C—3.

Grey Valley. Blackwater. —Errickson and party, who have erected au elevating plant and constructed head and tail races, are working on sound lines, with the view of overcoming the difficulty of disposing of tailings, which has heretofore prevented the profitable working of their claim. Upper Blackwater. —A few parties continue to sluice the elevated alluvial deposits in this locality when water is available. Prospecting operations carried out under the Blackwater Miners' Association proved the existence of a large area of auriferous alluvial country, which, however, cannot be profitably worked owing to absence of a reliable water-supply. Duffers Creek. —Mining in this locality is very quiet. P. Carrol's subsidised tunnel was driven 317 ft. into the terrace on the south side of Teviot Creek to prospect for a continuation of the old Teviot lead. The work did not prove successful. D. Baybutt is continuing his sluicing operations on Sullivan's lead, with profitable results. Orwell Creek. —The right to divert twenty heads of water from Allen River and Randall's Creek has been secured by a private syndicate, who have also taken up an area of ground on Napoleon Hill, and propose construcing a race to deliver the water at an elevation which will command an extensive area of good sluicing country. The length of the water-race will be fourteen miles, and a large amount of capital will be required to carry out the scheme, which, however, offers great possibilities of success. Moonlight Creek. —The Shetland Sluicing Company has suspended operations. Alluvial winkings in this locality are now confined to small parties of two or three men. Healey's Gully Sluicing Company. —Very little sluicing has been done by the company during the year. Water is supplied to other claims in the locality, and the race has required a deal of attention in the way of repairs to wooden fluming and timber in tunnels. Ilillicr and Marsden. —This party has opened up a new face of wash, which promises to give payable results. Montgomery's Ten-ace Sluicing Company. —Operations on the company's behalf were suspended early in the year, and the claim leased to Steel and party, who have found it more advantageous to purchase water for sluicing purposes from the Healey's Gully Company than to maintain the company's own race. Nelson Creek. —A considerable amount of driving has been done by P. Donnellan and party towards prospecting the high terraces at Welshman's and Allen's Creeks. A small deposit of auriferous wash was opened up, which should give the party wages for blocking out, but no continuous run or lead was discovered. Several small parties are engaged in sluicing operations on the terraces and in the small creeks in this locality. Bell Hill Syndicate. —This syndicate has at considerable expense constructed a tail-race tunnel a distance of 565 ft. through hard rock. Loss of fall on the old tail-race rendered this work necessary, to enable sluicing to be carried on from free level. A large face of wash is being operated upon. Plant and general equipment are maintained in good order. DREDGING. A gradual decline is taking place in this branch of the mining industry. During the year four of the working dredgers in the Nelson District ceased operations and were dismantled—viz., Callaghan's Creek, A 1 (Boatman's), Mosquito Creek, and Pactolus No. 1. The Slab Hut Creek and New Mokoia Companies disposed of their dredgers to private syndicates, who are continuing operations on their own behalf. other minerals. Copper. Copper Development Company. —This company has acquired a lease of the Maoriland Company's property at Aniseed Valley. Since commencing operations work has been confined to mining the ore from the United section, and subjecting it to a process of concentration, comprising crushing through a Gates crusher and set of rolls, with subsequent treatment through a jigger. During the year 764 tons of ore treated at the company's plant produced 374 tons 6 cwt. 3 qr. of copper concentrates, of an estimated value of £1,871 13s. 4d. The concentrates, as produced, are shipped to the Progress Mines' smelter at Reefton. The mine, when visited, was in good order, and well ventilated. Stoping operations were in progress at Nos. 1, 2, and 3 levels. An average of fourteen men was employed. Iron. Parapiira Iron Lease. —When visited during the year operations were directed to sluicing off surface gravels and clays overlying the iron-deposit, and preparing a ten-ton lot of ore for shipment for special treatment. The development of this property is proceeding very slowly. An average of nine men was employed. Purulinil's Lease. —This lease has been worked intermittently during the year. Four men have been employed on surface works. Asbestos. A mineral-prospecting warrant for asbestos, comprising an area of 1,000 »cres, has been taken up by Mr. H. R. Cooke, in the Mount Arthur district. Five men have been employed, under the supervision of Mr. Charles Holland, when weather-conditions permitted during the year. Asbestos veins have been found at several places over the area, and the prospects are So far considered satisfactory.

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