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C—4a

Otanui. There are three mines in this district —namely, the Oriental, Eureka, and Comet—all of which give payable returns. The No. 2 Eureka reef has now been traced into the Comet ground, and arrangements have been made to work this reef through the Eureka tunnel. The road that has been made, with Government assistance, from the mines to the battery has proved a great boon, enabling work to be carried on continuously, as quartz can now be conveyed for treatment at all seasons of the year. Tairua. Only one reef has as yet been found in this district, which is being worked by the Ajax Claim-holders, who have crushed 664 tons for a return of 4320z. 4dwt. of retorted gold. Ohinemuri Goldfield. Waitekauri District. The new battery erected by Mr. John Ralph and his mates on the Mangakara Creek has been recently started, and is now working well, the new Pelton wheel proving much more effective than the old turbine. In this, the southern portion of this district, some good finds have been recently obtained, and, if the gold only continues, there should be some rich returns from that quarter shortly. The Waitekauri Mine is bow wholly let to tributers, some of whom are doing exceedingly well. The quantity of quartz crushed in this district during the year was 158 tons, for a return of 6120z. of retorted gold. Waihi District. The Waihi reefs crop out in a cluster of conical hills or mounds on the north-east corner of the large, open, and swampy plain known as the Waihi Plain, which is generally exceedingly barren and unfit for agricultural purposes. This district was first prospected about seven years ago ; but only on one hill or mound was the prospect considered sufficient to warrant the erection of machinery—which was done by the Martha Company—the quartz from which has only yielded a few pennyweights of gold per ton; but, having cheap water-power to crush with, and through the manager, Mr. John Moore, using every economy, all cost of erection of machinery, tramways, water-races, &c, has now been paid off, and it is expected that the company will shortly pay a dividend. The crushing for the year was 5,251 tons, which yielded 1,2020z. 18dwt. retorted gold. The outlying hills of this district remained unoccupied till Mr. La Monte's process drew attention to the possibility of their containing silver; and about the end of last year the ground was taken up and tested, with the result that three of these hills have now been proved to contain rich ore, and great hopes are entertained of the others. The silver contained in this ore is principally in the form of sulphides, and the recent smelting-furnace trial at the Thames has proved these ores or rock (unlike galena and ironstone) are not well adapted for smelting. They contain such a percentage of silica (90 to 95 per cent.) that the quantity of fluxes necessary for the process is overwhelming. The question therefore remains what is the best method to save this fine gold and finer silver. This district will probably wait to see the success of the new reduction-works at Karangahake before it settles on what kind of works to erect for itself. In the meantime these new companies will endeavour to crush as much at the Martha Battery as will, at all events, pay working expenses. The distance from these mines to the battery is about a mile and a half. For this distance a line of tramway will require to be constructed. In regard to the work done and prospects obtained in the various new claims taken up here, the Rosemont have put in two cross-cuts or drives 150 ft. and 285 ft. respectively, and have driven on reef 200 ft., and also done 25 fathoms stoping; and have sunk two winzes, 20ft. and 45ft. respectively. The average width of reef is 15in. Union. —One shaft has been sunk to a depth of 76ft., and a cross-cut made to reef 54ft. Length driven on reef, 42ft.; width of reef, sft. 6in. Three tons of ore from this reef were sold to the Smelting-furnace Company at the Thames, and realized £23 10s.; being 3oz. 14dwt., gold = £14 165.; and 430z. lOdwt. silver =£8 145.: total, £23 10s. This company's shaft is near the boundary of the Rosemont Mine; but at a point on the line of lode westward about 340 ft. an open cutting has been made, and 15 tons first-class ore taken therefrom, which, when sold, brought £325. A trial of 34 tons of second-class stuff at the Martha Battery gave 540z. 3dwt. melted gold or bullion. This company have driven a low-level cross-cut, and are now driving and rising on the reef, which in both ends gives good gold prospects, showing also free gold and sulphides of silver in fair abundance. Silverton. —This mine has sunk a shaft some 70ft. on the hanging-wall of a monster reef, showing excellent gold all the way on the face. They have realized already from picked stone £283 155., and from 8£ tons, smelted at furnace, £235 3s. A low level has been driven, which has proved that valuable stone exists at a considerable distance westward of the shaft.