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ALLUVIAL AND DREDGE MINING. The abundant rainfall during 1911 permitted more continuous sluicing of auriferous gravel than has been possible during recent years, with the result that there has been an increase in the value of the gold-production from this source amounting to £86,752, the total production being £275,216, obtained from 277 claims. The most successful of the alluvial mines were the Mont dOr, Round Hill, Havelock, and (lolden Crescent. The value of the production from our gold-dredges during 1911 amounted to £297,900, as against £315,237 for 1910 ; but there has been a slight increase in the average production per dredge, which for the past year amounted to £3,203. The dredges in commission numbered ninety-three, thirty-one of which, the property of registered companies, paid dividends amounting in the aggregate to £45,318. Fifteen dredges are operating on the west coast of the South Island, and seventy-eight in Otago. The following is a statement regarding the most productive dredges owned by registered companies :■ —

The most noteworthy feature of the year in connection with gold-dredging has been a renewal of activity in the Waikaka Valley, where a deep lead has been located by keystone drilling. At Waikaka the Mystery Flat Gold-dredging Company are engaged in operations which constitute a departure from former gold-dredging practice. After dredging all the "available river-flat, this company's dredge is now working its way up the slopes of the surrounding foothills and terraces. SCHEELITE. The quantity of scheelite exported during the year amounted to 138 tons, valued at £11,853, as compared with 143 tons, valued at £15,070, in 1910. The main sources of supply continue to be Glenorchy (at the Tiead of Lake Wakatipu) and Macrae's (Otago). A number of new scheelite-mines are being opened up, and, owing to the activity now being displayed, a considerable increase in the production of scheelite may be anticipated. KAURI-GUM. The quantity of kauri-gum exported during the year amounted to 7,587 tons, valued at £395,707, as compared with 8,693 tons, valued at £465,044, in 1910. The market price for this commodity continues to decline slowly, and as the demand for general labour in New Zealand increases, the occupation of gum-digging becomes less and less attractive, and but few men are now so occupied in comparison with the number engaged during former years.

Dividend :ls paid Name of Dredge. Worksop No Town Creek Pactolus Blackwater River Waikaka Syndicate Golden Bed Rising Sun Magnum Bonuni Electric (two dredges) Paterson's Freehold (two dredges) . . Dredge No. 909 . . Willowbank Other working dredges Production during 1911. £ 16,284 7,486 5.144 6,728 5,180 5.896 6,439 4,368 10,922 7,244 .. j 7,251 4,491 208,976 During 1911. £ 9,300 5,400 1,875 2.605 2,450 1.922 2,200 1,812 :,,250 1,800 2.250 1,600 8,734 To 31st December, 1911. £ 15.900 34.200 62.500 11.494 22,750 15,269 16,000 8,875 126.092 15.000 3,750 2,000 -i _ -i Totals 296,409 45,198 45,198 j