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PETROLEUM. Kotuku Oil Springs. —Since operations were commenced on this field—some three and a half years ago —twelve bores have been put down, ranging in depth from 80 ft. to 450 ft., besides numerous shallow holes. From all of these oil has been obtained in small quantities. In addition to the bores, a shaft 6 ft. by 3 ft. was sunk to a depth of 83 ft., from which a number of barrels of oil has been obtained. At a depth of 400 ft. the measures are mostly composed of shales, conglomerates, and sandstone. At about 400 ft. a limestone formation was met with, giving a heavy discharge of gas and salt water, which in nearly every case prevented a further continuance of the bores. The latest bore on the terrace is down 450 ft. into limestone. The salt water as yet has not given any trouble in this bore. Work is now temporarily suspended, awaiting a heavier plant to arrive to enable this bore to be deepened to 1,000 ft. or 1,500 ft. if necessary. The cost of this bore is approximately £300. Arrangements are now completed with the Consolidated Goldfields of New Zealand (Limited), who will put on a heavier plant, capable of boring to 3,000 ft. ACCIDENTS AND FATALITIES. Fatal. Kumar a. Pug Hill Alluvial Claim. —l 6/9/09 : John McGlone was killed by a stone falling from a sluicing face. Coroner's verdict: Accidentally killed ; no blame attachable to any one. Ross. Ross Goldfields. —1/11/09: Alfred Steadruan was killed by a piece of wood falling down the shaft. Coroner's verdict : Accidental death. I have, &c, A. H. Richards, Inspector 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, sth April, 1910. I have the honour to present my report on the quartz and metalliferous mines, hydraulic sluicing, and alluvial mines, together with the dredges of the Southern Mining District, for the year ended 31st December, 1909. QUARTZ-MINES. Otago. Shotover. Neiv Discovery Quartz Reef, Upper Shotover (Peat and Johnston, owners).-- -A small amount of development-work was done, but the mine was idle for several months. A fresh start has been made to take out quartz, which will be crushed in the Shotover Company's battery. The quartz promises to be payable. General. —There are numerous reefs in this district, but it is useless to attempt to work them without a proper expenditure of capital. The Wakatipu Prospecting Syndicate employed several prospectors in this district during the year, but no extensive finds were made. Macetown. New Zealand Consolidated Mines (Limited), (L. O. Beal, attorney, Dunedin). —It is pleasing to report that active development-work was undertaken on this property during the year. The chief places of activity were the Garibaldi and Homeward Bound Mines, in both of which good stone was discovered. A working test of this stone made at the Tippcrary battery proved satisfactory. As an indication of the future policy of the company, it may be mentioned that the large 'OPQ battery- at Waipori has been purchased, and is now under removal to Macetown. It may therefore be expected that this extensive property will be developed on progressive lines during the present year. Anderson, Hannah, and Party's Quartz-mine, Scanlan's Gully. —Operations were seriously retarded during the year by shortage of water for power purposes. The mine affords employment of a temporary nature to the members of the party. A self-acting aerial rope-line has been installed during the year. General. —The district was well prospected for reefs during the year by the Wakatipu Prospecting Syndicate, but nothing sensational was unearthed. Bannockburn. Systematic prospecting has been carried on by Messrs. lies and Moen, in order to explore the refractory stone, which could not be treated in former years. I understand that the results of their efforts are satisfactory, and definite arrangements are being made to thoroughly develop the property. Alexandra. Butcher's Gully Reef, near Alexandra. —An old shaft has been unwatered by the CampbellCarr syndicate, which installed an oil-engine and pump. Preparations are now being made to test the reef.

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