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estimate. The northern part contains deeply involved ground along Macgregor's Creek. This was not examined by me north-east of McKenzie's hut, but it is said to extend to the Parapara River. West of this is the source of Golden Gully, and the area from which so much gold was obtained in the early days of the diggings at this place. Most of this ground is shallow, and has been worked over down to the slate rock. At the very head of the gully, deep ground begins and extends to the south into Macgregor's Creek, and south-west into Wakefield Creek watershed. Within the watershed of Golden Gully proper the extent of this deep ground is very limited, and while the tailings might pay to be again sluiced, this part of the area would not of itself pay for bringing water from Slate River on to the ground. But from McKenzie's dam south to Wilson's dam, some 7or 8 chains, there is a deep run of ground and a considerable body of wash, of which report says that as far as worked it proved very rich, but was bad ground to work in driving out. This, continued to the south-west, forms a hill, on the south side of which a very considerable amount of work has been done, evidencing the presence of gold in paying quantities. Between the hill mentioned and Wilson's Dam there is a ridge of 5 or 6 chains or more in length, which is wholly composed of quartz-gravels, or beds of other materials associated therewith. Workings have reached to the foot of this on the western side from the outcrop of the slate rock to the south-west, and extend along its whole length to the north-east; but the hill or ridge itself has not been worked; and this in spite of the fact that it appears to be composed of promising material. East of this there is deep ground from Wilson's Claim to the head of Macgregor's Gully, and the greater part of this is unworked over a length of 10 or 12 chains, and a width of 4 to 7 chains. From the head of Macgregor's Gully a line of deep wash goes south through the spur in the direction of the Parapara. How wide this is I could not determine. There is yet in Golden Gully a large area of ground of an auriferous character that could be conveniently sluiced into Wakefield Gully on the one hand, or into Macgregor's Creek on the other. The eastern side of the ground is deep—evidently very deep in parts; but, unlike the deep ground along Glengyle Gully, there are no large stones to contend with, and, except where there is limestone, the walls of the fissure are likely to stand. The width of the fissure is also considerably greater, enabling the reaching of a greater depth without involving danger from the sides. I saw a prospect washed from Wilson's Claim. It was taken from where I directed, and as a sluicing prospect was quite satisfactory. In fact, Ido not doubt that, wherever there is bulk of wash in Golden Gully but that it will pay to work, provided a good supply of water is brought on to the ground. The deeper ground may eventually become troublesome, as was the ease in the Glengyle workings, but there is plenty of shallow ground, or ground of moderate depth, for many years of sluicing. One favourable circumstance is that dump can be had in both directions, and the tailings from the first can be got rid of at several points where it may be considered advisable to commence sluicing on an extensive scale. It may be remarked that limestone is usually not far distant along the south-eastern involved side of the auriferous area, and the solution and removal of this has caused much crush and movement in the adjoining parts of the wash deposit, so that it is now as much disturbed and confused as any that may be seen along Glengyle Gully, or in McCartney's Hill at Parapara. The Slate River is the source whence it is intended to bring water on to the ground. The minimum supply is estimated at fifty Government heads. Plenty of pressure, with a comparatively short pipe-line, can be had, and altogether it seems highly probable that the scheme for working Golden Gully by hydraulic sluicing should prove a success, and be sufficiently remunerative to those undertaking the work of bringing in and applying the water. Quartz Ranges. This area has already been partly described. In the south-west part the ground held by West, Adams, and Fell, is to a large extent untouched. The ground towards the southeast side appears in places to be deep, there being indications of a fault along this side of the auriferous area. On the north-west side the ground shelves to shallow outcrops. Large stones are moderately plentiful in the wash, and the wash is throughout cemented rather tight, and will require some pressure to pull it down. It, however, appears to treat well after it has fallen. The gold is a fine sample of shotty or rough gold. I saw a piece of 9dwt., and pennyweight pieces are not rare. The gold in the southern end of the area lies mainly on the bottom, but at places it is found 6ft. or 7ft. up in the wash. The middle area, held by Ziman and Co., does not show such deep faces of wash, and this lies mainly on the slopes of the south-east side of the depression or gully. In the lower part of this Graham's Spur shows a considerable area, over which there is a good depth of gravel, and over the lease generally gold-workings have been carried on at many points. Large stones occur in the wash here, but they are not so abundant as farther to the south-west. The wash is, however, at places even harder than in the south-west part. Ziman and Co.'s area is not quite so favourably situated for getting rid of tailings; though at the same time the conveniences for the disposal of these are ample. The gold here is as coarse as farther to the south-west. The north-east end of the auriferous belt which is held by West, Adams, and Fell, is at first somewhat restricted as regards the width of the deposit, but towards the middle and northern part is decidedly the most promising part of the Quartz Ranges as a field for sluicing. The ground gives evidence of being generally gold-bearing, being riddled with shafts and in part driven out, where it can be reached from the brink of the deep ravine of Salisbury Creek. The wash here is finer and looser than that farther to the south-west, and consists more of quartz than in the other parts. The gold also appears to be more or less right through the wash, and as regards the getting