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obtained in the first working, profitable results will be maintained with an efficient water-supply. This is the only mining party in the district. 'Ericon Hydraulic Sluicing Company. —This property continues to be shut down. Takaka. Bu-Bu Hydraulic Sluicing Company (Charles Campbell, Manager).—The deep-level face is now exhausted southward, and operations have been opened and continued on a section of slightly rising ground to the north. The face shows a varied depth of wash, intermixed with large boulders, which latter tend to increase the labour in keeping the face clear. Pipe-line installation and other important works directly connected with the claim are carefully and efficiently maintained. The values won continue to maintain their former standard. Upper Anatoki. —A subsidy of £13 has been approved, through the Takaka Miners' Association (at the rates prescribed by the regulations, Class 1, on the usual conditions as to reports on the work), to enable Messrs. Lloyd and McGrath to prospect for three months in the Upper Anatoki District. Collingwood. Parapara Hydraulic Sluicing Company (James Bassett, Manager). —During the year operations in the Glenmutchkin face were discontinued, and an extensive face opened and worked continuously at the Hit or Miss, all the available water being utilised for the purpose. The returns show very considerable promise. The company contemplate working their deep level freehold at West's Flat by elevating. Free drainage would necessitate very considerable expenditure in order to be effective over the deep areas, hence elevating will be resorted to. It is anticipated that the ground will yield very handsome returns. Quartz Ranges (C. Y. Fell, Nelson). —This property was not visited. Rocky River. —Nothing further has been done in this district since my last report. " '^Slate River Sluicing Company. —The various works recently effected to raise and strengthen the storage-dam having largely increased the conserving-capacity, sluicing operations are now more continuous, and the returns therefrom obtained show an increase of £464 10s. 4d., as compared with the previous year. Considering the efficiency of developments in water-storage and the facilities for getting rid of tailings, continuance of favourable returns may be fairly anticipated. Westport. On the German Creek and its tributaries mining shows no improvement, the only parties left to struggle for an existence being Milgate, Porter, and Jamieson, who are sluicing old tailings, which give very poor returns. Milgate's party had a considerable slip at their claim, which covered their boxes to a depth of 15 ft. Jamieson and Porter (who have worked in this locality for fifteen years) continue to drive occasionally on a thin bed of cement of poor value. Cook Terrace, Fairdown. —Gardiner and party's subsidised tunnel has turned out a very lucrative concern, the party having sold gold during the year equal to £3 per week per man, and there is every evidence of its continuance. The ground is tunnelled in the vicinity of the Great Exploration Company's claim. Fairdown. —Messrs. Young and McKay are driving a subsidised tunnel in Rochfort Terrace. Christmas Terrace. —Charles Findlay and W. Crawford have lodged an application for a subsidy to drive a tunnel from 900 ft. to 1,200 ft. Waimangaroa River. —A few resident parties continue to fossick and tunnel along the river-banks, with varying results. The gold won is a very nice coarse sample. Golden Basin Prospecting Association have done nothing further to prove the deep leads at the base of the Rochfort Terrace. "Shamrock and Virgin Flat Properties are still standing. ""Uarmody and party (Addison's) continue to carry on their sluicing and elevating operations with lucrative results, although these have been somewhat reduced during the recent dry weather. Drainageoutlet and general equipment are kept in good order. Neil and party (six men) are working their hydraulic sluicing and elevating claim, with satisfactory results. The property is very tidily worked, and the plant is kept in good order. ' ' ' McCan and party : The intermittent water-supply is rather against this party, but, notwithstanding the shortage of water, the gold won has been satisfactory. O'Toles and Swearer (six men) : This sluicing and elevating party consider the wages earned are better than swagging or contracting under the co-operative system. The party share alike and work very agreeably. Gould and party (six men) : Scarcity of water on this sluicing and elevating claim is a factor much eight heads are required to work the ground with any degree of success. Cement-working. Halburg and party (three men) have recently opened a cement-face, 5 ft. in thickness, situated about 5 chains to the west of the Golden Sand "property. The cement is conveyed on a horse tramline to the battery, which consists of four heads of stamps driven by a 20-ft.-diameter overshot waterwheel. So far they have not cleaned up. Milligan and party (five men) : The cement-bed worked on this claim is about 7 ft. in thickness, giving an average'value of 4s. per yard, while the crushing-power consists of a ten-stamp mill driven by Pelton wheel. 1 "

7—C. 3.