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grade, the value Tper ton milled being 6 dwt. 1-18 gr. in 1905, as against 7 dwt. 3-93 gr. for 1904. an unfortunate drop; and from the appearance of the mine the year 1906 will show a further reduction in values. " The same policy will be pursued underground in the future as heretofore- -viz., to vigorously push the development-work ahead—and we look forward to locating quartz of value by extending No. 9 and No. 11 levels." Mr. E. W. Spencer, Engineer for the Consolidated Goldfields of New Zealand, (Limited), supplies the following reports on the various mines under the control of that company : — " Wealth of Nations awl Energetic Mine. —The supply of quartz for the battery during the past year has principally been obtained from No. 6 stopes, which have been freely attacked. No. 3 stopes were worked to a small extent until all the profitable stone was exhausted, and No. 7 stopes have been worked regularly by a small force of men. The quartz won from the development of No. 8 level was also milled. 11,970 tons of quartz was crushed during the year, yielding 3,304 oz. 12 dwt. 17 gr. of bullion, valued at £13,662 19s. 6d., or 5 dwt. 12-51 gr. per ton. The concentrates and slimes were shipped to the smelter, realising £764 14s. lOd. At the cyanide-works 8,320 tons of sands (representing 69-507 per cent, of the tonnage crushed) was cyanided. yielding 1,397 oz. 10 dwt. 9 gr. of bullion, valued at £5,420 16s. Id., or 13s. 0-369 d. per ton. Of this amount 2s. ST9Od. was consumed in working-cost, leaving a profit of 10s. 7 - 179 d. per ton treated. A large amount of development-work has been carried on during the year from the Energetic shaft. The shaft itself was sunk from No. Bto No. 9 level, a vertical distance of 125 ft. No. 7 level was driven south a distance of 432 ft. without locating anything of value. No. 8 level encountered stone at 174 ft. from the shaft; the stone was followed along the level for approximately 200 ft., and the south end again extended till the face was 720 ft. from the shaft. No. 9 level struck stone at 165 ft. from the shaft at the latter end of November, since when the reef has been opened for 65 ft. in length. No alterations of importance have been made to the surface equipment during the year. In the near future —as soon as No. 6 stopes are exhausted —the whole of, the output for the Wealth, of Nations battery will have to be hoisted through the Energetic shaft. The old incline shaft will then be abandoned. This will effect some considerable saving in expense. " Golden Fleece. —The shaft at this mine was sunk to another level (No. 14) during the year, a vertical distance of 125 ft. below No. 13. No. 13 level was extended a considerable distance north, and located a good block of stone 80 ft. in length. This level is now 900 ft. north of the shaft. No. 14 level : As soon as the shaft was sunk and the chamber cut the crosscut was commenced, and at 310 ft. from the shaft encountered the reef-formation early in October. At the end of the year the north drive was 180 ft. in length and the south 100 ft. Although upwards of £3,000 was spent in development the quartz opened up did not keep pace with the amount extracted. During the year 13.985 tons of quartz was crushed, yielding by amalgamation 5,670 oz. 5 dwt. 12 gr. of bullion, valued at £23,165 lis. Bd. The sulphurets and slimes were shipped to the smelter, realising £1,955 Bs. Bd. The coarse sands, amounting to 9,475 tons (representing 67-751 per cent, of tonnage milled), were cyanided, yielding bullion to the value of £3,342 Is. Id., or 7s. 0 - 654 d. per ton treated. Of this 2s. 2 - 977 d. was consumed in working-cost, the balance of 4s. 9 - 657 d. representing profit. " Welcome Group. —In the early months of the year prospecting operations were carried on with but poor results. In September last the property was let on tribute to McKenzie and party, who at the end of the year had taken out a small crushing of 45 tons, which yielded 53 oz. of bullion, valued at £212. The company obtain a minimum of 10 per cent, of the gross gold won as tribute. " Inkerman Mine. —In July last the Consolidated Goldfields of New Zealand (Limited) purchased the property of the New Inkerman Mines (Limited) at break-up value. Before dismantling, however, it was thought advisable to take out two trial crushings, one from the 155 ft. level, the other from the west end of the battery level. The result of these crushings was not at all encouraging, so miffing operations were suspended and some prospecting-work done on the surface. Should this work not turn out satisfactorily the machinery will probably be dismantled." Keep-it-Dark Quartz-mining Company (Limited). —Mr. W. S. Hindmarsh, Manager of the company, supplies the following report: —" Mine department: The work for the year has principally consisted of stoping out quartz from Nos. 4, 5, and 6 levels. The blocks of quartz which are being stoped in Nos. 4 and 5 levels will be worked up to the level in about four months. In the west end of No. 5 level a new make of quartz has been driven on for a distance of 100 ft., the average thickness being 6 ft. ; it is good payable stone. In No. 6 level the full extent of the lode is not yet known; upwards of 200 ft. has been driven on the reef, and at the present time there is 4 ft. of good stone in the face of the level which is being driven. There is a large quantity of quartz in this level of good average quality. A winze has just been started to indicate the underlie and strike the lode going down, as there seems to be a change of underlie in part of this level. In No. 7 level the chamber has been completed and a crosscut started to intersect the lode. The drive is now in 50 ft., and has been taken in 30 ft. from chamber of sufficient width to allow a double line of rails for that distance. 12,730 tons of quartz has been raised from the mine and sent to the battery during the year, the total expense being £7,092 14s. 7d., costing within a small fraction of lis. lfd. per ton. This includes all developmentwork, repairs to old levels, and all expenses incurred with the upkeep and working of the mine and winding plant. The mine and winding plant are in good order, and at present the mine is looking as well for permanency as at any previous time. Battery department: The battery has been running fairly regularly for the year, very little crushing-time being lost. 12,730 tons of quartz has been crushed, the yield being 3,391 oz. 4 dwt. 12 gr. of melted gold, being nearly 5 dwt. 8 gr. per ton. The expense of the battery for the year is £1,562 4s. 3d. This amount includes new copper plates, and all renewals

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