C.—6.

who have obtained some very good returns from it during the year. These were obtained from ground above the old level; but it will require capital to develop or open out the mine below this level. The total return of quartz crushed at the Tapu Battery for the year ending the 31st March were 160 tons 5601b., for 200oz. 6dwt. 18gr. retorted gold. Otanui District. There is very little to record in regard to this district. The New Eureka Mine is the principal one in it, and the owners have done a large amount of work in stoping and working out the ground above their present level. It has long been known that a low level is required, but the tunnel must be a long one, and, as there is a hard belt of country to pass through, it must also be an expensive one. The present owners do not appear inclined to undertake the work, in which case I suppose the ground will ultimately fall into other hands, who will carry it out, for carried out it certainly will be some day. The returns from the battery in this district for the year are 1,080 tons for a yield of 5350z. 13dwt. retorted gold. Ohinemubi Goldfield. Earangahake District. Monastery Gold-mining License. —The ground held under this license comprises about nine acres, and is situated on the east side of the Waitawheta Gorge. This ground was formerly held by the Gladys Company, who obtained some splendid stone from a reef which is supposed to be a continuation of the Golden Crown lode. Owing to the want of communication with the then existing batteries, and the great cost of making a road to these through the gorge, which was estimated at £4,000, this company did not see its way to start work, and consequently the mine was forfeited on account of not working. The present owners saw an opportunity of profitably working the mine when they learned of the position that Mr. Eailey had fixed on for the erection of his reduction-plant, which is situated about 7 chains higher up on the opposite side of the gorge, and at once started vigorously to work to make the necessary connections between their workings and the battery by the construction of tramways, of which there are three sections, the first being a self-acting wire-tram-way. This leads into a hopper at the head of the ground-tramway, which is 200 ft. below the work-ing-level. The second section is a ground-tramway, which winds round the face of a rocky cliff for a distance of 8 chains to a platform constructed opposite the battery. From this point another wiretramway is connected with the battery-machinery to haul the trucks across the river. The whole of these connections are now completed, and working satisfactorily. The reef in this ground is exposed on the surface for a height of about 400 ft. upwards from the river, the average width of which is 12ft. A main level has been driven for a length of 80ft. to intersect the reef, which will here give about 80ft. of backs. When the reef was cut in this level it proved to be a body of quartz 9ft. 6in. thick. This on being assayed was found to be worth £4 2s. per ton. A winze has been sunk, connecting this level with the upper workings 60ft. above, and on opening out from this winze some splendid stone has been recently taken out, with gold showing strongly through it, which gives a most hopeful future to this mine. It is expected that there will be a parcel of 50 tons ready for treatment at Bailey's Battery in the course of the present month. The parcels already treated gave a result of £5 3s. 9d. per ton by Bailey's treatment. One ton of ore has been sent to Freiberg for the purpose of arriving at the best mode of treating this class of ore. A parcel of 2cwt. was also sent to San Francisco for the same purpose. The return from the latter was £9 18s. 7d. per ton of 2,0001b.; the return from the former has not yet come to hand. Woodstock Mine. —ln connection with this mine there is a very complete smelting-furnace on the La Monte principle. This furnace has been connected with the mine by a very extensive system of ground- and wire-tramways and hoppers. There are two wire-tramways, which are 700 ft. and I,oooft. in length respectively. One ground-tramway 2,800 ft. long is constructed round the contour of the hill to the hoppers at the head of one of the wire-tramways, and from the foot of the wire-tramway a long horse-grade tramway is constructed to the furnace. A trial of a few days was given to the furnace, when 28 tons was put through for 6030z. of bullion, which, however, was nearly all silver, as it proved to be worth only Bs. lOd. per ounce. After the trial of the same class of furnace at the Thames this was considered sufficient proof that the smelting-furnace was better adapted for galena ores than those in the Thames and Ohinenruri Districts. After this trial the mine was for some time idle, being protected ; but latterly portions of it have been let to tributors, who intend to make trials of the stone at Bailey's new reduction-plant. The works done in the mine are an upper level driven on the Maria Beef for a distance of 110 ft. from the east side of the spur, and stoping over this level 40ft. by 24ft., leaving backs for 120 ft. overhead intact. A second level 115 ft. long was also driven 50ft. below the above level, and stopes 40ft. by 20ft. taken out, and a winze sunk between these two. A winze was also sunk 28ft. below the second level. There is about 500 tons of quartz to grass from this mine which has not been treated. Imperial Gold-mining License. —This mine is being worked under the management of Mr. Bobert Clements, who first prospected the ground by trenching on the surface. The cap of a reef was here found, in which gold was occasionally visible. An upper level was then driven on this reef for 50ft. This still showed a little gold, but as the best prospects were obtained from the floor of the drive, a winze was started, in which it was found that the deeper they went the stone, or quartz, became the richer. This winze was sunk 25ft., when they were beaten out by the water. A second level was then started,, which will give over 200 ft. of backs. This level has been driven 50ft., 30ft. of which was on the reef, with golden stone visible all the way. About another 60ft. of driving will reach under where the winze was sunk. This mine, when it is developed, has the appearance of becoming one of the leading mines*of the district. A road or tramway will require to be constructed from No. 2 Level to the top of the lower section of the tramway which is being constructed between the hill-road and Bailey's Battery.

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