C,—2.

Biversdale, Balfour, Mataura Biver, Wailcaka, and Chatton Areas. —Thirty-eight men were prospecting, cradling, and sluicing and produced 130 oz. 15 dwt. 12 gr., valued at £592 6s. sd. Waihawa, Waituna Lagoon, and Wyndham Areas. —Fifteen men prospecting, cradling, and sluicing produced 99 oz. 15 dwt. 3 gr., valued at £392 Bs. Bd. Wallace County. Magnetic. Cylinder Co., Walcapatu.—This deposit could not be profitably worked by the gravel-pump method, and operations were suspended in March and the plant, removed. Bound Hill. —Work has been resumed at the Bound Hill Mining Co.'s claim by a party of seven tributers who have cleaned out and reconditioned the water-races and plant. The large paddock was pumped out and sluicing and elevating operations were resumed in July. The gold won amounted to 210 oz. 14 dwt., valued at £939 Bs. 6d. Bound Hill District. —Twenty-two men have been employed fossicking, prospecting, and sluicing. The gold won amounted to 101 oz. 13 dwt. 20 gr., valued at £408 19s. 6d. Orepuhi, Tuatapere, Waiau, Wilson's Biver, Te Oneroa, and Stewart Island.—Thirty-seven men have been employed prospecting, sluicing, and elevating the alluvial and sea-beach deposits. The gold won amounted to 325 oz. 14 dwt. 4 gr., valued at £1,421 17s. 3d. The largest producer was J. H. Sorensen, with 68 oz. 0 dwt. 10 gr., valued at £325 lis. sd. Stewart Island.—Several parties have been prospecting in the Port Pegasus area of Stewart Island. This area is very rough, with very dense tangled undergrowth. It is difficult country to prospect. Preservation Inlet and West Coast Sounds Area. —Several parties have been prospecting. Dredging. Upper Nevis Cold-dredging Co., Nevis Biver.—This company's electrically equipped dredge was dredging during the early part of the year, but operations were not resumed when the present working-season opened. Boring operations were carried ahead of the dredge at the end of the year. The gold won amounted to 295 oz. 0 dwt. 18 gr.. valued at £1,515 7s. sd. Total vield of gold since commencing work, 2,535 oz. 0 dwt. 1 gr.; value, £10,438 15s. lid. Golden Terrace Extended Gold-dredging Co., Lower Shotover. —Dredging operations have been carried on during the year. Operations were suspended for a period in April and May when the screen and tailings-elevator were dispensed with and sluice-boxes were installed to replace them. Other adjustments have been made and the machine is working satisfactorily. The gold won amounted to 930 oz. 13 dwt., valued at £4,785 3s. Id. Total yield of gold since commencing work, 1,444 oz. 13 dwt. ; value, £6,538 10s. 3d. Minerals other than Gold. Tungsten.—No scheelite was produced during the year on account of the continued low values. Silica. — The Southern Cross Glass Co., Ltd., Ashburton : The output of silica sand from this company's silica license at Mount Somers amounted to 35 tons 11 cwt. 1 qr., which was valued at 10s. per ton at the site of the deposit. Operations ceased on the 18th March owing to trade depression. Platinum.—lo dwt. of platinum was recovered from beach claims at Orepuki. Oil-wells. —Southland Oil, Ltd. : This company commenced boring operations on the Southland Oil-bore No. 1, at Kauana, half a mile north of Kauana Bailway-station, in the Hokonui Survey District, Southland, at a height of 290 ft. above sea-level. J. W. Bawlinson, well-manager. Drilling operations were commenced on the 11th February, and were suspended on the 28th July. The bore had reached a depth of 586 ft., passing through gravel, sand, limestone, greensand, and hard indurated sandstone. The company commenced operations at the Southland Oil-bore No. 2 on Section 737, Block 59, Hokonui Survey District, near Centre Bush, Southland, 280 ft. above sea-level. George Bassett, well-manager. Drilling operations were commenced in August. A depth of 1,552 ft. had been reached by the end of the year in fossiliferous claystone. The drill-manager reported that the well was tested at 1,449 ft. and showed oil and gas to be present in marked degree. Boring operations are being continued. Accidents. Three serious accidents occurred during the year. Stephen Maeale was accidentally injured at the Centra] Mines, Waitiri, Kawarau Gorge, on the 20th March. He was acting as nozzleman and was using a tee-piece between the pipe-line and the nozzle-piece. The flange of this tee-piece broke at the bolt-holes, causing the nozzle to swing round. The handle caught Macale and knocked him into the tail-race, causing injury to ribs, lung, and pelvis. J. Bulman was accidentally injured at the Golden Terrace Extended Gold Dredge, Lower Shotover, Queenstown, on the 12th June. He suffered a compound fracture of his left wrist. He and his mate were dismantling the screen chute and were cutting out the rivets of the strap plate holding the two halves of the drop chute. They had inserted service bolts before cutting out all the rivets. When releasing the bolts half of the chute plate slipped, throwing Bulman's feet outward. The other half of the chute plate fell on his left wrist, breaking the bone in two places and leaving two deep punctured wounds. Frederick Morgan, prospector, sustained a broken leg through a fall while prospecting in the Preservation Inlet area. He was admitted to the Invercargill Hospital on the 21st October. General Remarks. Great activity is being shown in the mining industry and many mining fields are being prospected. Men who have had experience in these fields in their early days have taken out either miner's rights, prospecting, or claim licenses, and are testing various areas. Syndicates and companies are also prospecting for reefs in the various reefing areas. The increase in the quantity of gold won by alluvial mining amounted to 2,418 oz. 18 dwt. 15 gr., with an increase in value of £16,597 Is. Bd. The number of men employed increased by 276. Several causes have helped to increase the alluvial-gold production in this district. The seasons have been satisfactory from a sluicing point of view in the majority of areas in the southern district. The King Solomon Deep Lead Mine at Waikaia reached the productive stage in February. The continued state of depression has caused a resumption of prospecting in many of the old mining fields. The increase in the price of gold has also largely stimulated mining, especially in areas where mining and farming are combined. The increase in the quantity of gold won bjr quartz-mining amounted to 2,302 oz. 7 dwt. 10 gr., with an increase in value of £11,936 9s. lOd. The number of men increased by thirty-four. The Golden Point Gold and Scheelite Mine at Macraes, and the Golden Progress Quartz-mine at Oturehua, also the Crystal Mine at Skippers, have reached the productive stage during the year. The quantity of gold won by dredging increased by 527 oz, 7 dwt. 18 gr., with an increase in value of £3,437 10s, 6d,

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