In the department of Segovia the mines are richer, but the terribly bad condition of the roads makes the introduction of machinery very difficult and costly, so that no gold vein yielding less than one ounce per ton is worked. All the hills, and almost all the rivers, in that department contain veins, placers, and pockets of gold and silver, croppings of copper, tin, antimony, lead, and other metals.

In the mineral districts of Jicaro, Murra, Los Encinos, and Las Vueltas there are no less than twenty gold mines in operation, with six plants of machinery of ancient construction. The district of Telpaneca, which comprises also San Juan and El Pericon, has at least twelve nonproducing mines, and there are mines of extraordinary richness in the district of Cuje which cannot be operated with profit for the want of running water to triturate the ore. Most of the mines in this district are operated by the system of "molinette.

Throughout Segovia, Chontales, and Matagalpa, are found vestiges of placer diggings that were worked with profit in the days of the Spanish conquerors, the richest of these, however, being those along the Prinzapulca and Wawa rivers, on the Atlantic coast. Dr. Mierisch has made an important geological study of the Prinzapulca district, having analyzed ores from thirteen of the mines of that section, and has made a voluminous report on the subject which, however, has not been published. It seems impossible to secure any reliable statistics as to the output of the placer mines.

But every river flowing into the Atlantic and Pacific

contains gold, and on the Atlantic side, in some of the rivers where placer mining has been carried on in a very crude way for years, many thousand ounces of gold of a very high quality have been taken out. One peculiarity of the gold in these placers is the large proportion of coarse metal which is found. It is quite a common thing to come across nuggets of from one to five ounces in weight, and the gold is generally larger than a pin's head, and much of it averages the size of a linseed.

The "molinette" system is the same as that known in Mexico as the "arastra." The arastra is composed of a circular granite-paved bottom, from 6 to 20 feet in diameter, surrounded by a wooden inclosure over 2 feet high, with a vertical wooden shaft in the centre provided with two or more projecting arms, to which mullers, composed of large blocks of granite, are attached by means of chains. This primitive, but effective, machinery is operated by mules when water-power is not available. The mullers make from six to ten revolutions per minute, with a capacity of grinding, in a day, from one and a half to two tons of rock (the fragments being broken as small as a hen's egg, or less).

Within the last few years a new mining district has been discovered and opened up in the district of Sauce, in the department of Leon. The gold belt runs from the Atlantic through Nueva Segovia, Jicaro, San Juan Talpaneca and Sauce, right away to the shores of the Pacific, within a few miles of which gold and silver veins of varying richness have been found. It seems probable,

from recent developments, that this part is richer in gold than the central portion.

About four years ago, a powerful English company, with its head offices in London, purchased and opened up some mines in this district, known as the Santa Francisca, and San Luis mines. The representative of his company in Nicaragua was Mr. A. E. Morgans,—a mining engineer of experience, well known throughout Central America,-under whose direction these properties have been developed.

Trials were made with an experimental plant, and many thousands of tons of ore were crushed, yielding two to two and a half ounces of fine gold per ton, and this without selection. The veins are believed to be true contact veins, having porphyry hanging walls and basalt foot walls, varying in width from 4 feet to 70 feet, the pay streaks being often 10 feet wide, sometimes reaching 20 feet, and seldom going below 6 feet.

These mines are very favourably situated for exploration and development, as they are only thirty miles distant from the town of Leon, with which they are connected by an excellent cart road. The government railroad between Corinto and Granada passes Leon, so that the mines in this new district are within easy reach of effective railway communication.

The company referred to own something like two miles of this reef, and have now a large plant of the most modern kind in full operation.

I understand that this company has offered to take over the entire system of railways now existing in the State,