OTAGO.

Press, Volume III, Issue 70, 13 September 1862, Page 4

OTAGO.

(From our own correspondent.) Dunedin, September 6. In mv lastl was able to inform you that the rush to the new gold field on the Clutha, ihe Dunstan diggings, as it is now styled, was a great f;ict. The first' official despatch received from Mr. Keddell, the officer in charge of the field, spoke of the numbers of miners flocking on to the ground, of the auriferous character of the country, and of the great want of provisions. ; and since that date, several accounts have come to hand, all bearing out the general tenor of Mr. Koddell's first statement. Gold has been almost everywhere obtained along the river, and even with the very insufficient appliances at tlieir command the men who have been working have been able to make in some cases very handsome returns. With the Isirge increase of population, however, the evilis resulting from an insufficient supply of provisions have been greatly aggravated, and large numbers have had to leave, whiie of those remaining on the ground the majority have been comparatively, if not altogether, idle. On the roads the string of returning diggers has backed up the tide flowing thither, nnd the consequence has been, that, for the last few days, the number returning has been iv of ihuse departing. By lar the majority of those who have come back, never got so far a 9 the diggings, their provisions failing before they had got half way there. Of the scenes on the roads, many graphic accounts have appeared. It seems that the police, acting under instructions, stopped drays, and made the drivers sell from them to the hungry wayfarers in small quantities and at high prices. Three pounds of flour per man at '2s. 6d. or 2». 9d. a nound, would appear to have been about the rale of distribution. By this wiso arrangement much suffering and possible loss o* life have been saved. The behaviour of the diggers appears to have been perfectly orderly and peaceable. With regard to the prospects of the rush they are quite as encouraging as there was ever any reason to expect. The value of the river workings is established beyoud the shadow of a doubt, and it seems in the highest degree probable that the fiais or ten aces will also yield well, although perhaps not .so richly. These flats are mostly composed of a loosr gmve', and sippear to have formed the ancirnt bed of tin river, or at a!iy rate to be of fluviatile formation. No shafts have yet beon bottomed in these fi-.its but gold has been found in going down, and it is looked upon as almost a certainty that they will pay for working The great want, next to that of provision*, is of cradles or timber to make them from, but rh« se wants will doubtless all be rapidly supplied, n«» stm-ps and necessaries of all kinds have been sent towards the diggings from all directions. Price* uiu.-t fur a Lug j time continue high, by reason of the heavy expense ' of carting and packing goods.

"It never rains but it pours." Just when ever* body is full of the excitement of the Dunstao r Ju comes intelligence of ;i fresh discovery at the 4 waters of the Matnura river, on a small tributary of the Nokoraau Creek and near the Dome p if This news readies us by way of Southland but tl situation of the supposed new gold-field is in* the pro! vnoe of Otago. A parcel of 28 ounces of gold bae reached Invercargill, and the »old is described as being coarse and Leavy, resembling that of Beudi<j 0 in Victoria, and thus having a distinctive character of its own. Ucndigo, as you are doubtless aware, j s as famous for its qusirtz reefs as for its alluvial working* both of which have been of surpassing richness. [I is therefore not absurd to expect, reasoning by analogy, that rich quartz reels will be found in the ranges, the moie especially as it would appear that the diggings are approaching near to the great contral mountains, between whose lofty peaks and the alluvial deposits, the quartz reefs are, if anywhere to be looked lor. ' A. very interesting report upon the geology of the [ Manuherikia Valley has been written by Dr. Hector the Government Geologist, and published in the local papers. The Manuhvrikia, as you will perceive by a reference to the map, joins the Clutha not far below the richest portion of the diggings, and the report, although specially referring to the valley named has also a bearing upon the general geology of the' system of mountains, valleys, lakes, and streams which, there is reason to believe, form the great store of the auriferous wealth of Ota go. The withdrawal of so large number of miners from the regular working of the old gold fields will natu. rally for some time have a prejudicial effect on the escorts, for the old diggings are almost deserted. Thi» week's or rather fortnights escort has not suffered, on the contrary, the amount has been in excess of any lately to hand, the total being 8789 oz. 1 dwt. Thi» is accounted for by the fact of the diggeis wiio were rushing away converting all their gold into cash. The return of the gold exports for the first year has just been made up, and it appears that Otago Las during the post twelve months exported no less than 477,870 oz. of the precious metal. Pretty well thi» fur a beginning. Apart from the all absorbing subject of gold, I have nothing particular to relate, beyond the fact that the damage to the bus proved to be of such a nature that it can be temporarily repaired by placing a new plate on the outside, which is being done. The Grassmere has arrived after a very long voyage from England.