H.—4

30

Another company is about erecting a 5-stamper battery at a reef about five miles distant from the Golden Ridge, with every appearance that the enterprise will ultimately prove a financial success. A company formed in Wellington are now working a seam of coal situate on the Native land on the western shore of the inlet. The seam is about 5 feet 0 inches thick, with a tendency to increase, and the coal is of excellent quality for household purposes. A small annual supply has been obtained from the district and sold in the Nelson market for many years past; but it is only now that any practical attempt has been made to develop the seam, and the present company have succeeded m proving beyond doubt that an extensive coal field exists in the locality, capable of supplying to a considerable extent the whole colony with a first-class household coal. Coal abounds in other parts of the district, chiefly in inaccessible localities. The total population of the district on the 3rd March last was 31. I enclose herewith the statistical returns in accordance with your circular letter No. 217, of the 14th June. I have, &c, Alexander Mackay, The Under Secretary for Gold Fields, Wellington. AVarden.