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of comparatively recent date, and has been formed by movements along lines of fault that have influenced the western ranges. In these movements even surface-gravels have been involved, and some of the richest auriferous deposits appear to have been derived as a re-wash from the earlier-formed alluvia which have been thus preserved. This is especially the case at Parapara, near Collingwood, where there is evidence of an immense body of auriferous gravel, about 300 ft. thick, having been nipped in a fault that runs for many miles in a straight line. The gravel deposit, which extends to an unascertained depth, appears to have been the source of the gold obtained in the district. Most of the gold has been gathered from watercourses that intersect the above-mentioned lead. Extensive trials have been made which show that this gravel is on the average much richer than many similar deposits that are profitably worked by hydraulic mining in California and many places in this colony. By a recent examination of the Bluespur the Director has satisfied himself that the source of the gold is also in this case from an ancient gravel that has been involved and preserved in a fault-line, and no doubt many similar instances will be discovered bearing out this new interpretation of the origin of our alluvial gold. The other reports relate to antimony and manganese lodes which have lately been discovered in Otago, to the geological structure of some parts of Canterbury, and to various special examinations of gold- and coal-mines. Conclusion. In concluding my remarks on the mining industry I hope, Sir, I have not wearied honourable members with unnecessary details. Its importance demands it to be recognised as the leading industry in the colony, and one of the greatest factors conducing to our prosperity. Our rich agricultural lands have been year after year passing into private hands, until we have comparatively little left but the hilly and mountainous portions; and yet it is in these lands where the rich mineral lodes arc generally found, containing treasures sealed up in the bow r els of the earth awaiting discovery by man; treasures capable of producing a means of sustenance to a large; population. The days have passed away when the individual gold-digger can sally forth in the morning and be certain of earning his wage with no other implements than a pick, shovel, and a tin dish. The shallow rich auriferous drifts are gradually getting worked out, and it is only by the use of modern appliances that we may in the future hope to make mining a profitable avocation to follow. More attention is yearly being directed to the development of the mineral lodes and improvements in mechanical appliances for the saving of labour, and also in reduction plants, whereby the complex ores met with can be economically treated ; so that mining in the past has very little in common with its future progress. Mining ventures have been looked on by many with great distrust, and no doubt justly so, but with modern appliances, and conducted on commercial principles, we may hope to see these ventures more sought after as being legitimate channels for the investment of capital. There is no country in the world offers better facilities for carrying on mining than New Zealand, and few, if any, can compare with its richness in mineral wealth in proportion to its area. Its large and abundant water-supplies are the means whereby the auriferous drifts can be profitably worked, whilst its rapid-flowing rivers, creeks, and streams can readily be utilised as a cheap motive-power to drive machinery in connection with mining. It has been practically demonstrated at Skippers and the Sandhills in Otago that wherever water can be obtained as a motive-power to generate electricity the electro-motive force can be conveyed long distances by small wires placed on telegraph-poles to the place where machinery is required to be erected. Taking all these advantages into consideration, a colony abounding in mineral wealth, requiring only to be developed, and having a climate which cannot be surpassed in any part of the world, we may confidently look forward with the assurance that as the mining industry advances it will maintain its former position as the most prominent factor in adding to the prosperity and future greatness of this colony.