C.—2.

Westland County. Stafford Sluicing Co.—Operations were conducted intermittently during the year after' the restoration of the pipe-line and water-races was completed. Mcintosh, Hyndman, and Party.—Five men were employed in ground sluicing at Back Creek, near Rimu. A mechanical stoning plant was in use, which enabled the party to work successfully the heavy ground encountered in a high terrace face. The total number of men engaged in alluvial mining in the Westland County was 135, and the gold-production was 1,140 oz. 13 dwt. 13 gr., valued at £8,507 Bs. lOd. These figures include the Stafford sluicing claim and Mcintosh, Hyndman, and party's claim and all the small alluvial claims, but not the dredges. Minerals other than Gold. Asbestos.—The Hume Pipe Co., holders of an extensive mineral license at Upper Takaka, drove 170 ft. at the lowest level prospected on the lease, and proved that the asbestos deposit is of sufficient magnitude to warrant the construction of a new road of sufficient width and suitable grade to enable machinery for treatment purposes to be transported to the field. Four men were employed on prospecting operations and a contract party on roadconstruction work. A small crusher was installed to reduce the asbestos rock and obtain samples of' fibre, but no production for commercial purposes was undertaken. Jron-ore.—The State Iron and Steel Department's prospecting campaign was continued on several blocks, and the estimation of tonnage has reached a stage where definite figures can be submitted. The Onekaka Iron and Steel Co., Ltd., quarried and ground approximately 319 tons of iron-ore for shipment for gas-purification purposes. Mica and Felspar.—A small quantity of selected rock was quarried at Mabel Bay, Charleston, and crushed to obtain powdered mica and felspar, which was despatched to Wellington to be used for experimental purposes. Petroleum.—Approximately 800 gallons were produced from the Kotoku field, valued at £23. No drilling was carried out on the areas held under license, which include the Kotoku seepages. Silver.—From the bullion recovered by five dredges in the West Coast district, the total of silver returned was 1,290 oz., valued at £123 Bs. 6d. Steatite.—The prospecting syndicate which holds a mineral license over an area at Wainihinihi, Taipo River, carried out further prospecting operations and organization of a company to exploit the steatite deposit. Tungsten.—Twenty hundredweight of scheelite, valued at approximately £240, were recovered by two men from the retreatment of tailings stacked at the Golden Bar battery, Wakamarina. Prospecting. The Mines and Labour Departments up to 31st March, 1939, jointly continued prospecting operations on the Reefton field, and on the Ist April the Mines Department took over all the mining responsibilities of the Labour Department. Subsidized mining has been discontinued in the Inangahua, Buller, Takaka, and Collingwood Counties, but operations in the Grey, Westland, Murchison, and Marlborough Counties are continuing on a reorganized basis. Alluvial drilling was continued both on new areas and ahead of operating dredges, a total of 198 holes being bored on eighteen areas. Fatal Accidents. It is pleasing to record that no fatal accidents occurred during the year under review. Serious Non-fatal Accidents. On 10th January F. Thomson, an employee at the Alexander Mine, had the misfortune to cut his right foot severely with an axe, thereby losing a toe. On 15th March while employed at the Blackwater Mine on stoping operations, Joseph Devis was struck by a piece of rock which fell out of the back or side of the stope, and sustained a fracture of the vertex of the skull. On 3rd April William Hamilton, bush foreman employed by the Barrytown Gold-dredge, was struck by the headline while inspecting same and suffered a simple fracture between the calf and the ankle. On 29th May D. W. Gillies, employed in the shore gang working on the Kanieri Dredging Co.'s claim, was caught in the starboard bowline and sustained a compound fracture of the leg. On 22nd June, while employed on stoping operations at the Alexander Mine, Peter Davis received a severe injury to his eye, caused by a piece of quartz which flew from a rock he was breaking. The injured man's eye was later removed. In August G. Kilmartin, a subsidized prospector working at the Big Bend, in the Anatoki area, Takaka County, had his leg jammed by a boulder which fell from the face of the drive he was putting in. His injuries consisted of a' broken lower leg and bruises. On 22nd August Frederick Harwood, a miner employed at the Blackwater Mine, had his right leg fractured by a fall while timbering in the stope. On 10th December James Lamberton, a labourer employed on the Kanieri Dredge, slipped on the bucket ladder and broke his left leg. General Remarks : Mining. Gold won from alluvial mining (other than dredging) amounted to 7,674 oz. II dwt. 23 gr., valued at £62,323 Bs. 10d., which represents a decrease of 389 oz. 9 dwt. 4 gr., but owing to the increased price of gold the value is still greater by £1,335 13s. Bd. when compared with the preceding year's figures. The number of men in this branch of the industry decreased by 209 to 649. Gold won by dredges amounted to 69,23.1 oz. 12 dwt. 7 gr., valued at £628,717 ss. 9d., which represents an increase of 26,229 oz. 8 dwt., valued at £274,891 Is. over last year's production. Although three new dredges were added to the fleet, the Arahura Dredge operated for only four months of the period, and the Ngahere and Maori Gold (Callaghan's) were just completed at the end of the year and did not contribute towards the gold yield from dredging. The number of men engaged in active dredging operations was 382, an increase of 62 over the previous year. The average number of men engaged on dredge-construction showed a decline when compared with the previous year's figures, owing chiefly to the completion of contracts by the Railways Department's engineering Gold won from quartz-mines during the year amounted to 30,217 oz. 4 dwt., valued at £265,350 13s. 3d. These figures show an increase over the previous year's figures of 7,363 oz. 4 dwt. 12 gr., valued at £76,409 6s. lOd! the disparity between the number of ounces and the value being accounted for by the increased value realized on gold sales during 1939. The number of men employed in producing quartz-mines was 305, a decrease of 5 over the previous year. The total quantity won from all branches of mining was 107,123 oz. 8 dwt. 6 gr., valued at £956,391 7s IGd This represents an increase of 33,203 oz. 3 dwt. 8 gr„ valued at £352,636 Is. 6d. In these totals the disparity between the number of ounces and the value is accounted for by the increased value realized on gold sales during the year under review. During the year the total number of men engaged in actual gold-mining operations decreased by 152 to 1,336. A considerable amount of employment indirectly connected with the year's gold-production was given to lode and alluvial prospectors, dredge-construction crews, and gangs of men employed in road and water-race construction and the laying of pipe-lines.

31