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r —8.

lying the gold-bearing wash in Bell and party's claim on the Greenstone side of the terrace, and to allow for the dip of the country the tunnel was started on a level some 44 ft. lower. The tunnel is at present driven a distance of 300 ft., but so far no indication of payable gold has been found. Kumara ""' Deep-level Drainage-tunnel. The Kumara Deep-level haulage shaft was bottomed at a depth of 142 ft. At the bottom of the shaft there was about 4 ft. of fine silt from the reef upwards which contained no gold ; the 27 ft. immediately above this was very heavy gravel or wash, extremely hard, and carrying a little gold, but not payable. The best prospects were obtained from a layer 4 ft. or 5 ft. in thickness about 25 ft, above the reef. Although a considerable amount of money has been spent during the past two years in repairing and extending the drainage-tunnel and in sinking the haulage shaft, no prospecting has been done, as the new extension is entirely driven in the reef or main bottom. When haulage gear is erected on the new shaft, prospecting can be carried out much cheaper than formerly, as trucking the dirt through the whole length of the drainage-tunnel will be dispensed with. The following is a summary of the revenue and expenditure in regard to this race during the financial year ended the 31st March, 1908 : — J £ a. d. Sales of water .. .. • • • • • • .. 381 5 6 Cash received .. •• •• •• •• 411 16 (J Expenditure .. .. •• •• •• ..678 4 Value of gold obtained .. .. .. • • ■ • • • 2,956 4 0 Average number of men employed, 11-66. Waimea-Kumara Water-race. The following is a summary of the revenue and expenditure in regard to this race for the financial year ended the 31st March, 1908 :— £ s. d. Sales of water f.505 5 Cash received .533 1 5 Expenditure .. .. ■• •• •• •• •■ I'a7l1 ' a7l v "> Value of gold obtained 15,026 14 0 Average number of men employed, 49-25. The sum of £125 6s. 3d. in addition was expended on extension and new work during the year. It will be seen by the above summary that the value of the sales of water from the combined races for last year was £1,605 Is. 5d., as against £1,727 3s. 9d. for the previous year, thus showing a decrease in the value of the sales of water for the past year of £222 2s. 4d. The expenditure on gauging, maintenance, and repairs was £1,971 lis. 3d., as against £2 026 14s. lOd. for the previous year, thus showing a'decrease in the cost of maintenance last year of £55 3s 7d The cash received during the year was £1,533 Is. 5d., as against £1,833 9s. lid. for the previous year, thus showing a decrease in revenue of £300 Bs. 6d. on the previous year. Wainihinihi Water-race. Although the season was exceptionally dry, the supply of water from this race showed hardly any decrease on thai of former years, and the'siphon which supplies the Waimea, Callaghan's, and Middle Branch Races was practically running full all the year. No breaks occurred, there were no stoppages of any kind, the race has been well maintained, and is now in excellent repair. I have.'&c, James Rochford, Manager, Water-races.

Mr. R. Murray, Manager, Central Otago Water-races, to the Under-Secretary, Mines Department. Wellington. glß _ Naseby, 30th April, 1908. I have the honour to submit the following report on the Mount Ida, Blackstone Hill, and Alexandra Water-races for the year ending the 31st March, 1908 :— The total sales of water from the Mount Ida Race during the year amounted to £642 14s. 9d. The expenditure on maintenance and repairs for the same period was £1,104 15s. 6d. The total cash received was £642 14s. 9d. On account of payment in advance, free water to the value of £3 Is. lOd. was supplied, and free water for washing up was also supplied to the value of £51 4s. sd. The total value of water supplied from this race during the year amounted to £697 Is. The average number of miners supplied with water was 41-55, an increase of one on that of last year. The approximate quantity of gold obtained by parties using water from this race was 975 oz., valued at £3,071 ss. The. season has been an extraordinarily dry one. the water-supply being much worse than that of last year, the worst since 1893, only three months—September, October, and November—giving practically a full supply, the rest giving an average of a good deal under half-time. The widening and repairs to the race from Naseby to Hill's Creek, a length of thirty-seven miles. to a uniform width of 6 It., started in February, 1907, was finished in May. The weather still continuing dry, the supply in the whole length of the race being reduced to seven heads had to get the whole of the distributing-dams filled, when a start was made on the 13th, on less than until the 14th June, when hard frost setting in the miners had to knock off. The frost