I have the honour to forward, for the information of the Hon. the Minister for Public Works, a report by Mr. Binns, on the deposit of iron ore at Para-para, Golden Bay, a special examination of this locality having been made, in compliance with the verbal request of the Hon. the Premier, in connection with the proposed scheme for having the iron manufactured within the colony.

In compliance with instructions received, I visited the hematite deposit at Para-para in the begining of October, 1878, and have the honour to report as follows:—

I. Extracts from what has already been published on the subject, with Remarks.

In the Seventh Annual Report on the Colonial Museum and Laboratory, published in 1872, No. 1230, is a valuable hydrous hematite ore from Para-para, Collingwood, but it unfortunately occurs intermixed with quartz pebbles, being, in fact, the cementing material of a bed of conglomerate, at least 100 feet thick, which extends for about 1,000 yards at the surface. If by hand-picking a large amount of iron ore could be obtained equal to the sample analyzed, the deposit would be a valuable one.

The amount of metallic iron in the sample received would be about 44 per cent. A very good pigment, especially adapted for ironwork, is manufactured from this ore.

Remarks.—I cannot quite agree with what is said about the occurrence of quartz pebbles, and the necessity for picking the ore. There are many places in which a quartz pebble is a rarity, and if the quarry were commenced in a judiciously chosen position, it would, I think, be unnecessary to exercise any great care in selecting the ore. This would have to be in page 51 the upper portion of the deposit, as the stone there seemed to me much more free from impurities.

The length of the deposit within the boundary of the lease, as shown in the accompanying plan, is 2,772 yards, and I think it runs right across the country to Onakaka Creek, a distance of more than a mile from the boundary: its average thickness is, I think, over 200 feet.

As intimately connected with the value of the Parapara iron ore, I give an analysis of some iron produced from it at Melbourne in the latter end of 1873.

Physical Characters.—Colour uniform, approaching white; structure homogeneous, and finely granular; hard, brittle.

From the character and analytical results above cited, it will be seen that this sample is of the variety technically known as white iron. It is comparatively free from phosphorus, but contains sulphur in some quantity, though not greater than is found in many pig irons smelted from the same class of ore which has furnished the present specimen.

Remarte.—I have noticed the quartz pebbles else page 53 where, and would merely suggest the alteration, "Most of it is free from such admixture."

With reference to the above amount, viz. 15,000,000 tons, which is so very much under my estimate, the small amount includes only what is available by surface-excavation. The larger figure represents my estimate of the total quantity.

In a memorandum from Dr. Hector to the Colonial Industries Committee, in 1873:—"No. 9 is from a deposit of hydrous hematite that occurs in the Upper Tertiary drifts at Para-para, in the province of Nelson, but is also not infrequent in many other localities."

The ore occurs as the matrix of the quartz conglomerate, but often containing large masses of nearly pure ore, several hundred pounds in weight. On breaking these, there is frequently a kernel of undecomposed sulphide of iron, showing the origin of the ore is probably from the denudation of a mineral vein.

It may not be out of place to give a short extract from the publications of the Second Geological Survey of Pennsylvania, by Mr. F. Prince, Junr., Assistant-Geologist.

"Description of the Brown Hematite on ranges of Lehigh County.

"The great bulk of the iron ore found in the dolomite or limestone is known under the names of Limonite or Brown Hematite. It is the hydrated ferric oxide, having the formula 2Fa₃ Oz3 H₂ O, containing when pure 59 89 per cent, of iron.

"The ore occurs massive, earthy, botryoidal, mammillary, concretionary, and occasionally stalactitic. It page 54 has a silky, often a submetallic, lustre, sometimes dull and earthy; colour of surface of fracture, various shades of brown, commonly dark, and none bright; when earthy, brownish, yellow, ochre-yellow. The streak is yellowish-brown. When stalactitic, it forms pipe ore, which is rather scarce; when concretionary it forms hollow spherical masses, commonly known under the names of pot or bombshell ore. These hollow masses commonly contain water or masses of unctuous clay; their interior surface often presents a glazed appearance, due to a very thin coating or incrustation of oxide of manganese, which imparts a nearly black varnish-like surface. Sometimes the bombshell is solid; its interior then presents a honeycombed appearance, as if from the percolation of chalybeate water into the mass after the exterior shell had been formed."

This is an admirable description of the Para-para hematite, but I did not find it stalactitic. The per centage of metallic iron in various samples of the Lehigh stone is almost the same as that of the Para-para.

As yet all of these theories are mere hypotheses, and before the correctness of all or more of them can be proved, it will require a long series of chemical investigations.

Plan to Accompany Report on a Hematite Deposit at Para Para

II. Description of Situation, Mode of Occurrence,&c

The deposit forming the subject of this report occurs about a mile S.E. of the mouth of the Para-para river, in the province of Nelson. About five miles north of this is the town of Collingwood, close to which is the Collingwood Coal Company Wallsend Mine, which yields some of the best coal in New Zealand. At present this mine is unable to progress as rapidly as it might, owing to the thinness of the seam, and to the fact that bands of shale exist in the coal; but the demand that would spring up in the event of the hematite being worked, presuming that this coal were used for smelting the stone, for which purpose it is admirably suited, would doubtless give such an impetus to the mine as to enable the works to be carried on at a profit.

The hematite is, as shown on the plan, close to the Para-para Inlet, and a short tramway would enable the ore to be shipped on barges and taken to Collingwood, where there is every facility for the construction of a wharf at which vessels of any size could lie.

There is a large deposit of nearly pure crystalline limestone on the banks of the Para-para river, on either side of the letter K on plan.

The numerous streams on the neighbouring hills would give ample water-power, should such be needed.

It is unnecessary to describe the character of the ore itself, as Mr. Prince's description applies equally well to this stone. The main mass extends, as shown on the accompanying plan, in a longitudinal direction, bearing about N.W. and S.E., except at the end near the shore, where it turns round to the N.; there are also several outlying portions, marked B to L.

The parts in which the ore was found to be pyritous are all near the Para-para river. In some cases, notably in the outlying patch B, the ore seems to form part only of the hill; so in this and similar cases I have assumed its existence under that ground which page 56 is covered with it. To determine its position accurately or to form any idea as to what its depth really is, would require boring or sinking.

The ground is much broken up by gullies, &c., and for this an allowance is made in the estimate.

In a gully, which has been excavated partly by gold-diggers and partly by the action of water, to a depth of 30 to 40 feet, I found what appeared to be the junction between the slates and the hematite; the line is much faulted and disturbed, and in places the ore appears to run up through the rock in veins; at the junction the hematite is of a very inferior and argillaceous character.

In Onakaka Creek, at M on the plan, the ore occurs in immense masses, of excellent quality, both in the bed of the stream and on the sides of the hills. This point is more than a mile distant from the south corner of the Para-para Company's lease, as shewn on plan.

In the bed of the Para-para river, at K on the plan, the hematite occurs on the east side of the stream, and has very much the appearance of a reef, but I failed to trace it on the other bank: here it is very pyritous. On the inland track, at L on the plan, there is a small leader of ironstone, having a bearing of N. 58 E., a hade of 30° to the N., and a width of about 3 feet: this portion was so much mixed with iron pyrites as to appear to be almost entirely composed of it.

III. Estimate of Quantity.

The ironstone being in many places of so open a structure that it would be useless to take the specific gravity of a number of samples with a view to finding that of the whole, I have assumed this to be 2.8; thus making a cubic foot weigh 175 lb.

I was unable to do more than take a number of aneroid readings, and so estimate the height of the main hill: this appears to be about 200 feet. Acting page 57 on these assumptions, I have made the following calculations:—

A.	Average height	200 feet
	Average width	950 feet
	Average section 119,700 square ft., but deducting one-third for gullies, this becomes 79,800 sq. ft.
	Length	8,316 feet
	No. of tons of hematite	51,835,600
B.	Average height	34 feet
	Average section	5,100 sq. feet
	Length	2,100 feet
	No. of tons of hematite	836,719
C.	Average height	14 feet
	Diameter	310 feet
	No. of tons of hematite	82,553
D.	Average height	10 feet
	Diameter	75 feet
	No. of tons of hematite	3,450
E.	Average height	10 feet
	Diameter	75 feet
	No. of tons of hematite	3,450
F.	Average height	20 feet
	Diameter	240 feet
	No. of tons of hematite	70,686
G.	Average height	20 feet
	Diameter	90 feet
	No. of tons of hematite	9,927
H.	Average height	20 feet
	Diameter	120 feet
	No. of tons of hematite	13,254
I.	Average height	50 feet
	Diameter	132 feet
	No. of tons of hematite	37,419
	Total No. of tons of hematite	52,893,058

In this estimate no ore lying outside the boundary-line is included, nor are the deposits at K and L.

This shows that the mass of the hill is clay, with merely a shell of hematite. From this fact I am doubtful as to whether this may not occur in a good many cases; but it could be proved only by boring.

Without this aid no accurate estimate of the quantity of hematite can be made.