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When sluicing operations were first commenced on this field, the sluice-boxes in some of the claims had a gradient of as great as 1 in 10, and at the present time the lowest gradient is 1 in 36. In addition to this the miners have a much greater length of sluice-boxes to keep in maintenance, and in all cases the dump for tailings is far less than in the early days of the field. In order to show the extra cost of carrying on sluicing operations at the present time, sluice-boxes that had a gradient in the early days of 1 in 12, and using six sluice-heads of water, now require eighteen sluice-heads of water, in boxes with a gradient of 1 in 36, to carry away an equal quantity of material. This means that sluice-boxes with a fall of 4in. to every 12ft. require three times the quantity of water to sluice away the same quantity of gravel as six sluice-heads would do in sluiceboxes with a fall of lft. to every 12ft. The whole of the Kumara Water-race is in good repair, with the exception of the steel pipes, which were constructed about six years ago. These pipes are greatly decayed by oxidation, and in such a condition that any repairs to them are useless. These steel pipes are used for siphons, one of which conveys the water from the head of Pascoe and party's claim to the tank in Dunedin Flat, and another line supplies Pascoe and party, Lee and party, and the Tichborne claims. These siphons will have to be renewed at once, as they are continually bursting, causing a great loss of time to the men using water from these siphons, and also a loss of revenue on the sales of water. The estimated cost of renewing these siphons is £1,200. In renewing them it is intended to take the water from the Kapitea Hill race to supply the claims now supplied from the tank. The other one will have to be laid down on the present line. The Kapitea Hill Eace has been extended sufficiently far to supply water for the No. 4 channel, but it will have to be extended for about 6 chains further to supply water for the No. 5 channel, which is now in course of construction. In connection with the latter channel, about 30 chains of pipes will be required to take the water from the Kapitea Hill Eace to supply the different claims that will be worked into this channel. The siphon constructed some years ago to supply water to claims in Nardoo Flat is still in good condition, and as this siphon is not now required, nor likely to be required in future, it can be lifted and used for conveying water to the claims working into No. 5 channel. In regard to the demand for water from the Kumara Eace, as soon as the No. 5 channel is constructed a larger supply is likely to be required, as it must be borne in mind that a large quantity of flushing-water, for which no money is received, is required for each of the four channels, but the demand will depend greatly on the number of new claims opened out. At the same time, a number of the present claims will be worked out before the No. 5 channel is completed and ready to carry away tailings from the claims. The new siphons to replace the present one, the extension of the Kapitea Hill Eace, shifting the Nardoo siphon and relaying it to supply water to the claims working into No. 5 channel, and constructing a supply-race to deliver flushing-water into the head of No. 4 channel, will cost about £1,650. These works will have to be undertaken at once, and provision made to meet this expenditure. The following statement will show the revenue derived from sales of water, and also the cost of maintenance, for the year ending the 31st March, 1896 :—

It will be seen from the foregoing statement that the value of the sales of water for the past year amounted to £4,106 11s. 3d. as against £4,646 19s. 9d. for the former year, and that the cost of maintenance was £1,943 Bs. 7d. as against £1,976 17s. 7d. for, the previous year. This shows a decrease in the revenue last year of £540 Bs. 6d., and a decrease in the cost of maintenance of £33 9s. In addition to the sales of water, the value of free water supplied to the claims which did not prove payable to work during the past year amounted to £1,129 19s. 4d. The average number of men employed in claims worked with water from this supply was 101, and the approximate quantity of gold obtained by them was 6,0450z., representing a value of £23,575 10s. Deducting the value of the sales of water from the value of the approximate quantity of gold obtained, it leaves £19,468 18s. 9d. as the earnings of the miners, which is equal to an average of £192 15s. 2d. a man per annum, or £3 17s. per man per week. The total cost of this work, with branch races and iron and steel pipes, up to the end of March last amounts to £41,463 165., and deducting the cost of maintenance from the value of the sales of water for the year, it leaves a profit on the workings of £2,163 2s. Bd., which is equal to 5£ per cent, on total cost of the works.

Month. Sales of Water. Cash received for Sales of Water. Expenditure. Outstanding Moneys at the End of each Month. Number of Men employed. Approximate Quantity of Gold obtained. Value of Gold obtained. 1895. £ a. d. 277 5 10 379 15 0 349 12 1 322 15 10 345 1 8 354 1 8 351 16 8 336 5 5 331 0 0 £ s. d. 241 10 0 397 0 0 328 0 0 339 5 0 338 0 0 325 0 0 395 5 0 187 0 0 483 16 6 £ a. d. 155 3 5 147 5 6 176 11 10 176 12 3 153 17 9 148 15 0 156 16 5 154 16 8 167 14 6 £ a. d. 136 0 6 138 1 8 133 11 10 139 9 1 130 5 5 146 1 6 138 2 9 247 6 5 115 8 10 Oz. 415 510 520 480 500 530 520 500 500 £ a. d. 1,618 10 0 1,989 0 0 2,028 0 0 1,872 0 0 1,950 0 0 2,067 0 0 2,028 0 0 1,950 0 0 1,950 0 0 April May June July August .. September October .. November December 101 100 100 93 96 102 106 106 102 1896. 315 15 5 336 3 4 406 18 4 272 0 0 431 6 0 335 15 0 186 10 11 184 16 11 134 7 5 139 17 1 142 12 8 140 12 6 100 100 102 470 500 600 January February March 1,833 0 0 1,950 0 0 2,340 0 0 Totals and average .. 4,106 11 3 4,073 17 6 1,943 8 7 101 {average) 6,045 23,575 10 0