C—3.

Wealth of Nations Mine. —16/4/08 : Kirk Watson had*his jawbone broken by a fall of quartz down ladder-way. Blackwater Mines. —11/8/08 : W. Farmer, while working in No. 2 stopes, sustained a bad fleshwound on leg owing to a fall of mullock from between two sets of timber. Alluvial Mines. Fatal. Dee Sluicing Claim, Three-channel Flat. —2o/3/08 : William Killen was killed by a fall of rocks whilst working in tail-race. Dredges. Non-fatal. No Town Creek Dredge. —3l/7/08 : W. Ray strained the muscles ot his back while rolling a heavy piece of timber. We have, &c, A. H. Richards, A. Whitley, Inspectors of Mines.

Mr. Robert Mclntosh, Inspector of Mines, Clyde, to the Under-Secretary, Mines Department, Wellington. Sir, — Office of Inspector of Mines (Southern District), Clyde, Ist April, 1909. I have the honour to present my report on the quartz and metalliferous mines, hydraulic sluicing and alluvial mines, together with the gold-dredges of the Southern Mining District, for the year ended 31st December, 1908. QUARTZ-MINES. Otago. Shotover. Mount Aurum Gold-mining Company, Bullendale.— This old property has remained closed down throughout the year, and there is no definite information with regard to the future of this mine. Shotover Quartz-mining Company, Skipper's Point (R. M. McDonald, mine-manager ; J. N. Lawson, secretary, Dunedin). —The working-policy adopted at this mine has been the continuance of the uprise, required for ventilation and egress. Unfortunately some fallen worked ground was struck, which deviation" from the course laid down. This has rendered the work more costly, and the Government subsidy was exhausted before the work was completed. During the progress of the work payable stone was met with from time to time, but latterly it was scarce. Pending a determination of the future pwhey on the part of the company, the mine has been let on tribute to several of the miners. The mining operations are well conducted : timber well used ; explosives properly tfored. and well handled ; rules posted ; machinery in goodjworking-order. Eureka Quartz-mine, Jennings's Gully, Skipper'sfPoint (Lambie and party, owners). —Operations have not been conducted on a progressive scale, only; one man being generally employed. The work is purely of a prospecting nature, and the owners, aided by a small Government subsidy, have been enabled to locate some payable stone. Further development is to take place before any heavy expenditure is This policy might well be adopted more frequently by those in charge of or having control over mining'operations. Crystal Quartz Reef, Johnston's Gully, Skipper's Point. —Some years ago payable stone was found in a heavy slip on the hillside. S. Gower and T. Cotter put in a drive some 70 ft. in length and succeeded in striking a narrow reef-track. Operations are to be continued. fS| Peet and Johnston's Quartz Reef, Upper Shotover. —Several tons of stone were taken from the line of reef and crushed in the Nugget battery. The results were highly payable. A drive is now being put in on the line of reef, in order to test its value and permanency in depth. General. —A syndicate to conduct prospecting operations having been established in Lake County, over £500 was collected ; of this amount £250 were placed to the credit of the Lake County Miners' Association's bank account at Arrowtown. The Hon. the Minister of Mines then authorised a subsidy of £2 for £1, so that there is the sum of £750 available for prospecting throughout Lake County. James Hamilton, an experienced miner, accompanied by two others began prospecting in November, in the Skipper's district. lam unable to report that the party has met with any success as yet, but prospecting is being actively continued. Macetown. Premier Sunrise Mine, Macetown. —This mine has not been reopened. The bed of Premier Gully was tested by hydraulic power, but, I understand, was found to be deep and very rough. Sunrise Mine, Advance Peak. —This elevated mine is held by a local resident, but I understand no effort has been made to reopen it. Hamilton and party's Quartz-mine, Caledonian Gully. —An expensive low-level tunnel is now required before the stone underfoot can be worked. The owners have worked some low-grade stone at a profit. The mine has been idle for some months whilst the owners are considering their future policy. New Zealand Consolidated Mines (Limited), (L. O. Beal, attorney, Dunedin). —It is pleasing to report that a decided movement has been made to place these mines in working-order. The work

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