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in June the company made application for protection, which was granted on condition that the mine be thrown open for tributers. This was agreed to, and several parties of workmen secured blocks, which proved unprofitable, and all the tributes with the exception of one were surrendered. The company has kept two men at work in the mine for repairing, &c. For some time very little prospectingwork has been carried on, and now the company have to seriously consider the advisability of putting in a new low level to intersect the reefs at a depth. This will entail heavy expenditure, and necessitate the raising of more capital to carry on the work. It is believed that the reefs carry fair values in the floor of the present low level, and if the proposed new low level were constructed and the reef opened up the mine might be a profitable investment. It is hoped that something will be done to stimulate prospecting in this once busy mining district. Handsworth Mine. —The work done in this mine during the year consisted of driving a low-level tunnel. Good progress has been made. Early in the year application was made to the Mines Department for assistance under the aid-to-prospectors clause. The assistance was granted, which will enable them to drive the level, and it is hoped that the reef when cut will prove payable. During the year 65 tons of tailings was treated for a return of £118 12s. 3d. Two men were employed. Great Mercury Mine. —In this mine the present owners have spent much money in prospecting at the low level, and an application was made to the Mines Department for aid to prospect under section 39 of " The Mining Act Amendment Act, 1905," which was granted to assist them in continuing prospecting at the low level, but unfortunately nothing of an encouraging character has been met with. Two men were employed during the year. Otama Mine. —The owners —O'Keefe and Ellings —have been at work in this mine for some time in stoping on a small leader, and from a parcel of 38 tons of ore crushed at the public battery a return of £63 16s. 9d. was secured. I understand that O'Keefe has surrendered his interest and that the mine is now owned and worked by William Ellings. Great Barrier Island. Barrier Reefs Mine. —The syndicate that owns this property has done a considerable amount of work in still further proving the value of the reefs, and has mot with a fair amount of success. 1,451 tons of ore, including tailings, was treated for 3,032 oz. 19 dwt. of bullion; value, £4,444 13s. 9d. As the tailings in reserve from previous crushings became exhausted, and the payable ore in sight in the mine could not be broken out in sufficient quantities to keep the mill running, the crushing plant was stopped and the men employed in the battery and some of the men in the mine were suspended for the time being, and only a few retained to carry out prospecting-work. Sunbeam. —The work carried out in the mine was limited during the year, as the reef was opened up to a considerable extent and the company was awaiting the completion of the crushing plant, consisting of a five-stamp mill, three Frue vanners, cyaniding-vats, &c, in course of erection. When this was accomplished no time was lost in treating the ore broken out to prove its value in bulk, which proved very satisfactory; but as it was found to be too costly to run the machinery by steam-power, a suction gas-engine is being erected, which will reduce the cost of the treatment of the ore and by this means make the mine a payable concern. 220 tons of ore was treated for 2,231 oz. 4 dwt. of bullion ; value, £367 12s. 2d. An average of seven men were employed. Ngatiawa. —This mine is in close proximity to the Sunbeam property, and was lately taken up and a company formed to develop it. A large reef is being driven on at the surface adit level, from which, lam informed, assays have been made giving highly payable results. In consequence, the shareholders are sanguine of the mine becoming a dividend-payer at no distant date, or when an up-to-date crushing plant is erected, as contemplated. Four men employed. Conclusion. It seems a strange coincidence that several small claims recently acquired in close proximity to the Thames Township have, after being worked for a very short time only, treated small quantities of specimen stone for exceedingly large returns, and yet no general dirt was crushed. Accidents. During the year six fatal accidents happened in this district.

Date. Name of Person. Name of Mine. Cause. Jan. 22, 1906 May 9, 1906 Arch. Nicholson .. T. T. Sohofield .. Waihi Waiotahi Killed by explosion in Richard's pass. Killed by being caught in belting and drawn around on the shaft of machinery. Killed by fall of earth at battery excavation. Oct. 29, 1906 William Thorpe .. Grand Junction Waihi Nov. 13, 1906 William Gray and Thomas H. Boxall George Smale Killed by explosion in No. 2 shaft. Nov. 27, 1906 Talisman .. Killed by falling down pass. All other iccidents of a serio is nature that occurred during the year were duly reported.