushed was stoped from Nos. 2 and 3 levels. Thickness of ore shows no material change, but the grade varies somewhat as the working proceeds. No. 2 level was driven south 150 ft., but nothing of importance was disclosed; while north, on the same level, a block 50 ft. in length was passed through. A rise of 64 ft. connects this block with the south stopes. On No. 3 level north a fair-sized lode is exposed for 291 ft., and the No. 2 north face is nearly connected by a rise of 104 ft. Cyanide plant: Under the supervision of Mr. R. M. Aitken, this process has been working very successfully during the year, and the returns therefrom are regarded as highly satisfactory. Hercules and Keep-it-Dark No. 2 Mines are still shut down. New Scotia Quartz-mine. —This property, formerly held by the Sir Francis Drake syndicate, was lately bought by a local company, who acquired all rights to work the mine. Convenient to the accumulated tailings-heap, the new company erected a very complete cyanide plant, under the supervision of Mr. R. M. Aitken, of Reefton, and the returns yielded show a high percentage