H.-3.

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first rush to the Haast, where I resided four months, it struck me forcibly that great advantages would be derived by opening up this part of the country. And in my first report after separation from Canterbury took place, dated 28th December, 1868, No. 10S, and in every succeeding report, viz., 31st December, 1869, No. 150, Ist July, 1870, No. 122, and in the last one, before my removal to the Waimea, dated sth January, 1871, I pointed out to the Government the benefits that would arise from it, and urged them to take some action in the matter. It is therefore satisfactory to me to find that, however visionary my views were then considered, the time has now arrived when they are about to be tried. Consequently, taking more than ordinary interest in the movement, I sincerely wish the scheme may bo such as to lead to its entire success, which must conduce to the advancement of the province. , There can be no doubt whatever something beyond mining must be held out to the people to remain here (I confine my remarks to this district). It is vain to attempt to conceal the fact, that the yield of gold from the alluvial diggings has been yearly falling off, and I see nothing, in the ordinary course of things, to expect any material improvement, unless new workings are opened, or payable quartz reefs discovered ;of the latter there are hopeful indications in many parts of the districts. Therefore, its ultimate prosperity must depend, in a great measure, on the settlement of tho people on the soil, and this can only bo done by opening up the country by a main trunk line of road down south to Jackson's Bay, and ultimately to the boundary of the province. Without this it is hopeless to expect a general settlement throughout a district having upwards of 140 miles of coast line. This appears to me to be the cardinal point to be kept in view, without which, I believe, all that may be expended in attempting to force a settlement in one particular locality will be money thrown away. The progress of the place after this may, I think, bo safely left in the hands of the settlers and to private enterprise to develop its resources. I have, &c, M. Peice, To the Provincial Secretary, Hokitika. Warden.

No. 11. Mr. Warden Caeew to the Undee Seceetaey for Gold Fields. Sie, — Warden's Office, Lawrence, Ist May, 1875. I have the honor to forward herewith the annual returns of the Tuapeka Gold Field, for the year ending 31st March, 1875, and to report as follows. The past year has been singularly uneventful in mining matters, and no new discoveries of any importance have been made. This is no doubt principally attributable to the district being underpopulated, and, as a consequence, miners have not been under the necessity of seeking for new ground, but could confine their efforts to the more certain profitable occupation of working ground already known to be remunerative. Alluvial Mining. —In my last report I stated that Gabriel's Gully, into which tailings from the eastern side of the Blue Spur were, discharged, was fast becoming choked up ; and the same remark applied to Munroe's Gully, which received the debris from the other side of the Spur. At that time all the claims were worked in the one way, that is, by sluicing away with a face from the surface to the rock bottom (or as near to it as the fall would permit). Since then, the difficulty of getting rid of tailings and the loss of fall has induced three of the large companies to change the mode of working their claims. For this purpose each company has erected a crushing battery, and now, instead of the whole depth of ground being operated upon as heretofore, only a few feet from the bed rock upwards is removed, and the gold extracted from it as it passes through the machine. I understand that under the new system the returns from these claims are considered satisfactory by the shareholders, but I cannot myself look upon the change as a favourable one in any respect, but simply a means of obtaining a present benefit at the cost of a large future loss. The Blue Spur contains about forty acres of land, of an average depth of over 100 feet, the whole of which, it is considered, judging by the experience of the past, would pay handsomely for sluicing, provided a sufficient fall be secured for carrying away tailings. This fall could be obtained by the construction of a channel through Gabriel's Gully, a proposition to effect which has already been brought under the notice of Government; but the necessity is great that, if this work is to be carried out, it should be commenced as early as possible, for every day is adding to the accumulation of tailings, and consequently to the cost of constructing a channel. If there be no channel formed, and the ground bo worked by tunnelling and crushing, it is only selected strata that would pay for working, and probably not more than a twentieth part of the ground, if so much, would be remunerative by those means of extracting the gold ; and it is unlikely that, after the best had been picked out, the construction of a channel will be thought advisable. Although not a new discovery, it has lately come prominently to notice that a similar formation of country to that of the Blue Spur extends for many miles in a south-easterly direction, and passes through Wetherstone's and Waitahuna. In both of those places a conglomerate, like that in the Spur, is to be found, and is known to be auriferous. At Wetherstone's it is at a low level, and consequently could only be worked there at great disadvantage; but at Waitahuna its position is more favourable, and it is known to be payable. Some claims being brought into work there I regard with much interest, as bearing considerably upon the future prospects of this gold field. Tho drainage channel at Waipori, constructed under the Public Works Act, is now completed. Some few paddocks have been bottomed on the flat along the course of the channel, but it is yet too early to form auy decided opinion of the remunerative prospects of this large undertaking. So far, it has been ascertained that gold is distributed in patches over the flat, some of which will be profitable to work. Munroe's Gully is being again'reworked; and as everything from side to side of the gully is passed through the sluice, what gold it contains will be thoroughly removed. 3—H. 3.