C—3a.

2

Taeaeu Cbeek. This portion of the goldfield has been very dull since the suspension of operations by the Sylvia Company. The whole of their property was sold under writ of sale. Efforts were made by the purchasers to procure capital to open a lower level, and to resume operations generally in the mine. Having failed in their endeavours in this direction, they have practically abandoned the special claim, and their splendid battery and plant have been resold, and are now being removed piecemeal. The Norfolk Company have opened up their mine from the old Missouri tunnel, and the prospects met with are most encouraging. The City of Dunedin Mine has also been worked, but the quartz, owing to the difficulty of successfully treating it, has not proved payable. McDermott and party, with commendable energy, have erected a small battery at Upper Tararu, and expect to get payable quartz in the Seddon Licensed Holding. Shellback. Very little mining is being carried on here, and this portion of the field, with the exception of the Nordenfeldt, may be said, for the present, to be abandoned. Thames-Kueanui. The Hansen's, Comer's, and Hazelbank Mines are profitably worked. The latter company paid £2,100 in dividends during the year. The Moanataiari Mine still produces a large amount of gold, enabling the manager to conduct prospecting operations in various parts of this extensive mine. The New Alburnia Company has been very successful during the past year, and has paid £7,500 to the shareholders in dividends. The New Whau and Alfred Mines have also yielded well. In the Calliope and Orlando Mines a large amount of prospecting work has been done. Waiotahi. The Waiotahi Mine still continues to employ a large staff of men, and to yield profitable returns. £750 has been paid in dividends. The Cambria Mine has also yielded fairly well during the year. The Fame and Fortune Special Claim is again being vigorously worked. Mr. E. K. Cooper, the former owner, has disposed of the mine to an English company, and further prospecting works are now being carried on. Work is being carried on in the New Fearnought and Acme Mines, at the head of the Waiotahi, but not very profitably. Geahamstown. The Victoria Mine, which includes the New Prince Imperial, has been steadily worked, but with moderate results. The Saxon Mine, which is now owned by the May Queen Company, has been worked chiefly on tribute with satisfactory returns. Waiokaeaka. The May Queen Mine, which includes the Saxon and Trenton, has been vigorously worked. A new low-level drive is being put in from the Saxon No. 6 level towards the May Queen shaft. This will give 100 ft. of "backs" in the May Queen ground, and is the most important work at present going on at a low level. The St. Hippo (formerly known as Crawford's Special) has been continuously worked with fair results. Kabaka. Handsome returns have been obtained from the Claremont Claim, in the Karaka Creek. The Lone Hand, Karaka, and Ophir Mines have yielded a fair amount of gold. Una Hill and Te Papa. The Pride of Karaka, Magnolia, Occidental, Homeward Bound, and North Star have been steadily worked. The Consols Mine, at Hape Creek, has been given up by the owners, and the machinery sold. Otunui. Prospecting is being carried on here by Ludwig and party, who have also bought and repaired the old Eureka Company's battery and water-race. Matatoke. A new discovery was made at Matatoke by John Teddy, but the yield from the quartz obtained from the reef was very moderate : 11 tons gave 2oz. Bdwt. of gold. PUEIEI. A party of prospectors, who bought the battery erected some five years ago by Bedford and party, has been working since January last, but otherwise there has not been any work to speak of done in the district. Taikua. The Bonnie Scotland, Gentle Shepherd, and McLever's claim have been at work during the past twelve months. A fresh discovery has been made at Tairua Biver. Davys and party crushed 11 tons of ore at the Thames for a yield of 470z. of gold. At Ohui, which is situated about five miles south of Tairua Heads, a gold-bearing reef has been discovered. Eight tons of quartz from it were crushed at the Thames, and produced 17oz. lOdwt. of gold. On account of the promising nature of these finds, a number of licensed holdings have been applied for, both for land at Tairua Biver and at Ohui. At the former place, however, the claims are situated on Crown lands, over which the Kauri Timber Company hold a lease, giving them the exclusive right to the surface