Jan. 17.] THE NEW ZEALAND GAZETTE. 225

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1,000 ft. below the level of the natural surface of the ground, or such less depth —in no case being less than 750 ft.—as in special circumstances the Minister or the local authority approves.

(2.) A “deep level” in alluvial drift shall mean prospecting operations undertaken to prospect alluvial drifts at a depth of not less than 250 ft. below the natural surface of the ground, where it is necessary to erect pumping machinery to lift not less than 250 gallons of water per minute.

(3.) The number of deep levels for the prospecting whereof assistance may be granted shall be confined to three mining districts — namely, one in the North Island, one in the west of the Middle Island, and one in Otago; and not more than one deep level shall be assisted in any such district at one time.

(4.) Any person desirous of obtaining assistance for prospecting deep levels shall make application in writing to the Minister or local authority, stating the locality and nature of the work proposed to be done.

(5.) The application shall be accompanied by a plan of the site of the intended prospecting operations, and a statement in detail showing (a) the mode in which it is proposed to carry on such operations; (b) the amount of money proposed to be expended; (c) the character and value of the machinery proposed to be erected; and (d) the total amount of assistance required. Should mining operations have been previously carried on in the ground proposed to be prospected at deep levels, the applicant shall also state (e) the amount of money already expended on such operations; (f) the character and value of the machinery already erected on the ground; and (g) the quantity and value of the gold extracted from the mine up to the date of application.

(6.) Before any application is granted the applicant must satisfy the Minister or local authority that the applicant’s proportion of the total amount proposed to be expended is available; and upon being so satisfied the Minister or local authority shall, if it be deemed advisable, obtain a joint report of two or more qualified officers of the public service, or, in the case of a local authority, one qualified Mining Engineer and the Inspector of Mines for the district, as to the probability of the operations proving successful, and that the proposed site is in the best locality for testing the deep levels in the district.

(7.) The Minister or local authority may grant assistance not exceeding one-half the total estimated cost of the proposed operations, or he may decline to grant any assistance.

(8.) Progress-payments on account of assistance will be made from time to time as the work proceeds, on the certificate of an Inspector of Mines or the Engineer in the employ of the local authority.

Subsidies for Water-races and Storage Reservoirs.

126. Assistance by way of subsidy may be granted by the Minister towards the construction of water-races or storage reservoirs, and for that purpose the following provisions shall apply:—

(1.) Every application for assistance towards the construction of a water-race or storage reservoir shall be made to the Minister in writing, and shall be accompanied with a plan of the proposed work and an estimate of its cost.

(2.) The application shall also be accompanied with a statement showing the source of supply from which it is proposed to take the water, the area and estimated depth of proved auriferous ground that the proposed work would command, the number of miners actually engaged in carrying on mining operations within such area, and the extra number of miners that could be profitably employed if the proposed works were constructed.

(3.) On receipt of such application, plan, and statement the Minister shall cause an examination to be made and a report furnished to him by a qualified officer of the public service as to the extent and character of auriferous ground which the proposed work would be likely to command, the extent to which it would be for the benefit of the majority of the miners in the locality, and generally as to its utility.

(4.) After receiving such report, and upon being satisfied that the proposed work will be for the benefit of the majority of the miners in the locality, and also that the applicant’s proportion of the cost is available, the Minister may grant a subsidy towards the proposed work not exceeding one-third the total cost of construction, or he may refuse to grant any subsidy:

Provided that the subsidy shall not be granted until the applicant has supplied to the Minister detailed plans and longitudinal and cross sections of the ground where it is proposed to construct the race or reservoir, together with the dimensions of the channels, the length of tunnels, open ditching and fluming, and other detailed particulars of the proposed work, and a statement in detail of the cost of the proposed