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block of country, some 150 square miles, and it is generally believed that profitable work would be found by a large number of men; the streams running into the Aorere as well as the main river above this point are all auriferous as far as explored, and have some of them been partially worked. The diggings known as the " Burgoo " are in this locality; the same difficulty here as in many other places exists—viz., want of pack tracks. Twenty miles nearer Collingwood is the quartz ranges, one of the earlier mining localities on these diggings, still producing a fair yield of gold ; the miners on this and other localities in this district have settled down and have good gardens and comfortable houses. In this locality several applications for leases on a quartz reef lately discovered have been put in, and have now been surveyed, and portions of the stone taken from a leader in one of the drives has shown by test in the Government laboratory the extraordinary yield (after removing all visible gold) of Boz. 13dwt. 13gr. per ton. The main reef has not yet been struck, but all the leaders, though small, are gold-bearing. I have not yet been able to visit these works, but will do so at an early date. Before concluding my remarks on this locality, I may state that the reef that has for some years been working more or less profitably at the Anatori (West Wanganui), on the other side of the Wakapohi Range, and about abreast of the quartz ranges, has lately opened out some exceedingly rich stone, which leads many to hope that the same class of stone may be found on both sides of the range, the distance being small. Between the quartz ranges and the Slate River there has not been much done during the past year, a few men only working in the old river diggings. On the eastern side of the Slate River a portion of the table land lately named Druggan's Flat, and which has from the earliest days of these diggings attracted attention (there have been various attempts made to work it and successfully battle with the heavy boulder drift by shafts and paddocks), is now being taken up by my granting extended claims of 1 acre each man, and it is proposed to be worked on quite a different system. I have let it be clearly understood, on granting them, that these claims must be actively worked, and I am glad to find that the men seem confident of their value, and are making energetic efforts to supply themselves with water (I fear one of their future difficulties) and pushing on their working tunnels, some of which will be 500 feet long through non-auriferous rock before reaching the drift. This mode of working this ground seems more likely to be successful than under the old system, but, from the great expense entailed, it has, I consider, justified me in granting such extended claims. From this place rises over table lands and low hills, in slightly different directions, two of the older digging localities of this district, the one covering the country comprising Lightband's and Appo's Gullies, and the other the Bedstead and Golden Gullies. All this country, although much worked in the past, is still in great favour, and much of it is taken up under lease. In the Bedstead and Golden Gully Block lies the claim formerly known as the Perseverance, which, either from imperfect appliances or bad management, failed to pay (no one thought it was because the stuff was poor). That confidence in the ground has now induced another company (Johnston and Company) to start. They are putting in a 400-feet drive at a lower level; this drive I saw when 200 feet in. There was then no indication of them being near a gold-bearing stone. Very shortly after my visit, however, when about 15 feet further in, the stuff changed, much resembling that in which the gold was^found in the old workings. It is expected this drive will be much below the auriferous stone, and that the water, which was the great difficulty, in the old mine, will then be got rid of without expense. There is a large extent of good ground in this locality, but the old flume, formerly built at great expense by the Nelson Company and afterwards by the Perseverance, having fallen beyond repair, this part of the district is nearly at a stand still for want of water. The Johnston Company will have again to bring in water from the Parapara to work the claim, and it is to be hoped they may have some to spare to sell to those who so much want it in this locality. In Stanton's, Lightband's, and Appo's Gullies there are a few men apparently doing very well. In the prospecting drives put in by Mr. Ross in the Red Hill some good stuff is said to have been found, and will, no doubt, shortly be in working trim. Altogether there is a healthy appearance of revival, and I have every reason to believe that before the end of the year there will be a great improvement in the gold mining industry in this part of my district. Takaka, —This part of the Collingwood Goldfield includes several old mining localities, and a comparatively new one —Mount Arthur. The old diggings are doing about the same as they have for some years past; the difficulty of pack-tracks is here as elsewhere felt; there has been a movement on the part of the local body to take advantage of the vote to meet equivalent moneys voted or subscribed in the district for the purpose of forming a track up the Anatoki River, from which a fair yield of gold has been obtained, and it is known to be better higher up. This upper country (rather large in extent) can be reached both from there and from Collingwood side of the range; both roads are in a bad state. The Collingwood one—by way of Rocky River and Snow's Rush—though longer, is the easiest grade ; that by the Anatoki is shorter but much steeper ; both lines have their advocates ; one, at any rate, is badly needed. The alluvial digging here will increase, in all probability, in a few months, as many of those formerly engaged in that pursuit are at present working in the construction of a district tramway, which in a few months will be finished. The Mount Arthur quartz reefs have attracted considerable attention, but up to the present time I have not heard of any of the companies who have got into working order. I had intended ere this to have visited the locality. There are applications for amalgamation of some of the leases under special claims referred to mo by the Commissioner of Crown Lands in Nelson. Before I report to him I propose to visit the works, and will then send in a subreport to you on this locality. There are a few alluvial miners at work there who get their miners' rights, some in Nelson and some from this office ; this prevents my being able to give you at present any correct data; I shall, however, be better able to do so after my visit. There are some other works going on in the district which come under the head of mining, though not gold mining, which I think I should notice. One of these works, for the manufacture of hydraulic cement, will shortly be in working order. The same proprietor is working the Collingwood coal seams.

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