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is calculated to undercut the No. 5 stone at a driven distance of 300 ft., this stone being considered the most valuable ore-body yet discovered on the propeHy. At the Munster the principal work in progress is sinking on the main lode to prove the values at depth. At the Champion attention is restricted to clearing and repairing tracks preparatory to the transit and erection of suitable machinery to unwater an old shaft, with a view to further extension of the low levels. There was an average of thirty-one men employed. Antimony. Endeavour Inlet (Point Edgecombe Antimony Syndicate ; J. N. Dunn, in charge).—This company ' has seven men employed in trenching and crosscutting the various antimonial measures. Some of the outcrops have yielded 60 per cent, of metal. Cadigan, with two men, is prospecting further north with fair success. The property has been placed ori the market with the object of raising the necessary capital to effect further development. Waine has twelve men employed on a mining privilege which embraces the Old Star antimony lease. Operations here are confined to clearing the old workings and surface-prospecting. Resolution Bay, Blenheim. —Clouston is actively prospecting with a party of four men, but discoveries so far obtained are not important. Indications, however, are more favourable in the cross trenches, and some of the loose stones unearthed show special values, which warrant further development. Hjemattte. Washbourne Brothers , Hwmatite Works. —Sales were more active nearing the close of the year. Iron. Parapara Iron-deposits. —So far the development of this property has been confined to the construction of a surface railway from the sea-coast to connect with the site of the proposed works. ACCIDENTS AND FATALITIES. Quartz-mines. Non-fatal. Big River Mine. —15/1/1906 : Thomas O'Connor, miner, sustained compound fracture of right leg, fracture of collar-bone, and fracture of four ribs by fall of mullock in stope. Golden Fleece Mine. —4/9/1906 : John Phillips, miner, sustained bruises to leg and side by fall of stone in the face. Alluvial Mines. Fatal. 10/2/1906 : Samuel Lattimer was killed by fall of roof in his claim at Rocky River through insufficient timbering. Dredges. Fatal. Jamieson's Reward. —3/3/1906 : Albert Banks, winchman, was drowned by falling overboard into dredge paddock. New Trafalgar. —30/10/1906 : James Cumming, master, was fatally injured by being caught in shaft of elevator. Non-fatal. Three-mile, Greenstone. —8/1/1906 : John Ryan, winchman, sustained fracture of leg above ankle by trays slipping and jamming leg against shoot. I have, &c, Robert Tennent, The Under-Secretary, Mines Department, Wellington. Inspector of Mines.

Mr. E. R. Green, Inspector of Mines, Dunedin, to the Under-Secretary, Mines Department, Wellington. Sir, — Office of Inspector of Mines (Southern District), Dunedin, 28th March, 1907. I have the honour to forward the accompanying report by the Assistant Inspector of Mines and myself on quartz-mines, hydraulic and alluvial mines, and gold-dredges in the Otago and Southland Districts for the year ending the 31st December, 1906. QUARTZ-MINING. Otago. Shotover. Mount Aurum Gold-mining Company, Bullendale (F. T. Ware, mine-manager).—The block of stone opened up in the British-American line of reef was extracted and crushed during the earlier part of the year. The works were shut down for the winter as usual, and from a variety of circumstances have not been restarted.