C—2.

23

Considerable use has been made during the year of the Government prospecting drills, which are lent to hirers free of any charge but that of maintenance. An aggregate of 6,822 ft. was drilled in seventy-nine holes, of which the following is a summary: —

(3.) Subsidized Roads ON Goldfields. The expenditure in the form of subsidies and direct grants upon roads on goldfields amounted to £11,050, as compared with £13,096 during the previous year. (4.) Government Water-raoes. The Waimea-Kumara and Mount Ida water-races, which render possible mining in the localities of Kumara (Westland) and. Naseby (Central Otago), have during the year ended 31st March, 1921, supplied claims employing thirty-one alluvial miners with water for sluicing auriferous gravels, by which gold to the approximate value of £4,188 was obtained. The cash received by the Government for water sold amounted to £1,182, but the expenditure on the upkeep of the races was £4,576; thus the upkeep exceeded the receipts by £3,394. No allowance for depreciation or interest on the capital expenditure of about £250,000 was provided for. The loss to the Government on the combined races during the year amounted to £106 per miner using the water. The average earnings per miner from gold obtained was £199 after payment for water was deducted, but without deductions for rent of ground, cost of plant and tools, &c.; it will therefore be seen that a living-wage was not, on the average, attained. (5.) Schools of Mines. The six schools of mines on the goldfields of Coromandel, Thames, Karangahake, Waihi, and Reefton, if judged by the paucity of students who presented themselves for examination at the last annual Government examination in connection with such schools, have practically ceased to be mining schools, for no student from these schools presented himself for examination on the subjects of mining, mine-drainage, or haulage and winding, and only one student on the subjects of mine-ventilation and mineralogy; in metallurgy there were two students, and in geology three. As secondary or technical schools for children of both sexes who desire to acquire a knowledge of mathematics, electricity, and chemistry they are, in the North Island, fairly well attended. The expenditure by the Mines Department on schools of mines amounted for the year ended 31rt March. 1921, to £4,427 9s. 6d. I have, &c, Frank Reed, Inspecting Engineer of Mines.

ANNEXURE A. SUMMARY OF REPORTS BY INSPECTORS OF MINES. Northern Insi'uction District (Mr. M. Paul, Inspector of Mines). Quartz-mining. Waihi Gold-mining Company (Limited). —No. 4 shaft: Sinking was commenced in November, and up to date a total depth of 153 ft. below No. 12 level has been sunk; depth from surface, 1,600 ft. No. 12 level (1,447* ft. below the collar of No. i shaft): Mining was resumed east of No. 4 shaft on the Dreadnought lode. Distance driven, 174 ft. ; average width of lode, 2 ft. 8 in. ; assay value, £1 10s. sd. per ton. Total distance driven east on this lode, 391 ft. Bath north crosscut: This was started 273* ft. east on I lie Dreadnought lode and driven north 141 ft. At 60 ft. the south section of the Empire lode was met with. It was split up into four parts, as follows: At 60 ft., lode 48 in., value Is. Id.; at 86 ft., lode 24 in., value Bd.; at 103 ft., lode 51 in., value 7s. 9d.; at 111* ft., lode 38* in., value £1 Us. Bd. Tin's crosscut is being continued with the objeel of intersecting the Martha lode, approximately 60 ft. ahead of present face.

Number of Holes drilled. Aggregate Depth attained. Mineral Bearched fori or Purpose. Type of Drill usi-ii. Cost per Foot. including Transport of Plant. Itesults. 18 11 1 3 1 5 Ft. in; 850 500 1,255 232 959 Alluvial gold Coal Keystone . . Diamond .. S. (I. (i 10 15 6 7 0 6 3 8s lOd. to 17s. 10,1. 2s. Id. to 7s. till. Unpayable irround. Hole stopped before eoiil-horizon attained. Negative. Attained. A lode proved varying in thickness up to 18 ft. 50 acres of workable coal-seam proved. Ventilation Cinnabar 10 2,610 Coal Percussive. . 79 6.822