H.—s

35

South Beach. —From Teremakau to Grey Rivers there are about seventy miners, who appear to be fairly remunerated for their labours. Some of the claims no doubt are very poor, but on the -whole I think holders are satisfied with their earnings. The two leases which I mentioned in my last report as having been taken up, for the purpose of working cement by means of a crushing machine, on what is known as Cement Lead, have been surrendered in consequence of the ground proving unpayable. Cameron's Terrace. —The workings at Cameron's have been steadily maintained during the past year. Some of the claims, having proved unremunerative, have been abandoned, after the expenditure of a considerable amount of time and labour in opening up the ground. Great energy and skill have been displayed by the miners in working their claims, constructing tailraces, &c. There are about thirty-five men employed on this portion of the gold field. Rutherglen. —There is nothing new to mention in this part of the district. I think there has lately been rather a tendency to increase of population, and I see no signs of this locality becoming abandoned. The principal drawback in connection with these diggings is the want of a permanent supply of water. At present miners are almost solely depending upon rainfall for their supplies. This summer has been exceptionally dry, therefore the returns of gold are not as great as usual. Limestone and Welshman's. —Very little change has taken place during the past twelve months. The population is about the same as it was last year, namely, sixty Chinese and forty Europeans. As in Rutherglen, water in this locality is very scarce; a greater supply has been obtained during the past year by means of larger dams than were formerly used, which has made the claims more remunerative than hitherto. Marsden. —ln this division of the district there has been little to call for special notice. The number of miners employed has not diminished; and the return of gold is, I think, about the same as last year. Some of the claims are paying large dividends ; on the other hand, many of them are very poor; but I believe, on the average, the result to be satisfactory. The European population is about forty and the Chinese twenty-five. Dunganville. —This portion of the district still maintains about the same population. Many of the claims are paying well. No new ground worthy of note has been discovered. The gold returns will, I think, compare favourably with last year. Arnold. —Miners are working- away steadily in this locality; most of them are making satisfactory returns. No new finds have been made during the past year, and there is nothing calling for special mention. No Town. —The old claims are yielding average returns, and the mining population remains much about the same as last year. The average earnings of the miners generally is about from £2 10s. to £3 10s. a week per man. The ground is worked principally by sluicing. The Chinese population has, I think, slightly increased. Orwell Creek {Ahaura Division). —A decrease of population has taken place at Orwell Creek, caused by the gradual exhaustion of the known auriferous leads and the absence of all prospecting operations. A large company has been floated for the purpose of bringing sixty or seventy heads of water to Orwell Creek Flat at a high level. The company has also applied for a special claim of 200 acres in the same locality. There is no doubt that an immense impetus will be given to mining operations in Orwell Creek and adjacent localities when the company has completed its waterworks scheme and commences mining operations in the deep ground at present under application as a special claim. Moonlight Valley. —This old-established diggings still supports a fair mining population^ all of whom, it is believed, are making full wages, and some of them no doubt a little more than wages. On the range above Paparoa a prospectiug party has been engaged during the summer searching for auriferous quartz reefs, which many experienced miners who know the locality feel confident will yet be found there. Several leaders carrying fair gold have been struck, but as yet the prospectors have failed to strike the main reef. Slatey Creek. —A small rush took place to Slatey Creek last winter, and at one time some twenty or thirty men had pegged off claims. Many of the claims, however, were too poor to work, and nearly all the others were worked out in a few months, the ground being very shallow. The place is almost deserted now, but it is believed that auriferous deposits exist at the head of the creek, and would soon be found if a pack-track were made up the creek to the foot of the main range. River View and Sullivan's. —Mining operations have been brisker here than usual, and considerable quantities of gold have been won by the miners. A block of new ground was discovered during the summer, and a large number of claims pegged off; but it was soon found that the ground could not be worked profitably without a good supply of water, and many of the holders abandoned their claims in quest of more easily worked ground. A large area of ground will be profitably worked when the diversion of the Nelson Creek Water-race to River View has been constructed. Callaghan's Creek. —Mining operations have been very slack here as a rule, owing to the small quantity of rain which has fallen throughout the year. The workings being on a level with the creek, the bed soon becomes choked by tailings and debris, except when frequent heavy floods scour the creek and lower its bed; and, as such floods have been of rare occurrence during the past twelve months, many miners at Callaghan's have had to submit to frequent spells of enforced idleness.