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further hundred feet or so before the lode is likely to be met. On some of the adjacent claims, such as the Taffy, Red Lion, and Homeward Bound Companies, considerable surface-work has been carried out in prospecting with fairly successful results. The Garden Gully Company have done a lot of work in their holding, which is located in the Eoaring Meg Creek. The surface stone is good, but up to the present they have failed to intersect the lode below the surface. Moonlight. —There has been considerable prospecting for quartz during the past twelve months, lately by the Paparoa, Prophet, and Deering's Wonder Special Claim holders. The stone in the latter claim is about 2 ft. in width, and shows gold freely, but it has not been traced on the surface for any great distance. The Prophet Claim has a formation of quartz and slate 6 ft. in width, the stone also showing gold freely. A tunnel is being driven in each of these claims to intersect the formation at a lower level. The Paparoa Claim Company have been tunnelling for the past year, and have met with partial success, having intersected several small bodies of stone. ALLUVIAL. The claims at Healey's Gully are proving remunerative ; the difficulty is the want of a sufficient supply of water. The whole supply on the fields, about thirty heads, is in the hands of the Great Eepublic Company, used by them during the day, and let to other claimholders during the night. This makes the working of the claims most difficult and expensive, and it has wisely been decided to erect a reservoir in the Eoaring Meg Creek. The Montgomery Terrace Company intend bringing in a race from the Blackball Creek to work their ground. Its length will be four miles, and as the get-away for tailings is good the claim would appear to have every chance of turning out well. At Upper Moonlight there are still a considerable number of miners engaged in alluvial workings, who are getting fair returns, but the future of the place depends on the reefing country. Bell Hill. —A few parties are still mining at Bell Hill, and a Christchurch company have brought in a race to work the licensed holding taken up by them. The company have had great difficulties to contend against, but judging from the appearance of the face they have good prospects before them. Half-ounce, Duffer's, Granville's, and Noble's Greeks. —I have nothing new to report on these places. The creeks in ordinary weather carry very small supplies of water, and sluicing operations are in consequence much restricted. Orwell Creek. —Here several parties of miners have lately taken up claims at McCoola Terrace. This terrace was rushed some twenty-five years ago, and a number of tunnels driven, some of which went right through the hill. In this locality the area of sluicing ground is large, but the supply of water is extremely limited. Ahaura. —No new ground has been broken on the north bank of the Ahaura. The holders of those claims commanding a supply of water are obtaining remunerative returns for their labour. There is a large area of unbroken auriferous ground in and along the river which only requires a sufficient supply of water to provide employment for a large number of miners and to make the working of it a profitable undertaking. Nelson Greek. —The population in this subdivision remains stationary. The claims at No. 2 terrace did not turn out as well as expected, although a few parties still remain on it tunnelling. No Town and Bed Jack's. —At present about thirty Chinese are working the bed of Eed Jack's, and generally sluicing operations are being carried on extensively in these subdivisions. At Cronin's Terrace, Sunday Creek, the gold ran into very deep ground, too low to obtain levels for tunnels to work it, and the terrace had to be abandoned. Generally speaking, I may say that alluvial mining in the Grey Valley remains about the same as last year, and no revival can be expected until some new schemes for water-conservation are matured, and carried out on a large scale. Eeturn of revenue received at Ahaura for the period ending the 31st March, 1898: — £ s. d. Miners' rights ... ... ... ... ... ... 330 0 0 Registrations ... ... ■ ... ... ... ... 34 11 0 Water-races ... ... ... ... ... ... 22 5 0 Fees and fines ... ... ... ... ... ... 5 16 0 Eents ... ... ... ... ... ... ... 1,102 5 0 Miscellaneous ... ... ... ... ... ... 77 17 5 £1,572 14 5 During the year there were lodged 414 ordinary applications, twenty-five applications for special claims, and three applications for licensed holdings. I have, &c, H. A. Steatfoed, Warden. The Under-Secretary, Mines Department, Wellington.

No. 9. Mr. Warden Macfaelane to the Undee-Seceetaby for Mines, Wellington. Sib,— Warden's Office, Hokitika, 6th June, 1898. I have the honour to forward herewith the usual mining statistics for the year ended the 31st March, 1898, together with the annual report on mining matters in the districts under raycharge.