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miners look forward with hope to the completion of this race. On this subject I have previously reported. There are no new claims or any new feature or discovery to chronicle. The Naseby Eoad progresses, and is now within a short distance of the Saddle, and no doubt will be found to be of great convenience to the miners. Outside the sub-district there, have been rumours, I believe to a certain extent well founded, of the so-called "discovery" of gold on the Balruddery and Elderslie Estates, about ten or twelve miles from Oamaru, in the Kakanui Valley and Eanges. Discovery is not the correct term, inasmuch as the existence of gold in the Kakanui Eiver has been an ascertained fact for many years, and some isolated instances have occurred at intervals of the discovery of rich pockets of alluvial gold in its banks. The present find is that of a quartz reef, but I have no official information. The land on which it is claimed to have been found is, I understand, freehold. The prospector, named Cook, merely called at my office for a miner's right. I have, &c, The Under-Secretary of Mines, Wellington. Jackson Keddell, Warden.

No. 13. Mr. Warden Hawkins to the Undee-Secebtaey of Mines, Wellington. TuAPEKA. Sir, — Warden's Office, Lawrence, 23rd April, 1895. There isvery little change in matters relating to mining since the date of last report. The number of mining applications have slightly increased, and in some few cases very successful results have been obtained. Two licenses for special claims, embracing 60 acres, and four licensed holdings, of 73 acres, have been granted in addition to the usual number of extended claims of small areas. The special claim granted to Donlan and party is being vigorously worked by means of the elevator process. The claim is owned and worked by four men, who have leased the water from BiddellVßace. It is said that the average earnings of this party are about £10 per week per man. Mining operations have been very considerably retarded during a portion of the year owing to the very dry weather. The Local Industry Company, which is working in Gabriel's Gully, was wholly or partly idle for nearly two months, and is still working with a reduced number of hands. The party has been working by means of an elevator plant, and using the water leased from the Phoenix Company, at Weatherstone's. The Local Industry Company, notwithstanding the small number of hands employed, obtained 4500z. of gold during the year. A licensed holding has been recently granted to Laurence Dalziel for a claim of 18 acres, situate near the mouth of the Beaumont Eiver, and, as a part to be worked is on a terrace not far from the Molyneux Eiver, it is generally believed it will turn out exceedingly rich. A good supply of water is obtainable from the Beaumont Eiver, which is available for the purpose of working this claim. The amount of prospecting done in the claim is but small, but is said to be satisfactory. A licensed holding of 16 acres has been granted to Messrs. Kitto and party in Munro's Gully. In this area is included a lot of ground they have continuously occupied for more than twenty years. The party is a most energetic one, all working miners. Finding that they could not work their ground to advantage owing to want of sufficient elevation for the race, they have constructed a race from the Waipori Eiver, twenty miles in length, at a cost of about £1,500, so as to enable them to deal with the whole of their ground to advantage. Messrs Mills and party have obtained a grant of eighteen acres, also in Munro's Gully. They have now erected their elevator plant, and appear to be perfectly satisfied with their prospects. The Blue Spur and Gabriel's Gully Consolidated Gold-mining Company, carrying on operations in the places indicated by their title, have done a very large quantity of work during the year. Although their mine had not at any time been completely shut down, it has suffered through a large amount of broken time. During the latter part of June, all July, and part of September Revere frosts interfered with the water-supply, and rendered the cement impossible to work. 'During December, January, and February continued drought again diminished the water to a greater extent than has been the case for many years. The months of May and November were the most productive of water, enabling the mine to be worked 741 hours and 712 hours respectively. In July only 453 hours of water were available, and in February 417 hours. The total quantity of water used during the twelve months was equal, it is estimated, to a supply of twenty gallons per capita per diem for a population of 8,246 people. The enormous quantity of 332,155 tons of cement have been blasted out of the working faces, broken up, and disposed of by three elevators in use, and have produced 3,7900z. of gold. The gold saved from each ton of cement being about 10d. in value, affords a forcible illustration of the wonderful saving-power of modern gold-mining appliances. Eoburite has been used exclusively for all blasting purposes. An average of forty-one men has been employed, to whom £4,175 has been paid in wages, the wages averaging from 12s. 6d. to 7s. per diem. The cost of roburite used amounted to £624. At Tuapeka Flat, Weatherstone's, and along the river to Tuapeka Mouth, there is nothing worthy of special record. Mining is being carried on in much the the same manner as it has been for the last few years, most of those engaged steadily at work earning fair wages. There is only one dredge at present at work in this part of the district—namely, that of McLelland and party. This party have been engaged working on tribute part of the ground in the vicinity of Horseshoe Bend, but they have now applied for a river-dredging claim of 35 acres on the Molyneux. Their application is not yet in a position to be finally dealt with. Considerable stir has lately been created by reports of payable gold having been found in the vicinity of Tuapeka Mouth, on the freehold property of Mr. James Smith, of Greenfield Station. This is about twenty miles from Lawrence. A number of men, from twenty to thirty, are prospecting