C.—6.

Oivharoa. There are only three claims at work in this district—viz., Smile of Fortune, Eadical Extended, and the Me and Eowe claim. Smile of Fortune. —The gold above adit-level is now exhausted, and capital is required for sinking- and pumping-machinery to develop the mine below this level. For this purpose the owner, Mr. Abbott, of Auckland, is endeavouring to raise the necessary capital in England. Radical Extended. —This mine is being wholly worked by tributors. These are now engaged stoping. Their returns hitherto have not given them wages. Me and Howe Claim. —This is a claim of thirty acres, which was recently taken up under the new Mining Act of 1886 by Messrs. Grenville and party. The reef worked on (which is about lft. wide) is quite different from any other reefs found in this locality, and apparently contains sulphides of silver in quantity. A trial lot of 4 tons is now being taken out, and is to be shipped to Auckland for trial at Mr. George Fraser's new testing-plant there. The crushings for this district at the Owharoa Battery are 57 tons, for a yield of 550z. lOdwt. retorted gold. Waitekauri. —The Waitekauri Mine is under the charge of Mr. William Hollis. It is being wholly worked by tributors, who have done a large amount of work, principally stoping above No. 2 Level. This block being now nearly exhausted, a start has been made putting in a surface-level, ■which will give about 100 ft. of backs. This level is now in 60ft., there being another 100 ft. to drive before the reef will be intersected. This reef is a branch of the main lode, and is about 3ft. wide. It was formerly worked at a very much lower level, and gave fair returns. Star of Hope Claim. —Messrs. Waite and party, the owners of this claim, having obtained some very good returns from a small leader (2in. to3in. wide) that they had found near the surface, are now driving to cut it at a lower level. In the south end of this district the Mangakara claim has an area of seven acres. In the beginning of the year the works to connect the claim with the battery were completed. These were a large hopper for storage, a horse-tramway about 12 chains long, a winze 95ft. deep, and a shoot 100 ft. long, also a self-acting incline-tramway 8 chains in length. The battery, which was formerly known as Wick's Battery, has been removed from about a mile lower down the Mangakara Creek. It consists of nine head of stampers and three berdans. The height of fall of water from race is 157 ft. The machinery is driven by a Pelton water-wheel sft. in diameter. In the claim a low level, which will give 140 ft. of backs, has been driven 150 ft. from the entrance, where it intersected the reef. From this tha quartz is now being stoped, and there is about 200 tons ready for crushing as soon as the present dry weather is over. The mine is wholly worked on tribute. Welcome. —A crushing of 16 tons from the old No. 4 Eeef having yielded 28oz. gold, the owners of this claim (Messrs. Birney and Goodwin) were eucouraged to put in a lower level, which will give 60ft. of backs, and are now employed getting out a crushing from the reef, which is here about 3ft. wide. Young Neiu Zealand. —This mine is wholly worked on tribute. The present party (Tregoweth and party) have only recently started to work, and have not had time yet to take out a crushing ; but the previous party of tributors were not successful. The quartz crushed at both batteries in this district was 2,059 tons 2801b., for a return of 8770z. sdwt. retorted gold. I have, &c, James M. McLaren, Inspector of Mines. The Under-Secrctary, Mines Department, Wellington.

MAELBOKOUGH GOLDFIELDS. No. 3. Mr. Warden Allen to the Under-Secretary of Mines. Sir,— Blenheim, March, 1887. I have the honour to forward you the usual annual returns for the year ending the 31st March, 1887. My report of last year will answer very well for this year: there is nothing of any importance to bring under your notice. The ranges remain unprospected, and a large tract of country is lying unused, because the miners here cannot afford to undertake the work. In the Wakamarina Mr. Turner has done some good work at his river-claim, result unknown. Mr. Oliver is driving a tunnel to try and reach the supposed old river-bed. Some tons of quartz have been brought to grass at the Old Golden Bar claim, and a company has been formed to crush this stone in order to arrive at a decision as to whether it will answer their purpose to go on working the claim. Some twenty miles or more of quartz-ranges are waiting to be prospected, at present providing a bare subsistence for some few hundreds of sheep; and about a hundred miners are grubbing up a bare living at the foot of these ranges, waiting for something to turn up. I believe yet that this exemplary patience will meet its reward. I have, &c, The Under-Secretary of Mines, Wellington. J. Allen, Warden.

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