C—3.

Alluvial. A certain amount of alluvial mining is still being carried on in this district, but, as the area of alluvial deposit is restricted, no ventures of any consequence are exploited. A number of alluvial miners, both European and Chinese, still make, a fair living at Blackwater, Waiuta, Merrijigs, Antonio's, and Capleston districts, but no new discoveries of any consequence have been made during the year. General. The work in the Warden's office and Court at Reefton during the year has been about the average, and the number of applications for mining privileges compares favourably with previous years. In the Waiuta.-Blaekwater district a large number of residence-sites have been taken up by the miners employed by the Blackwater Mines Company, and these are now building comfortable, homes for themselves and their families. I have, &c, R. H. Turton, Warden.

Mr. Warden Acheson, Hokitika, to the Under-Secretary, Mines Department, Wellington. Sir — Warden's Office, Hokitika, 7th April, 1909. I have the honour to report as follows concerning mining in my district for the year 1908 : — Kumara Subdistrict; Sluicing. —Several new claims were taken up in the vicinity of Westbrook and Cape Terrace in anticipation of the extension of the Government water-race across the Teremakau River, for the survey of which a sum of money was voted at the last parliamentary session. Application was made in December for the necessary mining privilege to enable the water to be so conveyed by the Crown ; and a right for a branch water-race from the main Government race at Larrikin's over the said river and through Hayes Terrace to Cape Terrace, a total distance of about six miles, was granted. The deeplevel drainage-tunnel was placed in repair, and a winding-shaft sunk. The, extension of No. 3 channel was completed. McGrath and party and the Long Tunnel Gold-mining Company worked fairly regularly, and the returns were fairly satisfactory to those interested. . The former party has put in several prospecting-tunnels at considerable expense, one of which was driven upwards of 1.500 ft. through hard pug. Dredging. —Two dredges worked on Greenstone Creek, and, I understand, paid a little more than expenses. General. —One hundred and forty-six applications were dealt with in the Warden's Court, and 279 miners' rights issued, being an increase of 65 and 119 respectively on the previous year. Stafford Subdistrict. Sluicing. —The returns from the claims in work during the year have, I am given to understand, been satisfactory. Linklater and party opened up a new claim at Tunnel Terrace, and Hanrahan and party another at Goldsborough : both, I believe, have proved payable. The three claims being worked at Middle Branch by Hanrahan and party, Shannon and party, and Atkinson and party, I am informed, yielded good results. At Callaghan's, Henry and party commenced the construction of a sludge-channel, which work was subsidised by the Government, and it is confidently expected that when the same is completed it will open up a considerable area of auriferous ground. The Wheel of Fortune claim, which gives permanent employment to twelve men, worked steadily during the year. The special claim of 19 acres adjoining the old claim at Quinn's Terrace was granted to the owners, who now hold a total area of 63 acres. Pimpernell and party commenced the construction of a siphon from the Government water-race at Tunnel Terrace to German Gully, a distance of about a mile, over very rough country, and completed it successfully in October last in spite of many natural obstacles, owing to the valuable assistance rendered by Mr. James Rochford, manager of the Kumara Water-race. This party has now a continuous supply of water, and worked without a break to the end of the year. The returns amply justified the expenditure incurred, which was subsidised by the Mines Department. Two prospectingareas were applied for at Auckland Beach by the Dominion Gold and Ironsand Company. Under the supervision of the officers of the Mines Department the contractors for the Kelly's Terrace drainagetunnel extension made good headway, and it is expected that when complete this tunnel will enable several claims to be worked successfully which could not be so worked in the past. Miners from the locality predict good returns when the ground is opened up. Dredging. —The, Stafford Dredging Company worked continuously on its claim at Waimea Creek, but I cannot state what amount of gold was obtained. General. —Seventy-four applications were dealt with by me in my .capacity as Warden. Hokitika Subdistrict. Sluicing. —Nine beach claims of small areas were applied for and granted at the Arahura. Morrison and party purchased the mining privileges formerly held, by Minerals Limited and worked with satisfactory results. At Gentle Annie Terrace, Mr. Acaster, with the assistance of a subsidy, drove a tunnel over 200 ft. and intersected a number of alluvial drifts. Steady work, with satisfactory results to the parties engaged, was performed at Back Creek and Governor's Terrace. A Drainage Board was formed at the latter place, and a. tunnel for the purpose of enabling the lower levels to be worked was constructed a distance of 944 ft. with the aid of a pound-for-pound subsidy. At Kelly's Terrace Sul-

60