C—2.

VII. STATE AID TO MINING. (1) Subsidized Prospecting. During the year ended 31st March, 1940, individual gold prospectors were assisted from the Mines Department vote to the extent of £18,503. This sum includes all payments made in respect of subsidies wages, and equipment connected with the Department s subsidized gold-mmmg scheme, but does not include salaries and allowances paid to mining engineers and supervisors. The average number of men employed, under the scheme was 293. In addition, a total sum of £19,229 was advanced by way of subsidy loan, or other : form of financia assistance to companies and individuals engaged m prospecting and/or mining for gold, coal, and 0tl ' ( The "Department has also undertaken surveys, prospecting, mining, and development work in selected areas at a cost of £8,120. (2) Government Prospecting Drills. The following table gives details of the drilling done for twelve months ended 31st December, 1939

Drills used: Diamond and Keystone drills. Percussion and Hand-placer drills.

(3) Subsidized Roads on Goldfjelds. The expenditure in the form of subsidies and direct grants upon roads on goldfields amounted to £597 Us. Bd., as compared with £5,220 12s. 3d. during the previous year. (4) Legislation affecting Metalliferous Mines. Bv the Statutes Amendment Act, 1939, sections 384 to 392, 419, 422, 426, and paragraph (c) of section 425 of the Mining Act, 1926, were repealed and, instead, entirely new provisions were enacted setting out the manner in which moneys appropriated by Parliament to assist the mmmg to be made to the rcgu i at i o ns under the Mining Act during 1939 It is with extreme regret that I have to record the death of Mr. Arthur W. Turner on 28th September 1939. lie was a very able mining engineer, and for three years had been one of the two Inspectors of Mm< During illness just prior to his death and until the end of March 1940 when his successor, Mr. R. C. Ruffin, took up his duties, Mr. G. W. Lowes carried on alone as Inspector for the district acknow i e a ge again his efficient help and co-operation, as well as that of the other Inspectors of Mines, which I have received during the year. George Duggan, Inspecting Engineer of Mines.

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— i i " ~ i I „ , . Cost per I Cost per Cost per Foot of t> t Number T tal Diameter Mineral Character of Country , To whom lent< Fo ot of Foot of carbons' itemarKs of Holes JJ Dth of Hole, sought. drilled through. Drilling. Transport. w drilled. r Ft In s " S " o 3<>7 4 Gold Gravels, &e. .. Labour Depart- 9 4-5 inent (Employment Division) s. d. I s. d. 2 212 6 Gold Gravels, &e. .. R i m u G o 1 d 10 7 2 5 Dredging Co., Ltd. qo i 00 7 6 Gold Gravels, &c. .. Eimu Gold 4 11'9 2 1 ' Dredging Co., Ltd. 2 300 41 and Gold Sand and gravels Mines Depart0 ment 217 2,262 4 and * Sand .. .. State Iron and ' ' 45 Steel Department ,o 497 6 Gold Gravels, &c. . . Slab Hut Syndi- .. • • • • In progress. cate 5 462 6 Gold Gravels, &c. ..T.H.Lee .. 9 2 4 2 to 390 6 Gold Gravels, &c. .. T.H.Lee ..11 5 10 1 85 1J Coal Claystone and State Coalmines sandstone l 114 Coal Sandstone, grits, United Brunner & 0 . Collieries, Ltd. 321 5,686 » Testing depth of ironsand.