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C—3

The branch-race from the lower end of the siphon at Fox's to Callaghan's is completed; but since its completion several breaks have occurred, which will cost about £30 to make the necessary repairs. The manager of the water-race estimates that he can dispose of about fifteen sluice-heads of water; but, even if the present breaks in this branch-race are repaired, owing to the decayed state of the timber, the flumes on the upper portion of the Waimea Eace would break down if the full quantity of water the ditching is capable of conveying was turned into the present flume. Therefore the deviation on the Waimea Eace will have to be completed before sufficient water can be conveyed to supply Callaghan's. A survey has been made of a second branch from the Callaghan's branch-race in order to supply water to work the ground in the middle branch of Waimea Creek. This survey has been carried to join the present race below the Big Dam in the right-hand branch. The object in extending this survey further than where the water is likely to be used in the middle branch is, that there are several lengths of very high fluming at Fox's and Greek's, and, had these flumes to be reconstructed, it would not only be cheaper to extend the race on this side of the range, but the work would be far more permanent. On the line where these high flumes are constructed—that is, between the end of the pipe-line to about 15 chains below the Big Dam —there is scarcely any water sold in the portion of the race which would be cut off by the extension on the opposite side of the range. The length to be constructed at the present time is about one mile, and by carrying this branch about one and a half miles further, the present high flumes could be done away with. At the same time there is no immediate necessity to get the additional mile and a half constructed, as the present flume is likely to last for about three years more. A main tail-race is now under construction through the range between the middle and righthand branches of Waimea Creek. This is now constructed for a distance of 1,070 ft., the total distance being 2,076 ft. This tail-race will have boxes 3ft. in width laid on a gradient of 1 in 48, or 3in. to every 12ft. As soon as this main tail-race is completed, water will be required to work the ground. It is therefore necessary that the second branch from Callaghan's race should be undertaken as early as possible. The estimated cost of this branch race is £600. The following statement will show the receipts and cost of maintenance of the Waimea Eace for the year ending the 31st March last, together with the approximate quantity of gold obtained by those using water for working claims from that supply : —

It will be seen from the foregoing statement that the value of the sales of water for the year amounted to £795 13s. 6d., as against £988 os. 7d. for the previous year, while the cost of maintenance amounted to £770 3s. Bd., as against £1,061 9s. 4d. for the former year : thus showing a decrease in the cost of maintenance of £291 ss. Bd., and also a decrease in the value of the sales of water of £192 7s. Id. from the previous year. The average number of men employed in claims worked with water from this supply last year was 69, and the approximate quantity of gold obtained by them was 1,9250z., representing a value of £7,507 10s. Deducting the value of the sales of water from the value of the gold obtained, it leaves the average earnings of the men to be £97 ss. sd. per man per annum, or £1 18s. lid. per man a week. This cannot be taken as their actual earnings, as the cost of pipes, tools, and timber required in working the claims has to be also taken into consideration. The value of free water given to open up claims and for working poor ground during the year was £115 9s. 7d. This free water, however, is necessary, as the ground is becoming more expensive to work every year, owing to the reasons hereinbefore stated. The total cost of this water-race and branches up to the end of March last was £134,499 os. sd. KUMAEA WaTEE-EACE. This has been the best-paying water-race that the Government constructed. In former years it gave about 15 per cent, interest on the capital expended; but the best portion—that is, where the rich runs of gold-bearing gravels were known to exist—is rapidly getting worked out. It is, however, a field that will yet last for many years, as there is a large area of ground which will give remunerative employment to a large population ; but no doubt the claims are not so rich as formerly, and owing to the great distance that they are back from the Teremakau Eiver, together with the small dump there is for tailings, the same quantity of material cannot be operated on as formerly unless by using a large supply of water, which increases the cost of working.

Month. Sales of Water. Cash received Outstanding for Sales of Expenditure. "Velon 6 water - Month. Number of Men employed. Approxi0 ™ a A e itv Value of Gold quantity nh+nir,,,;] of Gold obtained, obtained. 1895. £ a. d. 47 17 1 78 4 2 73 3 9 60 12 11 70 12 1 65 8 4 73 15 5 83 16 5 62 13 9 £ a. d. 71 11 9 81 2 6 59 5 9 69 7 6 64 18 9 66 8 3 79 16 6 76 19 6 46 12 0 £ a. d. 77 14- 4 46 18 4 57 11 4 55 0 10 65 10 10 55 13 10 56 10 10 61 0 10 68 16 5 £ a. d. 10 5 3 7 15 3 7 15 3 7 15 3 7 15 3 7 15 3 7 15 3 7 15 3 7 15 3 Oz. 115 190 180 150 170 160 180 200 150 £ a. d. 448 10 0 741 0 0 702 0 0 585 0 0 663 0 0 624 0 0 702 0 0 780 0 0 585 0 0 April May June July August September October November December.. 69 70 68 OS 61 61 61 71 76 1896. 44 17 1 62 9 2 72 3 4 68 0 0 60 2 6 61 8 9 109 6 5 54 6 5 61 13 3 9 10 3 8 10 3 12 10 3 73 75 76 100 150 180 390 0 0 585 0 0 702 0 0 January February March Totals and average 795 13 6 805 13 9 770 3 8 69 Average 1,925 7,507 10 0