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The geological museum has been enriched by the addition of several specimens donated and collected during the year, and the Council again take the opportunity of appealing to every person in the district to place in the museum any unique specimens they may drop across. The museum, although attached to the school, really belongs to the people of the district as a whole, and maybe inspected by any individual at any convenient time. In concluding this report the Council desire to express their sincere thanks to the Hon. Minister of Mines for the warm interest he continues to take in the welfare of the school. The Council also desire to thank the examiners for their valuable services, the Thames County Council for free water for motive power, Mr. J. Wilson for his gratuitous services as auditor, the donors of specimens for enriching the museum, and to all who have in any way contributed to the welfare of the school. I have, &c. The Under-Secretary, Mines Department, Wellington. G. S. Clark.

• Mr. E. B. Macduff, Director of the Karangahake School of Mines, to the Under-Secretary, Mines Dopaitment, Wellington. Sir, — Karangahake. I have the honour to report as follows on the work done at the Karangaliake School of Mines for the year 1906 :— Attendance. It gives me great pleasure to report that the attendance has improved considerably during the year, averaging forty-two students, and having fifty-nine students on the roll during the second term. This is the highest average attendance yet reached for this school. Examinations. At the annual examinations, held in January and December last, students of this school secured one first-class mine-manager's certificate, one battery-superintendent's certificate, and sixteen firstclass certificates in the class examinations. Beside the above, four students passed the examination for engine-drivers' certificates for winding, while another student passed the first-class stationary-engine-driver's examination. Laboratory. Owing to the Council's decision to do free assays for prospectors, no less than 196 assays were made during the year, in addition to a number of assays which were paid for. While the free assays are a boon to prospectors, some scheme of restricting the assa\s to such will have to be evolved, as I have had samples of South Island quartz handed in by prospectors as being obtained in the Ohinemuri County. Again, the prospectors themselves are often very inconsiderate, and send samples in by tens. Under the above conditions the teaching of assaying to the students must be materially affected ; one cannot do assays and teach at the same time. Improvements. During the year a storeroom 16 ft. by 12 ft. has been erected, a V level ordered, also a staff, and an experimental dynamo is now about to be installed. These latter items were obtained mainly from a special grant of £2 for £1 from the Hon. the Minister of Mines, to whom the Council extend their best thanks. Waikino School of Mines. The branch school at Waikino is completed, and is ready to open at the beginning of 1907. In this school it is intended to devote the time chiefly to the study of assaying, chemistry, mathematics, and metallurgy, especially with a view to training students for the battery-superintendents' examination. The school will be kept open full time. Assistant. The work of teaching so many different subjects last year became too much for me, and the Council appointed one of my students—Mr. C. Harsant—to act as temporary assistant. In December this appointment was made permanent, and the two schools will be now kept open full time. Conclusion. In conclusion, I extend my thanks to the Hon. the Minister of Mines, and to the Secretary, Mining Bureau, for numerous periodicals relating to mining and metallurgy, and also to all gentlemen who have given papers and specimens to the institution. E. B. Macduff, Director. The Under-Secretary, Mines Department, Wellington.