C.—2.

a supply of ore sufficient, in conjunction with that obtained from the Zeehan mine, to keep the battery in full work. No. 4 level was cleaned up and repaired, and relaid with tram-line for over 1,500 ft., and a start was made to break out ore from the north end of Hollis' stope. No. 2 level was cleaned out and repaired similarly, and relaid with rails in readiness for driving north on a hanging-wall branch of the Monowai reef. No. 1 level was also repaired into the north face, and some stoping was carried out on the block on the hanging-wall branch of the Monowai reef, which had been partially stoped by the old Monowai Co. in former years. This block was about 70 ft. in length, and had been stoped up to within from 50 ft. to 60 ft. of surface. The ore, about 100 tons, mined from this stope is said to have been of fair grade, but inasmuch as it was mixed with the Zeehan ore at the battery no definite information is available as to its value. On an average forty men were employed throughout the year. Cambria Mine, Thames. —Practically the only work done consisted of driving an adit on what is known as Prescott's leader, two men being employed. The leader, which is very small, was driven on about 120 ft. and is still in the face. It is only a few inches in width, but carried a little gold all the way, with occasional small showings of specimen stone. Small parcels of the latter, aggregating 41 lb. in weight, were treated for a recovery of 19 oz. 15 dwt. gold, valued at £51 16s. 3d. Tui Gold-mining Co., Ltd., Thames. —This company did a little further work, mainly by way of driving and rising on a reef, supposed to be the Hague-Smith, which was intersected and driven on for a short distance from the old Atlantic tunnel by former holders of the property. Nothing of any promise was located, and the company, having exhausted its funds, went into liquidation. North Star Mine, Thames.—A little work was done in this mine by way of sinking a winze a few feet on a small leader at about 1,000 ft. in from the portal of No. 4 adit. It is said a little gold was seen in the leader, but owing to shortage of funds the holder of the claim was not able to push on with development on it. Hauraki Mines Consolidated, Ltd., Coromandel (H. F. Shepherd, Manager). — Comparatively little further development-work was done in this company's mine. The water having been lowered to the 500 ft. level, some little driving was done north and south on that level, but owing to the company having very little money on hand only a few feet were done in either direction before work was stopped. On the 400 ft. level a little driving was also done on what was considered to be the Venus reef, in the hope of picking up its junction with the Stock wood reef, where it was thought a make of gold might occur. This junction was not located, however, and nothing of value was found. Some further stoping was carried out on the Stockwood reef, when small pockets of specimen stone were met with from time to time, but the reef on the whole was poor and somewhat smaller and more broken than formerly. A party of tributers having located a little specimen stone on the 300 ft. level, some work was then done on this level on a small cross-reef between the foot-wall and hanging-wall branches of Legge's Reef. A small stope, about 30 ft. in length, was opened on this cross-reef and carried up about 40 ft. A little gold was got over a short length in the leading stope, and for a few stopes up, but no gold whatever was seen in the upper 12 ft. or so of the working. A winze was also put down for about 20 ft. on the cross-reef, and in it to the depth of 6 ft. a little gold was got, but there were no values below that depth. On the 220 ft. level a few feet, of driving was also done in search of a continuation of Legge's Reef at that horizon. In April a lot of trouble was experienced from breakages in the pumping-plant, and the water in the shaft rose up again over the 400 ft. level, and to within 67 ft. of the 300 ft. level, and, as the company's funds were now exhausted, all work was stopped, and the mine has since been idle. During the period of working some 201 tons of ore were crushed for a return of 86 oz. 5 dwt. gold, valued at £257 2s. 3d. Eclipse Mine, Mahakarau (H. and J. McKenzie, Owners). —In the hope of intersecting at depth a leader from which some good surface prospects are said to have been got, another adit was started some distance from the adit previously put in, and at a little lower elevation. To the end of the year this was in about 160 ft. from the portal, but nothing of value had up till then been met with. The adit was being continued. Jupiter Syndicate, Tokatea, Coromandel. —Towards the end of the year this syndicate carried out some work on the western branch of the big Tokatea reef at a place near Buffalo Creek where the reef was believed to carry mineral in better value than at any places where it had been previously tried. A good deal of stripping was done on the hanging-wall of the reef, which here appears to be about 150 ft. in width, and a drive was put in for about 48 ft. on the hanging-wall side, from 40 ft. to 50 ft. below the outcrop. The stripping and driving served to reveal in the body of the reef patches containing a good showing of galena, copper, and zinc, but much work will still require to be done before it can be determined if the reef carries sufficient value to pay for working. Quicksilver Mines. Kaikohe Development, Ltd., Ngawha Springs (R. H. Goodwin, Manager).—Owing to various delays, one of the principal causes of which was the exceedingly bad weather experienced in this neighbourhood for several months in the early part of the year, the treatment plant on this company's property was not completed till well on towards the middle of the year, and when it was completed and a start made to actively treat the mercury-bearing deposits a number of difficulties presented themselves to the successful working of the various units. Among other things it was found that owing to the very sodden nature of the material to be treated insufficient heat was applied to it in passing through the rotary dryers to get rid of the moisture satisfactorily. To get over this defect brick furnaces were built under the rotary dryers, the heat from which radiated out over a considerable area of the dryer shells, and the installation of these gave more satisfactory results. There were some difficulties in adjusting the feed from the machines that fed the powdered fuel to boilers and furnaces, but these have, I understand, been overcome. Trouble was also experienced in connection with the passage of some form of carbonaceous material into the precipitation chambers, where it was thrown down with the mercury and was found hard to thoroughly separate from it. However, these difficulties will no doubt all be overcome shortly, and the works may be expected soon to be in full production. The rest of the large plant operated well. During the year 1 ton 16 cwt. 8 lb. of quicksilver, valued at £1,080, was recovered, and an average of fifty-two men employed. No work of any consequence was done on the Great British or Mount Mitchell areas at Puhipuhi, in the VVhangarei district. Sulphur. Operations were carried out fairly continuously during the year at White Island, by White Island Products, Ltd. Sulphur-rock, amounting to 2,831 tons, containing from 25 per cent, to 35 per cent, sulphur, was mined and disposed of as fertilizer for £13,261, and a farther 200 tons, containing 20 per cent, sulphur, valued at £80, was mined and stacked. Retorted sulphur, 99 per cent, grade, to the amount of 25 tons, valued at £150, was also recovered. On the average twenty-five men were employed. OTL-WELLS. Taranalci Oil Fields (N.Z.), N.L.—This company continued its operations at Gisborne No. 2 well at Morere till April, during which time the well was deepened from 3,097 ft. to 3,910 ft., at which point drilling was suspended. As explained in last year's report, this well had been drilled to 3,180 ft. with cable tools, but as it was found greater depth could not be attained with these it was decided to equip the well with a rotary plant. Pending the installation of the latter, the well partially closed up, and by the end of the year

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