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The Ettrick Dredge has been somewhat unfortunate. The ground being deep, and the river still continuing high, the company was compelled to obtain protection with a view to prospecting another portion of the river. Payable ground was not discovered, and the company again directed its attention to its former claim, when, after a trial washing had been taken out, payable prospects were disclosed. During the year 4660z. were won, which will probably just about pay expenses. The Otago Dredging Company, who lately amalgamated with Brazil and party, have been working with the late Miller's Creek Company's dredge, and are doing fairly well, as also have Bennett and party. Pringle and party, with their new steam dredge, have been doing remarkably well, 70oz. to 80oz. per week being spoken of as results of frequent occurrence. Quartz. Considerable excitement has been caused in the locality of Boxburgh by the report that highly payable quartz had been discovered in the vicinity of Campbell's. Several claims have been pegged off, and it is said several apparently permanent lodes have been exposed; but, in consequence of the severe frost prevailing in the locality, work has ceased until the spring. General. The Receiver of Gold Revenue at Clyde, Alexandra, and Roxburgh informs me that the revenue shows an increase over that of last year, especially at Clyde and Alexandra. The return of gold, so far as the several sources of information were open to me, from the area extending from Queenstown to Roxburgh, exceeds 40,0000z. —a considerable increase over that of the previous year. The large number of steam dredges at work and in course of being built has caused a considerable demand for coal, and has given an impetus to the coal-mining industry in the district, and several coal leases and licenses have been applied for. The prosperity in gold- and coal-mining has, in its turn, beneficially assisted the farmers, who, I am glad to say, have had good harvests, and are receiving remunerative prices for their produce. I should like to see the occupation-lease system more generally taken advantage of, especially by miners, who could devote what would otherwise be idle time to fruit-growing and other cognate industries, to the profit of themselves and the general benefit of the district, which is admirably adapted for such industries. I might here venture to remark that if applicants for occupation-leases would, instead of attempting to obtain the grant of leases of large areas, in some cases of 100 acres each, for three or four members of the same family, and thus attempting to convert "The Mining Districts Land Occupation Act, 1894," into a second Land Act, confine their attention to obtaining titles for very much smaller areas, and to bringing these areas into a high state of cultivation, they would not only be keeping more within the spirit and intention of the Act, but would be more likely to enhance their own material prosperity. As it is, applicants, by asking too much, and thus putting on the provisions of the Act a strain they were never intended to bear, suffer disappointment, and the administrators of the Act come in for an amount of public criticism much of which is undeserved. Where such large areas are applied for, those intrusted with the administration of the waste lands of the Crown must first determine what would be the effect of making grants of occupationleases of such extended acreage on the future disposal of the Crown lands immediately adjoining. In this way applicants, oftentimes, by attempting to grab too much, simply court a refusal. In conclusion, I might mention that in various parts of the large district intrusted to my care there are several orchards, far removed from any railway, of which the area under cultivation does not exceed 20 acres, and which return to their thrifty and industrious owners a clear annual profit of from £200 to £400 a year, and this notwithstanding the heavy charges incidental to transport to a market. I have, &c, The Under-Secretary for Mines, Wellington. S. E. McCarthy, Warden.

No. 13. Mr. Warden Carew to the Under-Secretary for Mines, Wellington. Sir, — Warden's Office, Dunedin, Ist June, 1896. I have the honour, in compliance with the request contained in circular of the 16th March last, to forward herewith the annual statistics in respect of the Hindon portion of the Otago Mining District, for the twelve months ended 31st March, 1896. The only feature worthy of note in the year's transactions in the district referred to is an increased interest in regard to the quartz-reefs at Barewood and the Museum Endowment Reserve in the Nenthorn Survey District. Efforts appear to be in progress for the formation of several strong companies for the development of the lodes at both places. At Barewood a number of the areas previously abandoned have been again taken up, as well as some new ground ; and the stone crushed from the claim formerly held by the late Barewood Mining Company has yielded about 12dwt. per ton. The party known as " Wolter and party," on the same line of reef, has been formed into a registered company as " The Barewood Quartz-mining Company, Limited," and recently this company, from 380 tons of stone, obtained 3300z. of gold. On the Museum Endowment Reserve, Block XII., Nenthorn Survey District, as the result of the prospecting by Lyders and party —mentioned in my last year's report—some seven licensed holdings of 30 acres each have been taken up, and other privileges acquired, with the view of thoroughly testing the ground. The prospects are said to be of a promising nature. At the Hindon Reefs, in the Mount Hyde Survey District, very little has been done during the year. Only a small quantity of stone has been crushed, with similar results to those previously reported. In alluvial working, and in other respects, the Hindon District presents little or no change to report. I have, &c, The Under-Secretary for Mines, Wellington. E. H. Carew, Warden.