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time. The first rush took place over twenty years ago, and, as a matter of course, the easiest payable alluvial deposits were then worked out. There are still terraces of alluvial drifts containing a fair percentage of gold, which will, in my opinion, be worked at no distant date, but up to the present the great difficulty has been want of sufficient capital to bring in water to work these terraces. This is well worth trying, and should it prove successful it will give a considerable amount of employment to miners. A great deal of gold in the creeks is found adhering to quartz, which leads miners to believe that rich lodes will be found on this company's property. A lode was discovered some sixteen years ago on the eastern side of Slaty Creek, which was worked for a time, giving payable returns; but when the payable portions of the lode became exhausted it was stopped, like many others in New Zealand, for the want of capital to further develop it. About the same time there was also a reef worked, and a five-stamp mill erected, on Friday Creek; but this only worked for a short time, as the quartz crushed from here only yielded at the rate of 4 dwt. to the ton, and the reef, being small, was not of a payable character. This company has pegged off three blocks of 150 acres in different localities, which they have reserved for gold-mining, but at present they are only opening up the Golden Eidge Mine. The work done during the year has been confined to driving two adit-levels from the side of the hill, and the sinking of two winzes on the reef from Nos. Ito 2 levels. The reef has varied from 8 ft. to 2in. in width, but it was where the reef was thickest that the best tests were obtained. Some of the quartz treated yielded at the rate of 131 oz. of gold to the ton. This, of course, is not what may be considered a fair average, but it was sufficient encouragement for the company to erect a battery, the works in connection with which are in course of construction. The battery is to consist of twenty stamps, 8J- cwt. each, four berdans, and one concentrating-pan. This is to be driven by a Pelton wheel. The tank where the water is to be lifted in pipes will be 150 ft. above the battery, which will give a pressure of 1831b. to the square inch, so that a small quantity of water will drive the entire plant. The quartz will be conveyed to the battery by an aerial tramway a distance of 60 chains, and this will be connected by a ground tramway from the mine to the upper terminus, the distance being- 350 ft. The company is energetically prospecting their property, and making tracks through the country, at considerable expense, and without Government aid, thereby giving a great amount of employment, over sixty men having been employed constantly during the year. In doing this they are worthy of praise, and it is earnestly hoped that the mines will turn out equal to their most sanguine expectations. There are also three other English companies working mines and carrying out prospecting operations on the company's estate, and meeting with a fair amount of success. The Australasian Gold Trust and Pioneer Company, of London, have also a property of 100 acres at West Wanganui, where prospecting operations are being carried on. An adit has been put in 200 ft., a second 195 ft., and a winze 125 ft. The reef, which runs north and south, is from Ift. to 4 ft. in thickness, the foot-wall being slate and the hanging-walls sandstone. Twenty men are employed. Lyell District. United Italy (Area, 30 acres). —This mine is the property of the United Italy Gold-mining Company (Limited), and has been worked by a party of six tributers. The quartz is chiefly obtained from leaders ; 100 tons yielded 420 oz. of gold. Lyell Greek Extended Mine (Area, 57 acres 3 roods 32 perches).—This mine is worked from the Lyell Creek low-level tunnel. The reef was struck after 3,000 ft. of driving, and two winzes were sunk, one to a depth of 150 ft., and a level opened at 125 ft. Work was, however, suspended in this part of the mine, and a new shaft commenced between the north and south blocks, which is now sunk to a depth of 50 ft. It is the intention of the company to erect a hauling plant to be driven by compressed air. Six wages-men and four tributers were employed. United Alpine Mine (Area, 96 acres 2 roods 28 perches).—This mine is worked from a low-level tunnel 3,000 ft. in length, from which an incline shaft was sunk 520 ft., and a low-level, No. 9, and an intermediate, No. 8, opened from the incline-shaft. 2,215 tons of quartz yielded 713 oz. of gold, and for tributers 65 tons yielded 70 oz. Thirty wages-men and six tributers are employed. Mr. Shallcrass, the manager of the company, gives the following account of the work done, &c. : — "During the year the main incline-shaft has been extended a distance of 200 ft., and the No. 9 level driven. A new air-compressor has been placed in position, and a line of 3 in. wroughtiron pipes, about 6,000 ft., has been laid from the battery to the air-winch at top of incline-shaft. An aerial tramway has been erected from No. 4to No. 7 level. For haulage, a winch driven by compressed-air, 4-horse power ; for pumping, Tangye's pump, capacity 15 gallons per minute, driven by compressed air. The battery consists of twenty heads of stamps and four berdans, the weight of stampers being 800 lb. There are also two air-compressors, 10-horse power each, for hauling and pumping, all of which are driven by water-power." It would prove of benefit to both the "United Alpine and the Lyell Creek Extended Companies if they could arrange to make a connection between their several levels. About 200 ft. of sinking is required from the No. 9 level of the Alpine to the low-level tunnel. Both mines would then be in a better position. The upper mine would be drained, and the lower mine as well as the upper be thoroughly ventilated. All quartz could be sent out by the low tunnel, thus saving hoisting on the part of the Alpine Company. Tyrconnel Mine. —This mine has again been profitably worked, the quartz being chiefly obtained from leaders. A parcel of 44-J- tons yielded 254 oz. of gold. Golden Grown Claim (Area, 50 acres). —This claim has been prospected by the owner, Mr. J. Grieve, and a gold-bearing reef, 5 ft. to 12 ft., and a leader of 12 in., also gold-bearing, have been discovered. Maruia. About twelve months ago gold was found in a quartz reef outcropping on the surface here and there for about a mile in length. It was first discovered in Wheel Creek, about three-quarters of a

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