OTAGO.

Grey River Argus, Volume VIII, Issue 563, 26 August 1869, Page 3

OTAGO.

The search for gold on the main bottom along the banks of the Molyneux is being prosecuted with considerable success, the most important discoveries perhaps being those of Fisher and Co. , who have obtained excellent prospects in their claim on the west bank, opposite the Newcastle coalpit and of Wood and Co. (Caledonian Race Co.), at the Half-mile Beach. It is confidently expected that the latter locality will turn out a second Frenchman's Point. Mr Warden Robinson left Oamaru on the 16th instant on an official visit to the Marewhenua diggings. With regard to these diggings, the Oamaru Times says : — "We have reasonable grounds for believing that in a short time we shall be able to announce the opening of an important gold field. Certain it is that a quartz reef fifteen miles in length has been discovered, and that a portion of it is known to be auriferous. With regard to the new ground recently reported as having been opened at the Dnnstan, Mr Warden Pyke, writing from Clyde, under date August 7, reports as follows : — " I have the honor to report that new ground has been opened up in the Alexandra division of the Dunstan district. The exact locality is on a large flat, on the south bank of the Manuheriki, and midway between the Manorburn crossing of the Manuherikia River and Galloway station, Messrs Campbell and Low's. Two claims — those of Daly and 1 party, and M'Donnell and party — had been fairly opened out when I visited the ground on Wednesday last ; water had been laid on, tail-races cut, and washing operations were being vigorously carried on. In these claims, the sinking is from two to three feet, through coarse gravel and water-worn boulders. The auriferous wash is a coarse pebbly sand, freely intermingled with black sand. The gold itself (judging from that observable in one of the sluice-boxes) is somewhat coai ser and rougher than the Molyneitx gold. Fragments of quartz and jasper, and masses of ironstone are distributed through the gravels. The bottom varies in character, consisting partly of stiff, greasy jellow clay, and partly of fine sand ; the gold bearing drift being found on a generally uniform level whether of clay or sind. The clay is, without doubt, the true bottom, but the deposition of gold has evidently occurred in such still water as to prevent any disturbance of the sand lying in intervening hollows. Daly's claim

is on a higher level, a shallow terrace above M'Donnell's claim, which is nearer the river bank. In both these claims the men are obtaining what may be termed ' payable' gold ; or, as they put it themselves, they are ' making fair wages.' I do not anticipate any heavy finds, but it would not at all surprise me if the whole of the flat (evidently the site of an ancient lake), together with the adjacent terraces (or lake borders), were to prove equally auriferous with the ground already opened up, jn which case the ground would support a mining population for a considerable period. I estimate (roughly) the area thus indicated to comprise from 1500 to 1800 acres. Two other claims were just bottomed when I was on the ground, and the owners voluntarily informed me that they had struck gold. Since then more ground has been opened up. It is my intention to visit the flat again at an early date, when I will be able to report more positively as to the value and extent of what is locally known as the New Rush."