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The yield of gold is about one thousand ounces in excess of last year, whilst the population and revenue shows a fair average increase. Lyell Mining Disteict. Mining operations in this part of the district show a marked improvement both with regard to alluvial and quartz mining. Several new reefs have been discovered, and nineteen gold-mining leases having been applied for is a strong indication of the increasing importance of the district. In December last a small rush set in to Welshman's Terrace, situate on the north side of the Buller River, between the junction and the Lyell. The prospectors, Mcintosh and party, got very good wash-dirt on the side of the range about one hundred and fifty feet from the top of the terrace; several claims were taken up and one shaft sunk 90 feet, when the party were beaten out by water. Others drove in tunnels from one to two hundred feet in length without striking the lead. Since then most of the claimholdet's have retired from want of funds and the great difficulty in driving these tunnels, on account of the excessive quantity of water and the loose nature of the gravel, which required the utmost care to keep it from running and blocking up the tunnels. There are three or four parties still working; and the gold obtained from Mcintosh and Newton's claim is of a coarse shotty nature, very little water worn. If these parties succeed in striking a defined lead there is ample ground for a thousand miners to occupy. Small quantities of good gold have also been obtained from the adjoining gullies and watercourses. There are a large number of miners located on the Central and Upper Buller, and in the various sources of the Matakitaki, many of whom hold either extended claims or double areas, and are making fair wages. Quartz mining has received a considerable impetus, from the continuous remunerative results obtained by the United Alpine Company and the great extent of stone found in the several levels. This company intend adding five head of stampers to their battery, and three berdans. This machinery is lying at the Lyell, awaiting the completion of the new road to the company's mine. The New Creek Company's battery is in course of erection, aud several of the other companies have taken up their leases and are preparing to start. The Lyell Low-Level Company has been successfully floated; they hold a special claim of 63 acres along the line of their proposed tunnel and in close proximity to the ground held by the United Alpine Company, and which dips into the special claim. A party is being formed to prospect the Manuka Flat, above the Lyell Township, which is believed to be auriferous, but too great an undertaking for single parties to attempt. The returns show that the population has increased, and the revenue and yield of gold is largely in excess of that of last year. The roads through the district, with few exceptions, are kept in fair condition, all being let under maintenance contracts; but in many places they are subject to the action of floods, which cause considerable damage and impede the traffic for three and four days at a time. There is an urgent necessity for a good punt on the Inangahua River, at the junction. The constant detention of the wagons for a week or ten days at this point is a serious drawback to the traffic to the Lyell, and entails an additional charge on the freight of goods; but, unfortunately, the boundaries of the Counties of Inangahua and Buller have been so defined that this ferry lies within the bounds of the County of Inangahua, whilst the Buller County derives all the revenue from the Lyell District. The cutting of the bush lines and tracks through the bush on the south side of the Buller River, between the Lyell and Maruia, is much needed to enable more prospecting to be done, for the country is very rugged, and covered with dense bush. One bush line is being traversed from tho Lyell towards the Mokihinui, and a similar line might be run with advantage from Boatman's towards the Lyell. Six thousand eight hundred and eighty tons of quartz were crushed by the United Alpine Company, giving a yield of 5,674 oz. 11 dwt. The statistical returns show that there are 391 water-races, of an aggregate length of 346 miles, capable of carrying 1,179 heads of water, valued at £27,515; 169 tail-races, valued at £10,962 ; 450 dams and reservoirs, valued at £10,929; 250 ground-sluices, valued at £11,500; which, together with the mining plant and machinerv, estimated at £13,000, makes the total value of all mining property in the district to be £73,906. Regular sittings of the Resident Magistrate's and Warden's Courts have, with few exceptions, been held on the dates appointed at Westport, Charleston, Lyell, and Reefton, and once, in March last, at Hampden. In consequence of the great distances between the several Courts, I have to travel 360 miles per month to hold eight sittings of the Court. The constant work in the saddle during all weathers is most fatiguing, and I find it very difficult to keep the appointed dates for the sittings of the Courts. I append herewith return showing the total population, cases disposed of in the Resident Magistrate's and Warden's Courts, the number of rights, licenses, and registrations issued during the year at each office, and the estimated yield of gold. I have, &c, W H. Revell, The Under-Secretary for Gold Fields, Wellington. Warden.

Tho population of the district is estimated at 3,881 souls, located as under:— Sub-districts or Localities. European. Chinese. Total. Westport 2,237 6 2,243 Charleston 893 Nil. 893 Lyell 695 50 745 Total 3,825 .. 56 ... 3,881