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Nenthorn. Although this district did not fulfil its early promise, there are many who retain great faith in it, and some attention is devoted to it from time to time. Macrae's. Messrs. Donaldson Bros, have established permanent works at Golden Point and at Mount Highlay. It is pleasing to report that these operations appear to meet with success, and that profitable employment is afforded for over twenty men. The stone is mined and treated primarily for gold, but the percentage of scheelite in the stone makes it an important by-product. Operations at these mines are carried out on good lines : explosives are carefully stored and handled ; rules posted. Barewood. Barewood Quartz-mine, Barewood (H. S. Molineaux, mine-manager). —This mine continues to be worked on sound lines, due regard being given to the proper working of the mine. The ore is lowgrade, and, while economical working is aimed at, the efficiency of the mine and plant is not allowed to be impaired. Work has chiefly been carried on in connection with the 300 ft: level. At this depth the average width of the reef is 7 ft. The producer-gas plant in connection with the battery continues to give satisfaction, and has enabled a considerable saving in working-costs to be effected. The future policy with regard to this mine is of a progressive nature. The shaft is to be deepened, and a pumpingplant is to be installed. Electricity is to be generated by the installation of a second gas plant to drive an electric-driven treble-ram pump capable of forcing water from a depth of 600 ft. Mr. D. B. Waters is consulting engineer to the company. Explosives carefully stored and handled ; rules posted. The annual statement of this company affords interesting instruction as to what may be done in dealing with low-grade stone. Deep Stream. Welcome Quartz-mine, Deep Stream. —The Welcome Quartz-mining Company was formed during the year to work the above mine. A crosscut some 200 ft. in length was driven before the reef was struck. The reef was found to be 2 ft. in width, but it is yet too early to predict the future of this property. Southland. Preservation Inlet. Morning Star Quartz-mine, Te Oneroa (D. McKenzie, manager).—During the year a water-race was constructed to carry seven heads of water for mining purposes. The intention is to sluice from the beach back to the hill, where it is hoped the reef will be exposed at a lower level than has hitherto been worked. The quartz boulders and fragments met with during sluicing operations will be saved for treatment. No expense will be incurred in. the restoration of the mine and battery until the result of the sluicing operations is known. The work has given employment to ten men for some time. Alpha Mine, Kisbee. —L. Longuet has been engaged prospecting the locality by ground-sluicing. Some coarse specimen gold is obtained. Crown Mine, Cuttle Cove. —l regret to report that the result of the year's operations did not warrant continuance of work in the meantime, and the mine has been closed down indefinitely. There is a regular network of reefs and leaders in this locality, and the large reefs carry low values. Some of the narrow leaders worked in former years carried rich gold near the surface. Crayfish or Steep-to Island. —A party of miners have began to prospect a reef which was tried several years ago by James McQueen. HYDRAULIC SLUICING AND ELEVATING. Otago. There is very little of interest to report from year to year regarding the operations of claims in regular work, so that I propose to report only on those localities where changes have taken place. This branch of the mining industry is on a good footing. Waitahuna. Havelock Sluicing Claim (F. Whelan, manager).—The Havelock Sluicing Company took over this property from Mr. Frank Whelan, and constructed a water-race from the Waitahuna River. The raceconstruction and laying-down of the plant was completed, and work is now being carried on with satisfactory results. Dredging : The Havelock dredging company went into liquidation, and the dredge is now beingworked by a small syndicate. Tuapeka. The Bluespur and Gabriel's Gully Consolidated Gold-mining Company (Limited), Bluespur, (J. Howard Jackson, general manager ; J. Uren, mine-manager). —As set out in my last report, the question engaging the attention of the management was the working of the deep-level cement. This work was undertaken, and lam pleased to report that the results were highly satisfactory. The mining operations have been conducted on the usual good lines throughout the year. Lower Tuapeka River. Gore Syndicate Claim, Tuapeka Flat. —This claim and water-right have been purchased by J. Williams, who has continued to work the bed of the valley. A considerable area of terrace-ground is included in the property.

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