MINES STATEMENT. BY THE HON. A. J. CADMAN, MINISTER OF MINES.

Appendix to the Journals of the House of Representatives, 1896 Session I, C-02

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1896.

NEW ZEALAND.

MINES STATEMENT. BY THE HON. A. J. CADMAN, MINISTER OF MINES.

Mr. Speakeb,— In referring to the mining industry this year it affords me great pleasure to state that the revival in gold-mining to which I drew your attention in my last annual Statement has continued, and at present shows no signs of abatement. The gold returns show a very large and gratifying increase, proving that the revival is based on very substantial grounds. One of the distinguishing features of the year has been the large influx of foreign capital for mining purposes. The results of mining operations during the past few years have clearly demonstrated that, with judicious selection, many of the large low-grade lodes, already partially developed by local capital, will prove remunerative when worked on a comprehensive scale and in a systematic manner. The working of quartz mines and deep alluvial drifts necessitates a large outlay of money before returns can be expected, and can only be undertaken when capital is available. In the case of quartz mines, the reef must be sufficiently opened to ascertain the value and extent of the orereserves preparatory to the erection of reduction machinery, which must be constructed on the most modern principles to insure efficiency and economy in the handling and treatment of large bodies of ore. In the successful working of alluvial drifts containing only a few grains of gold to the ton or cubic yard, a large and constant supply of water is of primary importance, and to secure this the construction of expensive races must be undertaken as the initial step towards sj'stematic development. It is impossible, from the nature of things, to separate the speculative element from mining, but I am convinced that, if greater care and judgment were exercised in the prospecting and development of mining properties to ascertain their value before undertaking the formation of companies to work them, the industry would partake more of the nature of an investment than a mere speculation. In the Otago, Eeefton, and Nelson districts the gold in the reefs generally occurs in a fairly free-milling state, presenting little difficulty in its recovery. In the Hauraki goldfields, however, only a small proportion of the gold is freemilling, the remainder existing in what is known as a refractory state —that is, the gold occurs either in so finely divided a form that the ordinary methods of amalgamation fail to recover a satisfactory percentage, or it is associated with, or entangled in, base metallic minerals which necessitate the adoption of scientific, and often costly, methods of treatment. In these goldfields the successful use of the cyanide process is steadily extending, with the result that many ores that formerly were worked at a loss by amalgamation processes now yield regular returns on the capital invested. I—C. 2.

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In my last statement I referred to gold-bearing stone being found in a bore put down from the bottom of the Kapanga Company's shaft at Coromandel, and it is very gratifying to find that on sinking the shaft to a depth of 930 ft., to test the value of the discovery at this depth (the greatest yet reached in New Zealand), a quartz vein was discovered containing payable gold. This discovery must rank among the most important and encouraging features of the mining operations of the year. It imparts confidence in the permanency of our reefs and their valuable contents in the deeper levels, and promises a fresh lease of life to those goldfields where much of the shallower ground has become exhausted. It is also anticipated that during the coming year the testing of the deeper levels at Eeefton will be undertaken with the aid of foreign capital. The prospects there are most hopeful and encouraging. The improved appliances introduced in dredging and hydraulic sluicing machinery have made it possible to work with profit alluvial ground and drifts that a few years ago were too low-grade to handle remuneratively. Extensive areas of gold-bearing drifts still exist in Otago and the west coast of the Middle Island, and when water is available to work these drifts a large number of miners will receive profitable employment. The deep leads of the West Coast are now engaging the attention of capitalists, and with systematic working and careful management promise to develop into paying concerns. In a country so favoured with numerous never-failing streams of water, I am confident that electricity as a motive-power is destined to play an important part in the advancement of the mining industry, in working dredges, rock-drills, pumping machinery, and crushing-batteries at places where water is not available, and the ore too low-grade to pay heavy charges for transport and treatment. MINEEAL PEODUCTION. The quantity of gold, silver, coal, and other minerals, including kauri-gum, produced for the year ending the 31st December last will be found in Table 1., annexed. The total production of gold and silver was 378,5150z., representing a value of £1,172,843, compared with a value of £894,536 for the preceding year. This shows an increase over the value of last year of £278,307. Of other minerals, including coal, 748,866 tons were produced, representing a value of £833,134, as against 728,594 tons, of a value of £802,706, for the previous year. The production of kauri-gum was 7,425 tons, valued at £418,766, as compared with 8,338 tons, valued at £404,567, for 1894. The quantities and values of the chief mineral productions for the year ending 31st December last were as follow :— Product. Quantity. Value. £ Gold ... ... ... ... 293,491 oz. 1,162,164 Silver ... ... ... ... 85,024 „ 10,679 Antimony-ore ... ... ... ... 54 tons 1,486 Manganese-ore ... ... 210 „ 525 Mixed minerals ... ... ... 62 „ 880 Colonial coal exported, including that used by Home steamers... ... ... 85,987 „ 83,342 Coke exported ... ... ... 288 „ 715 Colonial coal consumed in New Zealand ... 654,840 „ 327,420 Kauri-gum ... ... ... ... 7,425 „ 418,766 Total value of production for 1895 ... ... 2,005,977 1894 ... ... 1,697,242 Total increase ... ... ... ... £308,735 The total value of the gold, silver, coal, and other minerals, including kaurigum, exported up to the end of 1895 was £64,775,629. GOLD-MINING. The steady returns from the leading mines have directed attention to the mineral resources of the colony, and a demand has set in for New Zealand mines as an investment for foreign capital. As a. natural result, large areas of

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new ground, and mining properties partially developed and then abandoned, have been taken up, with the view of carrying on more extensive operations than formerly. Every encouragement in the matter of extended areas and security of title has been afforded to companies willing to carry on prospecting in a systematic manner; but, at the same time, safeguards have been provided to prevent large areas of mineral lands being held for purely speculation purposes. In past years many mining properties were abandoned, and often unjustly condemned as worthless, when only partially and imperfectly prospected, chiefly through an insufficiency of capital. During the present revival capital to prospect many of these properties, as well as new areas, will doubtless be forthcoming if the owners are fair and reasonable in their demands. With capital for development, and the employment of new processes of treatment, gold-mining is rapidly becoming a permanent industry of great value to the colony; and the constant care of the Government will be to foster its development in every legitimate way. The quantity of gold entered for exportation through the Customs for the year ending the 31st March last, as shown in Table No. 2 annexed, was 302,6900z., representing a value of £1,196,081; while the quantity exported for the same period of the preceding year was 222,9810z., valued at £889,545. This shows the substantial increase of 79,7070z., not including the gold manufactured into jewellery in the colony during that period. Of the quantity exported, Auckland contributed 117,0290z.; Marlborough, 3,1730z.; Nelson, 3,8130z. ; West Coast, 89,7210z.; and Otago, 88,9540z. Auckland shows the largest increase, being 58,9980z., or more than double the quantity produced for the previous year. Of the total quantity of gold entered for exportation last year Auckland contributed 38 - 67 per cent.; Marlborough, TO4 per cent.; Nelson, 1-26 per cent.; West Coast, 2964 per cent.; and Otago, 2939 per cent. Earnings of the Gold-miners. On account of the difficulty of ascertaining the total cost of the tools, machinery, and appliances used in gold-mining, it is impossible to arrive at more than an approximate estimate of the earnings of the men actually engaged in the industry. However, dividing the gold entered for exportation by the number of miners, taken from the returns forwarded to the department by the Mining Eegistrars, will afford, as in former years, a rude basis of computation. The total number of miners employed last year was 13,226, as against 11,412 for the previous year. The increase was principally in the Auckland District, where 1,714 more men were employed than in the preceding year. Dividing the value of gold exported by the number of men employed, we get an average earning of £87 17s. sd. per man, as against £77 18s. lid. per man per year for 1894 —an increase of £9 18s. 6d. per man. Taking the value of the gold from the different districts, and dividing it by the number of men employed, it is found that the earnings of the miners employed in Auckland District were £122 15s. 9d.; in Marlborough, £52 ss. Bd.; in Nelson, £3 9s. 9d. ; on the West Coast, £151 ss. Id.; and in Otago, £77 10s. 9d. In some places, more especially in Otago, Nelson, and the West Coast, many of the miners do not depend entirely on mining, but employ a part of their time in farming pursuits, &c. QUAETZ-WOBKTNGS. This important branch of the gold-mining industry continues to make very steady and satisfactory progress, the returns of last year showing a very marked increase over those of the preceding year. The bulk of the increase has been from the mines in the North Island. During last year 127,572 tons of quartz and tailings were treated in the Auckland District, yielding 221,2890z. bullion, representing an estimated value of £378,107, as against bullion to the value of £261,746 for the former year, being an increase of £116,361, or 69 per cent, increase for the year. In Nelson the number of tons of quartz and tailings crushed is not given in the battery returns, but the yield of gold for that district from quartz crushed was 2250z., valued at £866. On the West Coast 31,986 tons of quartz and tailings were treated for a return of 17,7940z;. of gold, valued at

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(approximately) £68,080; and in Otago 11.679 tons of quartz and tailings were treated for a return of 5,5600z. of gold, having an estimated value of £21,545. The total quantity of quartz and tailings -treated last year was 171,237 tons, which yielded gold and bullion to the value of about £468,958, as against £358,250 for the previous year. The yield last year from the quartz-workings was equal to 47 per cent, of the total value of the gold entered for exportation, compared with 40 per cent, for the preceding year. In the Hauraki goldfields the cyanide process is now very extensively used, and it is of great interest to state that no less than 71 per cent, of the total production of the gold and bullion of those goldfields was extracted through the agency of that process. The extraction of bullion by the cyanide process last year was 52 per cent, of the total value of the bullion obtained in this district. Judging from these figures, the time is not far distant when the process will be more generally adopted at the mines in the North Island. During the past few years the cyanide process, in the hands of different metallurgists and engineers, has made rapid strides, chiefly in the designing of plants and appliances to facilitate the handling of the ore and reducing the cost of treatment. The ordinary cyanide process is not suitable for the treatment of all classes of ore, more especially that containing base metallic substances, including copper compounds; but no doubt modifications and improvements will be found to overcome the difficulty, as a result of the researches now being conducted by different metallurgists and chemists. Coromandel. In this district the Hauraki Mine still continues to be the chief gold-producer. The monthly returns maintain a very high value, and prove the shot of gold on Legge's Eeef to be of great extent and exceptional richness. The Hauraki Mine alone produced more than half the yield of gold from the Coromandel Goldfield during the year just ended, and the rich returns from this mine have created a demand for properties in this field. A large number of mining properties have been acquired by English companies, and at the present time prospecting operations are being carried on over extensive areas of gold-bearing country. Judging from past results, it is only reasonable to expect that many valuable finds will be made as operations proceed. One of the principal features of the operations of the past year has been the deepening of the Kapanga shaft, with the view of testing the ground at the lower levels. These operations having an important bearing on the solution of the problem of deep sinking in all parts of the Hauraki goldfields, they were aided by a small subsidy from the Government. I have much pleasure in stating that so far the results have been very satisfactory. The value to the field of the discovery of a rich vein of quartz at a depth of 930 ft. can hardly be overestimated, affording, as it does, conclusive proof that gold exists at the low levels 200 ft. deeper than the greatest depth reached at the Queen of Beauty shaft at the Thames, to which I shall refer presently. The results obtained at the Kapanga Mine should afford encouragement to foreign companies who have purchased mines on which capital is to be expended in deep sinking. At Kuaotunu, the Kapai-Vermont Mine has yielded payable returns throughout the year, and already several mines have been acquired by capitalists with the intention of extensive operations being undertaken. The chief drawback to this field is the scarcity of water for motive-power, which makes the treatment of the ore more expensive than at the Thames. In this district 18,034 tons of quartz and 8,830 tons of tailings were treated during the year, yielding 41,2530z. and 3,5340z. of gold respectively, representing a value of £138,897 ; while 1,045 men were employed in the district in connection with the mines. THAMES. During the past year there was a slight improvement in the returns from this field. Up to the present time, systematic mining operations have been restricted to a very limited area, not exceeding 700 acres altogether, and the returns of gold have been phenomenal. The Thames Goldfield proper is divided

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into two unequal portions by the great " Moanataiari Fault," which forms the north-east boundary of the drainage area. The area on the seaward, or hangingwall, side of the fault, comprising some- 200 acres, has yielded gold to the value of £4,500,000, of which nearly one-half has been paid in dividends. The whole of this large yield was obtained from the surface down to a depth of 500 ft., below which no systematic mining has yet been undertaken. Lately a number of mines have passed into the hands of English companies, and operations on a more extensive scale, and at greater depths, will soon be initiated. The outlay of capital is fully warranted by the past results, and there is every reason to believe that large quantities of gold will be won from the deep levels. The company which has acquired the Queen of Beauty special claim has undertaken to erect machinery capable of pumping and winding to a depth of 2,000 ft., and in consideration of this the company will be aided by a Government subsidy at the rate of pound for pound up to the sum of £25,000. The specifications for the pumping plant, which is to be capable of lifting 2,000 gallons of water a minute from the depth to which the shaft is to be constructed, have been approved. The shaft will be a public shaft, from which other mining companies will be permitted to carry on their operations. The sinking of this shaft will prove an important factor in the development of the Thames Goldfield, as it will enable all the mines on the foreshore, or seaward, side of the "Moanataiari Eault" to conduct their operations at greater depths than formerly attained. When the Queen of Beauty shaft is clear of water to the bottom level, 748 ft. deep, the adjoining mines, such as the May Queen, Saxon, Victoria, Hazelbank, and Moanataiari, will secure an additional 300 ft. of backs on the existing reefs, after a drainage-cross-cut has been extended through the hard andesite bars in the Victoria and old Exchange leases to the bottom of the pumping-shaft. As the sinking proceeds fresh areas of deep ground will be rendered available, and with the expenditure of capital and improved goldsaving appliances there should be a large increase in the gold returns from this field in a year or two. During the past year 29,976 tons of quartz and 1,497 tons of mullock were crushed, yielding 23,0430z. of gold; and 13,549 tons of tailings yielded 2,1920z. of gold : representing an estimated value of £63,913. The number of men employed in the mines was 677. Ohinemuri. There has been a very marked increase both in the returns and number of men employed during the past year. The steady returns from the Waihi Mine have proved the permanency and great value of such large ore-bodies as the Martha Lode, and have given English investors confidence in the stability of these goldfields. Since the beginning of the year a number of properties have passed into the hands of foreign companies, and for some time to come considerable sums of money will be spent in opening out and developing the large bullion reefs in this field. At Waitekauri, the Waitekauri Gold-mining Company have undertaken some extensive works to open up and render accessible the valuable Golden Cross reef, and a few months should see largely-increased returns from their new battery. At Karangahake, the operations of the New Zealand Crown and Woodstock Companies have been carried on with much success, and, with the new stampers now being erected at each mine, there should be a corresponding increase in the value of the bullion returns. In the Ohinemuri goldfields, dry-crushing and cyanide treatment is universal. During the past year 45,284 tons of quartz yielded by amalgamation 1,9150z. and by cyanide 121,2840z. of bullion; while 11,724 tons of tailings gave a return of 23,8870z. by cyanide, and 4150z. by amalgamation: making a total of 147,4500z. of bullion, representing a value of £174,355, which is equal to about £1 3s. 7d. per ounce: as against 110,6280z. of bullion, valued at £137,699 —equal to £1 3s. Id. per ounce—for the previous year. During the year, 1,724 men were employed in the mines, compared with 538 for last year. Waiorongomai. This goldfield is traversed by a number of very large reefs, the average value of which is very low-grade. The successful working of these ore-bodies will

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require the outlay of much capital in systematic development, and also for the erection of crushing machinery capable of treating large quantities of ore, and at the same time extracting a fair percentage - of the values. Much of the ore in these reefs is of a refractory character, containing finely-divided gold, associated with, or entangled in, copper-pyrites and silver-sulphides. At Waiorongomai, a wealthy English syndicate are about to commence extensive operations on the big reef; and, should these be successful, a large increase in the gold returns may be looked for. The quantity of quartz crushed and treated during the past year was 120 tons, yielding 1530z. of bullion; while 54 tons of tailings gave 15oz. of bullion: representing a total value of £941. During the year 36 men were employed on this field. West Coast. Beefton is the principal quartz-reefing district on the West Coast, and is at present attracting the attention of foreign capitalists, who are taking up quartzmining properties with the view of further developing them. A large amount of English capital has been already introduced into this district, and the best of the properties, as far as yet ascertained, have been purchased by the Goldfields Consolidated Company, represented here by Mr. Ziman. The introduction of large amounts of foreign capital will have the effect of the ground not only being worked at much greater depths than heretofore, but also of the mines being worked in a more systematic and economical manner. More modern machinery and appliances will be introduced and erected for the reduction and treatment of auriferous ores, and it is expected that a far larger percentage of the gold will be recovered. The discovery of a new auriferous lode in the Keep It Dark Mine at a depth of 850 ft. has done a great deal towards inspiring confidence in searching for lodes containing rich stone at deeper levels than heretofore prospected ; and now, when capital is forthcoming to develop the mines in this district, there is reason to believe that brighter days are in store for Beefton, and that it will become a very large and important mining centre. Otago. The principal places in Otago where quartz-workings are carried on are in Macetown and Skipper's. At the former place a considerable quantity of gold has been obtained from the Tipperary, Maryborough, and Premier Mines already; but. it is to be regretted that the recent operations in these mines have not been attended with the success they deserved. The Tipperary, Premier, and Sunrise Mines are the property of an English company who have expended a considerable capital to open them up more fully, and a large expenditure will yet have to be made before all the development-works in progress will be completed, and the mines opened out so as to get payable returns. At Skipper's, the Phoenix Company, which really meant Messrs. G. and F. Bullen's mine, is now taken over by the Achilles Company, which was formed in London, and large development-works are being carried on to open up the mine extensively, and some good ore is in sight. This is the oldest quartz mine in Otago, having been opened in 1863, and has been almost continuously worked ever since. A considerable amount of capital has also been expended in prospecting and development-works in the Cromwell Mine at New Bendigo, without yet meeting with success ; but where so large a quantity of gold was obtained on the upper levels as that found in this mine there is a reasonable prospect of another rich shoot of ore being found at the deeper levels. At Preservation Inlet and Wilson's Biver the quartz-workings are yet in their infancy. The lodes are not developed to such an extent as to justify a definite opinion regarding their value. Very rich stone was discovered in the Golden Site Mine at Wilson's Biver, but this block cut suddenly out, and very little work has been done to ascertain whether it can be picked up again further along the course of the lode or at a greater depth.

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There are large quartz lodes in many places in Otago; but where gold has not been seen in the stone at the outcrop there has been no work done to ascertain whether a shoot of auriferous ore"may be found at deeper levels or not —as, for instance, on the range between the Clutha and Manuherikia Bivers, the Old Man Bange, and the Bough Bidge. These places are all traversed by quartz lodes, where little or no work has been done to determine whether some of them may be payable for working or not. ALLUVIAL MINING. This branch of the mining industry is entirely confined to the Middle Island —in the Marlborough, Nelson, the West Coast, and Otago districts. The whole of the shallow, rich ground being worked out, attention had to be directed to the terraces and flats, where there are great depths of superincumbent gravels overlying the richer auriferous layers of wash-drift which are found on both false bottoms and on the bed-rock. The upper gravels generally carry very little gold, and have to be removed in the most economical manner before the richer deposits can be got at; and the cheapest method of doing this is by hydraulic sluicing, which requires an abundant water-supply. The cost of constructing works to bring a water-supply to command the ground is in many instances beyond the means of private individuals ; and ground that otherwise could be worked remuneratively is left waiting for capital to bring in water to work it on a systematic and extensive scale. Marlborough. The principal fields where alluvial mining is carried on in the Marlborough District are Wakamarina, Mahakipawa, and the Wairau ; but at none of these places is there a large mining population. The Gorge workings at the Wakamarina are still in hand. Several companies have been formed to work this claim, but have failed. However, extensive preparations are again being made to bottom this gorge, where it is expected by some to find a large deposit of gold, while others are more incredulous, and affirm that the labour will be wasted. At Mahakipawa the shallow workings in the creek-bed are a thing of the past, and attention is being directed to working the terraces and deep ground in the flat, where a rich lead of gold is said to pass through the King Solomon Mine into Mr. Cullen's freehold. There is a large extent of country in the Marlborough District where little or no prospecting has yet been done, which, judging from the formation of-the country, ought to contain auriferous gravels. Nelson. The principal goldfield in the Nelson District is Collingwood. A large capital has been expended here recently by the Parapara Hydraulic Sluicing Company to work the Parapara flat, but so far a large amount of success has not attended their operations. There are, however, large quantities of auriferous drifts in this neighbourhood, which it is expected will yield sufficient gold to recoup the outlay, which is set down at about £25,000. Other companies are being formed to work the auriferous drifts in the Quartz Banges and Golden Gully, where it is proposed to bring in a water-supply from the Clarke Biver and also from the Boulder Lake to carry on hydraulic operations. A considerable number of miners are scattered about in different gullies, and are said to be making fair wages. There are also a considerable number of miners engaged throughout the district at Anatoki, Kill-devil, Baton, Wangapeka, and the Crow diggings. The latter place is stated to contain large deposits of auriferous wash-drifts ; and on the strength of representations made to that effect a horsetrack was constructed from the Wangapeka Saddle to the head of the Crow Biver to enable the miners to get their supplies by pack-horses, instead of having to carry everything themselves. The construction of this track, as well as a horse-track from the Wangapeka Saddle towards Karamea, will open up a large extent of country covered with auriferous gravels, as well as land suitable for cultivation. . .

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West Coast.

This is the largest and most extensive goldfield in the colony. Gold to the value of £22,280,426 has been obtained from the West Coast, and it still continues to produce about 30 per cent, of the whole of the yield of gold in the colony. It would be superfluous for me to mention all the different gold-bearing areas on the West Coast goldfields, but generally it may be said they extend from Karamea to Jackson Bay, a distance of over 270 miles; the principal being at Addison's Flat, Grey Valley, Kumara, Bimu, and Boss. At Addison's Flat the leads of gold-bearing gravels extend a long distance back from the coast-line, and run parallel with the sea-beach. Some very rich deposits of gold-bearing gravels have been found at different places on this flat; but the shallow and easily-worked portions of the ground have for many years been worked out, and to carry on alluvial mining here now in the deep ground requires a good water-supply and an extensive plant. The number of men who can be remuneratively employed on this flat is only limited to the supply of water that can be brought on to work the ground. Grey Valley. There are a large number of miners employed in different portions of the Grey Valley, at Antonio's, Blackwater, Noble's, Duffer's, Orwell Creek, Nelson Creek, No Town Creek, Moonlight, Blackball, as well as in several other places, in some of which extensive mining and sluicing operations are carried on. The great depths of auriferous gravels in such places as the Grey Valley, Napoleon Hill, and between Orwell and Noble's Creeks, would give highly remunerative returns for working if a sufficient supply of water could be brought to command them. On the north side of the Grey Biver there are large areas covered with auriferous drifts, generally of a more recent age than the gravels on the south side of that river, which give fair returns for working when water is available for hydraulic sluicing. A great deal of these drifts contain large boulders, which interfere to a great extent with the working of the ground, as at present all these boulders are shifted by hand, no mechanical appliances being used to remove them ; but, no doubt, when attention is directed to this branch of the mining industry as an investment for capital, more modern systems of working will be adopted, and, instead of having a number of small claims, larger areas of ground will be taken up, and capital will be forthcoming to construct waterraces so as to carry on hydraulic-sluicing operations extensively. In the beginning of last year some good sluicing-ground was taken up in the vicinity of Healy's Gully, and a water-race from the Boaring Meg Creek commenced, to bring a supply of water to work the ground. This caused attention to be directed to this place, with the result that a number of claims have now been taken up, and from the prospects obtained are likely to prove valuable properties. A subsidy has been granted towards the water-race referred to, on condition that it is constructed of such dimensions that at least fifteen sluice-heads of water will be available for working claims not directly interested in the race. Kumara. This may be termed the most compact alluvial diggings in the colony. It is also the largest alluvial mining centre. The ground at first was all held in small claims. A number of these have now, however, been worked out, and fresh claims taken up further back, nearer the base of Kapitea Hill. Gold to the value of nearly £1,500,000 has already been obtained from this field, where the worked-out ground does not exceed 600 acres in extent. There is a very large area of country in this neighbourhood covered with auriferous drifts, which will in future years be worked, after the present claims have been exhausted and water has been made available. The auriferous drift being on a large, wide flat extending back from the Teremakau Biver for about a mile, necessitates the construction of expensive tunnel tail-races to convey the tailings to where they can be deposited. A large water-supply having been brought in by the Government, facilities are given to the individual miners to work the ground on the

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hydraulic-sluicing system, while the price paid to the Government for the water leaves a fair rate on interest of the capital expended, as well as a sinking fund for the redemption of capital within a reasonable number of years. Passing southwards from Kumara, there is a large extent of country covered with auriferous drifts, especially between the Arahura and Hokitika Bivers, known as the Humphrey's Gully gravels. In some places the depths of these drifts are over 250 ft. Hydraulic sluicing has been carried on here for a number of years ; but the supply of water brought on to work the ground was totally inadequate to carry on sluicing operations in a satisfactory manner. Becently an English company has purchased the water-rights and property of the Humphrey's Gully Company, and they intend bringing in a large supply of water from the Arahura Biver, to work the ground on an extensive scale, whereby they hope to make it a remunerative property. Rimu. The workings here are carried on both by hydraulic sluicing and mining in the ordinary sense of the term. The greater portion of the population is engaged in driving out the ground from adit-levels and shafts. There is a great depth of auriferous drift, but most of the gold is in layers or bands. The elevation of a large extent of the ground in this locality where most of the miners are employed precludes the possibility of water being brought in to work the ground by hydraulic sluicing at anything like a reasonable amount. At present this is far beyond the means of the individual miner; but there is a good prospect of payable ventures being taken up here by a company or syndicate with sufficient capital to undertake the construction of a water-race at a sufficient elevation to command the ground. Boss. There are large deposits of auriferous gravels on both the terraces and flats in the vicinity of Boss. The terraces are worked by sluicing wherever water is available ; but on the flat the ground can only be worked from shafts, and by the aid of heavy pumping appliances. On Boss Flat eight different goldbearing layers of gravel have been gone through and no main bottom or bed-rock has yet been reached. Notwithstanding that, the workings have been carried down to a depth of over 200 ft. below the level of the sea, still in auriferous drifts containing highly-rounded pebbles and stones, indicating that the material has been at one time subjected to river action. A considerable quantity of gold was obtained in the early days from the deep workings on Boss Flat, but the drainage plant used was not of sufficient capacity to contend with the water, and capital could not be raised locally to procure a larger plant. Consequently all workings in the deep ground have been for many years suspended. The value of the auriferous drifts in the terraces has been sufficiently proved by the Greenland and Mont dOr Companies. The latter company has been carrying on hydraulic-sluicing operations for many years, and paying handsome dividends to the shareholders. In concluding my remarks on the West Coast, I would observe that this is a portion of the colony which contains large deposits of auriferous gravels, as well as numbers of extensive quartz lodes, and where comparatively little prospecting has been done, away from the mining centres. The alluvial drifts cannot be worked without a considerable capital to construct large water-races and proper hydraulic plants to work the ground, and this generally is beyond the means of individual miners unless the ground is very favourably situated and water can be easily brought on to it. lam of opinion that many good mining properties can be acquired on the West Coast which, with sufficient means and judicious management, can be made to pay good interest on the capital invested. Otago. The principal goldfields of Otago are Tuapeka, Clutha Valley, Manuherikia Valley, Mount Ida, and the Lake district; and, although thirty-five years have passed since the discovery of gold in * >tago, very little impression is made on the surface of the ground where alluvial mining has been carried on. Gold to the value of £20,643,176 has been obtained from the alluvial workings, and far more 2—C. 2.

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remains hidden from view; but it is not so easily obtained as in the early days, when the workings were confined to the shallow ground and creek-beds. These creek-beds formed gigantic ground-sluices, requiring only to be cleaned up by manual labour. In the valley of the Clutha there are still plenty of ancient riverbeds having large deposits of gold-bearing gravels, these, however, being covered with a great depth of superincumbent material, require a large capital to work claims and make them remunerative ventures. TuapeJta. The most important work now being carried on in the neighbourhood of Tuapeka is at the Blue Spur. The workings here are in a hard cemented gravel requiring to be blasted and broken up by picks and hammers before it is sufficiently disintegrated to liberate the gold it contains. The present company which holds most of the cemented gravels at the Blue Spur has been working for many years with only a small amount of success. Notwithstanding this it has not only paid off the whole of its liabilities, which amounted to many thousands of pounds, but the company is now in a position to pay handsome dividends. Last year the profit was over £10,000. The same class of cemented gravels is found at Wetherstone's and Waitahuna; but this deposit has not been worked at these places on such a scale or in such a method as would be likely to give payable returns. Clutha Valley. This valley contains the richest deposit of auriferous drift in the colony. The river itself, being only an immense ground-sluice, carries away all the light material, leaving the denser and heavier portions of the gravels, which now cover the bed of the valley. The gold obtained by the various dredges at work in the bed of the river, as well as by the different parties and companies which have claims in this valley, clearly demonstrates the immense wealth that lies buried therein. Gold is found in payable quantities in the bed of almost every river, creek, and stream which are tributaries of the Clutha. The same remarks apply to the Manuherikia Valley. Gold-bearing gravels cover the hills, terraces, and flats, only awaiting a systematic method of working to insure success. There is ample scope for the employment of capital in alluvial mining in these valleys, and with ordinary intelligence and judicious selection of properties many remunerative ventures can be taken up. Lake District. The large quantities of gold obtained from the bed of the Shotover Biver in the early days of the Otago goldfields proves the auriferous character of the country this river traverses, the river itself being nothing more than Nature's sluicebox, carrying away all the material from the slips which have from time to time taken place from the mountain-sides. The hills and mountains, being composed of highly-laminated schistose rocks, having gold intermixed, have become disintegrated by the action of the atmosphere and the weather releasing the particles of gold which have for ages been accumulating in the beds of all the different streams. Wherever a deposit of gravel is found overlying the schistose rocks it is generally auriferous, and will give fair returns by adopting the modern methods of working. At present the object of capitalists seems principally to be the development of the quartz reefs, but I believe in the near future more attention will be devoted to the working of the numerous auriferous drifts in the Middle Island to which I have referred, by the construction of dams for conserving water and water-races for sluicing at higher elevations than has hitherto been the case. Alluvial mining is only in its infancy. Water will in the future be brought in from the principal rivers to command the high lands, and when that time conies far more gold will be got than has ever yet been obtained. COAL-MINING. I have now to refer to the coal-mining industry, which continues to expand in proportion to the growth of our population and the establishment of other local industries requiring fuel. We can never expect any rapid increase in the output from the mines until a foreign market is found for the disposal of our

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coal; and, as it is only bituminous coal that can be disposed of abroad, the greatest increased output may be expected from the coal-mines on the west coast of the Middle Island. This, however, will necessarily be slow, as the present state of the harbours at Greymouth and Westport do not admit of vessels having sufficient carrying-capacities entering to take away large cargoes of coal, which is absolutely necessary in competing with coal-mines in other parts of the world for the production of coal for foreign countries. The total output from the mines last year was 740,827 tons, as against 719,546 tons for the former year, showing the increased output last year to be 21,281 tons. The coal imported from other countries last year was 108,198 tons, while for the former year there were 112,960 tons, showing a decrease in the importation last year of 4,762 tons. The imports were 6,048 tons from the United Kingdom, 102,145 tons from New South Wales, and 5 tons from Tasmania. The total export of coal was 92,744 tons, of which 85,987 tons was colonial produce, and 6,757 tons imported coal from other countries. Of the quantity of coal exported 66,593 tons was for coaling direct steamers trading between the colony and the United Kingdom, and will therefore be treated, as in former Statements, as coal consumed within the colony, as these steamers are wholly employed in trade between New Zealand and Great Britain. Taking, therefore, the output from our mines and the coal imported, we have a total of 849,025 tons, of which 26,151 tons was exported, leaving the consumption within the colony last year to be 822,874 tons, as against 807,058 tons for the previous year, being an increased consumption last year of 15,096 tons. Taking the output of the different classes of coal from the mines in the colony, there was 429,981 tons of bituminous coal, 104,566 tons of pitch-coal, 180,870 tons of brown coal, and 25,410 tons of lignite; which shows an increased production last year of 11,392 tons of bituminous coal, 2,177 tons of pitch-coal, and 10,055 tons of brown coal, while there was a decreased output of 2,343 tons from the lignite-pits. The districts in which there was the largest increase last year were Kawakawa and Hikurangi, where the increase was 21,076 tons. This was due entirely to the workings of the Hikurangi Coal Company's mine being more developed, the output last year being 21,257 tons. There was also an increased production from the mines in the Waikato district of 14,150 tons, and from the mines in the Whangarei district of 4,245 tons. The latter is due to the development of the Kiripaka Mine, at Ngunguru. There was also an increased output from the mines in the Malvern district of 2,830 tons, but there was a falling-off in other districts, the largest decreased production being in the Westport and Greymouth districts, which was 8,349 tons and 5,581 tons respectively. The mines in which there has been the largest output are the Coalbrookdale, 183,745 tons; the Brunner, 99,609 tons; Kaitangata, 63,857 tons; Blackball, 43,055 tons; Taupiri Extended, 40,160 tons; Westport Cardiff, 32,702 tons; Hikurangi, 21,257 tons; Shag Point, 17,418 tons; Taupiri Beserve, 17,135 tons; Castle Hill, 16,365 tons; Walton Park, 16,080 tons; Allandale, 12,238 tons; Nightcaps, 11,309 tons; and Ngunguru, 10,996 tons: the output from all the other mines being under 10,000 tons. Of the two mines referred to in my last Statement as being opened up, the Granity Creek Mine, belonging to the Westport Coal Company, has started to send coal to market; but the other—the Coal Creek Mine, belonging to the Greymouth and Point Elizabeth Bailway and Coal Company—is not yet ready to commence the output of coal, the tramway-line between the Granity Creek Mine and the railway, and the necessary works in connection with the storage of the coal, having not yet been completed. In regard to the Coal Creek Mine, the contracts have been let for the whole of the works in connection with the construction of the railway from the mine to Greymouth, and the work is expected to be completed in about eight months. Accidents in Coal-mines. It is my painful duty to state that one of the greatest disasters that have ever taken place in the colony occurred, by an explosion in the Brunner Mine, on the 26th March last, by which sixty-five men lost their lives. Steps were at once

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taken to get the mine thoroughly examined by competent experts, to ascertain the cause of the explosion; and a Boyal Commission was appointed to inquire into all the bearings of the case, in order to .recommend such steps as might be deemed necessary to prevent a like occurrence in future. The report of that Commission clearly shows that the explosion was caused by a blown-out shot, fired by some one on the morning of the disaster ; but, as all the men who were in the mine lost their lives, accurate particulars in regard to the disaster will never be known. The evidence of all the experts, who were mine-managers of high standing, as well as that of the Inspectors of Mines, was unanimous : that a blown-out shot was the cause of the disaster, and that the explosion was not due to an outburst of gas. The report of the Commission, which will be laid on the table, shows that no blame is due to the management, and that there was passing through the mine double the quantity of air required by Act. It is impossible to insure the safety of the workmen in mines by any legislative enactment unless the workmen themselves use every precaution for preventing accidents. It is gratifying to find that the people in every part of the colony, and also from the neighbouring colonies, have responded nobly towards subscribing a fund for the relief of the widows and families of those who have lost their lives in the disaster. This fund now amounts to about £29,000, and by careful administration it should go a great way towards providing means to assist the families who were bereft of the breadwinners until the children are old enough to earn their own livings. Earnings of Coal-Miners. The earnings of the coal-miners depend greatly on the time they can work in the mines. As far as the bituminous mines on the West Coast are concerned, the men are not steadily employed, the output being controlled by the regularity with which vessels enter the ports of Westport and Greymouth to take away the coal. There is not sufficient storage, either at the mines or the ports, for large quantities of coal, and on many occasions vessels are prevented Jby stormy weather from entering or leaving these ports, no work being done in the mines in the meantime, unless in making repairs. If the miners could get constant employment they could earn good wages; but, as it is, they are sometimes idle for one and two days a week, and when coal is required to load vessels more men have to be employed than would be the case if sufficient storage of coal was provided at the mines. Taking the rate of computation, as in former years, that the cost of labour in producing the coal at the mine-mouth is equal to 6s. per ton, and also taking the number of men employed in the whole of the coal-mines last year, which was 1,799, the output being 740,827 tons, the average wage per man was about £123 10s. 9d. per annum, or about £2 7s. 6d. a man a week. METALLIFEEOUS MINES. Very little has yet been done in the colony to prospect and develop mines other than for gold and silver. The only exports last year of metalliferous products other than gold and silver were 54 tons of antimony-ore, 210 tons of manganese-ore, and 62 tons of mixed minerals, representing an aggregate value of £2,891. Workings are still being carried on at Ohaeawai in the cinnabar deposits, and machinery and appliances are being erected to collect the metallic quicksilver, which is intermixed amongst the surface material, and also to distil the quicksilver from any ore that can be mined from open workings. The large quantity of gas in the ground where these cinnabar deposits exist, together with hot water, will, I fear, preclude mining the quicksilver-ore in this locality to any great depth. PETEOLEUM. The boring for petroleum oil is still being carried on near New Plymouth A little oil was found in the bore first put down close to the breakwater, but it is stated that sea-water came into the bore, which caused it to be abandoned. Becently a new bore, to a depth of 1,675 ft., has been put down a little nearer

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New Plymouth than the breakwater, but no oil of any consequence has yet been struck, but it is said that a large quantity of gas is now coming from the bore; this gives indications that petroleum will yet be found, but whether it will be obtained in payable quantities for working time alone will determine. KAUEI-GUM. Notwithstanding the large quantity of kauri-gum exported every year, there was very little diminution in the amount exported last year, the quantity being 7,425 tons, as against 8,338 tons for the previous year. Although there was 913 tons less exported last year, the value exceeded that of the former year's produce by £14,199, the value of last year's produce being £418,766, which gives an average value of about £56 Bs. per ton, whereas for the previous year the average value was £48 10s. sd. per ton. This industry affords a livelihood to a large number of both Europeans and Natives ; but the average earnings of persons employed in digging gum cannot be ascertained. No doubt the time is approaching when the gum will be exhausted, but a considerable period will yet elapse before this takes place. The total quantity of kauri-gum exported since 1853 is 175,803J tons, having a value of £7,683,529. EOADS AND TEACKS. Notwithstanding the large expenditure already incurred in the construction of roads and tracks to open up the country in mining districts, to enable prospecting, and the development of the mines, to be carried on, the recent revival in mining, and the amount of capital coming into the country to be invested in mining ventures, will require further roads and tracks to be constructed to open up the back country; this will necessarily entail much expenditure before communication with the various claims recently taken up can be effected. The total expenditure by the department during the last fourteen years on roads and tracks for the development of the mining industry amounts to £174,833 in direct grants, and £79,242 in subsidies to local bodies. WATEE-EACiiS. The construction of water-races to bring a larger supply of water to work the alluvial drifts is one of the most important works in connection with the expansion of the mining industry. As I have already observed, there axe large areas covered with auriferous drifts which will prove remunerative if a sufficient quantity of water can be obtained to work them on an extensive scale. The number of men employed in the alluvial workings will always be in proportion to the quantity of water available In order to encourage the construction of works of this nature, where it is proved that a fair supply of water can be brought on to ground that will give employment to a number of men, a subsidy of one-third of the cost is granted under regulations, to private parties for the construction of dams and water-races. During last year a subsidy of £800 was authorised towards the construction of a water-race from the Soaring Meg Creek to the terraces at the head of Healy's Gully, on the north side of the Grey River, between Blackball and Moonlight Creek. A subsidy was also given towards the cost of survey of a water-race from Bandall Creek to Napoleon Hill. The water-races constructed by the Government, and worked directly under the control of the Mines Department, are the Waimea-Kumara and Mount Ida Water-races. The gross value of the sales of water from the Waimea-Kumara Water-race last year amounted to £4,902, while the expenditure on maintenance was £2,713; leaving a net profit on the workings of £2,189. The value of the sales of water from the Mount Ida, including the Blackstone Hill Bace, amounted to £1,326, while the expenditure on maintenance was £1,393. This leaves a direct loss of £72 on the working of these races during the last year. The large expenditure last year on the Mount Ida Water-race was due to the very severe winter and heavy fall of snow, causing slips in the side of the race, which had to be cleared out and repaired before water was again admitted. Taking the Blackstone Hill portions of the water-races by themselves, there

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was a net profit on the working of £102, which is equal to about 10 per cent, on their cost, which was £1,037. PEOSPECTING. Seeing the large area of auriferous country, both in alluvial ground and in quartz lodes, in the colony where scarcely any prospecting has yet been done, assistance has been given to prospecting parties wherever it was shown by either the Miners' Associations or local bodies that there was a probability of success attending the operations, and where these associations or local bodies undertook to supervise the prospecting operations. I have already alluded to the discovery of gold-bearing stone in the shaft of the Kapanga Company at Coromandel, at a depth of 930 ft. This may be regarded, as the greatest discovery due to prospecting work last year. A bore was put down from the bottom of the shaft, and quartz was cut showing a little gold. It may be stated that the gold in the lodes in this mine cut out at about 420 ft. from the surface, and 500 ft. of barren ground has been gone through before another shoot of gold-bearing stone was found. This discovery will be the means of giving an impetus to other mining companies to test their ground at deep levels. A subsidy up to £10,000 has also been applied for by the Boss United Goldmining Company, in the West Coast district, at the rate of £1 for every £2 to be expended by the company in accordance with the regulations for granting assistance towards prospecting at deep levels, but no definite decision has yet been arrived at, pending the receipt of details of .the proposed works. As there seems to be a desire to dispose of properties to capitalists, in view of subsidies being granted by the Government, it is intended to carefully consider this aspect of the question before any subsidies are authorised under the regulations referred to. As an evidence of the great interest at present taken in prospecting, I may mention that twenty-two licenses for prospecting outside mining districts have been issued since the Ist April last, no less than seven of these licenses being issued for the Great Barrier Island alone, where also thirteen extended prospecting licenses, authorised by the Act of last session, have been applied for to the Warden at Coromandel. Should a discovery be made of either gold or silver to warrant it, this island will be included in a mining district. During last year £1,726 4s. Bd. was expended in the different counties as subsidies towards prospecting —Coromandel, £206 4s. 6d.; Thames, £98 2s. Bd.; Manawatu, £1165.; Buller, £247 13s. 2d.; Grey, £59 14s. 3d. ; Inangahua, £25 17s. 6d. ; Westland, £625 16s. 4d.; Tuapeka, £14; Southland, £77 14s. 6d.; Vincent, £73 2s. Bd.; Taieri, £282 Is. lOd.; and Bruce, £14 Is. 3d. GEOLOGICAL EXPLOEATIONS. During last year the Mining Geologist carried on geological explorations in the Fiord County, with the view of determining the different formations, as to the probability of minerals being found in that part of the colony, which has never been properly explored. The discovery of gold at Wilson Biver, Coal and Crayfish Islands, as well as on the mainland in the vicinity of Preservation and Chalky Inlets, has led many persons to suppose that a large goldfield may be opened up there. As far as can be ascertained by the Mining Geologist, the auriferous belt extends for about twenty miles in length, having a width of five miles. This belt runs along the coast-line from Kiwi Creek, about thirteen miles south of Preservation Inlet, to Chalky Inlet. To the east of this belt there is a granite formation, in which lodes of argentiferous galena exist. Geological explorations were carried on in this locality over an area of about three hundred square miles; and a plan showing the different formations has been prepared, and will be found annexed to the departmental reports for this year. Geological explorations were also carried on in the Collingwood district. The chief examination in that portion of the colony being confined to the older auriferous gravels along the south-east side of the Aorere Valley, the largest development of these gravels being at the Quartz Banges. A map has been prepared showing the area and formations where these auriferous gravels are deposited.

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MINING MACHINEEY. As in former years, information has been obtained in regard to any new process for the treatment of auriferous and argentiferous ores, and also in regard to new machinery and appliances in connection with mining. By giving the fullest publicity to this question opportunity is afforded those persons who are engaged in mining pursuits of knowing the different patents that have been granted; and, although the machinery or appliance may not come up to the patentee's expectation, the ideas devolved may be the means of improvements being made by some one else who can detect defects in the patents. Plans and specifications of different machines and appliances in connection with mining will be found in the report of the Inspecting Engineer. SCHOOLS OF MINES. The great advantages derived by men having a practical knowledge of mining attending the Schools of Mines is beginning to show itself in a prominent manner. Quartz lodes which were formerly totally ignored and passed by as worthless, because no gold was visible in the stone, are now receiving attention. The necessity of testing every lode by assay is now recognised, especially in the North Island, and payable ore is found to exist where gold cannot be seen by casual examination. The number of students attending the schools is steadily increasing, and the demand for men having a chemical and metallurgical knowledge is largely on the increase in the colony. It is to be regretted that Mr. Park, who has ably carried on the Thames School for the last seven years, has left that institution, having accepted a more lucrative appointment. To be a successful [teacher at a School of Mines not only requires high scientific attainments, but also a mode of imparting knowledge to the students so as to create an enthusiastic feeling, to make them take an interest in their work. The course of instruction at the Thames school is not only equal to that in any school in the colony, but, situated as the school is in a large centre of mining, the students, the number of which has been steadily increasing, have opportunities of visiting the mines and machinery and observing their practical working. This enables students to gain a better grasp of subjects than can be imparted by lectures or demonstrated on blackboards. There is also a large increase in the number of students at the Otago School of Mines, and good work is being done; but, as hitherto there has been no plant either in connection with this school or available in any mining locality in close proximity thereto, the students have not the same opportunities of observing the practical working of the mines as they have at the Thames. A complete testplant for this school has, however, been constructed by Price Brothers, of the Thames, which is now being erected. This will be a great acquisition to the school, as the metallurgical system of treating ores can in future be fully demonstrated. There were three candidates for the University scholarship for examination, two of whom belonged to the Thames school, and one to the school attached to the University of Otago; but only one of them, Mr. Baker, from the Thames school, succeeded in gaining the required number of marks on the different subjects. The expenditure on the Schools of Mines last year was £1,719, including £500 paid to the school attached to the University of Otago. The total expenditure since the schools were first established up to the end of March last has been £20,574. SUMMAEY OF EXPENDITDEE ON WOEKS. The total expenditure on works authorised by the department for the development of the mining industry up to the end of March last amounts to £31,922. These works consist of roads and tracks constructed by direct grants, £19,970; roads and tracks constructed by subsidies to local bodies, £1,607; water-races, £5,162; drainage-channels, £2,240; prospecting works, £1,726; diamond and other drills, £216; Schools of Mines, exclusive of salaries to teachers, £999. The liabilities on the works in progress at the end of March last amounted to £33,643. A detailed statement of the expenditure on these works will be found in the tables annexed to the Inspecting Engineer's report, pages 260 to 262.

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MINING LEGISLATION. In order to give greater facilities for the opening of land for mining, it is proposed to extend the provisions of the existing laws in respect of the resumption of land for mining purposes. The Bill to effect this which has been introduced also provides for granting prospecting licenses by the Minister outside a mining district, and by the Warden within a mining district, on freehold land, subject to compensation for surface damage. It will further provide for a surrender of outstanding leases or licenses granted by Natives prior to acquisition of Native land by the Crown. Provision will also be made for granting mine-managers' certificates of service without examination to men who acted as mine-managers prior to the passing of the Mining Act of 1886, where not less than twelve men were employed. It has been found that there are several cases of hardship owing to men not having made the necessary application for a certificate within the time specified in the Act of 1886, and this provision is to meet such cases. Provision will also be made to give Inspectors of Mines power to take such steps as they may deem advisable for preventing the accumulation of dust in drycrushing batteries. It has been found necessary to have appliances in drycrushing mills so as to prevent the dust making the air impure, as the health of the workmen is impaired, and in some cases deaths have been attributed to the inhalation of the dry dust. It has also been found expedient to prevent any person cutting through the seaward slide on the Thames Goldfield, unless under proper supervision, as it is known that a large body of water exists on the seaward side of this slide, and a large influx of water would ruin the whole of the mines on the field. Provision is therefore made to give the Inspector of Mines full control of any workings through this slide. DEPAETMENTAL. The ordinary business of the department has greatly increased during the past year, and, owing to the interest which has been awakened in all branches of mining, there is every probability of this increase continuing. Under these circumstances it is with regret I refer to the loss to the department of the services of Mr. Henry Andrew Gordon, its Inspecting Engineer; but, although the department is deprived of Mr. Gordon's services, I would fain express a hope that the mining community will, for many years to come, have the advantage of his knowledge and practical experience in all questions appertaining to mining in the new sphere of action he has marked out for himself. CONCLUSION. It is gratifying to find that capital is now available to open up and develop the mineral wealth of the colony. The richness of the auriferous and argentiferous lodes is becoming well known in other countries, and capitalists are willing to embark in developing existing workings, as well as undertaking purely prospecting works. There has been no time in the past history of the colony when so much attention has been given to mining, and the taking up of areas of auriferous lands in the back-lying localities, where there are neither roads nor tracks. Parliament will therefore be asked this year to make provision for a much larger appropriation than hitherto in order to meet the growing requirements in this direction. Although very little work has yet been done on the area taken up in the back country, money is forthcoming to prospect the claims. No doubt fresh discoveries will be made, rich lodes will be opened up, and more attention will be devoted to the mining industry in the future than in the past. The large introduction of capital will have the effect of mining being carried on more as a commercial transaction. New Zealand is a colony with great resources, in both mineral and agricultural wealth, and the increased population which will be enabled to find profitable employment in the mines will add considerably to the prosperity of the agriculturist, as fresh markets will be opened up for his produce; and I am sure that much of our apparently worthless land, when properly developed, will display such richness as will bring the colony prominently before the world as a great mining country.

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No. 1. Table showing the Comparison in Quantity and Value of Gold entered for Exportation, and also the Quantity and Value of other Minerals produced, for the Years ending the 31st December, 1894 and 1895, as well as the Total Value since January, 1853.

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For Year ending the 31st December, 1895. For Year ending the 31st December, 1894. Total from the 1st January, 1853, to the 31st December, 1895. Name of Metal or Mineral. Quantity. Value. Quantity. Value. Quantity. Value. 'reoious metals — Gold .. Silver Oz. 293,491 85,024 & 1,162,164 10,679 Oz. 221,615 54,177 £ 887,839 6,697 Oz. 13,050,213 806,963 £ 51,351,002 171,263 Total gold and silver 378,515 .1,172,843 275,792 894,536 13,857,176 51,522,265 lineral produce, including kauri-gum— Copper-ore Chrome-ore .. .. .. • .. Antimony-ore Manganese-ore Haematite-ore Mixed minerals Coal exported Coke exported Coal, output of mines in colony .. ;. Kauri-gum .. .. .. !. Tons. 54 210 62 85,987 288 654,840 7,425 £ . M86 525 Tons. 44 534 25 75,004 107 644,542 8,338 £ 761 1,156 353 73,438 160 322,271 404,567 Tons. 1,394J 5,666 3,579 18,040J 52J 14,276 819,402 16,238 8,984,378 j 175,803 i £ 17,866 37,367 51,754 57,788 226 71,555 816,662 24,518 4,492,099 7,683,529 880 83,342 715 327,420 418,766 Total quantity and value of minerals Value of gold and silver, as above 748,866 833,134 1,172,843 728,594 802,706 894,536 10,038,829| 13,253,364 51,522,265 Total value of minerals produced, including gold and silver 2,005,977 1,097,242 64,775,629

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No. 2. Table showing the Quantity and Value of Gold entered for Exportation from New Zealand for the Years ending the 31st March, 1895 and 1896, and the Total Quantity and Value from 1857 to the 31st March, 1896.

Year ending 31st March, 1896. Year ending 31st March, 1895. Increase or Decrease for Year ending 31st March, 1896. District and County or Borough. Total Quantity and Value from January, 1857, to 31st March, 1896. Quantity. Value. Quantity. Value. Increase. Decrease. .UCKLAND — County of Coromandel County of Thames County of Ohinemuri County of Piako County of Manukau County of Marsden County of Whangarei Borough of Thames Te Aroha Town District Oz. 40,253 9,054 60,287 144 £ 164,289 37,375 218,401 606 Oz. 9,137 7,980 33,872 397 6 £ 37,680 33,113 127,884 1,646 23 Oz. 31,116 1,074 26,415 Oz. Oz. £, 253 6 1 1 7,289 4 4 30,150 6^637 27 J 713 1 1 652 117,029 450,829 58,029 228,059 59,000 1,965,009 7,410,433 Wellington 188 706 Iablboeough— County of Marlborough Blenheim Borough Picton Borough .. 3,173 12,681 1,911 7,626 1,262 fELSON — County of Waimea County of Collingwood 3,173 12,681 1,911 7,626 1,262 84,202 327,962 402 3,411 1,488 12,519 215 1,418 798 5,261 187 1,993 3,813 14,007 1,633 6,059 2,180 250,428 989,609 Vest Coast— County of Buller County of Inangahua County of Grey County of Westland Brunnerton Borough Kumara Borough Hokitika Borough Ross Borough Eeefton Borough .. 12,911 26,927 22,030 23,557 51,634 107,710 88,118 94,227 18,486 15,212 21,387 24,611 73,619 60,834 85,546 98,447 2,319 6,098 12,868 11,715 643 5,575 l^054 333 631 59 246 889 3,161 986 3,550 12,645 579 1,520 3,220 89,721 358,870 85,015 339,731 4,706 5,606,801 22,280,426 Ianteebuey 48 192 Itago— County of Taieri County of Tuapeka County of Vincent County of Maniototo County of Waihemo County of Waikouaiti County of Waitaki County of Bruce County of Lake County of Wallace County of Fiord County of Southland County of Stewart Island .. County of Clutha Unknown Borough of Alexandra Dunedin 734 26,207 22,958 10,765 1,874 518 1,836 1,161 10,801 7,052 630 4,325 68 25 3,006 106,081 92,980 43,607 7,384 2,119 7,522 4,680 43,463 28,441 2,534 17,508 271 98 489 22,350 17,250 10,638 1,315 314 1,822 647 12,326 5,038 884 3,248 67 5 1,982 90,180 69,722 43,211 5,152 1,226 7,468 2,591 49,302 20,245 3,565 13,138 268 20 245 3,857 5,708 127 559 204 14 514 2,014 1,525 "254 1,077 1 20 88,954 359,694 76,393 308,070 12,561 5,219,939 20,643,176 Totals 302,690 1,196,081 222,981 889,545 79,709 13.126,615 51,652,504

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No. 3. Table showing the Total Quantity and Value of Gold entered for Duty for Exportation from the 1st January, 1857, to the 31st December 1895. (This return shows the produce of the various goldfields. Gold entered at Nelson from Hokitika, Greymouth, and Westport is put under the head of "West Coast," and gold from Invercargill and Riverton under the head of "Otago.")

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Auckland. Nelson. Marlbi >rough. West Coast. LgO. Welli igton. Canterbury. Toti .1. Oz. Value. Oz. Value. Oz. Value. Oz. Value. 0/,. Value. Oz. Value. Oz. Value. Oz. Value, £ £ 40,422 51,272 28,427 17,585 24,552 40,386 37,120 55,841 47,030 29,643 35,918 38,396 42,524 48,692 40,056 32,700 54,786 22,158 17,866 55,862 21,092 17,223 11,424 12,223 13,039 12,494 7,724 8,002 10,337 9,979 10,829 11,320 12,310 11,049 16,896 9,604 8,187 10,634 9,016 984,618 £ £ £ £ £ £ 40,422 52,464 28,427 17,585 751,873 1,591,389 2,431,723 1,856,837 2,226,474 2,844,517 2,698,862 2,504,326 2,362,995 2,157,585 2,787,520 1,731,261 1,987,425 1,505,331 1,407,770 1,284,328 1,496,080 1,240,079 1,148,108 1,227,252 1,080,790 1,002,720 993,352 921,797 948,615 903,569 811,100 801,066 808,549 773,438 1,007,488 954, 744 913,138 887,839 1,162,164 1857 1858 1859 1860 1861 1862 1863 1864 1865 1866 1867 1868 1869 1870 1871 1872 1873 1874 1875 1876 1877 1878 1879 1880 1881 1882 1883 1884 1885 1886 1887 1888 1889 1890 1891 1892 1893 1894 1895 "308 1,239 4,483 3,448 5,449 5,814 6,037 53,660 132,451 85,534 330,326 104,890 119,449 76,910 69,485 56,057 99,081 55,982 37,901 42,720 35,516 33,059 41,291 36,087 42,989 32,271 30,697 35,223 28,655 31,745 45,892 45,555 45,714 52,916 111,213 i^192 4,098 13,853 10,552 17,096 17,463 18,277 168,874 434,687 319,146 1,188,708 369,341 437,123 305,068 262,156 221,905 403,627 220,454 154,295 176,416 141,326 131,007 163,618 143,564 170,416 128,140 121,564 139,556 113,191 125,760 181,185 183,655 186,553 211,974 430,862 10,437 13,226 7,336 4,538 6,335 10,422 9,580 14,410 12,137 7,650 9,123 5,999 10,631 12,244 10,014 8,175 13,697 5,642 4,577 i 14,018 5,367 4,463 2,993 3,222 3,453 3,289 2,064 2,159 2,798 2,582 2,914 3,027 3,252 2,856 4,445 2,535 2,145 2,860 2,460 •• 24,838 7,952 469 501 404 666 1,852 1,867 2,057 1,274 1,198 1,159 450 870 404 879 1,550 1,378 1,352 636 1,079 540 404 1,041 699 5,189 6,073 5,649 3,898 2,165 2,536 2,695 95,231 30,814 1,818 1,978 1,616 2,664 7,408 7,468 8,228 5,050 4,748 4,636 1,796 3,197 1,617 3,460 5,650 4,531 5,400 2,524 4,306 2,160 1,451 3,759 2,547 20,167 24,285 .22,576 15,429 8,644 10,123 10,771 1,463 289,897 552,572 511,974 405,762 317,169 280,068 232,882 172,574 188,501 157,531 158,678 133,014 153,198 144,634 142,822 144,090 127,544 130,048 116,905 111,686 117,861 112,671 98,774 100,139 101,696 89,096 109,268 103,106 99,127 86,950 89,429 5,560 1,127,370 2,140,946 2,018,874 1,608,844 1,269,664 1,121,525 931,528 690,296 756,442 631,203 635,480 531,274 612,823 578,508 571,061 575,258 509,971 519,978 467,152 446,517 471,325 446,287 395,430 400,405 406,451 356,368 437,126 412,383 396,516 347,464 357,719 •• 187,696 399,201 614,387 436,012 259,139 168,871 158,670 171,649 153,364 165,152 154,940 157,674 182,416 135,107 121,423 118,477 113,169 105,003 102,869 113,666 102,670 83,446 87,478 78,810 73,183 79,104 70,443 62,107 64,419 63,423 87,209 82,933 77,660 76,353 87,694 5,195,817 727,321 1,546,905 2,380,750 1,689,653 1,004,163 654,647 623,815 686,596 613,456 660,694 619,760 630,696 734,024 542,154 487,632 473,491 455,341 422,277 407,868 457,705 411,923 333,804 352,334 318,932 294,378 317,543 279,518 247,142 256,430 255,976 349,573 333,467 313,238 307,644 353,796 30 120 10,437 13,534 7,336 4,538 194,031 410,862 628,450 480,171 574,574 735,376 686,905 637,474 614,281 544,880 730,029 445,370 505,337 376,388 355,322 322,016 371,685 310,486 287,464 305,248 270,561 251,204 248,374 229,946 237,371 227,079 203,869 201,219 203,211 193,193 251,996 238,079 226,811 221,615 293,491 io 37 i6i 380 24 96 47 169 24 96 33 52 132 206 ■• Totals .. 1,940,147 7,316,702 249,075 83,724 326,052 5,581,129 22,177,748 20,544,646 273 1,044 48 192 13,050,213 51,351,002

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No. 4. Table showing the Total Quantity and Value of Mineral Ores other than Gold (the Product of New Zealand Mines), Coal, Coke, and Kauri-gum, exported from the Colony up to 31st December, 1895.

Silver. Copper-ore. Chrome-ore. Antiniony-ore. Manganese-ore. ; Hsemal ;ite-ore. Mixed Mi neralOre. Coal. Col p. Kauri-gum. Total Oz. Value. Tons. Value. Tons. Value. Tons. Value. Tons. Value. Tons. Value. Tons. Value. Tons. Value. Tons. Value. Tons. Value. Oz. Tons. Value. 1853 1854 1855 1856 1857 1858 1859 1860 1861 1862 1863 1864 1865 1866 1867 1868 1869 11,063 1870 37,123 1871 80,272 1872 37,064 1873 36,187 1874 40,566 1875 29,085 1876 12,683 1877 33,893 1878 23,019 1879 20,645 1880 20,005 1881 18,885 1882 5,694 1883 16,826 1884 24,914 1885 16,624 1886 12,108 1887 20,809 1888 I 403 1889 ' 24,105 1890 32,637 1891 28,023 1892 22,053 1893 63,076 1894 54,177 1895 , P5,024 I £ I 2,993 11,380 23,145 9,910 9,850 10,380 7,569 3,171 7., 556 5,755 4,512 4,500 4,236 1,286 3,785 5,125 3,169 2,946 3,453 71 4,043 6,162 5,151 3,996 9,743 6,697 10,679 351 245 137 110 51 246 84 7 £ I 5,000 2,605 1,590 1,300 1,024 977 "l20 •• 3 8 116 52 3,843 595 768 *281 I £ 25 120 1,440 520 24,719 4,318 4,910 1,315 •• £ .. I £ .. •• •• - .. __ £ •■ •• & 2J 1 261 973 1,027 750 1,672 1,696 990 724 1,463 3,385 1,854 2,658 6,362 I 7,144 7,020 6,621 3,207 6,522 6,104 43,893 46,136j 44,129 08,087 86,405 69,614 91,664 78,911 69,136 75,004 85,9871 £ I 4 2 A 400 1,228 1,210 800 1,508 1,612 855J 655 1,363 3,129 1,954 2,071 5,139 6,187 5,977 5,610| 2,380 4,879 4,461 51,257 52,133j 44,650 64,971| 84,347; 67,003 91,173 80,225 72,6991 73,438 83,342 •• " '21 87 15 53 25J 85 154 87 I 223 275 1,430 236 267 j 497 183J I 953 2,132 2,218 2,544 4,306 51 107 288 830 15,972 1,661 I 28,864 355 4,514 1,440 18,591 2,522 35,251 1,811 20,037 2,010 2O,77G 1,046 9,851 856 9,888 1,103 11,107 1,400 27,026 2,228 60,590 . , ! 1,867 46,060 .. j 2,535 70,572 2,685 77,491 .. I 2,690 72,493 2,850 111,307 .. j 4,391 175,074 5,054 167,958 50 4,811 154,167 2,834 I 85,816 228 2,569 79,986 51 3,231 138,523 189; 2,888 109,234 72 3,633 118,348 177 3,445 132,975 324 3,229 147,535 135 1 4,725 242,817 353 5,461 253,778 480 5,533 260,369 2,057 6,518 336,606 372 6,393 342,151 385 5,875f ! 299,762 715 4,920} 257,653 266 6,791 362,449 1,646 8,482 j 380,933 3,407, 7,519 329,590 3,334 7,438 378,563 3,658 8,388 437,056 5,69l! 8,705 I 517,078 53' 8,317 : 510,775 160 8,338 404,567 715 7,425 418,766 24,518 176,803^7,683, 529 ■• 11,063 37,123 80,272 37,064 36,187 40,566 29,085 12,683 33,893 23,019 20,645 20,005 18,885 5,694 16,826 24,914 16,624 12,108 20,809 403 24,105 32,637 28,023 22,053 63,076 54,177 85,024 830 1,061 355 1,440 2,522 2,167 2,263 1,300 1,018 4,997 1,995 2,996 1,867 3,077 3,904 3,801 3,600 6,070 6,750 5,822 3,558 4,119 6,631 7,975 8,6824 12,420 12,722 17,177 15,538 14,019 14,9534 13,071 51,468}: 52,409J 51,6864 79,147 97,828 80.287J 104,1641 92,891 78,191 84,052 94,026 l,055,451| £ 15,972 28,864 4,514 18,591 35,251 25,066 23,501 12,883 11,708 36,850 31,344 65,500 46,060 72,287 81,419 74,680 115,100 188,082 192,715 164,982 « 96,321 91,957 149,272 129,372 137,711 154,687 168,001 275,799 271,633 281,016 350,086 353,024 362,779 318,783 419,844 459,301 439,260 467,465 544,633 614,360 598,330 487,132 516,393 3,180 2,366 2 14,824 9,664 8 6 55 5 9 46 20 20 115 1,105 36 41 678 106 "390i 4 60 2 30 31 666 62 134 376 493 515 413 364 331 44 54 "l02j 612 24 900 804 5,289 1,784 3,989 6,246 5,319 11,121 4,950 4,900 3,467 761 1,486 2,516 2,140 2,611 1,271 2,181 384 318 602 3284 305 1,085 1,080 482 1,153 521 319 534 210 10,416 8,338 10,423 3,283 6,963 1,155 809 1,716 1,316 895, 2,404 2,569 1,004 2,634 1,239 943 1,156 5251 .. '04 504 "l2 '208 2,674 1,955 2,784 22 114 445 144 162 199 19 2 84 37 25 62 11,335 4,303 8,597 110 993 1,846 4,142 2,955 9,985 273 631 650 353 880 "2 75 ij 5 1 "oi •• 4 1 " • • Totals 806,963 5,666 37,367 L_52jL 226! 16,238 806,963 '8,932,528 806,963! 171,2631 1,394; 17,866 3,579! 51,7541 18,04041 57,7881 14,276 71,555| 819,402 816,662 Note.—Silver-ore, 37 tons, £1,225.

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C.—2

No. 5. Return showing the Quantity and Value of Coals imported into New Zealand during the Quarter ended the 31st March, 1896.

No. 6. Table showing the Increase or Decrease in the Production of Coal in the Colony, and Imported, Year by Year, during the last Seventeen Years.

No. 7. Table showing the Output of Coal from the various Mining Districts, and the Comparative Increase and Decrease, for the Years 1894 and 1895, together with the Total Approximate Quantity of Coal produced since the Mines were opened.

Country whence imported. Quantity. Value. ictoria few South Wales Totals Tons. 1 30,781 30,782 £ 4 28,243 30,782 28,247

Coal raised in the Colony. Coal imported. Year. Tons. Yearly Increase. Tons. Plus or Minus. Increase and Decrease. 1878 .. 1879 .. 1880 .. 1881 .. 1882 .. 1883 .. 1884 .. 1885 .. 1886 .. 1887 .. 1888 .. 1889 .. 1890 .. 1891 .. 1892 .. 1893 .. 1894 .. 1895 .. 162,218 231,218 299,923 337,262 378,272 421,764 480,831 511,063 534,353 558,620 613,895 586,445 637,397 668,794 673,315 691,548 719,546 740,827 69,000 68,705 37,339 41,010 43,492 59,069 30,232 23,290 24,267 55,275 27,450 50,952' 31,397 4,521 18,233 27,998 21,281 174,148 -158,076 123,298 129,962 129,582 123,540 148,444 130,202 119,873 107,230 101,341 128,063 110,939 125,318 125,453 117,444 112,961 108,198 + + 16,072 33,778 6,664 380 6,042 24,904 18,242 10,329 12,643 5,889 26,722 17,124 14,379 135 8,009 4,483 4,763 + + +

Output of Coal. Approximate Total Output of Coal up to 31st December, 1895. Name of District. Plus or Minus. Increase or Decrease. 1895. 189-1. Kawakawa and Hikurangi Whangarei, Kamo, Ngunguru, and Whauwhau Waikato Mokau Pelorus West Wanganui Westport Reefton oreymouth Malvern Fimaru Dtago 3outhland Tons. 44,580 20,872 Tons. 23,504 16,627 + + Tons. 21,076 4,245 Tons. 867,152 336,662 69,751 535 1,615 223,123 4,018 142,664 11,481 341 182,331 39,516 55,601 522 2,173 231,472 3,982 148,245 8,651 2,105 185,032 41,632 + + + 14,150 13 558 8,349 36 5,581 2,830 1,764 2,701 2,116 837,026 8,562 711 48,354 2,081,716 64,012 2,129,362 316,261 10,554 2,918,191 338,659 + Totals .. 740,827 719,546 21,281 9,957,222

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No. 8. Table showing the Different Classes of Coal from the Mines in the Colony.

No. 9. Table showing the Number of Coal-mines in Operation, the Number of Men employed, and the Output of Coal per Man.

No. 10. Return showing the Quantity and Value of Coal imported into and exported from New Zealand during the Year ended the 31st December, 1895.

Note.—Foreign coal: Included in exportation to —United Kingdom, 5,806 tons, value £5,751; New South Wales, 566 tons, value £697 ; Fiji, 100 tons, value £125 ; South Sea Islands, 285 tons, value £356. The remainder is New Zealand produce. W. T. Glasgow, Secretary and Inspector. Department of Trade and Customs, Wellington, 28th May, 1896.

Output of Coal. Approximate Total Output of Coal up to the 31st December, 1895. Increase or Name of Coal. 1895. 1894. Situminous 'itch .. irown jignite Tons. 429,981 104,566 180,870 25,410 Tons. 418,589 102,389 170,815 27,753 Tons. + 11,392 + 2,177 + 10,055 - 2,343 Tons. 5,168,048 1,540,540 2,932,663 315,971 Totals 740,827 719,546 4-21,281 9,957,222

Number of Mines working. Number of Miners employed in each Mine. Total Number of , Output of Coal Men employed. during 1895. Average Output per Man. 117 15 4 18 1 to 4 men in each 5 to 10 11 to 20 21 men and upwards 237 103 72 1,387 Tons. 51,177 41,614 25,117 622,919 Tons. 215 404 348 449 164 1,799 740,827 411

Imported. Exported. Countries whence imported. Quantity. Value. Countries to which exported. Quantity. Value. Jnited Kingdom lew South Wales .. 'asmania Tons. 6,048 102,145 5 £ 5,800 91,816 5 United Kingdom .. Victoria New South Wales Tasmania Norfolk Island Fiji Islands South Sea Islands Tons. 66,593 610 7,261 51 65 7,247 10,917 £ 08,183 824 6,958 56 88 5,413 8,749 Totals .. Totals .. 92,744 108,198 97,621 90,271

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No. 11. Number of Miners employed during the Years ending 31st March, 1896 and 1895.

Approximate Cost of Paper.— Preparation, not given; printing (2,850 copies), £24 15s. 6d.

By Authority: John Mackay, Government Printer, Wellington.—lB96. Price, 9d.]

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Alluvial Miners. Quartz-miners. Totals. Grand Total. Mining District. European. Chinese. 1896. 1895. European. Chinese. European. Chinese. Auckland— North Hauraki and Coromandel .. Thames Ohinemuri Te Aroha Puhipuhi 1,045 677 1,726 36 25 1,045 677 1,726 36 25 1,045 677 1,726 36 25 627 598 543 16 11 3,509 3,509 3,509 1,795 Marlborough— Pelorus Wairau Cullen's Creek Waikakaho Wakamarina Kaituna and Duncan's Valley 6 20 100 10 60 6 6 20 100 10 60 6 6 20 100 10 64 6 2 20 125 35 64 7 4 4 Nelson — Wangapeka, Baton, and Sherry .. Collingwood and Takaka Motueka Inangahua Ahaura Charleston .. Westport, including Northern Terraces, Waimangaroa, North Beach, Mokihinui, V Karamea, and Lower Buller Valley I Lyell • Murchison Owen .. .. .. f 202 202 206 253 36 233 6 178 573 230 6 196 197 "36 292 17 36 269 6 470 590 230 6 196 197 36 275 6 666 787 230 20 176 5 751 807 137 315 15 330 330 282 24 14 46 70 14 84 120 127 42 127 42 169 170 2,128 455 Wbstland — Ross Stafford and Goldsborough Hokitika and Kanieri Kumara Greymouth Arnold .. .. J Okarito 1,722 455 406 2,583 2,468 141 420 350 350 6 150 45 90 9 1.50 420 350 350 6 150 45 90 156 570 395 440 176 570 465 450 500 200 11 511 200 711 706 90 1 2 92 1 93 81 1,851 30 350 360 315 360 130 14 110 36 492 22 1,873 492 2,365 2,448 Otago— Hindon Tuapeka Clyde and Alexandra Cromwell Roxburgh Black's Tapanui Waikaia Wyndham Longwood .. .. I Orepuki .. .. [ Roundhill and Wilson's River J Wakatipu Goldflelds—Arrow, Macetown, Cardrona, Kawarau, Bracken's, and Motatapu Queenstown Naseby, Kyeburn, Clarke's, and"] Mount Burster Hamilton, Sowburn, &c. Hyde and Pullerton's .. Serpentine Macrae's, Strath - Taieri, Shag Valley, Nenthorn, St. Bathan's, | and Ida Valley J Maerewhenua Pembroke 4 260 110 154 70 50 7 90 6 20 12 20 29 7 5 50 362 380 344 367 135 14 110 36 4 260 110 154 70 50 7 90 6 54 622 490 498 437 185 21 200 42 48 600 475 480 430 190 40 192 18 230 160 40 270 160 430 430 250 50 75 325 50 375 450 325 50 100 425 50 475 475 412 167 10 422 167 589 545 93 40 12 93 40 j 12 93 52 75 3,055 1,190 318 3,373 I 1,190 4,563 4,448 Summary. Auckland Marlborough Nelson Westland Otago 202 1,722 1,851 3,055 455 492 1,190 3,509 4 406 22 318 3,509 202 2,128 1,873 3,373 4 455 492 1,190 3,509 206 2,583 2,365 4,563 1,795 253 2,468 2,448 4,448 Totals 6,830 2,137 4,259 11,085 2,141 13,226 11,412