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the entrance through a rise to the surface, 80 ft. in height. In addition to ventilating the tunnel it is also ust J for washing out the spoil. Nino men are employed. General. —Alluvial mining in the Grey Valley at the present time is principally carried on by small parties of two or three men. These are steadily diminishing in number as the richer surface deposits become worked out. The day of the individual miner is gone, hut there are still large areas of unworked gravels in parts of the district which are generally considered to contain values that warrant the expenditure of capital to bring on large supplies of water, by which means alone they can be profitably worked. DREDGING. Twelve dredges were in active operation in the Nelson district during the year, giving employment to 106 men, and producing gold to the value of £40,013. The New Mokoia dredge, Three Channel Flat, Buller River, ceased operations early in the year, and has been dismantled. Antonio's Flat dredge is also being dismantled, but will be erected at Frying-pan Flat, Cronadun. OTHER MINERALS. Iron. Parapara Iron Lease. —Two tunnels have been commenced to test portions of the iron-deposit at depths of about 100 ft. below the outcrop. Sluicing surface clays and gravels is also being carried on. TurnbuWs Lease. —Operations conducted during the year comprised survey of outcrops, formation of tracks, clearing bush, and other work necessary for exposing and tracing the iron-deposit through the lease. Copper. Copper Development Company, Aniseed Valley. —-This company's works have been idle during the year. Mount Radiant. —Practically nothing has yet been done to develop the copper-bearing lodes of this locality. I understand that efforts are being made to form a company to work the Anaconda lode. Asbestos. Auckland Asbestos Company, Mount Arthur.— Prospecting for this mineral was carried on during the early part of the year. The work comprised open cuttings and trenches on the numerous veins that occur in the locality. ACCIDENTS AND FATALITIES. QrjARTZ-MINES. Fatal. Wealth of Nations Mine. —13/4/10 : John Richards and Albert Johns, miners, were killed by a blasting accident. 4/6/10 : Reginald Watts, braceman, killed by falling down the Energetic shaft. Non-fatal. Wealth of Nations Mine.—2B/1/10 : W. Sarre, miner, lost his right eye through carelessly drilling on top of a charge. 30/3/10 : H. Petersen, miner, leg broken by a fall of stone in stope. Progress Mine. —s/7/10 : David Leckie, labourer, lost his right arm by being caught in an elevatorbelt at smelter. 3/8/10 : Joseph Norton, miner, leg broken by fall of ground in rise. Alluvial Mines. Fatal. 14/4/10 : J. T. Monigatti, miner, was killed by a fall of ground while working on his claim at Caledonian Terrace, Weetport. Dredges. Fatal. No Town Creek Dredge. — 7/6/10 : William Knox Glen, engine-driver, was drowned through swamping of boat. Non-fatal. Moonlight Creek Dredge.— l 7/2/10 : John Lawson, blacksmith, lost an eye by a blow from a piece of steel. I have, &c, A. Whitley, Inspector of Mines. Mr. A. H. Richards, Inspector of Mines, Holritika, to the Under-Secretary, Mines Department, Wellington. Sir,— Office of Inspector of Mines, Hokitika, 21st March, 1911. 1 have the honour to present my report on the gold-mines of Westland for the year ended 31st December, 1910.