The manager reports for the past month i—" Since my last monthly report the prospects of the mine have improved greatly, the most important feature being that good payable ore has continued to be mm from the winze being sunk on the footwall leader at No. 2 level, which has attained a depth of 43ft, and has yielded payable ore for the whole depth. The list shot fired brought down ore of the same quality. Sinking operations have now be«n stopped, and the remainder of the connection will bo effected by rising from the No. 3 level to strike the bottom of the winze. Ore of better quality was also secured from the Rainbow end lead at the intermediate stopes, nice dabs of gold being seen in the ore broken out ; just previous to ceasing operations for the holidays. A few pounds of very good stone were obtained from a small leader on the surface. This lead had been worked on years ago, so that I cannot say what extent remains intact. Much improved results were also met with in the stopes on the No. 3 block, from which payable ore has again been won. Some rich ore has been left in the back of ona of the stopes over which I expect the follow ing stope to be in the course of a week or so, when I hope to secure some more good ore. There still remains about another three stopes to finish this block. In the No. 3 level a small leader has just been passed through, from which a few pieces of quartz, showing nice dabs of gold, have been selected. Although only a small quantity, it is most encouraging to know that gold does exist at this level, and the chances of striking gold in the footwall leader at this level are greater. The level has now reached a total distance of 650 ft. The country is hard, and intermixed with quartz veins, which causes progress to be slow. No crushing will take place this month, but I expect to have a small one for next month.—H. Fkank Shepherd."

THE REPORTED GOLD DIS COVERY AT TAUPO.
