H.—ll.

30

On the Kumara, the old method of mining by driving and paddocking is fast giving way to systematic sluicing on a large scale. Probably on no other gold field in New Zealand are there the same facilities for extensive sluicing. The fall and capacity for tailings are very extensive, and equal to many years of what are likely to prove the most extensive sluicing operations in New Zealand. The character of the ground is admirably adapted for sluicing, being a vast shingle-bed, through which the gold is found in thin layers at intervals of a few feet from top to bottom, a depth varying from 25 feet to 75 feet. One of the few sluicing claims on Duuediu Flat, opened out eighteen months ago, has, up to 30th June, yielded 1,735 oz. of gold from a block 22,403 cubic yards, an average of 31 gr. per cubic yard, working a face 35 feet deep from the surface. Sixth shares in this claim sell readily at £400. There is much ground at Kumara known to be equally good, and the miners speak confidently of sluicing ground to be opened when the sludge-tunnel is constructed, that will yield a large average per cubic yard. The proposed sludge-tunnel will open a large extent of payable sluicing ground which is now being worked at different levels, yielding fair returns by the use of windlass and paddock. Ground that is remunerative when worked on different levels in this way will yield handsome returns w*hen sluiced on a large scale. Estimated cost of sludge-tunnel, £4,000. The race is on tolerably level ground throughout, and therefore not liable to slip or break. One branch is nearly on top of a ridge: a level that will command all known sluicing ground on the Kumara ; but the water supply, although sufficient for present requirements, is not likely to be so a year hence. An unlimited supply, however, for all future requirements can be secured by the construction of a dam at the Loopline Road, at a probable cost of £8,000. Only one new lead or run of gold has been opened during the past twelve months, and known as the Mignonnetto Lead. It extended from Larrikin's Terrace south-west a distance of 20 chains, and from 25 to 30 feet deep, yielding fair wages. AVhen prospecting shafts were sunk in the neighbourhood of this lead sufficient gold was obtained in every shaft sunk to enable the miners to class it as sluicing ground, and I have no doubt much of it will be so worked by the aid of the sludge-tunnel. Waimea. —My great trouble here is to supply all applicants with water, aud, although the miners are aware of the limited supply, they continue taking up extended claims in the hope of being supplied in wet weather. There are now more miners in the neighbourhood of the race than there have been since it was constructed, and, when favoured with a steady supply of water for a short time, they make fair wages. The permanence of the district is more apparent now than it was three years ago, and this is chiefly due to the Government race. The risk of injury to eight miles of this race is very great, as large slips cannot be prevented during stormy weather. During January there were some serious slips, one starting some distance above the race, and travelling over a quarter of a mile, carrying everything before it. Another also started on the upper side of the race in a gulch where the race was flumed between two tunnels. In this instance the flume was carried away, leaving about seix feet on in each tunnel. All the care and attention possible cannot prevent these mishaps. During the past six months I have every month estimated the number of men taking water from the race, and the quantity of gold obtained by them. From this I have made an estimate for the year ; but I have reason to believe my estimate of the gold obtained is much below* the actual yield by water from the Government race. My approximate estimate of the collateral advantages derived from the use of the AVaimea-Kumara Water-race for the year ending the 30th June, 3 879, may therefore be stated as follows: Daily average sales of water, £L 4 lis. 9d. ; daily average number of men employed, 723 ; average price per week per head, £2 18s.; approximate quantity of gold obtained, 22,415 oz. The value of water sold during the year amounts to £4,567 os. Bd., and the cost of maintenance during the same period may be stated approximately at £2,000. I have, &c, J. Gow, The Under Secretary for Gold Fields, AVellington. Manager.

No. 21.

The Chairman, Mount Ida AVater-Race Trust, to the Hon. the Minister for Public Works. Mount Ida AVater-Race Trust Office, Naseby, Ist August, 1879. TnE Mount Ida Water-Race Trust have the honor, iv accordance with section 25 of "The Mount Ida AVater-Race Trust Act, 1878," to report to the Minister for Public AVorks as follows: — The first meeting of the Trust was held in tho County Council Chambers, Naseby, on Monday, the 20th January, 1879, when Mr. H. W. Robinson was appointed chairman, and it was decided in the meantime to continue the manager and other officials previously in the employment of the Government iv their several offices. Mr. Edward Tobias George was appointed secretary and treasurer, at a salary of £75 per annum. The Trust, on entering upon their duties, were fully impressed with the necessity for a strict economy iv management, and with this view they lost no time in obtaining from the manager a full report upon the then state of the works, the probable expense of maintenance and requirements for extension, as also estimate of probable revenue. This report showed a deficiency of revenue as compared with expenditure of about £500, the estimated revenue being £2,400, and tho expenditure £2,900. The manager also intimated that in the course of another year or so the Trust would be in a still worse position, if certain necessary extensions for the completion of the original design were not made. To carry these out properly would involve an outlay of about £4,400.