C—No. 4a

Sir, — Dunedin, Ist April, 1865. I do myself the honor to lay before you the following Report on the progress and present condition of the Otago Gold Fields: — 2. Progress of Discover//. —Although it has not been found necessary to proclaim new Gold Fields, nor considered desirable to extend the boundaries of those previously proclaimed, many and valuable discoveries have yet been made, both within and without the limits of the various districts, since the ■date of my last report, —19th April, 1864. 3. Discoveries ivitliin Proclaimed Gold Fields. —Not the least important of these is the practical discovery (for theoretically it has long been known) of an immense belt of auriferous tcrtiaries—the " cement" of the miners— m the District of Gabriel's ; a belt sufficiently extensive to afford remunerative employment to a large population beyond the existence of the present generation. A large field has been opened up on the Upper Manuherikia, and on the east and west tributaries of that river, mainely, on Dunstan Creek (where gold was originally discovered by Peyman's party early in 1862) on Hill's Creek, and at Blackston Hill, and in the valleys of the Idaburn and Lower Poolburn, altogether; an extensive and rich field, requiring only men to work it. McCrae's Flat, on the Deep Dell Creek, an affluent of the Waihemo, presents another extension of the known auriferous area, and promises well for future operations. Nearer Dunedin the creeks flowing into the Silverstream from the Boulder Hill watershed have been successfully examined and found to contain payable gold. 4. Outside the Proclaimed Gold Fields. —Beyond the existing boundaries several localities have been discovered to be auriferous. The principal of these is near Tuturau, on Dr. Menzies' station, at the Mataura River ; a small " rush" occurred some months since, and still a limited mining population is located there. It can scarcely be said to have been fairly prospected yet. The northern slopes >of the Dunstan Banged have also been tested with satisfactory results, and two gullies, named respectively " Bendigo" and " Tipperary," on the Ardgour Creek, are now being worked on a large scale. Robert's Flat, below Dusky Hill, where about thirty miners are located, may be regarded as an extension of the Pomahaka Diggings. The whole of the watershed of the Pomahaka is now known to be auriferous, and although this district attracts but little attention at present it bids fair to be more ■conspicuous as a gold field hereafter. I may here state that several promising-looking specimens of copper ore, said to have been discovered in this district, have lately been exhibited to me. A short time since a "rush" to the Matukituki, on Lake "Wanaka, was reported, but I have not received any information of the result. Some of the flats abutting on the Awamoko, a branch of the Waitaki River, were, in November last, reported as auriferous by Mr. Thornlcy, of the Survey Department, but no steps have yet been taken to test the payable character of the locality. And, finally, in the ranges known as the Chain Hills, beyond Green Island, solne miners have discovered and worked ground sufficiently remunerative to induce the belief, founded on a personal investigation of the place, that a gold field will some day be opened out there, and that in all probability an auriferous quartz lode will be found in the vicinity. 5. General Distribution of Gold. —These discoveries, taken in connection with those referred to in my former Reports, and with others of daily occurrence, prove incontestably that gold is distributed in greater or less proportion over nearly the whole of that portion of the Province which lies to the eastward of Southland and Lake Wakatipu. Indeed it is now quite impossible to say where gold does not exist throughout the vast area thus indicated, and it is beginning to be understood by practical men as a fact, that the only limitations to productiveness are men and water. Anyone of our numerous —I had almost written " too numerous"-—gold fields con'ams sufficient payable ground for the constant employment, for very many years to come, of a much larger number of miners than are scattered over the entire Province. With the present limited mining population, the desirability of further discoveries is, to say the least, problematical. In the fierce excitement caused by a new "rush" valuable claims and mining properties are recklessly abandoned, or disposed of for a mere trifle ; and the result is a general disturbance of that settled industry, which, in the long run, always yields higher remuneration, with a larger degree of comfort, than is j'ossible in the blind scramble for new ground, wherein it too often occurs that for every individual who succeeds in securing a rich claim, ninety-nine fail to obtain ordinary wages. 6. Tuapeka. —Old Tuapeka maintains its position as the leading gold field. The recent discoveries at Gabriel's have inspired renewed confidence in its resources. The supplies of water are being constantly increased; for the more water there is brought in, the greater becomes the demand, and the price per sluice-head is now twice as much as when only three or four heads were procurable in all the district. Waitahuna still languishes for want of capital and energy. Waipori is attracting a greater degree of attention, and its magnificent resources are now, for the first time, being gradually developed. A Report on these districts by Mr. Mining Surveyor Drummond, is appended. (See page 5.) 7. Mount Benger. —This field has shared in the general application of capital which constitutes such a marked feature of the past year's operations. Many fine races have been constructed, and large tracts of auriferous soil have thus been brought under the magical influence of water. Improved ■dredging machines have been built for sweeping the floor of the golden River Molyneux, and a considerable extent of new ground has been opened on the western bank, amongst the spurs and ravines of the Spylaw and Benger Ranges.

FURTHER PAPERS RELATIVE TO THE OTAGO GOLD FIELDS.