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The prospects of the coming year appear somewhat better, the large quantity of quartz in hand at the Matawai awaiting water only to crush, and the work being done there and at Manaia hold out hopes of better things in the immediate future. Should the efforts to reform the Kapanga Company and float the Anglo-New Zealander in London be met with success, the prospects will brighten materially. Herewith I have the honour to forward the usual statistical returns:—Cases heard in Eesident Magistrate's Court—Civil, 214 ; criminal, 33 ; fees and fines collected, £91 18s. Warden's Court— Cases heard, 17 ; registrations effected, 30 ; miners' rights issued, 56 ; gold-mining licenses granted, 14; claims marked out, 90; claims abandoned, 82 ; revenue collected, £619 4s. I have, &c, Hakky Keneick, The Under Secretary for Gold Fields, Wellington. Warden.

No. 4. Mr. Mining-Inspector MoLaeen to the Under-Secretary for Gold Fields. Sib, — Mining-Inspector's Office, Thames, 2Gth May, 1885. I have the honour to forward mining report for the Hauraki Gold-Mining District for year ending 31st March, 1885. Hauraki North, Coromandel. The number of miners working in this district continues to be about the same as previous years, but the quantity of quartz crushed is very much under, being only 456 tons 14cwt. 921b., against 1,042 tons 12cwt. 951b. in 1883-84. One reason for this great falling off is that three of the principal mines, namely, the Kapanga, Union Beach, and Tokatea, have not had any payable finds in the larger reefs. Another is that the past summer has been the dryest one we have had for the last ten years, causing long stoppages of batteries driven by water-power. In the Matawai District all the quartz that has been put through the battery amounted to 1 ton 13cwt., while the hoppers, paddocks, passes, &c, in the mines are all filled up with quartz ready for crushing ; this necessitated, a stoppage of the workings. There was water sufficient for crushing during the early part of the year, but at that time the toad to battery was being constructed, this was completed about the end of October, 1884, since then there has been insufficient water for crushing. The proportion of gold obtained per ton of quartz crushed is however much greater this year than last, being at the rate of 7oz. to the ton, while last year it was about 4oz.; this is accounted for by the non-crushing from the larger reefs, the quartz sent to the batteries being generally that obtained by tributers from the smaller leaders, which, though less in quantity, are generally much richer in gold. Kapanga Mine.— The works in this mine have been carried on during the last thirteen years by English capitalists. The expenditure during that time has been over £72,000, while the gold returns have only amounted to £11,500. During the greater part of the year the ground has been vigorously prospected under the management of Mr. Phillip Argall without, however, finding payable gold. The work done has been, levels driven, 604ft.; rising and sinking between levels, 434ft.; stoping, 422 square yards; quartz crushed, 200 tons; gold obtained, 265oz. 6dwt., valued at £754 12s. 6d. The expenditure during the same time (twelve months) being £5,886 ; where there is pumping and winding from deep levels the expenditure must of necessity be heavy. The reefs in this mine are very flat, averaging about 25°. The leaders are small and irregular, the ground being broken; the size will average about 6in., while the yield on the whole will be about 3dwt. of gold to the ton. Very often the quartz is absent altogether, its place being filled in with a blueish unctuous clay. The small patches of rich specimens occasionally found are in the immediate vicinity of the main leaders with the small hanging wall veins. Active work in this mine has for the present been suspended, pending the reorganisation of the Company, with the view of sinking the shaft deeper, in the hope the country will be found more settled at the deeper levels. Union Beach Mine. —In the earlier part of the year a large amount of prospecting work was done at the deeper levels, but without payable results. Towards the surface a small leader has beeu worked by two parties of tributers. This leader has given very handsome returns, as much as 27oz. to the ton. Pumping has now been stopped for some time, to re-organise the Company and float it in England, the intention so to include the ground known as Blagrove's freehold, which lies between the Union Beach and Kapanga Mines. Old miners believe that the channel of gold-bearing country runs right through this property. Tokatea Mine.— The extension of the main low level tunnel to cut the main lode has been the principal work carried out during the year. The rock passed through has been exceedingly hard, causing the progress to be very slow. The total length of tunnel is now 2,888ft. The place where the main lode ought to have been has been cut through and found to be a blank, there being no reef there, but instead, about 14ft. thick of hard blueish clay deposit. It has therefore been decided to drive back in a southerly direction along the line of lode till quartz is reached; for this purpose tenders have been called for to drive 400ft. It is also intended shortly to drive 200ft. to 300ft. in a northerly direction in the All Nations lode, which has been cut through and left behind in the tunnel.