25

C—3a

No. 12.

Mr. Warden McCarthy to the Under-Secretary for Mines, Wellington. Sir,— The Warden's Office, Clyde, Ist June, 1896. I have the honour to enclose herewith the annual statistical returns, and to submit the following report on mining matters in the sub-districts under my supervision, for the year ended the 31st March, 1896 :— Clyde and Alexandra. From what I have observed during the short time I have been in charge of the DunstanWakatipu Warden's district, I am satisfied that in Clyde and Alexandra, as well as the districts immediately surrounding, the mining industry is worthy of being further developed, and there are not wanting signs that there is not only auriferous ground capable of making a fair return, but men ready and willing to risk labour and capital for the purpose. There is no doubt, in my opinion, that those directly engaged in gold-mining will show a substantial increase during the coming year. In the locality immediately surrounding Clyde, Messrs. Nicolson and party may be said to be carrying on the most extensive operations in sluicing. Their claim is at the head of the Waikerikeri Valley. Over eighteen months ago this party leased the Golden Gate Company's water-race, which takes its rise from the dead waters of the Chatto Creek. The race is a long one, and its maintenace gives considerable trouble and entails much expense, one man having to be kept constantly on the race attending to repairs. However, notwithstanding these difficulties and frequent stoppages owing to shortness of water, I believe the ground has yielded satisfactory returns. About twenty-five men are working by various methods upon what is known as the Clyde commonage, some of whom have done remarkably well—it is said, in some instances, as much as £10 per week per man, whilst all are earning more than average wages. The prosperity which has for so many years followed the operations of Messrs. Gartley Brothers at Springvale has at last induced others to try their luck; about a dozen new claims have been taken up, and some rather encouraging prospects have been obtained from those which are being worked, notably Mr. Thomas Allan's, a son of Mr. John Allan, who lately sold out to Gartley Brothers. There is room for a hundred men within a radius of a few miles from this locality,- and I am sure that that number could, year in and year out, earn a good living. The want of water is certainly a considerable drawback to very extensive operations; but the ground is admirably suited for small workings, being shallow and within a reasonable distance of water sufficient for cradling and box-sluicing. The Manorburn, which caused a considerable stir about twelve months ago, I am afraid has not come up to first expectations. All agree that gold exists there in sufficient quantities to pay handsomely for sluicing; but, as there is no water there available for that purpose, most of the claim-holders here had to seek pastures new. A few, however, have been more fortunate, and still remain apparently satisfied with their earnings. Messrs. Jackson and party, from various circumstances, can only rely on a short season during which water is available (last year's supply only enabled them to work six months), and the results have not been satisfactory. This is to be ■ regretted, for they have expended a considerable sum, both in money and labour, in constructing races and dams. The Molyneux Hydraulic Company, in consequence of shortness of water and the high level at which the Molyneux River has been running, could only carry on sluicing operations from April till August of last year, during which they extracted 1650z. of gold. The profit for the time actually worked being about £200; but bringing the whole year's operations into account the result was a loss! The directors, finding that, from the uncertain nature of their water-supply and the frequent stoppages caused by the rising of the river, the claim could only be carried on at a loss, made efforts to increase the capital of the company with a view of procuring a dredge; but this effort failed, and they finally accepted the tender of Messrs. Stapers and McLean to work the claim on tribute at a rental of £2 per week and a royalty of 10 per cent, on the gold obtained. The tributers, after cleaning out the race, have commenced elevating, but sufficient time has not transpired to know with what result. Maynes and party have ceased working at Butcher's Point, and are about to remove their plant to Poverty Beach, where they have joined Messrs. Noble and Paget, who are also the holders of water-rights, with a view of washing the deep ground near Mr. Noble's orchard. About the same number are, judging from former reports to which I have had access, employed along the banks.of the river between Clyde and Alexandra, and in the gullies and creeks in the immediate vicinity, as in previous years ; all of them would seem to be doing fairly well. Dredging. Dredging in this district is still the chief attraction to capitalists wishing to devote their attention to gold-mining operations.. A great many claims have been pegged out during the past year, and several powerful dredges are in course of construction. There are in active work six steam and three current-wheelers. Four other dredges are approaching completion, one of which is to work the Manuherikia Biver and the flats adjoining, about three miles above Alexandra. Great hopes are entertained of its ultimate success, and quite a number of claims have been applied for in that locality in anticipation. The Ngapara dredge, which commenced working about nine months ago has met with almost phenomenal success. It struck good gold in the first week or two after starting, and has managed to keep up good returns ever since. Mqst of the shareholders are workingmen, and had considerable difficulty in raising the requisite capital to build their dredge, but I am informed that more than sufficient gold has been extracted to clear off all liabilities, and to pay a substantial dividend to the fortunate but, withal, plucky shareholders. Hyde and party (Dunstan), Finlay and party (Perseverance), Spencer and party (Chicago), the Enterprise Company, Leijon and party, and the three current-wheelers are all reported to be on

4—C. 3a.