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APPENDIX. (a.) REPORTS OF INSPECTORS OF MINES. Mr. James Coutts, Inspector of Mines, Thames, to the Under-Secretary, Mines Department, Wellington. Sir, — Inspector of Mines' Office, Thames, 6th April, 1907. I have the honour to furnish herewith the returns and report on the gold-mining industry in the Hauraki District for the year ended the 31st December, 1906. Before commenting on any particular mines, it may be interesting as well as instructive to apportion the values of gold obtained to each respective county and borough, so as to afford an opportunity of contrasting each total with the previous year's, thereby enabling us to see where the most progressive operations have been carried on during the year. 1900. 1905. £ c. d. £ s. (1. Great Barrier Island .. .. .. 4,812 5 11 1,844 111 Coromandel County .. .. .. 8,406 11 8 7,46110 7 Thames County and Borough .. . . 263,191 14 8 105,212 16 2 Waihi Borough .. .. .. 795,347 18 4 693,933 18 6 Ohinemuri County .. .. .. 239,088 17 7 208,231 2 6 Tauranga County .. .. .. 13 14 2 Piako County .. .. .. .. 1,859 7 6 6,343 16 9 It will be perceived that, with a couple of exceptions, substantial increases are recorded, which gives great encouragement for future operations; and although districts with small returns, such as Coromandel, have made very little headway, still the prospects have always been of a reassuring nature, stimulating the people who are with limited means with a keen desire to carry out exhaustive prospectingwork, entertaining as they do bright hopes that rich finds will yet be discovered. Waihi. Waihi Gold-mining Company (Limited). —This company continues to improve the various appliances used for the extraction of the precious metals, with a view to increase the output and quantity of ore treated. Tube mills are being erected, which will be capable of pulverising the quartz from the stamps to the fineness required for the cyanide process, and by using coarser gratings a larger quantity of ore will be treated, therefore the object will be accomplished without having to erect more stamps. During the year 30,335 tons more was treated than the preceding year, and it is fully expected that for the year now entered upon a much larger increase will be obtained. The development-work in the mine is kept well in advance of present requirements by sinking the shafts, and by driving to open up the various lodes at the bottom levels ; by this means there is a much larger reserve (or ore in sight) at present than there has been since the commencement of the company's operations. No. 6 shaft being sunk in the foot-wall of the reef system will be free from any movement in the country that may take place through the working out of the reefs. This shaft is close to the mother lode, the Martha, and it is intended to use it exclusively for raising ore, and arrangements are being made so that a large output per day can be attained. The usual methods of raising the ore will be dispensed with, and a more up-to-date plant installed. The winding-engine is a direct-acting one, with two 30 in. cylinders and 6 ft. stroke, with automatic cut-off gear and other improved appliances. The winding-drums are 12 - 5 ft. diameter. Instead of the ordinary cage with truck for raising the ore, a large self-tipping oretruck and cage combined will be used. This will, it is claimed, be a labour-saving and economical system, and a greater amount of ore can be raised per shift. Arrangements are being made for a largo storage-hopper adjacent to the shaft at No. 7 level, into which the ore will be tipped as it comes from the miners ; here it will be weighed, &c. On the surface adjacent to the shaft there will be erected a large storage-bin, into which the ore as it is raised from the mine will be deposited and taken away as required for the mills. The mine was frequently inspected, and from time to time the manager's attention was directed to several matters providing for the safety of the men which had been overlooked, but were promptly rectified. I regret, however, to say that one accident happened in No. 2 shaft, whereby two men lost their lives through the neglect of the man in charge. The company are anxious to do anything within reason to prevent accidents, and, apart from the case mentioned, accidents are not greater than could be expected considering there are 1,465 men employed. The return for the year far exceeded the utmost expectations of those connected with the management, and the prospects for the future are brighter, whilst after continued steadily increasing outputs shareholders are beginning to realise that money is safely invested with most gratifying results, clearly instanced when the company was able to pay dividends to the extent of £347,134 18s. for the year, making a total of £2,271,752 14s. 6d. to the end of 1906. Waihi Grand Junction Gold Company (Limited). —The work pushed forward during the year was chiefly the sinking of winzes every 80 ft. along the Nos. 1 and 2 lodes; these were put down to water-level in each case, with the object of being met by rises to be put up from the No. 4 level when driven. The shaft was carried down to a depth of 811 ft., and the No. 4 crosscut level pushed ahead