The Mines.

Otago Witness, Issue 1506, 25 September 1880, Page 9

The Mines.

NOTES FOR THE WEEK.

A {telegram from. Palraerston North, dated September 18th says : — Henderson, the man selected by the towns-people > to accompany Moss the prospector to Fitzherbert, returned last night, and reports the reef said to have been discovered by Moss to be a hoax. Henderson, however, picked up in the gully » large lump of rich quartz with gold plainly discernible through it. The result of a trial disclosed that although no definite reef has been discovered, there was, no doubt, gold in the vicinity. Several parties have • left town to try their luck proepeoting. Henderson said the whole features of the country warrant the assertion that there is gold all through the ranges. The Nelson Maflipublishes an extract from a letter from Greymouth, in which the writer, referring to gold prospecting in that locality, gays: — "An authentic report has been, received of very good gold being got far up the ranges between the bend of the Black Ball and the Ten-mile Creeks, running from . the ranges seaward. This is terra incognita of past years, and the discovery is solely the result of the findings at the Seventeen,- mile Beach. All the country from Moonlight across to Bazorback, and all the back country down to Charleston, will now be thoroughly prospected. The laßt find is near Roaring Meg, to approach, which demands acrobatic qualifications of the highest order." The country referred to is o! very considerable extent, and should the report mentioned prove correct, it 1b likely that the auriferous deposits will not be confined to the locality where they are said to have been found, but will be spread over the whole area between the Seventeenmile Beach and Charleston, which is some 30 or 40 miles in length, and from four to five in width. Bef erring to the work now being done with the Government diamond drill at Kanieri, the West Coast Times says the rate of progress ia mot considered satisfactory, and so far the machine cannot be said to be a success in boring through the soft sandstone where it now is at work. In fact, it is merely making a considerable hole by friction instead of by cutting with the diamonds. The drill " wobbles " about in the hole, which is much larger than the drill, and simply frays away the ground by friction instead of by cutting. No such thing as a oore it possible up to the present time at least, and the sandstone is discharged through the rods in fee form of puddle. I

News reaches us (says the Lake Wakatip Mall) of cheering prospects at the Upper Shotover reefs daring the ensuing summer. The Aurum (Nugget) Company are busy crushing. Messrs A. Southberg. A. Olsen, and W. Duncan (better known as Southberg and party), who have been working bard, under adverse circumstances, since the floods of 1878, have struck what may be termed first-class stone in the old British American claim, both in the upper and another level about 30 feet lower— so far establishing the auriferous character of the intermediate lode. The party have also driven •long the reef, which is* some three feet thick. They will not, however, commence crushing for another three weeks, having first to repair their roadway and get thing a If ttle jhlp -jthape. The Phoenix Company have,) we hear, not been successful in getting experienced mih«rs at the rates recahtly offered by the manager, owing chiefly to the expensiveness of, provision* j but as they are determined to work the mine on am extensive scale, this will 'not retard operations, and as soon as the amalgamator can be fixed crushing will no doubt proceed. ' ' • The Hyde correspondent of the Palmerston Times writes : — " Mining operations are going •bead briskly, but if the weather continued as fine as heretofore I am greatly afraid ithe water supply will ran short/ '■ There is nothing much to report in mining (i»s an Arrowtown correspondent). The 'Tippewry and Hpmeward-Bound Companies are getting oat stone very * rapidly, 'and have got several tons to grass. The stone is looking well, and I am told will yield 'the biggest dike thai has aver oome down the MIL We h»ve been informed (says the Southland Newi) on good , authority that Mr Hogue, manager of the Geelong claim, Longwood, who has* been in town to-day, states that the reef in that , claim looks, exceedingly well, and! he expects a "rich crushing about the end of this month* ' I j Mr J. F; Watson received a telegram from Biefton on Saturday, stating that the return -from the United Alpine Company was 4200z of amalgam from 140 tons of quartz. The Keep-it-Dark return is' not to hand. The second crushing of stone from Priotz's qfrjm (says Friday's Western Star) was commenced yesterday morning, and judging from the quantity (about 129 tons) in the paddock, there will be work enough for the mill for a week or two. — A fair start has again been made with driving in the Geelong claim. About 20 tons of stone has been got out, and by the time the battery has finished with the present crashing at Printz'e, there will be sufficient quartz ready far the mill to give the quality thereof a thorough trial. We take the following mining items from the Mount Id* Chronicle.— "We learn that Mr Holverson, at Hyde, has finished his drive— a work in which he bas been engaged for some considerable time. His anticipations, so far, have been realised, and the result of his labours hss been the opening up of an additional are a of auriferous ground. The extent of the deposit is notyetdefined,butwhenitia considered thatgood prospects have been obtained overhead in the drive, most encouraging results may be relied on. — Prospecting is stilljbeing carried on at Vinqgar HOl, near St. Bathans, with varying eucoess, and a large amount of money ia being expended in cutting tail-races, which, in some cases, 1 are several miles in length, and very deep, owing to the level nature of the country. In Vinegar Hill and Shepherd's Hut Creek Flats a goldfield of considerable extent his been discovered, and when the works necessary to develop it have been completed— the most important of wfcich is the introduction of water— it will afford remunerative employment to a large number of -men.— Earlier than usual, owing to the mildnets of the weather, the miners on Mount Burster have again assembled to commence operations for the season. In past years a considerable amount of preparatory work had to be performed before the face could be cleared of the snow for sluicing, while head and! tail races had to be tunnelled to permit the water to flow. Some seasons the depth! of enow had completely obliterated all traces of either claims, tail races, or huts. This year very ntue i preliminary labour will be required ; and should the district be favoured, with a similar ' seupn to the last, a considerable quantity of gold may be expected from the 'hill.'" Writing of the Wetherstone* Cement OomWp ■ ™**> t o Tuapeka Times says :— •'Amidst the failures which have taken place feSu •fW'W.o' «» other cement claimß at WetherstouM, it is very gratifying to find the priffod pm OMtfeaty to p» y good diyidf B ds

to its fortunate shareholders. Had it also been a failure, the Wetherstones cement would, in all probability, have lain untouched for at least another decade. As it is, the steady yield of gold it is producing from month to month is inspiring fresh confidence in those who have already sunk a good deal of their capital prospecting the various claims they had taken ]up ; and there is a near chance of a new departure being made in the prospecting of the cement. The output of the mine last month was about 3000 truckloads, which yielded 208oz of gold, or a fraction over ldwfc 9gr to the load, or say ldwt 20gr to the ton. The only way apparently to make these cement claims pay is to use every possibility for increasing the output; and this, it will be acknowledged, the manager of the Wetherstones Company is succeeding well in doing." We were shown this morning (says Friday's Southland News) some very good specimens of gold crushed out of Btone taken from Daniel's No. 1 mine, Longwood. The reef is about-nine inches thick, and 14 feet from the surface, running north and south. The rush of water in the mine is too great to allow operations to be proceeded with at present, ibut work will be resumed shortly, when the proprietors hope to be able to give a still more agreeable report. In referring to the dividend likely to, be declared by the Wetherstones Cement Company for the past month (says the Times) we were considerably under the mark when' we said L 75, a dividend of LIOO per fourth share having been declared. Shares in this Company should now be looking np in the market. The Golden Gate Company, Wetherstones cement, are about to start operations in their claim, which is situated in the creek close to the town of Wetherstones. They have a strong conviction that the run of gold now being worked by the Wetherstones Company will continue in the direction of and through their claim.

The mining reporter of the Dunstan Times writes :—•♦ The last newly-dfecovered ree! in the Bendigo district, the • Try Again,' situate on the main leading spur from the Olutha Valley to Thompson's Gorge, and generally known as the Rise and Shine spnr, is from present appearances likely to eclipse in stability anything yet discovered in that district. On the surface the body of stone has been traced a long distance, and varies from nine to 60 feet in width. A huge hole into the body of stone has been sank nearly 20 feet, the stone getting harder as a greater depth is reached. A trial crashing of a few tons gave a yield of nearly two ounces to the ton, and as gold can be plainly seen in the stone to the depth yet reached, the shareholders are sangtune that they have a good thing. So firm is their belief in the reef that they have purchased the old Alta machinery which was < on the next adjoining spnr, and are now busily erecting it Several shares have changed hands locally at fair prices, bat there is no farther disposition on the part of holders to part with more. It will be surprising should the • Try Again ' prove as good as present indications would lead one to believe, as its existence has baen known to .everyone in the district for years past, in fact the track along the Hpur is made through it for a depth of two feet or more, and for some distance — The 'Rise and Shine' alluvial claim, which is situate at the top of the range, about threequarters of a ( mile from the 'Try Again,' has been, I am informed, turning ont remarkably well during the pasc 'season. In this claim there is an enormous body of quartz, indicating the existence' cf a strong lode, but whether it contains gold in paying quantities has not yet been ascertained. . I am surprised at this, and often think think that if it were at Stawell, where there is energy sufficient to sink shafts to a depth of over 2200 feet, or at Ballarat, the question as to its worth would not long remain unsolved. The Thompson's Gorge reef, which is some three miles from the ' Rise and Shine,! but on the opposite or Manuherikia side of the range, is "another vast body of quartz that requires developing. The trial crushing* from this reef turned out nearly three ounces to the ton, yet, beside a little surface scratching, nothing has been done,. to develop it— The coming season amongst the alluvial miners in this looality, notably at Tinkers and Drybread, for the want of water is likely to be a slack one } in fact, one claim, the old ' Blue Duck,' has already had to knock off for want of the liquid element. The shareholders, ' to my mind, could not better employ their idle time than in testing some of these bodies of stone that are now lying idle, as the chances of being recouped for thoir labour, are much in their favour. An arrange, ment, I think, could be made, and one that would meet with very general support by, all classes in the district, by which one or mote of the reefs could be tested. My plan would- be to form a kind of prospecting association, working shareholders to receive in cash say LI per week to coyer currant expenses, and a certain interest in the mine if payable gold is found, and the sleeping shareholders such interest in the mine in accordance to the amount contributed by them. Tha success of the whole affair would depend entirely on the working shareholders, and if a party having the confidence of the public were nominated there is not a doubt but that subscribers to the fond would be found in plenty, and still less that something good would be found." The Waikaia correspondent of the Tapanui Courier says :— A vers rich deep lead has been struck at the back of our town,, and traced right across the flat. Men drawing the staff up in trucks' to the surface (a very slow process) harebeen. making as much as 15s a day. Mr Bastings promised when here that if a reasonable extent of good payable ground was diacovered be was prepared to find a man who would erect £1000 worth of machinery, similar to that now in use at Switeers. It is probable this will be done shortly. THE GOLDFIELD3 OF NEW ZEALAND. The following is the report of Mr M'Kerrow, the Secretary for Goldfields, for the twelve months ending 31st March, 1880 :— The prospects of the New Zealand goldfields are more hopeful at present than they have been for many years past. The quartz-mining districts, which were at a low ebb twelve months ago, are now greatly revived, and in alluvial mining districts fresh discoveries have been and still are being made. There is such abundant evidence of the permanence of the goldfields that they may be relied on for many yaars to furnish one of tbe principal staple exports of the country. As will be seen by a statement to follow, gold to the value of nearly £37,000,000 sterling has been exported since 1857, and the annual export for the last few years has been considerably over £1,000,000. The return for the year 1879 is less than for any of the years since the famous discovery at Tuapeka, Otago, in 1861 j but the increase in the returns for the first quarter of 1880, and for tbe six months ended the SOth June last, would seem to indicate that for a time at least the tide has turned. The Custom house returns of gold entered for payment of daty furnish the nearest approximation to the actual produce of tbe Colony. In adopting them, there is the lattofootJoß of knowing tntf the quantities can..

not be overstated, for no account is taken of the gold used up by the jewellers, nor of wh&t what may be smuggled out of the country. Relying solely, then, on the Customs returns for the yield of gold, the comparative returns for the years 1878 and 1879 are as follow :—

_ MINING POPULATION AND ITS EABNINQS. The number of miners on the 31st of March 1880, is shown, in Table 9as 14,409. I n last ye*fs report the number on the 31st March 1879, was given as 14,297. The mean number for the year ended 31st March, 1880, is therefore 14,353. The gold exported for the same period was valued at £1,168,823, or an average of £81 2a as the year's earnings per man : for the previous year the average was £75 105 ; and tor the year before that, £97 10s per man. Of course, the cost and maintenance of private water-races, crushing-machinery, and other plant have to be borne by the miner, so that the average wage per man is below the current rate for labour in the Colony. It is not to be inferred, however, that the miners are solely dependent on gold, or give all their time to its search. Many of them, more especially those having alluvial claims, combine farming and the rearing of cattle with mining pursuits, and only engage in the latter at certain Beasons of the year. During the years in which the public works were most actively prosecuted, the miners had a strong temptation to leave poor ground and engage on railway construction at a good steady wage; and it is well known that many did so. But now that these works are not to be pushed on so much in the future as in the past, it may be expected that gold-mining will revive, from the simple fact that more men will again turn their attention to it There is plenty of ground yet to work. The discoveries during the year, and more recently on the West Coast, confirm what was already known of the extensive and widespread areas in the Colony over which the prospector cau find payable gold. The above figures indicate a small increase in the number of miners during the year. It is possible, however, that the numbers may not be actually greater ; but that the apparent increase may be partly due to a difference in the enumeration caused by the change of wardens. As already mentioned, mining is often com- ! bined with other pursuits, and in a classifiestion under such circumstances, depending on estimation, no two men would be likely to enumerate alike. The returns have not been accepted without inquiry, and the results given may be taken as a near approximation. In any case it ia satisfactory to find that, notwithstanding the general depression, the number of miners in the Colony during the year has not decreased. ALLUVIAL MINING. Under this designation is comprehended all mining in which the gold ia washed out of the auriferous gravels by sluicing the ground and running it through the boxes, also dredging of river-beds, and beach or other workings, where the object is not to crush the matrix of quartz or cement, but to collect the gold which has already been set free by natural processes. These alluvial workings have always in New Zealand been much the most prolific source in yield of gold. For each of the last two years, two-thirds of the yield have been from alluvial claim*, aad one-third from quart* and cement

crushinga. This source is likely to maintain its pre-eminence in that respect for some years yet. In the West Coast, Middle Island, which is the principal alluvial mining district in the Colony, there are extensive areas of country where the prospector has either never been, or has examined only in the most hurried manner. In its natural state of dense forest, sea-girt bluffs, and numerous rivers, a great portion of this country is practically quite impenetrable until opened up by tracks. QUARTZ AND CEMENT MINING, The returns from this class of mining for the 12 months ended the 31st March, 1880, are :— Tons of Ounces ' Quartz of Crushed. Gold. Auckland — Coroniandel .. 1,296 5,190 Thames .. 33,017 59,575 West Coast— Reefton .. 28,062 18,090 Greymouth .. 150 Not given llarlborough — Havelock .. 320 105 Otago — Clyde .. 6,743 4,197 Arrow .. 4,615 4,317 Skippers .. 660 220 Hindon (estimated) .. 850 640 75,713 92,344 from quartz Lawrence .. 23,000 estimated from cement 115,344 from quartz and cement. These returns from quartz show a |falling off in the total of nearly 6000 ounces as compared with the previous year. At Beef ton there is a falling off of 8000 ounces, and at ,Coromandel of 4000 ounces ; but at the Thames and Otago there areinoreases respectively of 2000 and 4000 ounces. The Thames goldfield, which is much the most important quo rtz mining district in New Zealand, has rallied very materially during the last few months from a former state of depression. The question of the Big Pump has been settled ; more machinery has been set up ; tunnels are being extended into new country by means of drills driven by compressed air ; and the yield of sold, according to the latest returns, is on the increase. Several of the mining companies conduct operations on a large scale, and their arrangements evince great enterprise, skill, and confidence in the future of the field. The quartz returns from Otago, although small when compared with the Thames and Keefton, are nevertheless much larger for Obago than they have been for years past. A very great deal of money has been expended and work_ done to develop the reefs there, but as yet with only very partial success. One great drawback is the inaccessibility of some of the country, and the great cost of timber. Notwithstanding these drawbacks, the further development of this class of mining in Otago is only a question of time. MAINTENANCE OF WATER-BACES UNDER THE CONTROL OF THE GOLD-FIELDS DEPARTMENT. There are four water-races, the property of the Government, under the control of the department Three on the West Coast— the Waimea-Kumara, the Nelson Creek, and the Argyla Water-race, Charleston ; also the Mount Ida Water-race, Otago. None of these works have been a success in the commercial, sense of paying cost of construction, or even interest upon the outlay, but they afford the means to a considerable number of men of prosecuting an industry which enables them to earn upon an average about Ll4O per man per annum, and which could never have been so fully developed in the respective districts but for these works. In table No. 20 will be found a statement of revenue and expenditure on account of Nelson Creek. Waimea; Knmara, and Argyle water-race?, for nine months ending the 31st March last, and a statement of the receipts and disbursements on account of Mount Ida waterrace, from 30th June, 1879, to the 30th April, 1880, is attached to the report by the Trust upon that race, contained in the appendix. Kumara Sludge Channel.— A necessary adjunct in most cases to a water-race is a sludge channel. The Waimea water-race commands a large area of flat auriferous ground near Kumara, which could not be worked unless a means were provided of getting rid of the tailings. The Government has undertaken' this work so far, and a channel is now in course of construction with the object of carrying the tailings en to the deep bed of the Teremakau, where they can be disposed of without further trouble. GOVERNMENT AIDS TO PROSPECTING, AND SOBSIDIES TOWARD 3 THE CONSTRUCTION OF PROSPECTING TRACKS, ETC. Since the date of the last annual report subsidies have been granted in aid of prospecting parties formed at Tapu and Mercury Bay, Coromandel, Thames, and Te Aroha, in the Provincial District of Auckland, Featherston in Wellington, Greymouth and Nelson Creek in Nekon, and various parts of Westland, and other applications for aid are now under consideration. In every case the subsidy has only been allowed upon money subscribed and certified as paid in wages for prospecting, so that the numerous applications for assistance upon these terms would appear to indicate that there has beep an active desire evinced during the year to discover fresh auriferous country. Various applications have also been received for assistance from the vote in aid of the construction of tracks and minor works upon goldfields ; but, as the necessary contribution on the part of most of the applicants was not forthcoming, the department has been unable to grant the assistance applied for. Other applications, however, of a more specific character, guaranteeing that the money will be subscribed for carrying out the works proposed, are now under consideration, and it is still considered that this vote will prove more beneficial in results than the vote in aid of ordinary prospecting parties. The diamond rock-boring machine recently purchased by the Government under the Par* liamentary vote of last session has been taken charge of, and advertised by Mr Wakefield, and it is now on its way to Hokitika to the order of the Westland County Council, to be used in the first instance for testing ground at Goldaborough and Blue Spur for gold, and at | Kanieri for gold and coal. It is impossible to predict what results the machine as a prospector in New Zealand may give until a trial has been made. SETTLEMENT ON GOLDFIELDS. In the Thames district, Auckland, the Native difficulty stands in the way of settlement ; and the area open for agricultural lease in the Ohinemuri district, distant from the populous parts, is an inferior soil, and therefore not very inviting to settlement Recently, Karaka North and South, in the vicinity of Grahamstown, and two other blocks a few miles distant, have been proclaimed open for application on the homestead system. This land partakes of the rugged nature of the country, and is under bush. It may prove suitable, however, for dairymen,, as the soil is good, and will take grass readily. Under these adverse circumstances there is no great inducement to settle on this goldfield, and only 12 applications were received during the year for land on agricultural lease, AJ Te Aroha, there were several thonjajgd,

acres of flat alluvial land offered for application a few months ago, both on immediate and deferred payments. Only a portion waa taken up._ There are more lands in the same block which will be offered as soon as drain and roadworks now in course of execution are completed. On the West Coast goldfields, Middle Island, there are large areas open for selection on immediate and deferred payments, and several thousand acres on the homestead system. The land being all under bush, and the market local, settlement proceeds slowly. On the Otago goldfields the natural condiwons in favour of settlement are much more favourable than in the other two mining districts, and a large number of selections has been made during the year under the different modes of acquiring land prescribed in the Land Acts. In the Wakatipu district several small runs were offered on lease for 10 years and taken up ; in the Tuapeka and Teviot districts areas were taken up on pastoral deferred paymants • and generally in every mining centre there have been blocks of from 3000 to 30,000 acres offered for selection on immediate and deferred payments, and on agricultural lease. These opportunities have been much availed of, and there are other blocks of excellent agricultural land surveyed and ready in anticipation of the demands of the current year, Under section 66 of the Mines Act several miners, who, with their families, have established themselves en Crown lands and mining reserves, have, in compliance with the terms of the Act, been allowed to acquire the preemption of their homesteads, with eight or ten acres around, and so have become transformed from squatters on sufferance to resident free, holders.

DEPARTMENTAL. In the early part of the year there was a considerable changing of Wardens from one district to another. These transfers were directed by the Justice Department. Their effect, so far as the goldfields are concerned, ia not beneficial, and has been the cause of much inconvenience, from the fact that local knowledge with complete acquaintance with past transao. tiona cannot be transferred, and is lost to the department whenever the officer possessing it ia removed to a strange district. In conclusion, I hava to express my obligations to the secretary of the Treasury, Mr Gavin, and to the secretary of Customs, Mr Seed, for the returns of revenue and gold export appended to this report ; also to Mr Wakefield for his ready assistance in collecting reports and compiling other statistical information coat tamed in the appendix. i . J. M^Kerbow.

We take the following extracts from the Wardens' reports :—

NASEBY The seasons have on the whole been favourable for mining, foralthough the winterwas long and severe, the quantity of snow accumulated n the mountains gave a supply of water which was very acceptable in the spaing. - There has been more than the ordinary average rainfall during spring and summer; thus the supplies of water for sluicing have been maintained with unusual regularity. The miners have not failed to avail themselves ofithese advantages, and the season, no doubt, has been a profitable one to all those who had claims opened out Thia h&3 especially been the case at Mount Burster, where some very 'good washings-up are known to have been obtained. The : principal item of interest in mining affairs has beenlthe continued development of the rich ground at Vinegar Hill and Shepherd's-hutFlat, near Cambrian, where a new goldfield equal to the. famed Welshman's Gully may be said to be proved to exist A considerable number of claims have been taken up, and several leases applied for, and a large water race is being brought in from the Dunstan Creek, in addition to the numerous small races in the vicinity, most of which have been extended so as to reach the new ground. This discovery comes in very opportunely at a time when the Welshman's Gully which has been continuously worked for the last sixteen years, may be reasonably expected to have yielded up the bes,t of its treasures. Already some very good waahings-up have been obtained in the new ground, although but few claims are really opened out. Iv other parts of the district sluicing has gone on as usual, the only difference being that a more constant and abundant supply of water has enabled the miners to work more continuously and to realise better returns than usual

The settlement of the country by the takingup of land on agricultural leases arid deferred payment has continued to go on, although not quite so rapidly as last year, when there was a general rush for land. The area taken up during the year has been, on agricultural leases, 2301 acres and 25 perches; and on deferred payment, 4965 acres 3 rood?/ There are at present in the district, held under agricultural lease, 25,448 acres 2 roods 15 perches • and on deferred payment, 19,522 acres 2 roods 29 perches— making a grand total of 44 971 acres 1 rood 4 perches held under the twosystems. Daring the year 866 acres 1 rood 9 perches, previously held under agricultural leases, have been converted into freehold ; and several agricultural leases, for a total area of 810 acres 3 roods 23 perches, have been ex* changed for deferred-payment licenses.

The yield of gold, as obtained from the sales made to the various banks, has, to the agreeable surprise of many, exceeded that of last year, amounting to, in round numbers 40,0000z, against 32,0000z. This increase is attributable in a great measure to the handsome returns made by the Cromwell Company's quartz reef, and the yield of the Mountain Race Gold-mining Comoany's sluicing claim at Tinkers; but < the effect on mining enterprise more especially on those claims worked on the river banks— of the disastrous flood of 1878 reported by my predecessor in the last annual report, is still noticeable.

Mining in this district has principally beeo confined to alluvial workings— chiefly sluicing. I am glad to report, however, that in more than one direction attention has been given to prospecting quartz veins, of which there are many indications, and I believe will be followed successfully. The mine of the Cromwell Company is the only advanced claim of this class in this district, and its yield this year has been very satisfactory. For the last two or three months, however, the prospects of the Company have received a check— of a temporary charac. ter, as I believe. This appears to be owing to a very common fault in the management of quarta-mines— i.e., not proceeding with the preliminary or " dead work » in ! othes portions, of the rnino whilst getting out payable stone at another. They are now sinking, and havereasonable hopes of having soon in view as good stone as that which has yielded the dividends of last year. [Since realised]

WAKATTPU. Alluvial Mining— Thera are about 1075 goldminers in my district, and of these 700 to 800 are engaged m th I 8 industry-up the Shotover. ground-sluicing ; at Macetown and in the Arrow Valley, sluicing and tunnelling ; and by the latter mode principally at Cardrona. Oa reference to the escort returns, you will find that the average yield of gold is about 13oz, or equal to LSO per annum a man. As a rule the alluvial miners are " batters," or nwsters, arS

d

are consequently satisfied with much less returns thaa the wages man, who demands L 3 a wef>k for having to obey orders as well as work. Oruwn Terrace. — The opening of this terrace has proved- a great success, and I am glad to report the land has fallen into tbe hands of most industrious and able men, Ploughing, fencing, and cultivating have been carried on vigorously and, I have reason to hope, profitably, jadging from the healthy appearance of the crops. The yield, when it is considered that the terrace is about 2000 feet above the level of the sea. and walled off from the east by a mountain 5700 feet in height, is remarkably good— oats averaging 45 bushels to the acre and wheat nearly 40. Tnis land has been taken up at L 3 an acr« hitherto, but, by virtue of 1h« Land Act, 1879." I believe the balance of 2000 acres will be selected shortly at 30s and 20s an acre, according to its position. MACETOWK. The crashiDg-power now on the field consists of five batteries, with 34 beads of fctamper*. With tbe exception of four heaas of the All Nations Company V, they are all fully employed, and 10 additional heads are in course of erection at the Homeward-Bound and Maryborough batteries. Crushm* operations will probably be suspended from June to September during the severity of winter ; but it is intended to prosecute underground work in several mines throughout the year ; and this coarse would became general if the road already spoken of was constructed. It will be needless to recapitulate the names of the many mining companies io operation ; it will suffica to mention that nearly all those enumerated in my last report b&Te beeu steaJily prosecuting wcrk There have been no abandonments, and, so far as I can learn, no fresh discoveries; bat, if the energies of tte miners are properly directed to those already in hand, there if, in all probabilility, sufficient work to engage the attention of the present generation. BLVEBTON. In the Orepuki and Lunicwood gold-mining is In a prosperous state. At Orepuki the claims at work are making good returns. Round Hill, which i* the favourite field for Chinese labour, is turning out well, folly justifying John's partiality; and the Celestial population steadily Increases. I should say tha returns might be fairly stated at from L 2 to L 8 per week. It seems a most extraordinary thing why this plac*, which is one of the best average poor man'd diggings in tbe district, has not been more patronised by Europeans. It is trne that watar is scarce there ; but the Chinese manage, by renting a few inches of water from tbe holders of mom, to obtain the above good remits. The water w held entirely by Europeans, and it stands to reason that they would have naturally given the preference to their own countrymen had they shown a disposition to set in to work there. LAWRENCE. During the year on which I now report a Considerable amount of prospecting, and that of a costly character, has be«n carried on with the view of thoroughly testing the anriferouacement basins in the Wetherstune3 and Waita fauna districts. The result has nat shown such success as was anticipated. The prospector's claim at Wetbertonee and two claims at Wait* fauna are all that np to the present time have been proved to be payable. Prospecting deep cement workiogs is both tedious and expensive, and conoeqaently the ground will take a long time to develop ; but with the improvements going on to economise labour a considerable area will eventually be brought into profitable work. To illustrate what a small proportion of gold can. be made i" yield a profit by systematic mining, I give the following particulars showing the result from the Wetherrtones Cementmining Company's claim for three months of this year:— Working Tons days, crushed. Yield of Gold. January .. 23 1994 163 oz 15 dwt. February ..23 2127 130 „10 „ March.. ..20 1760 114 „12 „ Tee cement was all crushed with alO-stamp battery driven by water-power, and, although tbe yield averaged under a pennyweight and • half to the ton, there was a net profit for the three months of LSOO. The yield of gold from the Bine Spur has been very large, although for some portion of the year there was a great scarcity of water, and crushing was consequently suspended. The greater portion of the gold forwarded from this district is the yield of this wonderful little bill, which has now beea continuously worked lor the last 16 years. The Gabriel's Gully Company, holding an extensive special claim in Galriel's Gully, are engaged in preliminary operations necessary to get their land into work. The system proposed to be followed in working the ground — principally old tailings from the Blub Spur— ia quite new in New Zealand, and it is said that the email yield of a grain of gold to a ton of earth will pay the working expenses, and all over that yield will be profit. THAMES. The general prospects of the field are now much brighter than they have been for some yean ; one good feature towards future success being, that tbe companies are now combining to carry out expensive works in driving long tunnels to develop the lower levels of their ground. Another is, that, learning wisdom from former experience, in all case?, when paying dividends they now reserve a large percentage of the moi-ey to meet the coat of *' dead work," which must occur in every mine, to opan out lower levels as the upper ones be* come exbanrited. Wairau Valley Mining District —During the past year a little excitement has been caused by the discovery of payable gold in the Arm-chair Greek. The find was rather late in the season, ■winter was approaching, and the miners attracted to the spot have not had a chance of fairly testing the ground. Many have determined tolatop through the winter, with the hope of doing well next Bumtner. The workings at present are confined piincipally to Top Valley Stream and its branches, although lately good coarse gold has been found in toe lower terraces. This ground cannot fairly be etyled a " new diggings." It is a fact that has been well known for many years that gold could be found in the different creeks and valleys on the north bank of the Wairau, f rom Onamalutu Valley to Mount Patriarch. lam inclined to think that, if the country above named Is properly tested, this will prove to be a good eoldfield. At the pretest time there are about 70 or 80 men at work on the ground ; but, if the level and terrace lands on tbe north bank of the Wairau prove to be payable ground, there will be room for a large number of miters. KELSON, There is little altetauuu to report in alluvial owing ii the district during the past year, tbe yield being about the average of the last two yean ; there it, however, a chance during the current year of new alluvial ground being taken up, as a considerable amount cf money is beicg expended in opening up lands for sale in the "Upper Collingwood district, which will doubt. less bring additional auriferous lands into notice. WZSTPOBT. The Four-mile, bixume, and Brighton working* remain in about the saae condition M ltsfc year ; no new discoveries have beer VI d p » Tbe black-fland claims on tfc Nine'

mile Beach and beaches south of Charleston have not been very remunerative during th« past year, the beaches being covered with a heavy layer of gray sand; but, after stiff gale, of wind, this layer of sand is combed down, laying bare a rich deposit of gold-bearing black sand. These claims are very valuable, and, when coveted up with sand, are carefully protected by registration. One claim, 200 feet by 100 feet, brought L2OO at auction, and even higher prices have been obtained In consequence ot the unworkable condition of these beaches, and miners who in previous years were employed working poor ground being employed dnring the past year opening up new ground at Croninville, the yield of gold is considerably less than that of the previous year. The great drawback to the advancement of mining in this part ol the district is the want of a permanent snpplj of water. The Government water-race is noi sufficient to meet the demand; but, if carried to a higher elevation, with the proposed supply of water to be brought in from the Four-milt River, would give a steady supply, and throw open acres of auriferous ground at present lying idle and unproductive. The general condition is on the whole satisfactory. All parties are earning a livelihood, and it seems only to require a permanent water supply to make this part of the district one of the most prosperous on the coast.

In conclusion, I would beg to state that, after an absence of 20 years from the west coast of tbe Middle Island, which I left a howling wilderness, unpeopled by European" except a small mining settlement at Westport, I am astonished at the progress which has been made in the development of mineral and other resources of this extensive territory ; and when it is considered that the population who have effected these great changes have been but few in number in comparison with tha size of the country occupied by them, it may reasonably be assumed that prospecting or searching for gold cannot have been thoroughly prose cuced over the entire area, but that there are yet unknown and untried districts which are probably as rich in mineral wealth as any places which have heretofore been discovered and worked.

GBETMOUTH.

Beach-mining between the rivera Teremakau and Grey has fallen off very considerably. There are still some claims being worked ; but on the whole the result of mining operations during the past year in this part of the district cannot be pronounced to be either remunerative or satisfactory. Some questions have arisen in coneeqnence of trespasses on the railway reserve. In some instances the miners assert that their holding* or easements were taken up prior to the proclamation of the reserve, and in others they produce certificates granted by the Warden, which, although issued in ontravention of section 7 of The Mines Act, 1877, are relied on «s entitling the holders to occupy the reserve, and also to claim compensation from the Crown for any infringement of their supposed rights. Inland from the beach are situated the mining localities of Ruther glen, Maraden, and Welshman's. These still support a considerable but scattered population, who are holding as a rule what may be described as payable claims.

HOKITIKA,

Totara.— The future prospects of the diggings in the neighbourhood of Ross are intimately connected with the execution of two important works— the Mikonui Water-race, and the deep drainage of the fUt near the town of Roes. The former of these projects reqnires no remark from me, as the work has already been undertaken by the Government ; of the latter I can only say that unless the common estimate formed of the richness of the deep gronnd through which the drain is required is a greatly exaggerated one, the work must be regarded as one which is well worthy of attention and of Government aid. The ordinary mining industry in this part of the district has beeu much interrupted from time to time by stoppages caused by the occasionally and apparently capricious raising of the price of water by the Totara and Jones' Creek Water-race Company, whioh has for a portion of the diggings a virtual monopoly of the supply. It is to be hoped that it may be found that prohibitive prices for^ water— whatever may be the object of imposing them — will not answer anyone's purpose, and that the working of the claims will not in future be thus interrupted. Some new ground has been opened lately at Black's Creek, a few miles from Ross, and I am informed that tbe prospects ate good, and that some 30 miners are now employed there. In the management of she Totara district I must acknowledge the great help I get Mr Blanc, the clerk of the Ross Court, whose intimate knowledge of the district, thorough acquaint, aoce with mining matters, and clear and excellent arrangement of all office business, have remarkably simplified and facilitated my duties.

Waimea.— There is nothing new to mention ia this part of the district I think there has lately been rather a tendency to an increase of population and business, and I see no signs of this locality becoming abandoned. The prin cipal feature in connection with these diggings is the extreme complexity of the questions that now offer themselves for decision, arising partly from the multiplication and accumulation of registered rights of all kinds for many years, but still more from the gradual filling-up of all the creeks and watercourses with tailings, whereby the level of the beds is raised, the conditions of working are entirely altered, and private rights are perpetually coming into collision with public interests in a manner that renders it very difficult to make practical arrangements for the accommodation of all parties.

Greymouth.— For many years working the beach claims between the Seventeen-mile Bluff and Eazorback Range had been successfully carried on. The Paparoa Range, running parallel to|the beach, had bardly been touched by miners until until Mr R. H. Wessel proceeded to progpect it. He was bo far Buccessful that, in September, 1879, he reported a discovery of gold to the late Mr Warden Broad, who granted him a prospecting claim. The rush to the Seventeen-mile Beach then commenced, and the population has continued to steadily increase, notwithstanding the difficulty of transit of goods, and that all articles required for building (except timber) and all the necessaries of life (except meat) have to be carried on packhoraes, at a cost of 2d per pound.

It is worthy to notice that a few mines which have been wrought for a number of years unprofitably have been disposed of to adjoining and more prosperous companies. As an instance of this, the Wealth of Nations Com* ?any have purchased the mines of tbe New odependent and Vulcan Companies, and, with their own leases, will now hold 54 acres 2 roods 19 perches. pThen again, there are instances of adjoining claims amalgamating and larger companies being formed — viz., the Alexandra with Fi^ry Oross Comoany, No. 2 South Larry's with Caledonian Company.

The yield of gold for the 12 months amounts, aa far as can be ascertained, to 22,6200s 3d«rt llgr, of which 45300z 6dwt7gr is alluvial gold j the balance— lß,oßoo2 I7dwt 4gr— being obtained from tbe various reefs, the yields from tho KYernl companies befog as follow {—

Oz. dwt. gr. ' Energetic Gompany „ .. 3,041 13 19 Welcome Company .. .. 4,196 16 15 ; Just-in-Time Company .. .. 1,572 0 9 Caledonian Company .. .. 107 7 12 Inkerman Company . . . . 76 3 6 United Inglewood North Star Company 327 2IS Wealth of Nations Company .. 1,305 10 5 Just-in-Time and Fiery Cross Crushing Company .. .. .. 117 U 1 Golden Arch Company .. .. 48 7 5 Pactolus Company .. .. 62 8 10 Hopeful Company . . . . 362 2 5 Golden Fleece Extended Company .. 836 13 0 Golden Treasure Company . . 233 5 19 Independent Company .. .. 602 8 2 Fiery Cross Company . . . . 613 8 12 Keep-it-Dark Company .. .. 4,057 16 8 Nil Desperandum Company . . 131 1 16 Perseverance Company . . . . 13 9 9 Victoria Company . . . . 342 8 19 Graham and Allen .. .. 41 19 0 18,089 17 4 Alluvial .. .. .. 4,530 6 7

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