171 That they may occur is not regarded as impossible; but nothing to indicate their existence has been seen by the writer; and until some further and more satisfactory natural indications are found, prospecting blindly with the drill is discouraged. OIL-SHALE. The fact that many bands in the Maude formation are rich in bituminous matter suggests that some may be oil-shales of value. Ojil-shale is a rock containing bitumen that can be extracted by distillation in retorts. The “shale oil’’ industry is well established in Scotland, and extensive tests have been made there on Canadian oil-shales from New Brunswick!. In general, oil-shale is dark brown or black in colour, usually rather light in weight, with a ‘‘curly’”’ or a massive structure. Many of the bands of argillite seen in the Maude formation resemble some of the New Brunswick shales, especially those from Albert Mines of which the analysis is given under No. 3 on page 17, Part I, of Ells’ report. The Graham Island shales are denser and heavier, however. The writer was shown a sample of typical curly oil-shale by a prospector, which was said to have come from the vicinity of Rennell sound. It was markedly lighter in weight than any rocks elsewhere seen, but it is possible that such shales occur. A 3-pound sample of argillite from the Maude formation on Hidden creek, analysed for the Northern Oil Company by the Vancouver assay office, gave 2-8 percent of ‘‘aqueous extract.” What this extract consisted of was not stated in the copy of the analysis furnished the writer—presumably it was hydrocarbons, Ete. To compensate for the disappointing prospects of deposits of liquid petroleum being found on Graham island, the attention of prospectors is directed to the Maude formation as the prob- able home of commercial oil-shales. 1 Ells, R. W., “Joint report on the bituminous, or oil-shales of New Brunswick and Nova Scotia, also on the oil-shale industry of Scotland,” Department of Mines, Canada, 1909.