a—2

8

SCHEELITE. Messrs. Donaldson, of Macrae's (Otago), continue to prepare this mineral for market. It is found associated with gold-bearing quartz, and separated at the battery by concentrating-tables. Scheelite is also found at the Top Valley, Marlborough, in association with quartz-reefs. HiEMATITE PAINT. This is manufactured at Thames and Parapara from ores found in these localities. There are no fresh developments to note. GALENA. An effort is being made to work the deposits near Te Aroha. The ore contains gold, silver, and copper, in addition to lead. A trial shipment has been sent to Australia for treatment at a smelting-works. IRON. Although the manufacture of iron has not yet been commenced in this colony, it is satisfactory to note that arrangements have been made which are likely to lead to the development of our iron-ore deposits at Parapara, and also the ironsands of Taranaki, it being intended to work both on a commercial scale. The manufacture of iron and steel from these ores will doubtless become an important industry. ROCK PHOSPHATE. The discovery of this material at Clarendon (Otago), which was referred to in my Statement of last year, has been followed up in a practical manner, and the working of the rock, together with its chemical treatment, has become a recognised industry. Excellent results from the use of these phosphates have been reported, and as phosphate fertilisers are in demand, and large quantities imported into the colony, the working of these deposits will naturally become a matter of practical interest to the farming community. PETROLEUM. Boring is in progress at Kotuku, near Greymouth, but so far nothing of commercial importance has been met with. OTHER MINERALS. The attempt to mine antimony-ore at Alexandra (Otago) has been abandoned in the meantime, owing to the expense of getting the ore to a port. Prospecting operations have been continued in connection with the cinnabar lode at Waitahuna Heights, but no ore has yet been sent away. Copper-ore is not being worked at present, but inquires are being made as to the nature and extent of the deposits. ROADS AND TRACKS. The expenditure for the year on roads and tracks amounted to £51,690 ss. 4d., this being an increase of £4,117 Is. Id. as compared with that of the preceding twelve months. The subsidies granted to local bodies amounted to £1,493 12s. 2d., and the sum of £50,196 13s. 2d. has been expended in direct grants for roads and tracks in mining districts. The total expenditure by the Department under this heading during the past twenty-one years amounts to £420,159 lis. and £151,455 10s. lid. respectively. GEOLOGICAL. The work of the Government Geologist has included the collection of data which it is intended to incorporate in a projected work on " The Geology of New Zealand," and also of preparing for the press descriptions and illustrations of rock-specimens from the Hauraki Goldfields, which have been classified and reported on by Professor Sollas (Oxford), together with an account of the geology of the district from which the specimens referred to were obtained. As the result of these labours a work on "The Petrology of the Hauraki Goldfields" will be published, which should prove valuable to students and the mining community.