o.—3a.

12

No. 2 lode, which varied from 3ft. to 10ft. in thickness, and carried a high percentage of gold and silver throughout for the whole of that distance. Here this lode has now been opened out for a length of 450 ft. along its line, and about 160 fathoms of stoping has been done upon it. The height of the block now intact and available for stoping operations is 149 ft. for the first 250 ft. of driving along the lode. This is between the No. 2 and No. 3 levels, and for the last 200 ft. of driving the backs increased to 340 ft. before the No. 1 level is reached. The quantity of ore treated for the year was limited, owing to the fact that treatment by amalgamation was superseded by the adoption of the cyanide process, and the transition necessitated a stoppage of ore-reduction for a period of eight months. Prior to this innovation the ore was dealt with by amalgamation, and subsequent thereto by the cyanide process, with the following results : 300 tons, by cyanide, yielded 1,9720z. of bullion, value £886 9s. 6d., 70 per cent, extracted ; 246 tons, by amalgamation, yielded 7960z. of bullion, value £453 17s. 2d., 37 per cent, extracted. In the month of November last a cross-cut was started from the western side of the No. 3 level, with a view to intersecting the No. 3 lode, upon which it will afford 150 ft. of backs. This cross-cut is now in a distance of 275 ft., and the lode should be to hand in another 25ft. of driving. So far as present developments have gone this is the richest lode in the mine, and the result attendant upon the work in hand should be highly satisfactory to shareholders. A contract was let in December last for driving a level in the Ivanhoe section of this company's property. Since then a distance of 120 ft. has been driven, and a corresponding distance remains to be accomplished in order to bring the level up to the known shoots of rich ore that were worked upon so successfully some years since, and on which it will afford 200 ft. of backs. At present the company's new mill is running full time in the reduction of ore from the No. 3 lode, and the results are so satisfactory that the erection of an additional ten head of stampers, together with an increase of the capacity of the cyanide plant, is likely to be carried out very shortly. A self-acting wire tram-line, I,oooft. in length, has been erected for the conveyance of firewood from the bush to the kiln, and the average number of men employed during the year was forty-five—viz., contractors, sixteen men ; and twenty-nine wages-men." Woodstock United Mine, Bth April, 1895. Grown Mine. —Work in this mine has been steadily carried on during the year. The air-com-presser (a Hirnante, 40-h.p.) has been put in position, and eight rock-drills are used in the working of the mine. The mine is well opened up ; there are six levels on the south side and three levels on the north side of the river. No. 1 south is 550 ft.; No. 2, 470 ft.; No. 3, 600 ft.; No. 4, 800 ft.; No. 5, 120 ft.; and No. 6, adit-level, 1,120 ft in length. No. 1 north is 220 ft.; No. 2, 120 ft.; and No. 6, 160 ft. in length. A winze has also been sunk 70ft. below the adit on the south side. The total amount of driving on reefs in the different levels during the year was 793 ft. ; crosscut driving, 164 ft; 2,012 fathoms of reef were stoped out; and 4,084 tons of quartz crushed and treated by the cyanide process yielded 9,9260z. 16dwt. of bullion, valued at £15,456 16s. ; and 107 wages-men were employed. The appearance of the mine warrants the expectation of a larger yield for next year. No. 6, or adit-level, was driven through disturbed country, the reef being much broken; beyond these breaks solid country is found, and the reef a compact body of stone from Bft. to 10ft. in thickness, with gold showing freely in the quartz, and there are upwards of I,oooft. of backs over the end of the level. The winze sunk below the adit has also produced rich quartz. It is intended to sink a main shaft to the westward to work below water-level. This, however, will take some time to accomplish, and no extensive work can be done below the adit until the ground is drained by the shaft. Talisman Mine. —This mine, which last year was under offer to an English syndicate, was not disposed of, and the shareholders registered under the Companies Act, and formed a company in Auckland. Arrangements were made to have a trial crushing at the Crown Mine battery, and 280 tons were conveyed by sledge and trolly to the tramway leading to the mill. The ore was crushed dry, and treated by the cyanide process for a yield of 2,4210z. of bullion, of the value of £2,348 12s. The return being satisfactory, a commencement was at once made to drive a new level, and to erect a ten-stamp mill on a site adjoining the Woodstock Company's mill, on the Waitawheta Stream. The machinery will be driven by water-power, and a tramway is to be constructed from the new low level to convey quartz to the mill. Fifteen wages-men are employed. Earl of Glasgow Mine. —This mine was steadily worked. In the month of June last year they started to erect their battery of five stamps and a berdan. It is situated on a branch of the Waitawheta Btream, and driven by water-power. The battery is connected with the mine by two ground tramways, 13 chains, and a self-acting grade 11 chains in length. This work was completed about the end of October, when crushing operations were started. In the mine 240 ft. of cross-cut and 132 ft. were driven, and 80 fathoms of reef stoped out; 194 tons of quartz yielded 2970z. 12dwt. of gold ; 8 tons of ore sold to Mr. Wick were valued at £20 per ton. Eight owners and eleven wages-men were employed. The Imperial, United, Bonanza, Golden Treasure, and Marmion have been worked, and the prospects are encouraging. A number of new licenses—viz., the Royal Mail, Wealth of Nations, Tenakoe, Eed Gauntlet, Golden Fleece, Waverly, and Impulse have been lately taken up, and prospecting-work commenced. Owhaeoa District. The Smile of Fortune, Gadvian, and Burton licensed holdings are now owned by the Owharoa Gold-mining Company (Limited). The Smile of Fortune has been worked by tributers. 589 tons were crushed for 1320z. 13dwt. of gold. Five tributers were employed. In the Oadman section work was commenced on the south side of the river, and cuttings put in about 6ft. deeper than the old workings. The reef was a mass of sandstone, mixed with small veins of quartz. A winze was sunk about 30ft., but had to be dropped on account of too much water to contend with. It was then decided to sink a shaft to drain the ground; but after a commencement had been made, a