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last section of the road was completed, about eighteen months ago, the old zigzag pack-track over the hill above Stapleton's Beach had to be used for bringing up all the mining-machinery employed in the Skipper's District. WATER-BACES. The results of working the water-races have been more satisfactory for the past year than they were for the one preceding. The Waimea-Kumara Water-race and Sludge-channel show double the profit of the previous year, and the Mount Ida Water-race shows a profit of £100, whereas there has always in previous years been a loss on working. The Nelson Creek and Argyle Waterraces show very little difference from their previous year's returns. The increased profit last year on the Kumara Water-race and Sludge-channel is due, in a great measure, to the construction of No. 2 Channel, which relieved the original channel to such an extent that there has been a saving of £1,697 on the maintenance. The ratio of expenditure on maintenance on No. 1 Sludge-channel, previous to No. 2 Sludge-channel being constructed, was £3 to every £1 received in channel-fees. Therefore, the more parties of miners that used it the more the loss became. By the construction of No. 2 Channel, which cost the State £2,763, the saving on the maintenance of No. 1 was, for the past year, £1,697 ; and for the year previous, £258 ; making the total saving of £1,955, which, in a great measure, recoups the outlay on the construction of No. 2 Channel. Not only has there been a direct saving in the cost of maintenance, but the second channel allows the working of the claims to be carried on in a far more regular and satisfactory manner, and will be the means of far more ground being worked than otherwise would have been, as the space for tailings from the original channel is now very limited, and depends, to a great extent, on the floods in the river to carry the tailings away. The heavy floods in the early part of the present year have done a great deal towards carrying the tailings further down the river ; but the time is not far distant when the original channel will become useless for conveying away the tailings from the claims, as the bed of the Teremakau River will soon be filled up with heavy material on which the force of the water, even in high floods, will have very little effect. The profit on the working of the Mount Ida Water-race is due, in a measure, to the extension of the race to Spec Gully ; to the wet season which has kept up a good supply of water ; and also to the value of gold-dust obtained in washing-up a portion of the bottom of the sludge-channel. In dealing with the water-races it will be advisable to show the results of working each separately, and then show the combined results of the whole. Waimea Watee-bace, Westland. This branch of the Waimea-Kumara Water-supply is kept in very good order and repair, seeing that there is over a mile of high fluming on the upper portion of the race, which has been erected for nearly fourteen years. A great number of the legs of the trestles and stringers have been, from time to time, replaced, and these repairs effected in such a manner that no stoppage has taken place in supplying water to the mining-claims using it. When a large amount of repairs has to be done timber and all material are brought on to the ground, and every holiday taken advantage of for executing the repairs. During the last Christmas holidays ssveral portions of the fluming have been replaced, and there is always a supply of timber on hand to effect repairs in case of an accident occurring. All the flumes along the race are in a fair state of repair. Some of the planks in the boxing are getting pretty well decayed; but these can easily bo replaced, so long as the under-structure is kept good. Indeed, I see no difficulty in keeping up these repairs, and maintaining the race at the same yearly expenditure, for as long a period as there is a sufficient amount of payable auriferous ground to work, to utilise the quantity of water that the race is capable of supplying. The following table will show the results of working this water-supply during the year ending the 31st March last:—

Month. Sales of Water. Amount of Cash received for Sales of Water. Expenditure. Amount of Outstanding Moneys at the End of each Month. Number of Men employed. Approximate Amount of Gold obtained. Value of Gold. 1887. £ s. d. 131 5 10 141 15 10 92 2 1 162 16 3 135 19 2 152 G 3 153 4 7 177 G 7 112 3 8 £ s. d. 254 9 5 131 12 G 96 14 7 133 4 9 103 10 2 114 7 5 160 14 0 163 3 1 215 3 10 £ s. d. 107 15 5 114 18 5 104 11 6 76 16 10 98 5 G 65 G 2 56 12 3 83 9 7 92 12 9 £ s. a. 131 11 0 140 5 2 135 12 8 164 10 0 136 2 4 174 1 2 167 0 9 180 15 3 77 16 9 Oz. 254 230 156 285 265 251 251 221 431 £ s. a. 965 4 0 874 0 0 592 16 0 1,083 0 0 1,007 0 0 953 16 0 953 16 0 839 16 0 1,037 16 0 April May June July August September October November December 101 92 94 97 99 99 100 98 101 1888. 65 5 0 130 14 7 157 11 5 13 2 1 114 10 4 233 i 2 111 8 G 56 16 0 59 5 0 129 18 0 146 2 3 09 4 4 87 93 90 135 202 279 January February March 513 0 0 767 12 0 1,060 i 0 Totals 1,612 11 3 1,793 1G 4 1,151* 11,248 0 0 1,027 17 11 2,960 *Ave: jarnings, after de rage 98. jducting sales Note.—Average weekly >f water £1 IGs. id. per man.

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