a—3

72

It will be seen from the above returns that 27,835 , tons of quartz was crushed, yielding 13,7320z. of gold, as compared with 37,207 tons of quartz crushed for the previous year for a yield of 18,6830z. of gold, thus showing a decrease in the quantity of stone crushed of 9,369 tons, and of 4,9510z. of gold yielded. The amount of dividends declared last year was £9,812, as compared with £16,500 for the previous year, showing a decrease of £6,688. In addition to the gold procured from quartz, 7750z. were obtained by three dredges—namely, the Alexandra, Matakitaki, and Cocksparrow ; also, 5,3090z. from other sources. Taking the returns as compiled by Mr. Hindmarsh, the total quantity of quartz crushed on the Eeefton field since it was first opened is 643,930 tons, which yielded 587,5010z. of gold, representing a value of £2,301,296, whilst the amount paid in dividends was £553,163. Taking the year ending 31st March last, the returns furnished to the Warden show that 26,603 tons have been crushed, which yielded 13,426J0z. of gold, representing a value of £53,509 ss. Id., whilst the amount of alluvial gold procured was 4,5500z., representing a value of £17,742. The amount of dividends paid was £11,012 10s., and the calls made during the year £10,153 6s. Bd. It may be as well to state that there is a considerable discrepancy between the figures given in the Warden's report and the returns made by managers from the several crushing-batteries, both with regard to the quantity of stone crushed and the amount of gold produced. According to subsection (10), section 307, of " The Mining Act, 1891," every machine-owner is required to furnish the Inspector of Mines with a true and correct return in the form prescribed in the Seventh Schedule of that Act or be held subject to a penalty not exceeding £5 for each omission. It has been represented by the Inspector that he has experienced considerable difficulty in getting these returns from many of those who are responsible for the furnishing of the same; consequently, in sending in his report of the progress of mining in any district, if the returns mentioned above have not been furnished, the district is unavoidably represented as being in a worse condition than is actually the case ; and, if the statements regarding the district show that the returns have been less than they have in reality been, those people interested in mining have only themselves to blame for not supplying the correct returns required by law. There was an expression of dissatisfaction last year amongst the people of Eeefton regarding some of my remarks referring to the district, especially with respect to the Welcome Mine, of which it was stated that the winze was sunk on the lode in the lower levels of the workings and quartz taken out therefrom which yielded 3Joz. of gold to the ton. It may be here stated, for the information of the people of Eeefton, that the above particulars were supplied to myself and Mr. E. A. F. Murray, Government Geologist, of Victoria, by the manager of the mine at the time we made an examination of the workings, and, by referring to the published remarks of Mr. Murray, the following statements will be found : — " In the Welcome Mine an inclined adit of I,Booft. and a level of 800 ft. reaches the No. 9 level of the old workings, where there is visible a strong and well-defined track, about 2ft. thick, going downwards, and composed of black mullocky material and quartz, from which a crushing of 60 or 70 tons is said to have yielded 3oz. of gold per ton." The report furnished by the manager of the Welcome Mine was accepted by Mr. Murray and myself in good faith, and if the figures supplied were false, the blame was certainly on the part of those who supplied them. At that time the inspection was made specially with the view of making a recommendation in regard to the prospects in connection with the future development of the property to enable the Government to determine whether the company should receive an advance of money, under the Mining Act Amendment Act No. 2 of 1893, for which it made application. As it was asserted that the statements contained in my last report of these returns was untrue, it is to be hoped that the above, explanation will satisfy the minds of those who took exception to the same. According to the return supplied by the Warden, the total quantity of quartz crushed since this district was first opened up to the end of March last was 640,933 tons, which yielded 459,4230z. of gold, representing a value of £1,794,175, out of which dividends to the extent of £562,593 were paid. The total yield of alluvial gold is estimated at 122,1210z., representing a value of £450,740 ; making the total gold production of the district to be 581,5440z., representing a value of £2,244,915. The following statement will show the comparative returns from the mines in this district for the last thirteen years, ending the 31st March in each year:—

Year. Calls made. Dividends declared. Quartz crushed. Yield of Gold. Value of Gold. Yield per Ton. 1882-83 ... 1883-84 ... 1884-85 ... 1885-86 ... 1886-87 ... 1887-88 ... 1888-89 ... 1889-90 ... 1890-91 ... 1891-92 ... 1892-93 ... 1893-94 ... 1894-95 .. £ 61,345 49,456 29,333 24,565 21,596 30,432 38,919 27,531 20,404 25,956 18,800 14,350 10,153 £ 32,600 16,500 34,100 14,500 33,450 17,550 16,688 18,250 27,325 30,743 16,900 18,832 11,012 Tons. 18,928 23,433 34,349 27,198 23,930 24,403 28,564 32,394 39,643 35,562 37,693 34,518 26,603 Oz. 19,194 16,547 23,997 14,591 21,143 16,775 18,663 17,780 23,347 23,390 20,171 18,413 13,426 J £ s. a. 74,856 12 0 64,533 6 0 93,588 6 0 56,904 18 0 83,171 15 5 66,030 11 5 72,720 18 0 69,676 12 1 91,998 8 10 93,885 5 1 80,894 5 1 73,752 14 11 53,509 5 1 Oz. dwt. gr. 10 7 0 14 3 0 13 23 0 10 18 0 17 14 0 13 18 0 13 4 0 10 16 0 10 19 0 13 3 0 10 16 0 10 13 0 10 2