C.—2.

Prospecting. Great activity is still being shown in this class of work, but it is almost wholly confined to the examination of possible alluvial gold-bearing ground. There are upwards of two thousand men employed under the Unemployment Board's prospecting scheme, and these operate throughout the length and breadth of the district. A large number of them are obtaining satisfactory amounts of gold, and the majority are more or less satisfied with their lot. A rich but small reef was discovered on the Taipo River. It has an elevation of about 4,000 ft., but considerable work remains to be done in order to prove its size or extent both in a downward and lateral direction. Drilling-operations have been carried out on areas located at Langley Dale and Rock Ferry, Marlborough County ; Murchison, Nine Mile, and Rappahanock, Murchison County ; Bradshaw's Creek and Waimangaroa, Buller County ; Big River and Hukarere, Inangahua County ; Ahaura and New River, Grey County; and at Tucker Flat (Kanieri), Arahura, Ruatapu, Bruce Bay, and Hunt's Beach, Westland County. Satisfactory values were obtained from the Murchison, Nine Mile, New River, Tucker Flat, and Arahura areas. Accidents. There were seven major accidents during the year, four being fatal and the others non-fatal. The first fatality occurred on the upper reaches of the Punakaiki River, where prospecting was in progress. One of the men so engaged, Robert Samuel Fleming, was struck on the head and killed by a log that rolled down a declivity in the locality. The second fatality took place at Riverview, Ahaura, when a man named Walter Duggan was buried with a fall of earth in his sluicing-claim. Charles Edward Cooper was the victim of the third fatal accident. He was employed at the Big River Mine, and was struck by a fall of rock when engaged at stoping-work. Donald O'Leary, the fourth victim, was crushed by a large rock that fell on him while engaged at sluicing-work on the Wataroa River. John A. McEwin, battery superintendent, Blackwater Mine, Archie John Jacobsen, miner, Mahakipawa Mine, and Stephen McLeod Honey, dredge hand, Stafford Gold Dredging Co., were the victims of the non- fatal accidents. The first-named man was struck by a beam of timber while erecting a diagonal brace under a flume for carrying water. He sustained a fractured skull. The second man suffered a compound fracture of the skull through being forced against shaft timbers by a bucket striking the opposite end of a wooden plank on which he was standing. The third man received injuries which consisted of a broken leg and two broken ribs. These were brought about by the victim being struck by a wire rope which had pulled away from an eyebolt to which it was attached. General Remarks.—Mining. The gold obtained from alluvial work was much greater than that won from the same source last year, the amounts and values being—l 933, 15,365 oz., worth £93,456, and 1934, 21,775 oz., valued at £152,888, which increase is gratifying. Gold-recoveries from dredging-operations show increased returns also, the figures being— 1933, 20,145 oz., worth £146,941, and 1934, 22,855 oz., valued at £181,467. Returns from gold-quartz mining show a considerable falling off when compared with those got during the preceding period, the figures being— 1933, 28,163 oz., worth £202,227, and 1934, 19,100 oz., valued at £154,162. The decrease in gold won from this source was due to industrial trouble which eventuated at the Blackwater and Alexander Mines. The former was idle during the months of March, April, and May, and the latter for a period extending from March to July, both months inclusive, for the reason stated. Prosecutions. Four informations were laid during the year. One was dismissed and the others were successful. The first information was laid against a person for making a false statement in a Gold-dealer's Book. The charge was dismissed. A company was convicted and fined for using the cyanide-of-potassium process in connection with a mine without same" being under the management and charge of a duly certificated battery superintendent. Two licensed gold-dealers were convicted and ordered to pay costs and witnesses' expenses for failing to forward gold-buyer's returns, as required by regulations. SOUTHERN INSPECTION DISTRICT (T. McMillan and G. W. Lowes, Inspectors of Mines). Quartz and Alluvial Mining. Waitahi County. Livingstone and Maerewhenua. —The Maerewhenua Goldfields Development Co., Ltd. (C. A. Gillett, Manager), continued active operations throughout the year. A battery of seven pulsators was installed at the lower end of Duffer's Gully, and connected to the working-face by means of a rock tail-race over 1,000 ft. long. Trial sluicing with this layout gave unsatisfactory results, and in June a change of consulting engineers was decided on, followed by the appointment of a new manager. Development then proceeded on orthodox lines, the giant monitors and pulsators being set aside. A timber tail-race 3 ft. wide by 2Jft. deep by 1,500 ft. long was constructed in Duffer's Gully and paved with old railway irons. Gold-saving with the usual angle iron riffles and undercurrent proved to be satisfactory. Pipes were laid to Holloway's Claim, which will be used as a spare-water working; but, apart from this, all work since June has been concentrated in Duffer's Gully. Sluicing commenced in September, the output to the end of the year being approximately 60,000 cubic yards. On an average fifteen men were employed throughout the year. The gold won amounted to 24 oz. 9 dwt. 10 gr., valued at £185 Is. lOd. The Ben Ledi Sluicing Co. (D. Deegan, Manager).—This company has commenced sluicing-operations m the Ben Ledi district on the east side of Dansey's Pass. During the year a water-race 5J miles in length was constructed, 550 yards of 3 ft. by 12 ft. steel "fluming erected, and 13 in. to 7 in. pipes, together with the necessary valves and fittings installed and sluice-boxes erected. Mining operations were commenced in the latter part of the year, but on account of the long dry spell of weather experienced during the summer the water-supply was considerably affected. Twenty men were employed on the construction work for part of the year. Five men were employed after actual mining operations commenced in November, and 6,000 cubic yards of material was treated for a return of 27 oz. 5 dwt. 23 gr., valued at £201 12s. 7d. Kurow. During the year the water-race being constructed to convey water into Digger's Gully has been completed. The mining areas have been taken over by Messrs. T and J. H. Nimmo, and the auriferous deposit in this gully is being worked. Fourty-four men have been employed fossicking, prospecting, cradling, sluicing, and driving in the Maerewhenua, Livingstone, Dansey's Pass, Kurow, and Herbert areas. The gold won amounted to 406 oz. 1 dwt. 11 gr., valued at £2,737 lis. 4d. The chief producers were C. E. Adams, W. J. Fenning, and J. W. Cooper, who are ground-sluicing oil the Maerewhenua field. Waihemo County. Golden Point Gold and Scheelite Co., Ltd., Deep Dell, Macraes (A. W. Turner, Manager).—Underground operations were commenced in January, and work was carried on intermittently until June. A connection from the Home Reef Rise to the old Home Reef Dip workings was driven. The low-level crosscut was extended 160 ft., and 67 ft. of rising was done. The connection with the old Home Reef Dip improved ventilation considerably. Operations were suspended in June. From four to six men were employed intermittently from January to June. No crushing was done, all work done being development work.

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