C.^ll.

In the next little gully, cut into the face of the terrace, the same gravels are well seen, and here forty to fifty fine colours of gold to the dish were obtained, but no coarse gold. Further along the terrace-face — i.e., to the south —I was told the prospects were not so good, but, so far as I could see, very little prospecting has been done in this direction. Along the foot of the terrace gold drifting from higher to lower levels has accumulated so as to form a deposit that can be worked to profit with even the present means and appliances, and it was this terrace-foot that was being worked when the ground was visited by me. Although no one was working in Back Creek at the time of my visit, in the past it was worked to some extent, and good-sized,,gold found along its banks. It is said that the frequency of large boulders in the wash is the reason why workings there are discontinued. The slope-deposit accumulated at the foot of the steep slope of the terrace-face immediately inland of Price's Beach, as a concentrate of the terrace-face overlooking this part of the inlet, is likely to be richer in gold than most other parts of the claim, but it must be borne in mind that this gold is directly derived from the reassorted terrace-wash and in the first instance from the glacierdrifts. The black-sand deposits near beach-level, in a general estimate of the value of the claim, are comparatively unimportant. Means of Working the Claim. The gravels on the eastern face towards Preservation Inlet are favourably situated for being disposed of through tail-races on to the beach ; and at small cost, except to the very highest levels, water under sufficient pressure can be brought on to the ground. The higher terrace-levels towards the north will require a greater length of head-water enclosed in pipes, but this will probably have to be considered in connection with the bringing-in of the water from Lee's Creek from the east side of South Port Harbour. The present water-supply is intermittent, and at all times, except during very heavy rains, insufficient to effectually open out and work the ground. The dam in Back Creek recommended by Professor B. Hooker should be constructed; and, if this conserves as much water as is said may be collected by it, the eastern faces of the claim may be thoroughly opened out, and a reliable estimate of the value of a considerable area in this part of the claim arrived at. When this is done, and the owners are satisfied with the results, the water-supply might then, but not till then, be supplemented by the greater and more permanent supply that can be obtained from Lee's Creek. Remarks. So far as my examinations were carried, they led me to the conclusion that, with a sufficient water-supply under skilful and careful management, at least a portion of the area of claim Block I. may be made to pay for working. However, a better water-supply than that at present on the ground must, to do this, be available. I should therefore advocate the building of the dam at the spot in the valley of Back Creek pointed out by Professor B. Hooker; but until the claim is thoroughly proved I could not recommend the costly scheme of bringing on to the ground water from Lee's Creek, which would involve half a mile of heavy piping across the Neck between South Port and Preservation Inlet, with a distance of closed pipe-line on each side of at least an equal length to the width of the flat. This would involve a heavy expenditure, which the prospects of the claim at the present time do not warrant. I have, &c, Alexander McKay, The Under-Secretary of Mines, Wellington. Mining Geologist.

DEPOSIT OF JET COAL AT MAHARAHARA, NEAR WOODVILLE. Report on, by Alexander McKay, F.G.S., Mining Geologist.

Mr. A. McKay to the Under-Secretary of Mines. Sir,— 18th May, 1896. I have the honour to report that, as instructed, I went from Wellington to Woodville on the Ist May, and the following day examined the deposit of jet-like coal, samples of which had been forwarded to the Mines Department, and on the evening of the same day met at Woodville a number of settlers and others interested in the development of the mineral resources of the district, to whom I explained the nature of the deposits, its geological position, and the probability of its occurring in quantity sufficient to make the working of it a commercial success. The original sample forwarded to the Under-Secretary of Mines, by analysis made by Mr. Skey, yielded the following result: —■ Fixed carbon ... ... ... ... ... ... ... 35-91 Hydro-carbon ... ... ... ... ... ... ... 22-83 Water ... ... ... ... ... ... ... ... IM4 Ash (ferruginous) ... ... ... ... ••• ••• 30-12 10000 The ash, as determined by Mr. .Skey, yields sesqui-oxide of iron fully half the total, or 17-99 per cent, of the mineral. This, or closely-related varieties of the same mineral, occurs in many parts of New Zealand, both in Tertiary strata, and in the older coal-bearing series of Cretaceo-

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