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QUARTZ-MINING. I have to report that a considerable amount of prospecting and development work has been accomplished during the year in various parts of the colony. On the other hand, I have to report the stoppage of several mines. . .. ~ , , In the North Island operations of an important character, having for their object the development of the several mines and properties, have been carried out vigorously in several instances, and at my visit to the Hauraki Goldfields in August and September last, I noted with much pleasure the manner in which some of the large mines were being opened up and the provisions which were bein» made for the treatment of material. As the several mines are fully described in the report of Mr. Coutts, Inspector of Mines, it will be sufficient for me to mention the principal features at some of the mines which I visited. . At Waihi where the most extensive quartz-mming operations in the colony are carried on, considerable progress has been made during the year. The Waihi Gold-mining Company have been encased in deepening their Nos. 1, 2, and 3 shafts, and have sunk two other shafts Nos. 4 and 5 "The reefs in this company's property are numerous, and mostly of large size. One, the Martha lode, sometimes attains a width of 60 ft. ; others, the Empire and Welcome vary somewhat up to 30 ft in width. The latter reef branches, and thus forms the Victoria lode, lne Albert Prince and Princess reefs are also of good size, and shortly after I visited the mine another reef of considerable width was cut. The general trend of the reefs is north-east and south-west, with an underlie to the south-east as a rule, but subject to local variation, some of the reefs dipping in an opposite direction as far as proved. In regard to this an opinion has been expressed to the effect that what appear as separate reefs may really be splits or divisions, with "horses of mullock intervening At No. 5 level the continuity of the reef-line has been proved for nearly 4,000 ft. To the west a slide cuts the reefs out, and another slide is seen near the eastern end; but as this runs to some extent in the direction of the strike of the reef system, crossing at an obtuse angle, it appears probable that the reefs will carry for a considerable distance before being cut out. A large amount of stone is opened up in the mine, and the battery-power now consists of 290 stamps-viz., 90 at Waihi and 200 at the Victoria battery, Waikmo, the latter being connected with the mines by a narrow-gauge railway. , , -, ■, j The Union-Waihi and the Waihi-Silverton Mines are now amalgamated, and are under one management. At the former mine there are three distinct lines of reef, one of which is opened up at different levels, and varies in width up to 8 ft., its average being probably a little over 4ft It is also variable in quality. At my visit the shaft was being deepened, and a very promising-looking reef cut The strike of the reef system is about north-east by east and south-west by west, that at the Waihi-Silverton Mine being practically north and south, and the reefs almost vertical. From observation it looks as though the reefs of the two mines may junction. Sinking was also in progress at the latter mine, and the joint properties being developed so as to produce a considerable output of ore, for the treatment of which the Waihi-Silverton battery has been remodelled and arrai At e the Grand 0 Junction Mine, Waihi, considerable difficulties have had to be encountered owing to water. This mine was not a producer of quartz during the year . Other properties in the district have been or are being exploited. None of these can be put on the list of productive mines for the year. The Waitekauri Gold-mining Company's mines are at Golden Cross, about five miles above Waitekauri Township, the principal battery being at the latter place Two shafts have been sunk at Golden Cross, No. 1 shaft being the principal opening. The main lode or reef sometimes attains a width of 50 ft , its strike being north-north-east and south-south-west. The shafts are on opposite sides of the reef. Another reef, the Southern Cross, is thought to be a loop or branch off the main lode It varies in width, and shows a good assay value. With a view to the development o the property on a good scale, a long low-level adit-tunnel is being constructed, which will allow of stone bein* produced and drainage effected down to the present working-level without winding and pumpin* machinery, thus rendering the latter available for the exploitation of deeper levels. _ When this tunnel is connected with No. 1 shaft it is, I understand, to be continued west of the main lode, to thoroughly test and drain the entire reef system down to that level. Other development-work is also in progress.

Year ended 31st March, 1901. Year ended 31st Marob, 1900. Increase i 1901. for leorease 1 1901. for Name of District. Oz. Value. Oz. Value. Oz. Oz. Auckland klarl borough kelson ... iVest Coast 166,049 247 5,126 85,779 135,753 22 £ 604,018 970 19,288 343,728 ! 548,444 84 : 168,836 344 2,589 94,081 126,791 22 £ 625,207 1,382 10,251 376,076 513,341 87 2,'537 2,787 97 8,302 8,962 )tago Canterbury Totals 392,976 : 1,516,482 I 392,663 1,526,344 313