H.—s

28

In all the creeks and large tail-races the miners, commonly known as " fly-catchers," have put in several sets of tables the full width of the creek, to catch the fine gold which escapes from the workings on the upper terraces; and in many instances these claims yield handsome returns to the owners, who have little work to do on them after erection, except to wash out the cloths, and be prepared to prevent damage occurring during floods. Brown and party are erecting a small battery of four heads, driven by a water-wheel in Darkies Greek, to crush and pulverize the black sand and wash-dirt taken from their tables. At Four-Mile, Six-Mile, St. Kilda, and Brighton the miners have been fairly employed on their claims. Some of them also hold beach claims, which they are only able to work after heavy westerly weather, when the heavy seas wash away the body of grey sand thrown up by the tides in fine weather. There are also a few parties working south of Brighton, in the vicinity of Fox's Eiver and Razorback. Several of these miners have taken up agricultural leases, and have cleared and cultivated a considerable area of land, and are establishing comfortable homesteads. Several small parties have been out prospecting for gold in the back country. No payable ground was met with, but traces of gold were found in many places. Quartz reefs are supposed to exist in the back ranges along the coast, but the difficulties of access thereto have deterred many from making a thorough prospect for the reefs. Lyell Sub-district. During the past twelve months alluvial mining has been steadily pursued in many parts of this sub-district. At the Limestone Range there are four parties engaged ground-sluicing, and making fair wages. Gold has at different times been got in the limestone caves, but, as the ground was found to be very treacherous, the miners, after two or three narrow escapes, abandoned them. Welshman's Terrace. —The deep ground discovered there about two years ago has been abandoned. No gold was obtained except in the face of the terrace. No defined lead was ever struck on the terrace, although several tunnels were put in at great expense and labour, the men being driven out by water or by the loose, wet, and dangerous nature of the ground. There are three or four parties still working in the gullies and watercourses in the neighbourhood. There are a few parties working in the Lyell Creek ground-sluicing, making fair wages, and occasionally meeting with rich patches. There are some twenty-five or thirty parties working on the banks and low flats along the Buller River, principally ground-sluicing; many of these parties hold good ground, and are doing well wherever they can command a supply of water. A party of six men have just completed the construction of a dredge to work the bed of the Buller River at Fern Flat. Some of the men in this party were working in the same place two years ago, with good results; but unfortunately their dredge and appliances were all swept away in a flood. They have now determined to make another trial. On the Matakitaki River and its many tributaries there are about one hundred men employed ground-sluicing, with fair results where water is available. Throughout this district many of the miners hold residence areas or other blocks of land, which they are clearing and cultivating, and upon which they have erected good cottages. There are a few claims also held on the banks of the Maruia River, with water rights attached, some seven to ten miles above its junction with the Buller River. Quartz-Mining.■ —There are fifty-four gold-mining leases and special claims held in this part of the district, and seven other leases have been either withdrawn or cancelled. During the first half of the year quartz leases were all the rage, and transactions in the scrip market were numerous ; but latterly there has been a reaction and no business doing, and the works in several claims have been suspended, with the exception of a little prospecting. The United Alpine has a battery of twenty head driven by water, with a 40-feet wheel with 6 feet breast. The company have about forty-five hands employed on the works, but the return of gold has not paid anything like working expenses, and the capital is nearly all called up. They are now driving the No. 6 Level. They are in about 1,140 feet, and expect to drive another 120 feet before striking the reef. The United Italy Company have been formed into a registered company. They have worked out the reef found on the north portion of their lease, which yielded on an average 25 dwt. to the ton. They are now driving a tunnel on the south of the lease for the continuation of the same reef. The United Victory Company have a battery of ten heads of 8-cwt. stamps, driven by two turbines. Two tunnels and an intermediate level have been put in. No. lis now in 250 feet, and No. 2, 600 feet. . There are thirty-five men employed in the mine. The reef runs 2 feet in width, and has averaged. jL^oz. to the ton. The driving is very hard. This claim was considered one of the most promising on the field, and was confidently expected to go from 3 oz. to 4 oz. to the ton. The' unfavourable result of the crushings has had a marked effect, and has caused a general depreciation in the several leases in the district. The Croesus Company are erecting a battery of ten heads, with two berdans, on their lease. Three tunnels have been driven : No. 1 about 600 feet; No. 2, 700 feet ; and No. 3, 200 feet. The reef has been met with in No. 1 and No. 2, and No. 1 and No. 2 levels have been connected