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became restored. An analysis of a sample of the vitiated air by Dr. Black, Otago University, resulted as follows : Carbonic-acid gas, 0-83 vol. in 100 vol. of air ; carbonic oxide, about 0-06 vol. m 100 vol. of air ; firedamp, about 1 vol. in 100 vol. of air. Ten visits of inspection had been paid during the year. . . 'Castle HUI Colliery, Kaitangata (R. S. Jordan, mine-manager).—(2l/7/1904) : Air at intake, 28,000 cubic feet per minute. The lower levels in Nos. 3 and 4 winch dip workings are being pillared and robbed outward. Main seam and south level sections in good working-order. The new seam to the rise is troubled and not opening out quite so well as had been expected. A small quantity of gas was found at face of No. 2 heading. There was no one working in this place. Main level to furnace and back return airway in excellent order, having been recently repaired. The working-conditions of this mine are favourable, and the colliery is worked as an auxiliary to the Kaitangata Mine, the latter being kept going as steadily as possible throughout the year, while Castle Hill Mine is reserved for supply of surplus winter-trade requirements. Mainholm Colliery, Conical Hills, Waipahi (Fred. Lischner, proprietor).—Opencast pit. Ihis pit is well worked and produces over 3,000 tons of coal annually. Central Otago. Coal Creek Collieries, Coal Creek, Roxburgh (J. Barber, mine-manager).—(ll/4/1904) : Leasehold Mine.—No coal has been raised from the leasehold for some time, operations having been suspended until the overburden was stripped off. A fire broke out in the waste-heap in close proximity to the coal-measures. Risk of ignition of the coal-seam was removed by trenching. Freehold Mine.—As the coal trade is slack in the district, there were only two men employed in the Freehold section. The mine is in good order. Ventilation good. Rules posted, and report-books up to date. (21/4/1904) : Freehold Mine.—Two men at work on the freehold. Leasehold Mine.—Still nothing being done on the leasehold. (7/7/1904) : The company was notified under date the sth July, 1904, to resume winning coal from the Leasehold section. Operations have been resumed on the Leasehold section of the property. McPherson's Pit, Coal Creek, Roxburgh (Mrs. M. McPherson, lessee ; A. McPherson, manager).— (11/4/1904) : Work is proceeding satisfactorily in this opencast pit. There is a large area of bottom coal to take up. (15/9/1904) : A pit is being sunk in the " resin " seam and preparations being made to raise a 20 ft. lift of " bottom " coal. Craig's Perseverance Coal-mine, Coal Creek Flat (James Craig, lessee ; John Craig, manager).— (11/4/1904) : Mine-workings in good order. Ventilation good. Care must be exercised with regard to the upper abandoned workings on account of the risk of spontaneous ignition in this mine. (16/9/1904): Mine free of dross and in good order. Dip down 220 ft. in upper seam ; angle of inclination lin 4. Seam of coal 50 ft. in thickness,rl2 ft. of clay band, then lower seam, which had been sunk into 6 yards, but is not now being worked. Progress Colliery (Gully Pit), Roxburgh (James Bailey, agent for licensee).—(lo/11/1904) : Very little has been done in this pit, pending arrangements being made to provide a suitable winding and pumping pant. Perseverance Colliery, Alexandra (R. M. Finlay, lessee ; A. Hunter, manager).—(23/1/1904) : Working-places in safe condition, and ventilation fair. As had been expected and indicated in last year's report, firedamp has been detected in the dip drive working-face, and particularly at the faults which occur. Daily examination is made with locked safety-lamp as provided by the Act. Falls from roof in return airway require attention. (14/4/1904) : Messrs. Hunter, Mathias Bros., and Bowler have secured from the lessee the right to work this mine, with a view to purchase. Although not included in the agreement the haulage and pumping plant is to be at the disposal of the party for some time. Unfortunately the prospects of this mine are not good. Going to the dip the seam is much flatter than near the rise, and there is a marked change in the quality of the coal, which is soft and unsaleable. This section of the mine is broken and faulty, but the extent has not been proved. (31/5/1904) : The presence of firedamp was again detected in the dip-level workings on this date. The ventilation was fair. Seven men employed in the mine. (12/7/1904) :No firedamp has been detected since the Bth June, 1904. Mine-workings in safe order. (1/10/1904): Operations suspended on this lease. The plant is to be removed and application made for cancellation of existing lease. McQueenville Colliery, Alexandra (S. T. Lett, lessee ; John Hodson, manager).—(23/1/1904) : Mine-workings in good order. Lodgment being enlarged to hold twenty-four hours' water to obviate necessity for Sunday pumping. Ventilation good. (14/4/1904) : Considerable difficulty is being experienced in coping' with the growth of water in the lower mine-workings. The origin of this water is at present unknown, though partly due to natural drainage from the overlying strata, which is of a porous, open nature. The pumping-appliances not proving wholly effective increases the difficulty of keeping the mine unwatered. The manager complained of the unaccountable increase in the flow of water. The mine is in safe working-order, with good ventilation travelling round. The lower mineworkings are being worked narrow, 6 ft. in width by 6 ft. in height, with pillars 30 ft. square. (31/5/1904): The water has now risen to within 60 ft. from the mine-mouth, the pumps being unable to cope with the increased quantity Coal is being obtained from a small block of solid in the rise workings near the outcrop. (1/10/1904) : Lett intends to apply for cancellation of existing lease, and make application for a new lease of 50 acres adjoining the Undaunted lease. Work in the McQueenville Mine is now confined to splitting a few rise pillars to keep the trade going. (15/11/1904) : Revisited the mine on this date on account of a reported collapse of the lower dip workings. An examination of the mine revealed the fact that a disturbance had taken place over a considerable portion of the lower workings, resulting in the crushing of pillars and heavy falls from the roof. There was a heavy inrush of water into the mine from breaks in the roof of the seam, and also a settlement over a considerable area of surface. The steam-pump being recovered an attempt was made to cope with the water, without avail

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