C.—3

3

PRODUCTION OF GOLD. The following comparative statements show the quantity and value of gold entered for exportation for the last two calendar and financial years:—

QUAKTZ-MINING. Nobth Island. The Waihi Gold-mining Company's properties rank not only as the largest and most important of their class in this colony, but take a place among the principal gold-mines of the world. During last year the tonnage of quartz raised and treated amounted to 214,508 tons (or 35,023 tons more thanthat of the previous year), having a total value of £603,167 Bs. 9d., and an average value of £2 16s. 3-2 d. per ton. Extensive additions to plant, some of which were outlined in the last annual report, have been made during the year. Among these, the large pumping-engine and pumps—the latter being 24 in. in diameter by 12 ft. stroke—is a notable feature. One of the shafts has been deepened to a lower level, and a considerable amount of development-work done underground in the various sections of the property. The reef-system is well opened up and ore-bodies proved, which will afford employment to a large number of persons for many years to come. The method of filling the stopes with mullock which is practised at Waihi might be more generally adopted at other mines in the colony—modified, of course, to some extent to suit local conditions —with advantage to employers and employed. There is a sense of security in working in and travelling through well-filled stopes, which is absent in the case of stoped ground left open except for the timber supports, or only partially filled in. The system also effects considerable economy in timbering, and the ventilation is more easily kept up to the actual faces of work. In the case of mines worked by shafts, it is desirable that some provision should be made to prevent the possibility of the pumps becoming choked with mud from the filled-in stopes in the event of any occurrence which would cause the mine to become flooded. At the several batteries and reduction-works belonging to the Waihi Gold-mining Company improvements in and extensions to the plant have been made, among which may be mentioned a new plant for the treatment of concentrates, which hitherto have been shipped to New South . Wales. The average number of persons employed by the company during the year was 1,120, and a quarter of a million sterling was paid in dividends. Altogether the sums paid in dividends since the commencement of operations amount to £1,257,189 17s. 6d. I have to acknowledge the courtesy of the management in furnishing, through Mr. J. Coutts, Inspector of Mines, several interesting photographs illustrative of the company's operations, for reproduction in this report.

Year ended 31st December, , Year ended 31st December, 1902. 1903. Name of District. Inorease for 1903. Decrease for 1903. Quantity. Value. Quantity. Value. Auckland Marlborough Nelson ... West Coast Otago Canterbury Oz. 201,583 601 5,947 118,796 181,116 2 I £ 721,977 2,404 23,649 475,272 728,124 7 Oz. 232,681 972 7,962 125,241 166,458 £ 832,334 3,845 31,710 501,090 668,852 Oz. 31,098 371 2,015 6,445 Oz. 14,658 2 Totals 508,045 1,951,433 . I I 533,314 l 2,037,831 25,269* Name of District. Year ended 31st Maroh, 1903. Quantity. Value. Year ended 31st March, 1904. Quantity. Value. Increase for 1904. Deorease for 1904. Quantity. Value. Quantity. Auckland Marlborough Nelson ... West Coast Otago Canterbury Oz. 203,158 401 6,235 125,399 155,056 £ 724,892 1,604 24,704 ; 501,639 623,213 : Oz. 233,271 1,279 8,222 126,184 171,489 £ 834,070 5,073 j 32,819 504,845 690,141 Oz. 30,113 878 1,987 785 16,433 Oz. Totals 490,249 1,876,052 540,445 2,066,948 50,196+ * Total net increase, value £86,398. f Total net increase, value £190,896.