H.—3

APPENDIX TO REPORT ON THE GOLD FIELDS 0E NEW ZEALAND.

WARDENS' REPORTS.

OTAGO GOLD FIELD. No. 1. Mr. Warden Beetham to the Under Secretary for G-old Fields. Sib, — Warden's Office, Queenstown, Ist April, IS7G. I have the honor to forward to you my annual report upon the Queenstown District during the year ending 31st March, 1876. Prospecting. —There has been little or no prospecting undertaken during the past year, either in quartz or alluvial mining, except in the direction of following up and developing areas of country already known to be auriferous. On the whole, mining operations throughout the district have been characterized by extreme dulness, and the yield of gold, as compared with that of the previous year, shows a decrease. Alluvial Mining. —The partial collapse of the Shotover Terrace Gold Mining Company has caused inactivity in the prosecution of alluvial mining. Much was expected from the employment of the large capital of the company ; unfortunately little has resulted therefrom. There is, however, a large extent of terrace ground held under the extended claim regulations, which is being steadily worked with fairly payable results. The river claim held by the New Channel Company is expected to prove a very remunerative undertaking. The works are prosecuted with great vigour and judgment. Quartz Mining. —There are three reefs which are being actively worked—the Nugget, the Phoenix, and what is known as Southberg's Eeef. Powerful batteries are in operation on all three reefs. The Nugget Company are at present engaged in driving an expensive tunnel at a low level, in order to cut the reef at a point about 300 feet below the present workings. This company has recently found it necessary to increase its capital. On the Phoenix the tributers have struck extremely rich stone, proving the reef to be a very valuable one. It is worked by a battery of thirty stampers, driven by a very powerful turbine wheel. Southberg's Eeef shows a great improvement as far as the quality of the stone is concerned. Agriculture. —Nearly all the land which is available for purely agricultural purposes has been taken up under the Agricultural Lease Eegiilations or the deferred-payment system. A considerable area of land has been purchased during the year, and a large number of agricultural leases, held under the Gold Fields Act, have been exchanged for leases under the deferred-payment system. The crops throughout the whole district are of the finest quality, and have been housed in the most perfect condition. The whole of the area known as the Wakatipu Commonage has, with the exception of reserves for great cattle, been cut up into small sheep runs. A portion of this commonage was sold about two years ago, and the remainder will shortly be submitted to public auction. This is undoubtedly the fairest plan, and is a sure way of ascertaining the true value of country. Compared with the rent of tho large runs held by the old pastoral tenants of the Crown, this country has realized an enormous sum as rental, about 200,000 acres of it bringing in £7,000 per annum. The completion of the railway to Kingston will very materially enhance the value of both agricultural and pastoral holdings, and will no doubt tend to remove, in a very appreciable degree, the general depression which at present prevails through the district. During the year ending 31st March, 1876, the gold produced and escorted from Queenstown amounted to 12,727 oz. 9 dwt., as against 15,207 oz. 1 dwt. produced during the previous year, showing a decrease of 2,479 oz. 11 dwts. Attached I beg to forward the usual statistics for the year. I have, &c, Bichmond Beetham, The Under Secretary for Gold Fields, Wellington. Warden.

No. 2. Mr. Warden Stratford to the Unbeii Secretary for Gold Fields. Sir,— Warden's Office, Arrow, Ist April, 1876. I have the honor to report upon the Arrow District, under my charge, for the year ending 31st March, 1876. At Cardrona, during the past year, scarcely any change of a progressive tendency has occurred, either under the head of mining or trade. The European population has decreased slightly during the twelve months, numbering at present about 90, of which number 70 are miners : the Chinese number about 300. The European miners (with the exception of a few located at the head of the Soaring Meg) are exclusively occupied at deep-sinking in the terraces inimediatelv adjacent to the township, I—H. 3.