41

H.—s

County and Borough Councils, and also by the Government. Skilled labour was employed to sink a shaft, which has been timbered thoroughly to a depth of 350 feet, at a cost of over £1,000. When their funds fell short, and on representations being personally made to the Hon. the Minister of Mines on his late visit to Naseby, a further subsidy was promised on condition that the Association raised £150. This they have failed to do, and the shaft remains up to this time a dead letter. It is hoped, however, that in the course of a short time they may be able to raise the required sum, when operations will be resumed. There has been some prospecting for quartz reefs on Blackstone Hill, and it is said that good stone has been found, but up to this time no application has been made for a claim. Settlement upon the land open for selection has been progressing, and the farms on the Gimmerburn and other places in the district look well. Had it not been for the unusually wet season the farmers have encountered—in many cases doing great damage—l have no doubt that their profits would have been considerable. Prices have ruled high for farm produce for some time. The new agricultural leases taken during the year represent an area of 1,537 acres 1 rood 30 perches, and 3,253 acres 1 rood 3 perches have been taken up on deferred payments during the same period ; 2,808 acres 2 roods 2 perches held under agricultural lease have been converted into freehold; and two leases have been exchanged for deferred-payment licenses. The total area at present held under agricultural lease is 7,641 acres 2 roods 11 perches, and on deferred payments 27,782 acres 2 roods 22 perches. The yield of gold for the year is estimated to be about 12,811 oz., of the value of £48,041. The total revenue from all sources has been as follows : Gold revenue, including rents on mining and agricultural leases, £2,377 11s. 7d.; rents on deferred payments, £2,823 7s. sd. This shows a decrease as compared with last year. The agricultural leases converted into freehold account partly for the falling-off, as rents on these leases have ceased to be payable. I forward herewith the usual statistical returns, and I have to remark that, in addition to the cases in the Warden's Court, there have been heard 362 applications for mining privileges, 15 applications for mining leases, and 9 for agricultural leases. Of these 48 were opposed, and the hearing of the objections was in some cases very lengthy, involving adjournments and visits to the ground. I have, &c, John S. Hickson, The Under-Secretary for Gold Fields, Wellington. AYarden.

No. 15. Mr. Warden Wood to the Under-Secretary for Gold Fields. Sir, — Lawrence, 24th May, 1883. I have the honour to forward herewith the annual report and statistics for the Tuapeka and Waikaia portions of the Otago Gold Field. There is very little to report, the district throughout having made hut little progress. The mining population shows a slight increase as compared with the preceding year, but there has been a considerable decrease in the yield of gold, amounting to over 3,000 ounces ; this is owing principally to the stoppage of work in some of the large claims at the Blue-spur, consequent on partnership disputes. There are now at the Bluespur over ninety head of stamps at work, and the dividends from some of the claims have been exceedingly good; amongst these may be mentioned the North of Ireland Company, which has been working with much better results than formerly. The Weatherston Cement Company continues to work with great perseverance, and should pay a fair dividend, for it is certainly well looked after by the managing director. During part of last year they had forty men employed, but their complement at present is only twenty-eight. I expect they find the slow process of drilling eats up the profits. I understand that the drilling for each blast costs 2s. It is surprising that in this age of invention some more expeditious way of drilling in a drive has not been discovered. If this item of expenditure, and improvement in cement crushing machinery was to take place, no doubt double the population would be employed, as there is plenty of cement ground which would pay, but not at the present rate of wages and mode of working. I may mention, to show the work this company has done, that the area worked is six acres, the value of the gold obtained .=826,000, out of which £14,000 has been paid in wages. The Gabriel's Gully Sluicing Company is now working ground to advantage, and there is every prospect of a continuance of its success, as the higher they get up the gully the greater quantity of solid or unworked ground they will meet with. In the course of two or three years they ought to be about the site of the old. Blue-spur Township, where the ground is nearly all solid, the township having been removed to make room for the Blue-spur tailings. At Waitahuna, mining matters are quiet. The machine formerly employed in cement crushing has been stopped, as the expenses were too great to pay. The miners engaged in sluicing are said to be making fair wages; they are mostly all old residents. At Waipori there are now three batteries at work: the Victory Company, with ten heads of stamps; the Undaunted, ten heads ; and the Modern Maori, five heads. On the line of a new reef known as Porter's reef the Cosmopolitan Company has had several trial crushings, a recent crushing of twenty tons averaging 10 dwt. to the ton. This Company are now preparing to erect machinery. The Modern Maori has been working steadily for the last three years, employing on an average over twenty men. There are about fifty men now working for the above companies. 6—H. 5.