WORKINGS AT GERMAN HILL, IDA VALLEY.

By permission of the Government we are cabled to publish Me Miniug Surveyor Coates't report as follows : —

Mining Survey Office, Clyde, 19th December, 1864.

Sir — Having visited the recently opened Idn "Valley diggings, I have the honor to submit, for the information of the (Government, tbe following report upon the preeent condition of mining operations in that locality :— The Ida Valley diggings, situated upon the western slope of the Kough Kidge, bear from Clyde township about twenty-seven (27 miles eastward, about five (5) miles north east from M'Pberfon's homo station, about fifteen (15j miles s.s. west from Hill's Creek township, und about nine (9) miles east from Blacks diggings. The principal scenes of mining operations, which have already extended over a large area, are — Oxfoid Hill, upon the northern, Carr'fc Hill, in the immediate vicinity of, and Gerciau Hill, about one fourth of a mile couth of the Ida Valley township. As a general rule, the gullies defining those hills contain but little gold, and have consequently, if we except some few issolated patches, presented no attraction. The ground almost throughout coneists of a fine quartz drift, not unlike that of Dunsfcan Creek, and varies in color from a light yellow to (Jeep red. Also a semirounded shingle drift, composed of quartz and schist debris, the latter, where most abundant, being intimately mixed with a large percentage of stiff clay. Thedepihs of sinking vary, upon Oxford and Carr's Hills, from sus facing to fifteen (15) fpet, and upon German Hill, fiom surface to sixty (60) feet. I forward sections shewing each.

The appearance presented by the ground in which these diggings are situated, is that of a aeries of gentle terrace slopes of some miles in transverse width, between the range slope and the main Ida Valley. Th-; higher slope is that over which fhe auriferous ground is es yet known to exist, and is traversed by gullies, which, from the fact of their possessing bub little mining importance, I have not named,

From the nature of the dri'*fcs, as proved by the several excavations, I have no hesitation in attributing their presence and form of deposition to the wearing action of lake margin wave and current, and this opinion is further confirmed by the presence and position of larse accumulations of quartz breccia (qnarizite), which staud in bold disjointed masses (ruinifonn) on some of the most prominent hillock's at the base of the range slope, and from which large blocks have been transported and become distributed throughout the whoie.of the ground at present being worked.

As mining proceeds it is found that tbe auriferons ground trtnds throuch a vast number of chapels bearing from north, east to an easterly directioa, and it is -requently amongst the diggers a matter ot surprise to find in adjacent channels co great a difference of ground— one containing fine quartz diitt to the sui face, while the other contains the dark shingle drift hereinbefore referred to. In accounting for those sudden change* in the drift, I consider that the vast accumulation of fine quartz, in following the rece-sion of the lake surface, became distributed over an uniform slope, which became afterwards channelled by the action of side streams, those channels containing the quartz drift being anterior in point of time io those containing the shingle drift.

I estimate the whole area of proved auriferous ground at one hundred and fifteen (115) acres, namely, Oxford Hill, seventy- five i 75) acres; Carres (pro-ppctoi's), fifteen (15) acres ; German Hill, tweuty (20) acres; and oih^r grouud, including gijStfea, five (5) acres. To this area I have no doubt will be added a considerable extent oi' ground yet unprospected. The method of workingibe shallower ground is by paddocking, from which the washdirt is either stacked or carted to some artificially for.rs.ed lagoons or reservoirs in the .vicinity oi the township. In the washing cf dirt, this water supply is inadequate to the requirements of at lea^t fourfifth3 (4-sths) of the population. Upon German Hill, from its great depth, sixty (60) feet, the ground is worked by shafts and windlas3es. The washdirt here is entirely stacked, its proprietors waiting, either an increase of ■water in the aforementioned reservoirs, or the bringing in of races from Maori and Wether Gullies upon the south, and some oihers unnamed upon the northern i-ide of tbe townEhip. In the washing of dirt many miners, with nothing more than the digger's dish, succeed iv making wage?; the greater number, however, who have commenced •washing, conduct their operations wish long toms, which, with the windlass, cradle, and ordinary miner's tools, constitute the whole of the machinery at present in use.

The amount of population at present in this locality I consider to be eight hundred and fifty (850) miners, and two hundred and eighty (280) others.

While upoa the township, I was requested by a large number cf the inhabitants to make a survey of, and subdivide into allotments, the ground occupied by their buildings ; but as I was also informed ttmt the Wardea of the district had marked jofi a site for a township some four hundred (400) yards further south, upon M'Pherson's track, for the purpooe of pieventintr the erection of buildings upon auriferous ground, believing those of the present township to be co situate*!, I declined even defining the street boundaries. I farther endeavored, as far as possible, to ascertain the extent to which the ground occupied by the present township was payably auriierons, or otherwise, and from which inves •tigation, 1 find that in the higher portion of the township, for about 1 } one third of its length, shafts have proved the existence of ground which, with a plentiful supply of water for sluic ing, may be considered payable. I forward yon a section, which I have taken longitudinally with the couise of the present street, from ■which you may ascertain whether it be advisable to allow the erection of substantial buildings upon the present occupied sites, which extend over a lenrth of some nine hundred $00) links.

The subject of the sources of water supply is now an all important one to the miners of that district, and several companies are in progress of formation, who propose cutting races from the Ida Burn, Hills and Eden Creeks upon the north and some of the sources of the Manor Burn, on tbe south. It is as yet, however, unknown whether the latter be practicable, and a request has been made to me by a party, to ascertain wheiher the fall aud nature of the country

between the sources of the Serpentine in thr Lsmmeroioor Banco, and the Jda Valley digging?, is favorable to the cutting of a race, as in the event of the practicability of tbe scheme, a large company is to be formed for the carrying out of this stupendous (undertaking. Although the feasibility of tbia prr ject may be deemed by some hi probable, I consider that if constructed, an extensive race through thi* portion of the country, from the fact of its insuring tbe perfect working of a vast extent of highly valuable ground along the head of the Serpentine basin, the Bouices of tbe Manor Burn, and finally at its termination, the Ida Valley diggings would be attended "with sure and permanent remuneration for the outlay. Another rueh lias recently taken place upon the eastern slopo of the Bagged Bidce, about six 16) miles due west from the Ida Valley township, and almost in a direct line between this point and Black's diggings. This ground is composed of a quartzose and schist shingle drift, covered with an argillaceous deposit inteispersed, with large angular fragments.

The depths of sinkipe: in the ground a« ypt orened, vary from ten (10) to twenty-two feet, the greater depth being reached in the direction of the fl^t, and, judging from the fact of new ground being opened almost daily on either side of those workings 1 , lam of the opinion that they will yet prove extensive.

As the s e diggings are but a few days in existence, and as the population upon them is almost hourly receiving additions, I refrain from entering into a description of them until they are in a more mature state.

The character of the gold of these is— like thfit of the Ida Valley diggings — shotty andgenarally well writer worn, and pretty rich claims are at present being worked. The conducting of a water supply to this more recently opened ground will not, in my oplnioD, be attended -with the expense or difficulties which mnst accompany its introduction on the Ida Valley diggings. As it is my intention to visit these localities again, wirhin the present, month, I will not now describe them at. greater length. I have the honor to be, Sir, Your obedient servant, J. G. COATES, Mining Surveyor. J. P. Eick<=on, Ff-q-. K.M., Warden, Manuherikia District.