C.—2

14

fall can be got for tailings. The available ground in the vicinity of the Pipeclay Gully channel is getting yearly less, and the construction of another channel is contemplated to enable the bed and terraces alongside Smith Gully to be worked. Caedeona and Ceiffel. The number of miners and yield of gold from these places have varied very little for many years. As ground was worked out, other discoveries were made, and by this means most of the miners have been kept in the locality. The most recent new discovery made is in the face of Criffel Bange, where the gold is found in a very old deposit, and in similar drift to the rich auriferous wash found a few years ago in Bobertson Brothers' claim on the flat. The high elevation of this range does not permit sluicing to be carried on for some months in winter, but the miners at work in this locality intend to drive an adit-level into the face of the range below the depth of the present workings to ascertain the value of the deposit where it joins the schist-rock. They cannot do this in an open cutting, as the face of the range keeps slipping forward. The work done here during the last two seasons has proved the ground to be fit for hydraulic sluicing. At Criffel only a few men were employed last year, the whole of the available water being held by one party. About seventy-five men are employed about Cardrona and Criffel, who obtained about l,ooooz. gold during the past year. Aebow and Shotovee. There are the same number of men working in these localities as there were during the previous year, but the yield of gold last year showed a decrease from that of the former year. There are, however, large deposits of alluvial drifts, and, where the auriferous wash is not overlain by a great depth of gravel in which there is little or no gold, these drifts are made to pay very well for working on the hydraulic-sluicing principle. The great factor in working these drifts is water, and, although we have large rivers, they cannot, in many instances, be utilised owing to the great cost of lifting the water and constructing water-races ; and, further, in many cases the water could not be lifted from some of the principal rivers so as to be carried at a sufficient elevation to command the ground to be worked. Many of the terraces contain great depths of auriferous gravels, which will take years to work with the present supply of water. Mining works of considerable magnitude have been undertaken in these localities. Miller Brothers have gone to a large expenditure in the construction of works to work the bed of the Arrow Biver at the Falls, and also in opening out ground and bringing in a water supply to work Burkes and Londonderry Terraces. B. Johnston, and Davis Brothers, have also expended much money in opening out claims on Pleasant and Stoney Creek Terraces, while other large works are to be seen on the Upper Shotover, and also at the Sew Hoy Company's claims at Arthur's Point and the Big Beach. Bound Hill and Oeepuki. There are a number of men engaged in mining in the vicinity of Bound Hill and Orepuki, and a fair quantity of gold is being obtained. Formerly there were very few Europeans as compared with the number of Chinese at work at Bound Hill; but since an English company has commenced hydraulic sluicing and elevating, the number of Europeans has considerably increased, while the number of Chinese has decreased. The ground in this locality must be very good to pay for working with the very small supplies of water available. Indeed, in many fields the quantity of water used would not enable men to procure sufficient gold to pay for their food. This English company referred to hold most of the water-rights in the place, but have not sufficient water to carry on their own mining operations on an extensive scale. They are getting enough gold, however, to pay for working the ground. At Orepuki the workings are all on a sea-beach deposit, and some of the men are doing fairly well. Adjacent to the gold-workings is a mining reserve which comprises very good land, and, between mining, keeping a few cattle, and working their gardens, the men seem to make a fair livelihood.