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C—4a

The Mining Inspector's detailed report will give full information as to the various mines throughout the district. Waihi. This district has come well to the front during the year. It will be remembered that for some years past stone from a very large reef, some 20ft. to 30ft. thick, in the Martha Claim has been crushed for an average return of about Bdwt. a ton, the facility with which the stone could be raised and crushed rendering this payable; but during the past year some very rich reefs and leaders have been discovered and opened up in the Silverton, Union, Rosemont, and other claims, the stone obtained being very different from any previously got in the district—it is largely impregnated with silver, and has essayed up to very high figures. In the Silverton a crushing of some 4001b. of stone gave nearly -£oz. to the ton, and the leader from which this was taken holds its own as it goes down in the shaft now some 70ft. deep. All the workings at the Waihi have hitherto been confined to the levels above the surface of the large plain upon which is situated the small range of hills, or, rather, hummocks, where the mines are located ; it is therefore a most satisfactory and valuable discovery to know that the stone improves in value as it goes down. As yet nothing really is known of the nature of the country below those plains, and I cannot but think that if boring-rods were used much valuable information would be obtained at comparatively small cost. I anticipate a great future for the Waihi portion of the district. A discovery that promises to be valuable has been made in an entirely new locality, quite ten or twelve miles from existing workings. It is known as Parakawai, and the reefs discovered are situated on the eastern side of the main range, on a Native reserve block known as Whangamata No. 6. The country is very rough and heavily timbered, some very good kauri being in the locality. The reefs are well defined, averaging some 4ft. thick, and the outcrop is probably ,300 ft. to 500 ft. above the creek-levels. The stone brought in gives very good dish-prospects when pounded vp —from loz. to 3oz. to the ton. The reef, or, rather, the outcrop, has been opened upon and prospected for some 500 ft. or (300 ft. along its course. Eight parties have taken up claims ; but there are not more than ten men, if that number, at work. The difficulty experienced in bringing small parcels of stone in to be tested, and of getting food, &c., on the ground will delay the opening-up of the reefs. The Ohinemuri Council are taking steps to make a horse-track from Waitekauri; but I do not anticipate any tangible results from the find this winter, for until a battery is erected the real value will not be known. But enough has been done to justify the men in the belief that a good reefing district has been discovered. Its distance from existing workings, together with the locality where the gold was found, prove that the extent of the goldfield is as yet unknown. The following are the statistical returns for the year : Cases heard—Resident Magistrate's Court (civil), 468; (criminal), 246: Warden's Court, 126. Fees, Resident Magistrate's Court (civil), £190 165.; (criminal), £37 165.; fines, £47 Bs. 6d. Fees, Warden's Court, £52 165.; fines, £2 Bs. Claims marked out, 588; registered, 173; abandoned, 368. Licenses granted, 112; forfeited, 29 ; surrendered, 5. Registrations, 554. Miners' rights issued, 465. Goldfields revenue for year, £4,468 os. 3d.; quartz crushed, 35,998 tons, 2e\vt. lqr. 181b.; melted gold, 61,5390z. 14dwt. 6gr.: as against, 31,496 tons quartz crushed and 37,7150z. melted gold, for .preceding year. It is gratifying to be able to report so large an increase in the yield of gold. I have, &c, The Under-Secretary of Mines, Wellington. H. Keniuck, Warden.

No. 2. Mr. Warden Kenrjck to the Under-Secretary of Mines. Sir,— Warden's Office, Te Aroha, April 27th, 1886. During the past year mining operations in the older portion of this field have, from vai'ious causes, been somewhat restricted. The very dry season experienced compelled the battery to stop or work with a reduced number of stampers on several occasions throughout the year, this materially reducing the output of quartz and the consequent yield of gold. It will be seen from the Mining Inspector's (Mr. Wilson's) report that, though the New Find Company have crushed 2,950 tons for a yield of 2,6370z., it has been unable to do more than pay its way; whilst the Colonist Company, who have about half an. ounce to the ton from 2,000 tons, find that the yield will not pay working expenses. I need scarcely say that such results as these are more than disappointing. For, with such facilities as are afforded; at Te Aroha for mining, carrying, and crushing quartz, half an ounce to the ton, even at the low value of Te Aroha gold, should pay working expenses. Much is expected from the very complete plant of McKay pans and crushers erected by Mr. Fergusson for Messrs. Fraser and others ; but, from the causes mentioned by the Inspector, this plant is not yet at work. On a small scale these pans have been tried at Karangakahe very successfully. It is anticipated that at Te Aroha they will save a larger percentage of gold at less than the present cost of treatment at the battery. The proprietors are erecting a furnace in