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(HYDRAULIC SLUICING AND ALLUVIAL MINING, INCLUDING GOLD-DREDGING. Otago. Maerewhenua District. Aided by the continuous supply of water supplied by the Mountain Hut Water-race, the Maerewhenua Diggings have progressed during the year, and good wages were obtained by the contributors. On the ground having proved payable there has been a strong demand for the available five heads of public water. Glenore. Alluvial mining is at a standstill in this district. There were two dredges in operation during the year. Manuka Creek. Manuka Creek Mining Company (Limited), Manuka Creek (Adam McCorkindale, Manager).— This company has secured Stewart's sluicing claim on Manuka Hill. The water-supply has been considerably improved, and better results are now expected from this claim. The tailings are utilised for ballast by the Government Railways. Seven men are employed. Waitahuna. German Flat Hydraulic Sluicing and Elevating Company, German Flat. —This company's waterrace is now being diverted to work a claim in Waitahuna Gully. Upper German Flat Hydraulic Sluicing Claim (S. Johnston and M. Girvan, owners).—The results obtained from this claim are said to be satisfactory to the working shareholders. Three men are employed. Waitahuna Gully. City of Dublin Sluicing Claim (J. Ferris and party).—Ground-sluicing operations are still being carried on in the cement-face. Quilter and Sons Hydraulic Elevating Claim (Hugh M. Quilter and Sons) —Two men find employment in this claim of 2 acres. The water-supply is poor. Thompson and Party (Norwegian Company) (C. Thompson, Manager).—Area of claim, 30 acres. Operations are being carried on in the cement-face, which is first broken up by blasting-powder and then sluiced to the elevator Five men are generally employed. For particulars of accident whereby John Lutgens was killed and John Larsen injured, 12th April, 1904, see list of accidents appended. Sailor's Gully (Waitahuna) Gold-mining Company (Limited) (A. Barr, Manager).—Area of claim, 66 acres. Operations are being conducted in the cement-deposit, which, after being broken up, is sluiced to and raised by the elevator. Four men are generally employed. Waitahuna Gold-dredging Company's Claim (W. Adams and party).—The German Flat water-race has been purchased and an extension of the race is under construction to bring the water on to this claim, which is to be worked by hydraulic sluicing and elevating. The hard and uneven schist bottom had proved unsuitable for bucket dredging. Dredging. — Three privately owned dredges are at work in this district, and yield satisfactory returns. Two dredges were removed from the district during the year. Wether stone's. Golden Crescent Hydraulic Elevating Company (W. F. Smyth, Manager).—Sluicing operations have been carried on throughout the year successfully. Area of claim, 90 acres, comprised of terrace and flat ground. Eight men are employed. Golden Rise Hydraulic Elevating Company (F. Whelan, Manager).—Area of claim, 45 acres. The mode.of carrying on operations in this claim does not vary, and sluicing is fairly continuous. Six men are employed. Local Industry Gold-mining Company (George Dunnctt, Manager, Wetherstone s).—A large area of shallow ground has been turned over during the year, and sluicing operations have been steadily carried on. Four men are employed. Dredging— -The Happy Valley dredge having worked out its claim was closed down, and will probably be removed to a claim on the Pomahaka River, below Kelso. Tuapeka Blue Spur and Gabriel's Gully Consolidated Gold-mining Company (Limited), Blue Spur (J. H. Jackson, General Manager; J. Wren, Mine-manager).—The cement face is brought down by heavy blasts of r'oburite and sluiced away to the elevators, gold being saved in the tail-races which are paved with jasperoid boulders which occur in layers in the claim and are generally associated with gold-bearing strata. The low accidents-rate in this claim is an indication of the care exercised by the management and the employees in working the high cement faces. Mr. Jackson has kindly supplied the following particulars: " Only two paddocks have been in operation during the year under review, and their relative value has been reversed as compared with last year. The product of No. 1 has fallen off in value L 92 gr., or 3-796 d. per cubic yard. No. 2 has increased 0-804 gr. or Lsßd., a mean decrease of Lo9sgr. or 2-168 d. per yard on the aggregate of the cement treated, sufficient unfortunately to render the past year the least remunerative since work was commenced on the cement-deposits in 1891. During the year 203,000 cubic yards of cement, containing only 3£ gr. (7d. in value) per yard, have been blasted from the working-faces, broken up by hand, sluiced through tail-races over 20 chains, elevated on No. 1 side 118 ft., on No. 2 side 70 ft., and finally stacked and distributed in Gabriel's Gully, and have left,—