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The yield of gold for the month of February has greatly exceeded that of former months. That of March is the largest produced for some years. The Pumping Association has steadily and efficiently forked the water at the 650-feet level, thus draining the several mines included in their drainage area. In the northern drive at the 650-feet, below high water-mark, a quartz vein holding good gold has been cut and driven upon; it widens out-in its course, with every appearance of increase. AVith respect to the underground workings of the mines the workmanship is generally good; the miners, as a rule, are skilful; when bad work or inferior materials are put iv, it is at once removed. Accidents have been few; the mining rules for workmen have been rigidly enforced. Those miners who have been injured have either neglected to observe due caution or evaded the regulations. The early months of the year were characterized by great depression; the latter portion by great success, and the most brilliant prospects for the future. Great inconvenience has been felt during the year by miners, attended with loss of valuable time, from the enactments of the Arms Act requiring a permit to be obtained for each keg of powder purchased. Could this be altered in the ensuing session it would be accepted as a great boon. H. Goldsmith, Mining Inspector.

No. 18. Mr. Warden Keddei.l to the Undee Secretaey for Gold Fields. Sic,— AVarden's Office, Coromandel, 19th April, 1877. I have the honor to submit the following general report on the Northern Division of the Hauraki Gold Mining District, for the year ending 31st March, 1877. The record of events of the year presents few features of more than ordinary interest; the progress has been steady, and the yield of gold, as will be seen from the accompanying returns, considerably in advance of that of the previous year; but no new discoveries have been made, and but little change is noticeable in the district. I divide the district and classify the principal claims as in former reports —viz., the Kapanga and the neighbouring claims affected by it, the Tokatea group, and the Union Beach and claims surrounding it. The Kapanga Gold Mining Company's Property. —In July last, as reported by me by telegram, the lode was intersected by the cross-cut, a lead from the bottom of the 300-feet shaft. After driving upwards of 400 feet, the first contact with the reef discovered a small quantity of rich specimens; and this fact, so encouraging after the expensive and protracted labours of the company, gave great impetus to their undertaking, and a great deal of work has been done during the year. The tunnel (or cross-cut) pierced through tho old Kapanga reef at the bottom of the old workings, which are some 400 feet in depth, on the diagonal dip of the vein. The immediate consequence was to flood the new works entirely, but the water was speedily got under by the large pumping engine, and work resumed. The reef was found to be 2 feet wide—all payable crushing quartz, and occasionally yielding rich specimens, estimated at 2 oz. to 4 oz. per pound. At tho point of contact, some 50 tons of the reef yielded, with the specimens, 4 oz. to the ton when crushed. After ascertaining the gold-bearing nature of the reef, it became necessary for the management to find the cheapest method of sinking below the cross-cut drive, at the point of contact; and this has been happily accomplished in rather a novel manner. The old workings extend for some distance both north and south on the reef, and stoped to the surface, from which flows an interminable supply of water, keeping the pumps in the main shaft going incessantly. Captain Thomas, the manager, conceived that by a judicious arrangement of concentrating this supply to one spot, and regulating the supply by means of sluices, &c, he could utilize this water by making it drive a powerful water-wheel, which would pump the water out of the winze to be sunk on the reef, and also haul the stuff; the water, after performing this work, to run its usual course to the main shaft, where it would, as before, be pumped to surface ; thus making the water, which in any case would keep the pumping engine going at a great expense, perform some work, and so reduce its own cost. The wheel is 20 feet in diameter, overshot, and 18 inches breast. The excavation necessary for this novel subterranean machine is very large, and required some skill in construction. The chamber containing the wheel, pumping, and hoisting gear, is 40 feet long, 30 feet high, aud 14 feet wide. Since this has been completed, sinking operations have been carried on with all despatch possible, and the winze is now down about 60 feet (i.e., 360 feet from surface). The reef yields gold in payable quantifies every foot, so far as sunk on, and is exceedingly regular ; the average width 2 feet, with a well-defined wall. At right angles, north and south, a level is being driven on the line of reef, northerly, with the intention of reaching another gold-bearing lead formerly met with by the old company, and known as the "Albion." This is looked for in about 350 feet, and was, in old times, considered the most important portion of the lode. In a few months this mine should employ a great many men, and bring a large quantity of quartz to surface. The character of all tho reefs in the Hauraki Peninsula is the same : all are dependent for rich yields on the discovery of " runs "of gold, or sj)ecimens, and this is the case with the Kapanga. At any time such a find may be made : the reef is as strong, as well-defined, and true as it was 400 feet above, and the late important discoveries at the Thames, confirming the hopes of those who believed in the continuity of gold to great depths, should be very encouraging to the proprietors of this mine. On the discovery of gold in Kapanga in July, a piece of ground known formerly as the " A ron Tempsky Gold Mining Company's Claim," and then abandoned, was taken up under the name of the " South Kapanga," and tho owners obtained permission to work from the old Kapanga workings, and they are now engaged driving for the Kapanga reef. The Golden Point Company's claim joins tho Kapanga, and has several times struck good stone ; but during this year but little work has been done.