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work its freehold property known as Appo's Flat. A contract has been let to drive a tunnel 620 ft. long through rock. This tunnel is only being driven from one end, and will therefore take some months to complete, and when completed will serve as a tail-race through which the whole of the surface or upper portion of Appo's Flat will be sluiced down to a depth of 25 ft., below which depth elevating will have to be resorted to. The ground on Appo's Flat, lam informed, is very deep, and should be the means of providing years of profitable work ; and it appears to be generally regarded here as a promising property. About an acre at the upper end of this flat was worked by the primitive methods in use in the early days of these goldfields, and is said to have given good returns considering the mode of working adopted. Sluicing operations should commence on this flat about the month of June next The quantity of gold won by this company for the year was 769 oz. 2 dwt. 19 gr., valued at £2,985. Slate River Sluicing Company (Limited). —The operations of this company have been agam considerably hampered during this year owing to the shortage of water, and steps have now been taken to augment the supply passing into the company's big dam at Toitoi Flat for storage purposes. A license for a dam in Bedstead Gully has been obtained, and also a license for a water-race commencing at the dam in Bedstead Gully and conveying the water to the big dam in Toitoi Flat. With the increased water-supply available when the dam and water-race mentioned are completed, the company should be enabled to carry on sluicing operations with much less broken time than hitherto. During the twelve months 313 oz. 0 dwt. 17 gr. of gold, valued at £1,179 10s. 3d., has been won. In the course of conversation with the company's manager I gathered that it is his intention to cease work at the old face and open up a fresh face at the old claim locally known as Nicholas's, where good prospects have been obtained. Quartz Ranges. —Sluicing operations have been carried on at the Quartz Ranges by a party of tributers on the special claim held by Mr. Charles Y. Fell, lately the property of and worked by the Collingwood Goldfields Company. This party has command of a splendid water-supply, enabling operations to be carried on throughout the whole year. The quantity of gold actually taken from this claim during the year was 194 oz., valued at £679. This, however, does not represent more than seven or eight months' working, as the clean-up for the run commencing late in the year 1905 has not yet been made. It is confidently expected that the next run will prove highly'] payable, as the ground to be attacked is known to be rich. Slate River Gold-dredging Company (Limited). —I regret to have to report that on the 12th January last the shareholders of this company passed an extraordinary resolution that the company, being by reason of its liabilities unable to continue its business, be wound up voluntarily, and Mr. F. West, of Collingwood, mining agent, was appointed liquidator. The dredge produced 458 oz. 19 dwt. of gold, valued at £1,659 15s. 3d., during the year 1905, the cost of carrying on the operations of the company for that period being £1,804. The river at the point at which this company's dredge has been engaged is narrow and confined between high banks, and the dredge was therefore subjected to considerable danger of being carried away by the current in times of flood, and was on two occasions, unfortunately, left stranded on heaps of tailings over which she had floated during floods. The working of the dredge was also rendered difficult at times owing to the rocky nature of the bed of the river. Hopes had been entertained in this district (where the majority of the shareholders reside) that this dredge would have been successful, and that the dredging industry in this district—in which the failure of no less than four dredging companies has been brought about —would have been revived and carried on with a larger measure of success. Golden Blocks, Taitapu (Limited). —This quartz-mine is the most consistent (as regards the goldyield) of any concern in the district, and during the year no less than 2,320 oz. 10 dwt. of gold has been obtained from 1,950 tons of stone treated. The reef, however, is more or less patchy, and during the last few months the returns have been below the average ; but I am informed by the company's manager, Mr. Giles, that the next clean-up should show a considerable improvement. General Observations. —A considerable amount of prospecting work has been done during the last six months at the old Johnston's United Gold-mining Company's mine at Bedstead Gully, which is now held under application by Mr. Charles Y. Fell; and although I understand that nothing rich has yet been struck, hopes are still entertained that the rich reef will yet again be struck. Active operations have been* commenced|by the Anatoki Prospecting Company, chiefly in the Upper Anatoki Valley and in the vicinity of the Boulder Lake, and Mr. Charles E. Storie, who has been through the country mentioned in charge of a prospecting party, speaks very hopefully of the future of the company. Application has already been made for a license for a prospecting area of 100 acres and for a water-right, both in the vicinity of the Boulder Lake. Takaka County. Bubu. —At Bubu the Takaka Sluicing Company are still getting payable gold. For the year ending December last three dividends were paid to the shareholders of Is. per scrip in each instance. The part of the ground the company is now working is only 8 ft. deep, and is showing gold freely. The claim is a very inexpensive one, only employing ten men all told. The men work three shifts of eight hours each. The ground adjoining the Takaka Sluicing Company is held on one side by Frank Roach and on the other side by Charles Cate. These men are doing very little, as the means of working used are very primitive. Both claims are now under offer to the Takaka Company. There is also another man (an old-age pensioner) fossicking in the creek. On the 29th March, 1901, the Ta'kaka Sluicing Company applied for and was granted a right to divert fifty heads of water from the Anatoki River, above the big bend of the Bubu, to sluice the terraces between the Anatoki and Bubu Rivers. The ground which the water would command is supposed to be payable,