C—2.

in the expenditure last year was therefore £101 lis. lid. The net profit on working this waterrace last year amounted to £3,629 Is. 2d., whereas the profit the year previous was £4,310 19s. 4d. This shows a decrease in the profits last year of £681 18s. 2d. It is^jratifying to find that the outstanding moneys at the end of each month are gradually decreasing. At the end of the previous year they amounted to £146 lis. 9d., and at the end of last year they were £128 15s. 4d. The average number of men employed in mining-claims worked with water from the water-race last year was 267, as against 281 for the year previous. The approximate amount of gold obtained last year from claims worked with water from this race was 12,6930z., representing a value of £48,233 Bs., or £3,104 12s. less than the year previous. Taking the average number of men —namely, 267 —and the value of gold obtained by them, after deducting the moaey paid for water and use of the sludge-channel, it makes their average earnings £2 15s. 4d. a man per week, or-Is. sd. per week less than the year previous. Taking the total cost of construction of the whole of the works, which was £173,363 7s. id., and the net profit on the working last year, it is equal to nearly 2 t l per cent, on the outlay. * Nelson Ceeek Wateb-bace. The water-race is in fair repair. The flumes and bridges, which are the principal expense in maintenance, are getting decayed, but portions of these are from time to time renewed, so that there is no immediate danger of any large expenditure being required for a considerable time. The present maintenance-men are sufficient to effect any necessary rej)airs. Some sawn timber will have to be got on hand, so that no delay be made in doing repairs when these are necessary. The ground that the race commands is getting pretty well worked out on the terrace, but very rich ground has lately been opened in the valley of Nelson Creek, and this is likely to prove of considerable extent. If arrangements could be made with the elaimholders in this locality to take water by pipes from the level of the race it would increase the revenue greatly. The revenue last year shows a considerable decrease owing to a breakage which took place in the tunnel leading from the dam—some twenty-eight chains in length ; and the manager considered at the time that it was cheaper to make a deviation in the race, and take the water from the bed of Nelson Creek, than to repair the tunnel. This deviation took two months and a half to construct, during which time there was no water in the race, so that the sales of water were only for nine months and a half last year. The total cost of this deviation was £389 14s. The following table will show the results of working this water-race last year : —

It will be seen from the above table that the receipts from sales of water were £427 Is. Bd.; whereas the receipts the previous year were £1,045 Is. Bd.: which shows a decrease of £618. The expenditure on maintenance and cost of deviation last year was £1,384 9s. 3d.; but, deducting the cost of deviation (£389 145.), it leaves the actual cost of maintenance £994 15s. 3d. This would still leave a loss on the working of the race last year of £567 13s. 7d.; while the loss the year previous was £128 13s. Bd. It is evident that unless new 7 ground is opened up the loss on working this water will increase every year ; but, with the present prospect of a large extent of good ground being opened up in the Nelson Creek Valley, the whole of the water may yet be utilised and the revenue increased. The value of free water given last year to open up claims was £172 19s. 2d., as against £353 6s. Bd. given for the previous year. The average number of miners employed in claims that are worked with water from the race for last year has been twenty-three, and the approximate amount of gold obtained by them was 7440z., representing a value of £2,845 165., which makes their average earnings for the year, after deducting sales of water, £2 Os. sd. a man per week, as against £2 ss. Bd. for the previous year. This shows that the ground is gradually getting less remunerative for working. Aegyle Watee-bace. The main water-race is in good repair, and will require very little to maintain it for many years yet, as all the flumes and timber-work were renewed about three years ago. The branch supply-races that were constructed about eight years ago are getting in a bad state of repair owing to the timber-work getting decayed. This timber-work is now giving a good deal of trouble to keep it projoerly maintained. The only work therefore requiring to be done, unless a breakage takes place, is renewing a portion of the timber in these supply-races; but this can be done by the ordinary main-

29

Month. Sales of Water.! Expenditure. Number of Men employed. Approximate Amount of Gold obtained. Value of Gold. 1888. £ s. a. 12 0 10 Nil. 5 17 6 71 6 8 43 13 4 44 10 0 36 3 4 38 10 0 48 12 6 £ 8. d. 90 0 0 202 19 0 195 19 0 93 12 0 99 4 0 96 13 0 93 12 0 113 9 8 100 13 0 Oz. 40 Nil. s b. a. 153 0 0 Nil. April May June July August .. September October.. November December 1889.'' 26 Nil. 24 25 34 35 34 29 72 73 97 95 96 69 275 8 0 279 4 6 371 0 6 363 7 6 367 4 0 203 18 6 J anuary February March .. 50 6 8 45 8 4 31 2 6 97 4 0 93 4 9 102 18 10 23 25 25 64 77 61 244 16 0 294 10 6 233 6 6 Totals 280 427 11 8 1,384 9 3 744 2,845 10 0