C.—2

(2.) Government Prospecting Drills. The following table gives details of the drilling done and the results obtained for twelve months ended 31st December, 1925 :—

Drill Superintendents: W. H. Warburton, E. A. Wilson, R. Pengelly, G. Andrews, F. Carter, and H. Butland. Drills used: Schram-Harker diamond and Keystone drills.

(3.) Subsidized Roads on Goldfields. The expenditure in the form of subsidies and direct grants upon roads on goldfields amounted to £6,033, as compared with £4,126 during the previous year. (4.) Government Water-races. The Waimea-Kumara water-races, constructed by the Government for the purpose of assisting alluvial gold-mining in the district of Kumara (Westland), showed a loss for the year ended 31st March, 1926, of £384 9s. 2d. Water was supplied to claims employing in all an average of 6-08 persons, and gold to the value of £1,283 9s. 6d. was obtained. The following is a statement showing the cash received by the Government for water sold, and the expenditure on the upkeep of the races, together with the average number of miners supplied with water, and the approximate quantity and value of gold received for the year ended 31st March, 1926 :—

The amount outstanding on the Waimea-Kumara water-races on the 31st March, 1926, was £933 2s. 3d., an increase of £81 16s. Bd. on the previous year. (5.) Schools of Mines. The expenditure on Schools of Mines for the year ended the 31st March, 1926, was £4,004, against £3,501 lis. 3d. during the previous year. This included a grant of £750 to the University of Otago for the Otago School of Mines. The Schools of Mines continue to do very useful and necessary work; but at schools on the goldfields very few of the students take mining and allied subjects, with the result that in these districts the schools are technical schools rather than Schools of Mines. I desire to acknowledge the efficient help and co-operation which I have received from the Inspectors during the past year. I have, &c., J. A. C. Bayne, Inspecting Engineer of Mines.

3—C. 2.

17

of U Holesi Depth, soueht' ° driUed throSh 159 To whom lent - ' Foot'oT carbon's ' Kosults. drilled. I in Feet. ° f Hole. sought., drilled through. J Drilling. Transport. 8 | I Ft. In. s. d. s. d. s. d. 1 842 3 Coal Sandstones, shales, New Zealand 4 3 1 6 210 Unsatisfactory. grits, and clays State Coal-mines 1 376 3 * Mudstones, sand- Manderson and 82 2 6 08 Satisfactory. Good stone, shales, and party flow of water. g«t 1 756 2f Gold Andesites and tuff W a i h i Grand 38 1 0 5 10 0 Inconclusive. Junction Gold Company (Ltd.) 49 2,367 6 Gold Clay, blacksand, Clutha Develop- .. .. .. Fair. Unfinished. and sandstone ment Syndicate 156 2,367 2J & 3 f .. Napier Harbour 13 6 Board 61 2,509 6 Gold Gravels .. Rimu Gold Dredg- 8 3 .. Unfinished. ing Company (Ltd.) 4 186 6 J Greywacke, & c. .. Public Works De- 81 1 12 4 ., Satisfactory. partment * Drainage. t Harbour-works. J Hydro-electric scheme.

Average . , 1 Number of Approximate Quantity /o i \ Expenditure. : Debit Balance. Miners and Value of Gold (Sales of Water.) supplied with obtained. Water. £ s. d. j £ s. d. £ s. d. Oz. j £ 8. d. Waimea-Kumara Water-races .. 914 6 3* | 1,298 15 5 384 9 2 6 08 327 1,283 9 6 I ' |. * Including rcyalty on timber.