OFFICIAL REPORT

Otago Daily Times, Issue 784, 18 June 1864, Page 9 (Supplement)

OFFICIAL REPORT

THE GOLD FIELDS.

The following is the Official Report on the Otago Gold Fields, by Vincent Pyke, Esq., the Secretary to the Gold Fields: —

PROGRESS REPORT.

Discoveries. —Since the date of my last report the progress of discovery has been steady and continuous, and the variety of circumstances under which extensive auriferous deposits have been found, furnishes satisfactory evidence of the richness and permanence of the gold workings of this Province. Two entirely new districts, those of Hindon and Hamilton's, have been discovered, and on the older fields many new gullies and hills have been opened, and wrought with various success. Payable quartz reefs have also been developed at Waipori, the Serpentine, Skipper's Creek, the Arrow, and Hindon; specimens from all of which forwarded to .this office warrant the belief that ere long quartz-mining will rank amongst the acknowledged industries of the Otago gold fields. Produce.—Since the 31st July, 1863, (a period of nine months), there has been forwarded to Dunedin, per Government escort, 358,079 ounces of gold. In addition -large quantities appear to have reached town by private hands, 369,397 ounces having been exported from Dunedin, and 7821 ounces, the produce of Otago, from Invercargill and Bluff harbor, making a total of 377,219 ounces. In addition, there are at the present time in the Treasury 7594 ounces of gold, in excess of the quantity. on hand on the 31st July; making a total for the nine month's produce of 384,813 ounces, or over 16 tons weight of gold, of the estimated value of L1,536,00Q. The monthly yield has thus averaged very nearly 43,000 ounces per month, showing an increase on previous years; and the escorts exhibit no signs of diminution, but rather the reversed Total Yield. —The total known yield of the Province, from the discovery of Gabriel's to the present date (April 19th), as ascertained by the export returns amounts to 1,395,332 ounces, or 58 tons 277 lbs. weight troy, of the estimated value of (5,500,000) five-and a-half millions sterling. It is to be regretted that so much of this gold has passed out of Otago to Melbourne, whence it eventually finds its way to Britain aa the (supposed) produce of Victoria. I append tables showing the total and comparative amount received per escort for each month and quarter since the discovery of Gabriel's, and also the destination of the exports.

Condition. —The present state of the mines may justly be characterised as eminently healthy, and affording great expectations of future prosperity. During my recent visit to the gold fields I enjoyed many favorable opportunities of forming an unbiassed opinion on this subject; and I now beg leave to lay before you a detailed account of the several districts.

Tuapeka Gold Field.—This, the oldest gold field in the Province, not only maintains it? position as a rich and valuable auriferous district, returning altogether an average of 3000ozs per escort; but has, of late, undergone a surprising revival. Its population has been considerably augmented, and several new discoveries have been made within its borders. The township of Lawrence is slowly but surely growing in importance, and a general disposition towards settlement has been evinced by the miners and other residents. A large number of residence areas, of half an acre each, have been registered for the purpose of garden cultivation, and several hundred acres have been taken up under Agricultural Leases Regulations. Altogether there is no portion of the gold fields progressing more satisfactorily, and the spiirit of enterprise displayed by the miners is happily attended with results equally profitable to themselves and beneficial to the State.

Gabriel's. —The old gully, named after Mr Gabriel Read, is still extensively ■worked, aad the hills on the north side have been found to be richly impregnated ■with gold wherever they have been tried. At the celebrated Blue Spur the soil is being washed from the surface down to the bed rock, whereon there are fine deposits of the older tertiary formation, Races have been constructed from every available source, and the head waters of faraway creeks have been diverted by tortuous channels from their original beds to facilitate in the reduction of the hills at the head of Gabriel's and Monroe's. Judging from the results of the inroads already made it appears probable that at a not far distant date the range which now separates these two gullies, will be washed entirely away and a clean breach made right through ; for on either side the resistless waters are continually doing their work, by day and night, and gold is found in paying quantities throughout. On the very top of the dividing range, sufficient gold was obtained, in shaking a reservoir, to repay the expense of the work. Further down the gullies similar results have been obtained. In the flat, or valley, through which the creek runs past Lawrence to the Tuapeka River, extensive workings are being carried on, and very rich patches are occasionally struck. The hills and spurs on either side of the valley are known to be auriferous. Some of these were, to my own knowledge, successfully but scantly worked in the early part of 1862. Little has since been done in that direction, but the entire valley from the head of Gabriel's to the junction of the Tuapeka with the Clutha, is now occupied by a continuous chain of workings, although the population is too limited for any very systematic operations. At Wetherstone's, the beneficial effect of combined labor on a comparatively large scale, is abundantly evident. Originally the large flat there 'was unworkable by small parties, owing to the surface" water, which sadly impeded the operations of the miners. But a channel having (in a period of severe and general depression) been constructed by the Government, this obstacle was removed and the Regulations for granting Gold Mining Leases coming into operation shortly after, some enterprising parties availed themselves of these favorable circumstances,—a large portion of the flat being taken up by working miners in blocks of from two to four acres. The result is that the whole of the ground is now in process of being thoroughly worked. A large number of men are employed at good wages, and the leaseholders derive a satisfactory remuneration for their outlay and enterprise. I know of no other part of the country which is being so well and properly wrought as this, and I cannot avoid expressing a hope that the Leasing Regulations will be yet more- generally adopted by the miners, to whom they offer great facilities for the prosecution of mining enterpriw under a system combining

greater security of possession with the advantages derivable from associated labor. Waitahuna.—The district of Waitahuna languishes somewhat, owing to the want of an adequate supply of water. The richness of the soil has been amply demonstrated, and those who are best acquainted with the locality, know that it has never yet been properly wrought At some future day Waitahuna is sure-to occupy a higher position in public estimation than it does just now. There is scarcely a spur between the main gully and Waipori, or between either and Gabriel's, that would not pay for sluicing on a large scale. Two or three gullies have recently been opened towards the head of Waitahuna River, as Bolger's Gully for instance, where some heavy nuggets have been thrown up. But the population is very sparsely scattered over the district at present. Woolshed. —The workings at the Wo*lshed are carried on principally in the bed and banks of the Woolshed Creek, and a portion of the North Branch of the Tokomairiro River. Water wheels are pretty generally resorted to for raising the water to a sluicing level, and a race has been constructed from the upper part of the Creek near Mr. Miller's station. The miners have endeavoured to continue the workings further down the course of the Tokomairiro River, but have not met with much success. Apparently they have not sought to trace the auriferous deposits across the flat, yet there are good reasons for believing that eventually a deep lead will be struck in that direction. A few parties are still working at Adams's Flat, to the left of the old road over Mount Stuart; and Canada Bush has lately attracted a few miners. Waihola. —Heavy gold has recently been struck near Lake Waihola, on the borders of a little creek which rises at the rear of Mary Hill. I have been shewn some very rich specimens of auriferous quartz (the stone highly oxidised), said to have been found somewhere in that neighborhood, but the precise locality was not divulged. * . Waipori.—The district of Waipori is one of the most neglected, and I am strongly of opinion that it is also one of the richest alluvial diggings in the Province. Discovered just before the commencement of an unusually severe winter season in 1862, and situated high up on the slope of the Lammerlaw Ranges, it was speedily abandoned; not on account of any want of success, but uecause of the coldness of the climate and the scarcity of fuel. Little has yet been done in the way of developing its auriferous treasures, but that little is sufficient to demonstrate the fact of gold being thickly disseminated through the soil. On the Verter-burn (or, as it is usually termed, Post Office Creek), at the foot of the northern spurs of the Maungatua Ranges, miners have long been steadily at work, and a few men are still quietly working at the Lammerlaw and other creeks. The immense flat through which the Waipori river pursues its course can scarcely be said to have been prospected. A few paddocks have been wrought here and there .on its banks, and from these gold has been procured in remunerative quantities. I believe that the whole flat would pay well if systematically worked on a large scale. Shetland Reef.—But the chief wealth of Waipori consists now in its quartz reefs. The Shetland Reef, which is under application for lease by the Otago Qnartz Mining Company, enjoys the preeminence of bein" the first reef worked in Otago; and great credit is due to the enterprising men who, with little capital beyond their own labour, have brought this enterprise to a highly successful issue. They erected a battery of four stamp heads, worked by water power, and crushed everything from the cap of the reef downwards. The quantity crushed has been about thirty (30) tons per week, and the result an average yield of one ounce of gold to the ton of quartz; and they appear to have an unlimited supply of good stone. The company have recently added eight heads of stamps to their hattery, have constructed an iron tramway three-quarters of a mile in length, to convey the stone to the machine, and are now engaged in driving a channel through the range to carry off the under drainage ; which tunnel, when completed, will be nearly three-quarters of a mile in length. A new reef has recently being discovered underneath the old workings in Nuggetty Gully (a small but very rich working opened at the time of the first rush in 1862), and if the splendid specimens forwarded to this office by the prospectors are a fair sample of the stone, it-is an exceedingly promising lode and will handsomely repay the proprietors. 13. Riverine Districts. — Under this general title I include all those districts which abut on the Clutha River. There is now a continuous line of workings from the Tuapeka Junction to Quartz Point above the Kawarau; and both below and above those limits, detached parties of miners are successfully prosecuting their researches. There is little doubt, indeed, but that the beaches and banks of the Clutha are auriferous throughout its entire length. The beach workings have been for some time almost at a standstill, owing

* Whilst this report was going through the press, a report was received from Mr Mining Surveyor l)rumraOi.d respecting the Waihota Gold Field, from •which I extract the following :— '• The depth of sinking varies from four to six feet, generally through about eighteen inches of surface soil, from four to five feet of clay, aad in some places, about one foot of wash. The general character of the gold is large, angular, and very little water-worn (nuggets having been found varying from one to four ounces), and is chiefly found in the b«d-rock, which consists of blue slate lying horizontally, aud of which from about four to twelve inches is taken up and washed. The gold seems to be found in patches mostly on the lower side of the dips, The prospectors have been at work for about four months, and state that the largest amount of gold obtained by them in one week was twelve ounces. On the Saturday previous to my visit one party obtained six pennyweights to one tin-dish full; and, during the time of my visit, I saw about one and a-half pennyweights washed out of about six buckets of washdirt, the stuff being put through the cradle without being puddled. " From samples of gold I have seen, and the character of the surrounding ranges, I have no doubt but that quartz reefs will be fouud in the immediate neighborhood of the present workings, one reef havirfg been already reported to have been discovered about four miles from the Diggings, the discoverer of which, at the time of my visit, was about starting to prospect it, but declined being accompanied by any one, not wishing to divulge the precise locality till such time as he had tested the cipability of the reef. " 1 would especially recommend the line of country between the Waihola and the Waipori to the attention of quartz reefers, and am of opinion that, if thoroughly prospected, good results would accrue.

'■ I am of opinion tbat, in most of the flats and gullies between the Waihola, Waitahuna, and \tfaipori, patches of payable gold would be obtained if properly prospected, and that a large tract of auriferous country between the above named places s'ili remains to be developed, and might be made the means of affording profitable employment to many thousands of miners. " Timber for fuel iB within easy reach of the diggings, a considerable amount being also obtained is. sinking."

to the height of the water. Very general disappointment was caused last winter by {he constant floods, which rendered the efforts of the miners unavailing. At the present time the river has fallen unusually low —numbers are, in consequence, flocking back to its banks from all quarters, and most cheering reports of their success are received. Several experiments have been made with a view to work the bed of the river beyond low water mark, principally by means of dredging machines, of which there are now six in full operation within the Mount Benger district, and others within the boundaries of the Dunstan field. A certain degree of success has been attained, but the imperfect mechanical appliances now used require considerable improvement before the great problem of the concealed wealth of the Clutha can be satisfactorily solved. 14. Terrace Workings.—The bank or " terrace" workings (as they are usually termed), are co-extensive with the river itself. They consist for the most part of tunnelling operations carried on above high-water mark in the vast accumulations of drift gravel which compose the banks and terraced plains, the latter being apparently the dried-up beds of former lakes. Until recently it was generally supposed that the auriferous deposits were limited to the first thirty or forty feet of the bank, but experience has dispelled this illusion, and heavier gold is generally found at much greater distances. In the neighborhood of Clyde (Dunstan), one of these tunnels has been driven for a distance of three hundred and forty feet — payable washdirt being found all the way. Two parties are now sinking shafts in the Dunstan Flat—one of these is about a mile, and the other a mile and a half from the river. The latter had reached a depth of fifty-eight feet at the date of the last report, and in both the claimholders are sanguine of ultimate success. 15. Kawarau.—On the Kawarau River, operations similar in character to those of the Clutha, are being energetically carried on. Very rich tunnelling ground has been struck at the junction of the two rivers, near Cromwell; and also at the entrance of the Kawarau Gorge. At the latter place the ground is peculiarly rich, in proof of which I may quote a few well authenticated cases:—

Buchanan's party (four in number) obtained eight hundred (800) ounces in six months. Another party cleared out with two thousand one hundred pounds (L 2100) per man, the product of a few months' work. A miner deposited with the Receiver at Clyde one hundred and twentyfive (125) ounces, the savings of himself and son in a fortnight. Another deposited eighty and a half (80£) ounces, his own clear gains for the like period. 16. These are by no means isolated cases, though it is but rarely that miners will divulge their success. The claim of Scotland and party (adjoining Buchanan's) is known to have been amazingly rich ; and many are quietly making "piles" in like manner. But the few men scattered over the enormous area of tunnelling ground which exists in these districts, are utterly insufficient in number to do more than barely test its great wealth. There is ample space and verge enough in the terraces for twice as many miners as all who are now in Otago, to work for many long years. It is more than probable that $he whole of the soil will yet be sluiced bodily away from the surface to the bed rock; —operations to which end have, in • deed, been commenced at Quartz Point and other favorite localities. Tunnelling works have hitherto been greatly retarded by the dearness and scarcity of timber required for slabbing and propping the drives, but arrangements have lately been made for floating down a regular supply from the forests of the Hawea Lake, which if offered at a reasonable rate, will furnish an additional incentive to mining enterprise throughout the districts of the Clutha.

Mount Benger. — The apparent produce of this district, as shown by the escort returns, is very small, but this must not be accepted as a correct indication of the true yield; for (as explained in a former report) the greater part of the gold obtained within the limits of the Mount Benger field is disposed off either at Lawrence or in the Dunstan Township. There are few alluvial diggings in this gold field, —the workings being principally confined to the river beaches and the terraces. Several small gullies have been opened near Mr Gairdner's station on the Tallaburn, and at the Devil's Backbone on the Beaumont ; but little prospecting has yet been done in that direction, although there is a vast extent of very premising country between Lawrence and Roxburgh, as there is also on the flanks of the Lammerlaw Ranges to the east and amongst the Umbrellas to the west. A small but very rich gully was lately opened up by the accidental discovery of gold daring the construction of the road from Tuapeka, and I observed a solitary miner engaged in washing auriferous drift, obtained immediately below the surface soil, near the summit of a high range on the road side. Altogether I regard this field as in a state of incomplete development. 18. Dunstan and Manuherikia Districts. —The produce of this field has been uniformly large during the period to which this report refers; and if the river continues at its present level, a greatly increased yield may be anticipated. The partially worked gullies of Conroy's, Hill's, and other 3in the Carrick Ranges still continue to support a limited population. Gold has been found on the mountains under the Leaning Rock, and on the very summit of the Obelisk or Old Man Range. The slopes of the Mount Pisa Ranges have been successfully opened up, and new group d has been struck near the head of the Manuherikia Valley, at Blackstone Hill, Dunstan Creek, and Mount St Bathan's. The Manuherikia River has been turned in places, and the flats lying between that river and the Manorburn have been prospected with great success. These flats, however, can only be properly wrought by companies of associated miners, sufficiently strong in number to overcome the obstacles presented by the pervious nature of the soil, through which the water constantly percolates, rendering futile the attempts of small parties. Latterly an auriferous quartz lode has been discovered Dear Drunken Woman's Gully, on the western slope of the Rough Ridge. The discoverers have applied for a lease, and are taking measures for working the reef.

Wai-Kbri-Keri. —Cultivation, though not carried on to so large an extent as on the Tuapeka field has yet made censiderable progress in the Dunstan. In In the valley of the Wai-Keri-Keri there are flourishing and well-kept market gardens, and the miners have largely availed themselves of permission to take up half-acre residence areas. The climate of the Dwutaa is yery warm and dry> aad

highly favorable to the rapid growth of vegetation, provided that due attention is paid to irrigation. The township of Clyde is rapidly improving owing to the recent sale of the allotments, which has produced a most beneficial effect.

Wakatipu.—This famous gold field still continues to yield enormous quantities of treasure, and exhibits no sign of exhaustion. Indeed, from my acquaintance with the country, I venture to predict that the day is very far distant when the Wakatipu shall be despoiled of a moiety of its golden treasures. Queenstown is now undoubtedly the second city in the Province, and from its position as a terminus it will long remain so. Cultivation is also beginning to take root in the district. The exceedingly rich plains around Lake Hayes are eminently adapted for this purpose, and would attract a large agricultural population if promptly offered for sale.

Shotoveb RivER.-»-The Shotover River, with its tributaries, is now being thoroughly worked from below Arthur's Point to near its sources, and with extraordinary success. At Arthur's Point the Warden reports a yield of six hundred (600) ounces per week from one of the claims. From Maori Point, and more recently from " Jack B. B.s Beach," instances of success are continually being reported by the Warden. As much as fifteen thousand pounds (Ll 5,000) worth of gold has been taken irom some of the river claims, and the washdirt is still rich, and by no means exhausted. Indeed, a theory has gained ground amongst the mioers that the deposits of gold in the bed of the Shotover are continually renewed by the heavy floods bringing down the detritus of the auriferous rocks, which everywhere hem in the deep ravines and gorges formed by the channel of the river. Many circumatances seem to favor this not altogether improbable idea. An apparently feasible scheme has been projected, for diverting the eastern branch of the river, above " The Fork," by driving a tunnel through the intervening range to the western branch. It is expected that about three miles of the river bed will thus be rendered free for mining operations, and application has been made for a lease for this purpose. An attempt is also being made to prospect the " Gorge," or old river bed between Arthur's Point and Queenstown, but I am not yet aware of the result. Another river bed of more modern date, which appears to lead in the direction of the Arrow, has not yet attracted the attention of the miners, although it presents indications of auriferous deposits. More attention has lately been paid to the terraced banks of the Shotover, which have all been found to contain gold in payable quantities—as much as six hundred pounds sterling (L 600) per man having been obtained for two months' work. Hydraulic sluicing (for which Otago offers such abundant facilities) has been brought into operation, and here, as elsewhere, this has been found to be the be9t and most profitable method of reducing the soil and extracting the gold. Mineral Lodes.—The Elgin Quartz Reef at Pleasant Creek may now be said to be in a fair way of being properly wrought, the machinery necessary for the purpose having been erected for crushing the stone. The force employed is water, as at Waipori, rendering steam power unnecessary, to the great advantage of the leaseholders. From the specimens forwarded for inspection, I anticipate a splendid return from this reef. A lode of pyritous copper, yielding, as per analysis, twenty-four per cent, of metallic copper, mixed with iron pyrites, has been discovered at Moke Creek, and application has been made for a lease by tne original discoverers. This lode is surrounded, —and, indeed, the cap of the reef itself is, in places, covered—by auriferous _ soil, and it is not improbable that the lode is itself impregnated with gold. Lakeside Workings.—The creeks and terraces along the northern and eastern shares of the upper portions of Lake Wakatipu have been very imperfectly wrought, and bid fair to attract a large population at some future time. Gravel taken out with a shovel at random, from beneath the waters of the lake itself, has been found to be interspersed with gold. The Rees and Dart rivers have been irregularly prospected with varying results. At Precipice Creek (opened about a year ago) the depth of sinking and the rush of water, deterred many from setting in, but its auriferous character was nevertheless iully proved ; indeed £old has been found high up on the eastern slopes of the Dividing Range itself. The Upper Lake District may therefore be regarded as a promising field for future enterprise. Arrow. —This locality, the scene of Fox's rush, still maintains a large population, and mining operations are being carried on with great energy at the Twelve Mile Creek and other localities. Here too the terraces are yielding well whereever they have been tested. Below the township the river does not appear to maintain its auriferous character; and there is reason to believe that its former course was somewhere in the direction of Lake Hayes. It is surprising that the terraces along this line have not yet been tried. A quartz lode has been struck about three quarters of a mile below the Camp, but I am not in possession of any official information respecting its value and extent. *

Cakdkona. — The upper portion of the Cardrona Valley has been steadily and profitably worked ever since its dis covery. The population has never greatly fluctuated in numbers, which may be set down at from 250 to 300 persons. As there is no escort thence, the yield cannot be stated, but there is ample evidence of its being capable of supporting a much larger population, since it includes a very extensive area of auriferous ground, much of which is yet untried. Gentle Annie. —The " Gentle Annie Creek" also maintains a limited population,- but the appearance of the surrounding country induces the belief that the present workings are but the prelude to much more extensive operations. The

* Since writing the above, the following notice of the Arrow Reef has appeared in the " Lake Wakatip Mail":—" The Arrow Keef has been partially worked for some time pa*b by the present holders of the claim on which it is situated, who have opened up a considerable extent of ground, laying bare the Quartz leader first discovered, and also, latterly, the Main Reef, which is apparently an extensive one, dipping towards the river, The crowD of the reef is about ten feet from the surface. The casing consists of a blue, clayey and pulverised quartz concrete, which has been found to yield good gold, and is considered a sure indication of the auriferous nature of the reef itself. A quantity of quar«z already obtained from the leader has been crashed by a single hand stamper, and although the process is tedious to an extreme, the results have been sufficient to pay the party moderately good wages, a great portion of the stone having yielded at the rate of five ounces to the ton, and although ia all probability the average yield of the reef will have to be calculated at something less per ton, yet this may be take* aa ft fair test of tk« value of the slaim."

Roaring Meg aud other adjacent creeks are also being wrought with success, and as the Kawarau River has been found to be auriferous throughout its entire length, a large accession to the population of these outlying, districts may be anticipated, when the road, now in process of formation from Clyde to Queenptown, shall be opened for traffic. Nevis.—Notwithstanding the difficulty of access to the Nevis Valley, several hundred persons are reported to be engaged in mining operations thereon. There is no doubt of its being a large and valuable gold field ; and if a practicable road was constructed, either from Clyde or Cromwell, mining enterprise on the Nevis would be greatly facilitated and encouraged by the consequent reduction in the cost of provisions and mining implements. It is impossible to estimate the yield, as the produce is sent to Queenstown and Clyde, but there is reason to believe that it is considerable. The discovery of a quartz lode on the Carrick Ranges was lately reported, but the prospectors do not appear to have taken any action for working it. Nokomai.—New ground is continually being discovered in this district, and the small population located there are doing well. The main workings are situated on the banks of the Nokomai River, and the adjacent terraces. Heavy finds are occasionally reported from them. Wakaia Valley.— A scattered population is located throughout the Waikaia Valley, with what result I am not informed. The creeks at the head of the Pomahaka have also qeen prospected, and a few parties are working there. On the Waikaka Creek payable ground has been struck, aud indeed gold appears to be disseminated through the soil in the whole of the country lying southwards and towards the sea-coast.

Mount Ida Goldfields. —The Mount Ida gold field has been much less wrought than the geological characteristics of the country would warrant. Unfortunately, it was discovered just as the winter set in, and the severe winter experienced by the miners doubtlessly operated as a severe discouragement. It is a fact worthy of note that every field opened in this Province during the winter season hai been abandoned before its resources have been fairly tested. Such was the case with Waipori, Mount Ida, and Hindon; yet I question whether more promising fields exist in Otago. On my recent visit to the Hogburn, the scene of Parker's discovery, it occurred to me that the district had been only very superficially explored;—indeed the main workings have been carried on in an eroded valley, from which it is more than probable that the richest deposits have long since been washed away. In my last annual report, (p. 15) I referred to the fact tint " gold of a much rougher and heavier description" was found towards the head of the Hogburn and contiguous creeks; and hazarded an opinion that "far richer deposits would be discovered nearer to their sources in the Mount Ida Ranges." Auriferous ground has since been opened on the very summit «f the ranges, more than 3000 feet above the level of the sea, at a place improperly termed Clarke's Gully;—the diggings being on almost level table land. If some of the spurs and terraces towards the head of the Hogburn, and more immediately underlying the ranges were tested, I am strongly of opinion that very rich ground would be discovered.

Hamilton's. —On the opposite side of the huge natural amphitheatre, known as the Mainototo Plains, and exactly facing the Hogburn is the mininsr district of Hamilton's. In October, 1863, a miner named Brockleman, and three others, who had been working for some time at the Hogburn, had their attention attracted to the "made hills" on the northern slopes of Rock and Pillar Rangers, and determined to try them as soon as their means would allow them to purchase a packhorse. Two months, however, elapsed before they were able to effect this purpose, when they started with four week's provisions, and commenced working up towards a landslip in the face of the mountain. Fifteen holes were sunk by the prospectors with varying results—the average yield being a quarter of a pennyweight to the dish, with from six inches to one foot of wash dirt. On the third day they obtained from another hole a prsspect of one pennyweight to the dish, and immediately marked out a prospecting claim; and on the same day communicated the discovery to the Warden at Mount Ida. A rush set in, and a considerable area of auriferous ground was discovered. The deepest sinking is immediately under the landslip referred to, where a depth of from 70 to 80 feet is obtained, with thick deposits of payable washdirt. A very lar^e extent of country yet remains unwrought in this district, which promises to be a very permanent field.

Sowburn. —Westward from Hamilton's is the Sowburn, on the banks of which some parties have been working for a considerable period. There is no doubt but that a considerable tract of auriferous country, consisting principally of " spur" or hill workings, remains to be explored between the Pigburn and this locality, and also beyond,—namely, round the Western slopes of the Rock and Pillar

Ranges. Murison's. —Bounding .the Maniototo Plains to the westward are the Rough Ridge Ranges. Little has yet been done towards their exploration, but they present every indication of being rich in the precious metals. At the back of the Messrs. Murison's station a gully has been not unsuccessfully worked by a few miners, but the great wealth of this district as indeed of the whole of Otago, will be developed rather in the spurs than in the gullies, which but too frequently present the least promising,—although the most readily chosen —field for mining operations. The miners have yet much to learn in this way; and I feel assured that when more attention is paid to the slopes of the ranges, (formed as these are by landslips from the adjacent auriferous rock,) the produce of our gold fields —great as it now is—will be very considerably surpassed. Hyde.—Under the name of JHyde is designated the district previously known by the inconvenient phrase of k' The Nine Mile,' I—a1 —a name so common on all gold fields as to cause the most extreme confusion. These diggings are not by any means a new discovery—men having been quietly working them since the winter of 1862. But the present rush has a more recent date, since it was only in January that any attention was paid to this remote and neglected, but" exceedingly rich locality. There is now on the ground a population varying from 800 to 1000 men. The workings, which are situated on the eastern face of the Rock and Pilar Ranges, about eight miles below the Taieri Lake, are principally hill workings,—the miners following ♦• the lead" from spur to spur towards Phillip's !• wer station. Manj »f tke

NEW ZEALAND.

claims are very rich, and when water is brought in in quantity, larger results may, be expected. I incline to the belief that a second floor will be found below the pipeclay, now regarded as '• bottom." Taieri River.—A little below Hyde some parties are working in the bed of the Taieri River with considerable success. Intermixed with the sand are found some rather fine gems,—rubies, or zircons. It is scarcely possible to take a di9h of sand from the river at this point without finding more or less gold in it. I am much surprised that the resources of the Taieri have never been fairly tested. Much further down, below the Deep Stream, it has been turned, and, as I am informed, with highly successful results. If a little more attention was paid to the bars and beaches of the Taieri it is probable that, although it may not be equal to the Clutha or Shotover, it would be found to be more or less auriferous throughout; and as its course could be turned with comparatively little difficulty, it is to be hoped that the attempt will ere long be made. Fullarton's.—Four miles below Hyde, on Saxton's run, on the eastern bank of the river, is Fullarton's (or the Twelve Mile), an old field discovered in 1862, but now revived. The new ground (first opened, I believe, by the miner whose name has been given to the workings) is comparative deep, namely—from 50 to 70 feet. The miners located there are not numerous, but are reported to be doing very well, with plenty of likely looking country adjacent to that already opened. Fi.at. —This is another locality which has been more or less worked since the winter of 1862. It is situated on a watershed of the Stoneburn, a tributary of the Waihemo, or Shag River. Along the Stoneburn itself a few scattered parties of miners are working in the banks, over a distance of 10 miles. The sinking in both of these localities is little more than surfacing—being only from two to five feet, whilst the average earnings of the men are reported by Mr Inspector Golder as varying from L 2 to L 6 per week. Hindos. — This district may be said to consist of two distinct yet connected fields:—That on the eastern watershed of the Hindon Ranges—discovered by Mr Simon Fraser —and that on the western watershed, opened up by Nicoll and party. Fraser's Creek, flowing through a deep ravine, was first opeaed in August or September. It does not appear to have been thoroughly worked at first —too much attention having been paid to the channel of the watercourse, arid too little to the promising spurs adjaceut. Gamecock Gully is situated iower down the river, and has also been but imperfectly wrought. Nicoll's Gully, and the numberless other gullies beyond, in the direction of the Deep Stream, were discovered in October, 1863, and on the announcement of the discovery a great rush took place. Many did exceedingly well upon this field; but three causes combined to prevent its being fairly tested. In the first place it is too near Dunedin, and consequently a large proportion of the people who assembled there were but indifferently acquainted with the science of mining. Water also is very scarce; for, situated on an elevated table land, devoid of high ranges, Hindon possesses no running creeks of even inferior magnitude ; and in Otago miners will seldom endure to convey the wash-dirt to water, of which there is plenty within a few miles; and, lastly, as I have before observed with regard to other fields, the rush took place in the middle «f winter, and few could be found to submit to the consequent inconveniences. The Hindon district was, therefore, abandoned at an early date, not, however, until a very large extent of country had been proved to be highly auriferous, and to which, ere long, a large population will again be attracted.* Mullochy. — Mullochy Gully is a small tributary of the Taieri, on the eastern bank of which it is situated, about three miles from the West Taieri Road. It was opened about June 1863, and a few parties are yet vigorously at work there, turning the creek, and generally earning moderate wages. Seacoast. — Gold still continues to be found at intervals along the coast, intermixed with the sands of the sea. There is here abundant scope for science and enterprise, which will some day no doubt be brought to bear upon the golden treasures which now lie neglected along the shores. The Department has recently been presented with a small quantity of iron sand, plentifully intermixed with gold, obtained irom a small creek which runs through Molyneux township near the coast. In former reports I have drawn attention to similar deposits at Coal Point and Moeraki Beach ; and I may mention that a splendid sample of heavy gold obtained from the Horse Range, near the latter place, was recently shewn to me by Mr Young, of Hampden. Mining Leases. — The regulations for granting mining leases within the Province of Otago are at length beginning to be more generally adopted. The system hitherto pursued in regard to this phase of mining operations has been to discountenance all speculative applications, whilst affording every possible encouragement to parties of associated miners, for whose benefit alone the system has been devised —a policy eminently adapted to promote the best interests of the mining community. It is greatly to be hoped—and it is expected—that the miners will still more eagerly avail themselves of the advantages offered by the regulations during the ensuing year. Capabilities op the Soil. — Around all the principal gold fields there are extensive tracts of land admirably suited for agriculture and horticulture. Notwithstanding the great height of the mountains and that of some of the workings, the adjacent valleys and plains are of comparatively moderate elevation. All the ordinary grain and root crops may be successfully cultivated, and in one district, the Dunstan, which is only 600 feet above the

• During the progress of this Report ihrou^h the "press, the following- Report was leceiveJ from Mr Warden Charles Broad : — May 16,1634.

Sir—l do myself the honor to report to you for ike information of the Government, ssveral cases of individual success which have been brought under my observation on my usual periodical visit to tliis place. Ist. Callaghan and party, working in Fraser'a Creek, last week found a uuggtit weighing a little over twelve ounces, and also four ounces of coarse gold, on (he sue of the Creek, at twenty feet depth, in a sort of gutter. 2nd. «!asey and party, working on the same place, last week got half an ounce out of a tin dish, and one ounce out of three tin dishes— one piecs weighing seven pennyweights. This was obtained out of their old claim, abandoned three months ago. 3rd. Ormond and party took down eight pounds weight of gold last week, also obtainel in Fras.r]s Creek ; a man called Joe, the baker, saw this weighed. I have only again to express my opinion that Hindon has never yet been properly tested, and that it will yet prove one of the richest Gold-fields in the Province. I have the honor to bi, fee, (SigsN) CHARU* Bku».

sea level, pumpkins, squash melons and cucumbers of great size are readily produced ; and 1 am assured by Mr Bladier, a well-known Victorian vigneron, now resident in the Wai-Keri-Keri Valley, Dunstan, that the climate of that locality is less liable to frost than either the south of France or the district of Bendigo in Australia, and highly favourable to the culture of some species of the vine. Cultivation. — Nearly three hundred persons have availed themselves of the opportunities offered by the Gold - fields Rules and Regulations to commence cultivation on the gold-fields, and gardens are now becoming a marked feature in the improvement of the country, a circumstance which essentially contributes to Uie health and comfort of the mining community, whilst it evinces a disposition towards settlement worthy of all encouragement. Reserves for commonage, and which are also available for agricultural lease 3, on. easy terms, iv blocks of ten acres, have been made at Dunstan and Wakatipu, iv addition to the Tuapeka Reserve, by the cancellation and purchase of the runholders leases.

Survey and Sale. — Since the date of my last report, sales have been held of town section*, at Lawrence (Tuapeka), Clydesdale (Dunstan), Cromwell (Kawarau), Queenstown and Kingston (Wakatipu'). Other townships, as Alexandra (Manuherikia), Roxburgh (Teviot), Hamilson's and Mount Ida, have been surveyed and will shortly be available for sale. Suburban sections are also in course of svrvey at Tuapeka, Dunstan, and Wakatipu, and I doubt not will command a ready stile if placed in the market at an early date; for I am aware that there is, at present, a very strong desire to purchase such lands for the purpose of settlement. Pastoral Leases. — A portion of the Gold Fields Reserve, consisting of two runs (Nos. 53 and 54) around the Tuapeka Gold Field, being larger than was immediately requisite for commonage or agriculture, has been divided into five blocks, and leased by auction, subject to conditions favorable to the Government and the mining community. 40,200 acres have thus been economised, at an annual rental of Lll2B 6s 8d, —being an average of 6fd per acre. 16,800 acres are still left for commouage, in the .immediate vicinity of the gold workings at Gabriel's and Waitahuna.

Lignite.—lt is a subject for congratulation that although wood for fuel is scarce, extensive deposits of Lignite, or Brown Coal,, have been discovered on almost every field. The rate at which it is supplied varies from one pound (LI) to to one pound fifteen shillings (LI 15s) per ton, delivered at the pit's mouth. The machinery necessary for weighing being difficult to procure on the diggings^ the mode usually resorted to for ascertaining the quantity is by computation, ten bags of five bushels each being ordinarily considered equivalent to a ton weight. I append a list of the various localities in which coal has been discovered:—Waitahuna Flat, Lawrence, Butcher's Creek, Molyneux River, Clyde, Kawarau, Hogborn, Hyde, Robertson's Flat, Manuherikia River, Bannockburn, Coal Creek.

Popun.Tro>r.—The population of the gold fields has not greatly varied since the date of my last Report. From the latest returns furnished by the Wardens, the entire number of residents on the gold fields is estimated at 25,945 persons, distributed thus: —

Miners. Others. Total. Gabriel's District.. 900 700 1600 Waitahuua 250 130 380 Woalshed 260 45 305 Waipori 250 50 300 Mount Benger ... 2650 430 3080 Mannherikia ... 2200 500 2700 Punstan 3500 700 4200 Arrow 1600 180 1780 L*ke Walfatipu ... 2403 1100 8500 Upper Shorover -. lfto 300 1800 Wokomai 360 40 400 Nevis .. .. fiOO 50 650 Waikai Valley .. 1075 75 1150 Hnmilton'H.. •• 800 200 1000 Hyde . ... 1000 250 1000 Hinilon .. ..300 50 350 Mount Ida 1250 250 1500

20,895 5050 25,945 This return can only, however, be regarded as approximate, and I have reason to believe that the entire population of the Otago gold fields does not exceed 22,000, ofjwhom probably 18,000 only are miners.

Management. — The management of the gold fields, so as to ensure the efficiency of the service, in combination with reasonable "economy, has always been a subject of anxious interest. As will be seen by reference to the large map forwarded with my last report, the mining population is scattered over an immense area, extending from the Silver Stream and Lake Waihola to the West Coast Mountains, and from the Kakanui Ranges to the Mataura. This circumstance necessitates the stationing, in numerous localities, of officers whose presence is necessary to the collection of revenue, and the settlement of disputes. If the population was three times as large as at present, very few additions would require to be made to the present staff. But notwithstanding the difficulty thus created, every possible facility has been afforded to the residents in our gold fields, at a cost considerably less than the ratio of similar expenditure in other gold producing countries. The total amount expended during the financial year ending 31st March, 1864, for salaries and contingencies, was L' 22,594 7s 4d. The revenue derived from the go d fields during the same period was L 100,142 19s Sd. Amalgamation of Offices. —Considerable saving and increased efficiency is anticipated from the judicious amalgamation of offices. Thus the offices of Registrar and Receiver have now, on all the fields, been combined with that of Clerk of the Courts—the duties appertaining to the whole of which, can, without difficulty, be discharged by one and the same officer. This arrangement allows of officers being stationed in remote districts which previously were without any supervision ; so that without any additional cost to the State, the requirements of the miners are more readily attended to. The total number of officers of the Goldfialds department stationed in the field is forty-three, of whom there are r» • 12 Wardens, acting also as Resident Magistrates. 14 Registrars and Receivers, acting . also as Clerks of Court. 1 Clerk. 4 Inspectors of Licenses. 8 Bailiffs.

3 do., acting also as Inspectors of Licenses.

Mining Survbit Staff. — This branch of the service has been found to be so generally useful as to necessitate enlargement. It now consists of four mining surveyors and two assistants. A slight increase has this year been asked for. The labors of these gentlemen are by no means confined to the ordinary duties of mining survey. They have been employed te construct roads and bridlf

paths,-,to re-smvey, townaiiiij^t^^rect cairns and snbw-pbTef, to survey goldfields reserves, lignite beds, and agricultural leases,: and generally the;r services are at the disposal of. the Government for any purpose whenever required. I cannot speak too highly of the ability, zeal, and energy, evinced by these officers in the prosecution of their multifarious duties. j

Concluding Remarks. —In conclusion I beg leave to. reiterate my opinion (which frequent visits to the gold fields •strongly confirms), that the future of Otago as a gold-producing country is firmly assured beyond the reach of question or doubt. lam quite convinced that even yet, gold-mining in this Province is but in its infancy. On few fields have any but the most simple appliances been brought into operation. Machinery (as I have before stated), there is comparatively very little in use, Yet, even so, the gains of the miner are, on the average, far larger than in any other part of the world. The progress of discovery has dotfed the country with isolated diggings, which will all ere long be connected in one continuous gold field. At present they only serve to prove the vast—l had almost said—the unlimited extent of auriferous ground; which Ido not hesitate to assert, is unparalleled. Slowly also, the miners are w?ilearning the experience gained in other countries, and beginning to understand the peculiar character of these workings. The great problem of the general diffusion of gold in Otago is now being practically solved. In Australia and California, riverine action has been the main agent in the deposition of the previous metal. Here that agency must be ascribed to the period when numerous Lakes washed the bases of the mountains; and hence it is that the " terraces" and " spurs" are found to contain more certain deposits than the gullies, which are often only casual surface depressions or eroded vallies, whence the auriferous drift has long since been eliminated by the action of the mountain torrents. Time and the teachings of experience can alone render the miners cognizant of tbe true or probable position of the deposit in each locality, but every year —nay, every month and week— h pregnant with such lessons, and when this subject is more fully understood, Otago will have passed through the feverish spring tide of early discovery, and its attendant "rushes;" and will enter upon the full enjoyment of that mature and permanent prosperity, which must inevitably result from the more systematic working of the mines, and the progress of settlement on the gold fields.

I have the honor to be, Sir, Your obedient servant,

Vincent Fyke, Secretary of the Gold Fields Department, Dunedin, April 19, 1864.