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to construct a tail-race from Waipuna Creek in connection therewith. This is work that different parties have thought of undertaking, but its magnitude has deterred them. Duffer's, Half-ounce, and Brandy Jack's Creeks. —There are from sixty to seventy miners at work in the above-named creeks. The auriferous terrace discovered some three years ago at Halfounce, which was principally worked in ordinary claim, and turned out well, has been driven out, but will now probably pay to sluice away. Gold was found as high as the top of the tunnels. There is no doubt that the terraces on high levels would pay handsomely were water available for sluicing, and should the construction of a race from Randall Creek be brought about, this district will doubtless be greatly benefited. Orwell Greek.- —There is a considerable number of miners in this locality. Operations are generally carried on by driving, the want of water preventing sluicing being done to any extent. It is well known that there is a large area of auriferous ground on Napoleon Hill—McCoola Terrace— and all the ranges about which would pay for sluicing ; and some time back a party was formed to carry water from Randall Creek, a survey made having proved that a supply could be obtained from that source, which might, if necessary, be supplemented by a race from Safety Camp Creek. This party contemplates construction of a reservoir capable of holding a supply at the rate of thirtyfive heads for sixteen hours per diem. As a result, a licensed holding and a special claim of 35 acres have been applied for. The race in question could be made to command all the high-terrace land about Duffer's, Noble's, Half-ounce, and Mosquito Creeks, and all the auriferous country along the north side of Ahaura River, comprising eighteen square miles. Callaghan's Creek. —There are about twenty miners in this locality, who are mostly employed at sluicing old workings. The terraces at the head of this creek and towards the river are auriferous, being on the line of country that carries gold, but the scarcity of water precludes the possibility of working at high levels. Revenue received at Ahaura for the period ending the 31st March, 1896 : — £ s. d. Miners'rights ... ... ... ... ... ... 305 0 0 Water-races ... ... ... ... ... ... 27 0 0 Registrations ... ... ... ... ... ... 33 1 0 Rents ... ... ... ... ... " ... ... 232 18 0 Miscellaneous ... ... ... ... ... ... 102 9 2 Total ... ... ... ... ... ... £700 8 2 Number of mining applications received during the above-named period: Ordinary applications, 531; applications for special claims, 7 ; applications for licensed holdings, 6; and issued residencesite licenses, 10. I have, &c, The Under-Secretary, Mines Department, Wellington. H. A. Stratford, Warden.

No. 8. Mr. Warden Macfarlane to the Under-Secretary for Mines, Wellington. Sir,— Warden's Office, Hokitika, 15th May, 1896. I have the honour to forward herewith the usual mining statistics for the year ending the 31st March, 1896, together with the annual report on mining matters in the district under my charge. Hokitika. The gold returns from this district for the year ending the 31st March shows considerable improvement on last year's returns, and this notwithstanding the fact that the number of men employed in mining are fewer. Craig's claim and the University Reserve continue to give good returns, and what is known as Bay's claim, at the Blue Spur, is still yielding excellent gold. The presence of such rich patches of gold along the foot of the range is the best proof of the unrealised value of the auriferous deposits covering the Blue Spur Ranges, from the Hau Hau to Humphrey's Gully, and which are now almost wholly unavailable to the ordinary miner on account of the scanty supply of water, as only by wholesale hydraulic mining can this block be profitably dealt with. In view of the almost certainty of Mr. Ziman's arrangements with the Humphrey's Gully Company being carried out, and the yet more extensive operations contemplated in connection with large mining properties taken up by that gentleman and his friends in the same neighbourhood, I anticipate that in a few years this will be one of the largest gold-producing fields on the Coast, and in this connection lam only dealing with the North Coast, or Arahura watershed. On the Hokitika side of the same range, and commanding the whole of the auriferous flats along the foot of the range, including Commissioners, Kanieri, Tucker, and Shenandoah Flats. We have the Kanieri Lake Waterrace Company busy getting the old Kanieri race put in repair, one line of pipes having already been carried across the main branch of the Kanieri River, and a second line is now being laid to convey water to the same terrace; the first line having proved a profitable speculation to both race- and claim-owners. A second race is projected to lift 120 heads of water out of the same lake, but on the south side; this, when constructed, will induce men to take up claims that are now valueless, and furnish employment for many who are often unwillingly idle, who if at work would materially increase the output of gold. Returns from Seddon's Terrace, Back Creek, and Rimu are about the same as last year, the efforts made to obtain an increased supply of water having proved abortive. So far as I can learn, the money spent in assisting prospecting has not yet resulted in any discovery of new runs of payable gold-bearing gravels. The want of an adequate water-supply is the great drawback to this district, but owing to the great cost there is but small prospect of its being undertaken.