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£6,517 165.; deducting the value of water sold from this amount, their average earnings for the year would bo £153 10s. lOd. each. The total value of free water given from this water-race since its completion, for prospecting and opening out claims, has been £1,864. Argylo Water-race. —The auriferous ground this water-race at present commands is getting worked out, and although the race is only recently reconstructed as far as Ballarat Gully, it will be of very little utility until the extension to the back lead is completed, which is estimated to cost about £2,000. Contracts amounting to £1,203 18s. 3d. have been accepted by the Buller County Council, on behalf of the Government, for constructing a syphon across Ballarat Gully, and a survey is authorized to be made from this gully to the back lead. The total cost of this water-race up to the end of the financial year has been £12,843 16s. 9d., and the total value of water sold during the year has been £476 13s. 6d., whilst the expenditure on maintenance during the same period has been £447 19s. 7d., thus leaving a profit on the working of £28 13s. lid. The following table shows the Receipts and Expenditure, the Approximate Amount of Gold obtained, and Number of Miners using the Water for the Year ending the 31st March, 1885 :—

The profits on working this water-race for the year have been £28 13s. lid. or a little over one-fifth per cent, on the cost of construction. The average number of miners using water from this race has been fifteen, whilst the approximate amount of gold obtained by them is 500 ounces, representing a value of £1.912 10s. deducting from this amount the value of water sold, it leaves the average earnings of the miners to be £95 16s. 6d., this low average is accounted for by the manager as follows : —The average time that the miners were using water for the year was thirty-six weeks. Therefore, had the miners been at work for fifty weeks, (which is allowing them two weeks for holidays), their earnings would have been £133 Is. 10d. each. The total value of water sold from this water-race since it was purchased by Government, about six years ago, has been £3,093 16s. 2d., and the expenditure on maintenance during this period was £2,826 13s. 3d., showing a profit on the working during six years of £267 2s. lid. The approximate amount of gold, as far as can be ascertained, that has been obtained by the miners during the six years is 5,014 ounces, representing a value of £19,178 11s., whilst the average number of miners using the water from this race during same period has been eighteen per annum. The value of free water given from this water-race since its purchase has been £72 17s. Mount Ida Water-race and Sludge-channel. —These works were constructed by the Government, and the management of them was handed over to a trust on the Ist January, 1879. The total cost of these works has been £65,066 3s. Bd., and the amount of money received from sales of water and channel-fees from the time the trust took charge of them to the 31st December, 1884, has been £10,821 14s. Bd., and the expenditure on maintenance during the same period was £13,217 11s. 5d., thus showing a loss on the working of £2,395 16s. 9d. The approximate amount of gold obtained by the miners using water from this race has been 14,319 ounces, representing a value of £54,770 3s. 6d., and the average number of miners employed has been ninety-four. During the last year this water-race has been extended to Spec Gully, where the Trust anticipates a large amount of auriferous ground that will pay for working by the aid of this water-race, and thereby increase the receipts from sales of water. Milionui Water-race. —The construction of this water-race is being carried on by the Public Works Department, on behalf of the Mines Department, and will yet take some years before it can be completed, on account of a tunnel about two miles in length, which can only be constructed from both ends. This tunnel is now in course of construction, and about sixty chains of it completed. The lower portion of the race was completed about eighteen months a«o, with the exception of fluming across the gullies. This portion is now leased to the Mont d*Or Gold Mining Company, at a rental of £100 per annum, and the lessee has to keep it in thorough good repair, and to deliver it up to the Government at any time required so to do. The cost of this water-race up to the end of March last was £22,018 12s. 4d., and its completion is estimated to cost £83,000. The total amount of rent received for the portion leased has been £150. The following tables will show the yearly receipts and expenditure on maintenance on each of the water-races that have been constructed, together with the number of miners employed, and the approximate amount of gold obtained by the aid of these works since their completion, with the exception of the Mount Ida Water-race, which I could not obtain previous to 1879.

Month. Receipts. Expenditure. Lpril toy "une uly Lugust September ... )ctober November )eccmber ... £ s. d. 50 14 0 57 13 9 48 8 10 36 18 10 41 12 6 33 8 0 43 1 7 46 13 11 28 10 1 27 4 10 34 9 2 27 18 0 £, s. a. 41 8 4 39 2 0 50 10 4 27 0 0 35 15 4 59 16 2 29 5 0 25 0 0 36 18 0 31 10 0 3fi 8 10 35 5 9 fanuary February ilaroh 15 500 Totals 500 476 13 6 447 19 7 15