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Flat that had a less elevation than 5,000 ft. above the sea could by any means be found on the west side of the line of fault. The converse of this is, that near Punga Flat it is vain to look for the downward continuations of those parts of the reefs that at low levels lie to the west of the slide. No reef passes through the Moanataiari Slide, though the reefs on both sides have approximately the same strike and dip. Thus, it may be contended, and without question it is to some: extent true, that the reefs to the east of the fault-line are the eastern continuations of those on the west side; and, if to within I,oooft. of the fault the reef-outcrops belong to a lower horizon than the portion moved by the action of the fault, and now found to the westward of, the faultline, as this is to be traced on the surface of the ground, as a consequence the gold shoots could not have been the same. Therefore there is no probability of finding either the actual parts of the reefs originally vertically underlying the portions worked west of the fault at or in the vicinity of Punga Flat, or at any point east of Point Russell, or eastward of any point of equal distance along the line of fault ; and, further, in as far as the shoot of gold affecting the greater number of the reefs to the west of the Moanataiari Slide has been worked out, or at all events passed through, the gold of the reefs in the hills to the eastward of the slide cannot be a continuation of the same. The Upper Moanataiari Creek valley and the neighbourhood of Punga Flat, and extension of the same belt to the north and south, is therefore to be considered an auriferous area quite independent of that lying to the west of the Moanataiari Slide, except in so far as the lodes may be a continuation in strike of those to the west of the fault. Be that as it may, this eastern area must be prospected without reference to anything found on the western part of the field, and its past history must serve as incentive and for guidance of future prospecting endeavour. How much is to be hoped for is shown by the success which has attended prospecting and attempted developments since 1895; and lam not oversanguine of better results in the future. 7th May, 1901. Alex. McKay. Approximate Cant of Paper. —Preparation, not given ; printing (2,250 copiesi, i' 23 18s.

By Authority: John Mackay, Government Printer, Wellington.—l9ol. Price is. J