C—3.

107

latter portion of the previous year. The apparent increase in the latter years may also be real, since it is to be expected that machinery having been in constant use for some years will cost more to maintain than when new. The figures of 1904 and 1905 may therefore be taken as the actual average workingcost of eachdredge during those years. I am indebted to Mr. Edward Iveah Lord for the following information : — Paeoa and Butherglen. The dredging enterprises in this locality have been failures. No new finds are reported, and a few miners are engaged either in working old leads over again with their own water or sluicing new and poor ground for small wages. Many old miners have erected comfortable dwellings on residence areas, which they cultivate, and, in addition to mining, run a few head of cattle on Crown lands. Between the two occupations a fair livelihood is gained. This district is fairly well roaded. The Hokitika-Grey Bailway traverses it along the sea-coast, and there are main roads from Greymouth to Paroa, Cameron's, Marsden, and Teremakau, besides the old Marsden Boad, which runs from Greymouth through the old Welshman's diggings, and is one of the prettiest tourist drives in the colony. From a miner's point of view the future prospects of this not encouraging. A cement lead runs in a northerly direction from the New Biver through Butherglen and parallel to the coast-line as far as Nelson Creek. The lead is 150 ft. above sea-level, and it has been partly worked in the early days. It consists of cemented black sand, which requires crushing and water-power, and unless worked in a very extensive manner is too poor to give wages. As the country in this vicinity is mostly of limestone formation, it will eventually be cleared, grassed, and utilised as grazing-runs; a few sheltered spots are also adapted for orchards. It would be a wise step to allow bona fide miners to take up more land, for the combined pursuits of agriculture and mining. Marsden and Dunganville. This district, which takes in the valley of the New Biver and its tributaries, was one of our richest goldfields. The New Biver and every branch of it has been worked out to its source. The branches of this well-known river were all "the objectives of former rushes, and in this connection we have the Left-hand Branch and its tributaries, Wood's, Italians', and Lancashire Creeks. The eastern watershed feeds the following well-known creeks : No Name, Cockeye, Irishman's, Mosquito, Cockabulla, Eight-mile, and Maoris', German Gully, &c, all of which were rich in gold-bearing gravel and have been worked as long as a trickle of water remained to fill a dam—in other words, to an elevation of about 400 ft. above sea-level. The Eight-mile Bange rises to a height of 1,200 ft., and there is payable sluicingground right to the top —but no water. A considerable number of miners are still at work in this district, and those who own water-rights do fairly well. The country is well roaded, and horse-tracks have been made to all the mining centres. Dredging has been tried in the locality so far without success ; but many miners are of opinion that there is ground that would give good returns if treated in this way. To command a considerable area of sluicing-ground, a high-level race is required which should deliver water on Eight-mile Terrace at an elevation of at least 620 ft. A race from the eastern Hohonu Biver could be brought in at the level named, but to do so a siphon 210 chains long would be necessary to enable the valley of the Hohonu Biver to be crossed at the required elevation. The total length of race would be twelve miles, and the cost greater than the miners at present on the field can afford. Maori Gully and Arnold. Maori Gully was formerly a rich mining centre, and from it and a tributary known as the Waimea Creek laTge quantities of gold were obtained. These creeks rise in Mount Biley, a hill 1,200 ft. high, and gold was found right up to the summit. There is a good metalled road from Maori Gully to Stillwater, and the Kokiri Station on the Midland Bailway is a mile and a half from the township. The present mining operations are confined to a few parties who own catch-water dams and races, and they depend on the rainfall for supply. Payable sluicing-ground is reported on the banks of the Arnold and Stillwater Creek, as well as in the vicinity of Maori Gully, but a race to command this country would require an elevation of about 500 ft. above sea-level. A water-race from Deep Creek, a tributary of the Arnold, would be of sufficient height to work a considerable area. The race would be about ten miles long, and would require a siphon across the Arnold Biver for three-quarters of a mile, or six miles and three-quarters from the source; and at this point the sluicing-ground commences. With the exception of the siphon, there will be no expensive work on this race. Two years ago a dredge was erected on Stillwater Creek, about half a mile below Maori Gully Township, but it was swamped by a flood in the stream before the ground had been properly tested. The whole of the country reported on in these notes is heavily timbered forest, mostly covered with red-pine; but on the high level pakihis between Marsden and Dunganville there are patches of silverpine which in the near future will become a valuable asset. General. During the year the following business was performed in the Warden's office and Court at Greymouth : Applications pending on the 31st December, 1904, 11 ; applications received during 1905,