165

C.— 3

places highly fossiliferous. The true character of these fossils could not be determined on account of the close adherence of the matrix to the shell tests. In the middle part of the Waimana Valley brecciated calcareous tufas have at places a considerable development; these rocks are often veined with calcspar, and, although never calcareous enough to be regarded as limestone, are yet at places highly calcareous, hence the soil where formed mainly of these rocks is excellent. (c.) Hornstones and Flinty Jasperoid Bocks. —These, though they have at places a considerable development, in reality form but an unimportant division of the series to which they belong. The strike being parallel to the direction of the Whakatane and Waimana; this rock appears in the banks of these rivers at many places, yet there does not appear to be more than three narrow belts of these rocks in the district. One appears to occur on the western slopes of the range east of Euatoki Settlement. This stratum or series of strata strikes more to the south-west than is the direction of the Whakatane or the Waimana Eiver, and, as a consequence, it crosses not only the Whakatane about the middle of the gorge, but the gorge also of the Waimana at its upper end. The second line runs in near contact with the calcareous ash-bed of the middle part of the Waimana Valley, and, judging from the detritus in the upper course of the Waikari, near Maungapohatu, there is yet a third outcrop more to the eastward. These rocks are often of a highly siliceous character, and may be light or dark grey, though often of a highly ferruginous colour, and often, in the same sample, white and brick-red tints are mixed together. There is little doubt that it is owing to the outcrop of these rocks being mistaken for true reefs that so many and persistent reports have been circulated respecting discoveries of the existence of auriferous quartz in the Urewera country, nor is this to be wondered at, seeing that in the Eimutaka and Tararua Ranges the same rocks have all along, since traces of gold were first discovered, been regarded as quartz reefs. It so happens that stray traces of gold are found in these rocks, which have tended to confirm prospectors in the belief that they had to do with bodies of true vein-quartz. Although these rocks occur widely throughout both Islands of New Zealand, and although gold has been discovered in them at many places, they have always proved too poor to pay for working, and in the Urewera country the prospects are not better than elsewhere.

COAL-MINING. NORTH ISLAND. The coal-mining industry is gradually increasing year by year, and new mines are always being opened, but so far the quantity of coal that can be disposed of depends chiefly on what is used for house consumption, local industries, and the coasting steamers. There is an extensive area of coalfields in the colony, but so far the class on which we have to depend for supplying foreign markets is confined to the West Coast mines, which contain the only bituminous coal in the colony. At Kawakawa, Hikurangi, Ngunguru, there are semi-bituminous coals which the steamers use, but the coal is not equal to that from the West Coast. Of the different classes of coal found in the North Island that from Ngunguru may be said to be'the best. Kawakawa. The mine at this place now belongs to a company of local men, who have improved the work-ing-roads considerably, and were, at the time of my visit, endeavouring to maintain a fair output, considering the area of the field and the state of the mine. The mine was opened out over twenty years ago, and was lately given up as valueless, as it was considered that there were only some small pillars of coal left. The Bay of Islands Coal Company, before- giving up the mine, let this portion to Mathews and party for what they could make out of it. After they had been working for some time they found that the bords had not been carried on the bottom of the coal, and that in some places about sft. of coal was left underfoot when the Bay of Islands Company ceased work. The ground was applied for by two different parties—namely, Mathews and party, who had been previously working it for the company, and another party of local gentlemen. As no satisfactory arrangement could be come to between these parties to work the mine, the local company purchased Mathews and party's interest and their plant, and have been working it since August last, and up to the end of December last year the output was given me as 1,969 tons. With the mine standing idle for some time the most of the trade in shipping had gone, and the new company had to find a market for the coal, and were, at the time of my visit, landing the coal in Auckland at 12s. 9d. per ton. This allows 6s. 3d. for hewing the coal and putting it in the railway trucks, 2s. railage to Opua Wharf, 6d. royalty, and 4s. freight to Auckland. With regard to the output from this mine it will never be large, but it will be the means of employing a few of the miners, who were residing here with their families, who did not wish to leave the place if they could earn small wages for a few years. At the time of my visit in February last, there were eleven men in the mine, and three men and two youths in connection with the haulage-roads and surface. Hikurangi Mine.— -This property is owned by the Hikurangi Coal Company, and contains a considerable area of workable coal, at the same time there are numerous faults met with; but from the recent bores put down by Mr. Moody, the manager, on the eastward side of the railway, the coal does not appear to be greatly disturbed. The whole of the work in connection with the opening-out of this mine was done in a very short time, and, judging by the amount of paid-up capital and the liabilities of the company, as taken from the balance-sheet for the year ending the 31st December last, none of the money has been wasted. The total capital invested, including the liabilities of the company, in which there is one item for the purchase of land amounting to £1,842 4s. 6d., is only £11,868 Is, Id,, which is a very small sum to expend in opening out a