C—B

3

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

QUAETZ-MINING. Noeth Island. The Northern District continues to be the chief field for quartz-mining—in fact, the gold-mining industry of this part of the colony is exclusively confined to the mining of quartz and the extraction therefrom of the precious metals—silver being also incorporated in the quartz—as distinguished from the more varied methods of gold-mining practised in the South Island, where alluvial gold is extensively worked in addition to the gold contained in quartz reefs. ~,,„, . . As usual the Waihi Gold-mining Company's mine is responsible for the largest output ot quartz, which for the year amounted to 259,978 tons. Of this amount 141,200 tons was treated with cyanide, direct from the stampers, the balance of 118,778 tons being passed over amalgamatmg-tables prior to treatment by cyanide. The production of bullion and the values of concentrates and slag-taihngs shipped amounted to £673,101 Bs. 4d., which represents an ore-value of £2 lis. 9"3d. per ton Dividends to the amount of £297,544 4s. were paid during the year. The gross sum so paid now totals ' At the mine the erection of the large new pumping plant (referred to in last report) has been completed, and is successfully at work. A new pair of winding-engines, having cylinders 18 m. diameter by 3ft stroke geared 2tol to a drum 9 ft. in diameter, have been erected at JNo. 1 snalt. Ihis increase of pumping and winding power will enable the management to further develop the property to a considerable extent. Underground the development-works keep pace with requirements so that there is always an ample area of ground opened up to allow of an output of ore being steadily maintained, equal in amount to the combined crushing-capacity of the several mills. These latter contain an aggregate of 330 heads of stamps, as under :— Heads. Waihi Mill, Waihi .. " " in Union Mill, Waihi *V Victoria Mill, Waikino .. • • ■ • • • • • " __ Total 33 ° Extensive additions have been made, at the mills, in plant connected with the treatment of ores, and include coal-hoppers, additional boiler-power, vats for sands and slimes, turbine, elevator-wheel, and tube mills. These latter are used for grinding concentrates, which, after being ground, are subjected to treatment by cyanide solution and aeration (compressed air being used) for the recovery of sold and silver The adoption of the process of tube-mill grinding and subsequent treatment enables the extraction of bullion from concentrates to be carried out at the mills, and obviates the necessity for their shipment to smelting-works outside the colony.

Year ended 31st December, 1904. Year ended 31st December, 1903. Increase for 1904. Decrease for 1904. Name of District. Quantity. Value. Quantity. Value. Auckland Marlborough Nelson ... West Coast Otago Oz. 223,010 473 5,049 123,310 169,478 £ 791,529 1,890 20,141 489,177 684,764 Oz. 232,681 972 7,962 125,241 166,458 £ 832,334 3,845 31,710 501,090 668,852 Oz. Oz. 9,671 499 2,913 2,931 3,020 Totals 1,987,501 533,314 2,037,831 3,020 16,014* 520,320 Year ended 31st March, 1905. Year ended 31st March, 1904. Quantity. Value. Increase for 1905. Deorease for 1905. Name of District. Quantity. Value. Auckland Marlborough Nelson ... West Coast Otago Oz. 222,652 166 6,461 119,545 170,388 £ 815,499 662 25,814 478,050 688,551 Oz. 233,271 1,279 8,222 126,184 171,489 £ 834,070 5,073 32,819 504,845 690,141 Oz. Oz. 10,619 1,113 1,761 6,639 1,101 Totals 519,212 2,003,576 540,445 2,066,948 21,233+ • Total net decrease, value £50,330. t Total net deorease, value £58,872.