FURTHER PAPERS RELATIVE TO THE OTAGO GOLD FIELDS.

Appendix to the Journals of the House of Representatives, 1865 Session I, C-04a

C—No. 4a.

FURTHER PAPERS RELATIVE TO THE OTAGO GOLD FIELDS.

PRESENTED TO BOTH HOUSES OF THE GENERAL ASSEMBLY, BY COMMAND OP HIS EXCELLENCY. WELLINGTON. 1865.

C—No. 4a

Sir, — Dunedin, Ist April, 1865. I do myself the honor to lay before you the following Report on the progress and present condition of the Otago Gold Fields: — 2. Progress of Discover//. —Although it has not been found necessary to proclaim new Gold Fields, nor considered desirable to extend the boundaries of those previously proclaimed, many and valuable discoveries have yet been made, both within and without the limits of the various districts, since the ■date of my last report, —19th April, 1864. 3. Discoveries ivitliin Proclaimed Gold Fields. —Not the least important of these is the practical discovery (for theoretically it has long been known) of an immense belt of auriferous tcrtiaries—the " cement" of the miners— m the District of Gabriel's ; a belt sufficiently extensive to afford remunerative employment to a large population beyond the existence of the present generation. A large field has been opened up on the Upper Manuherikia, and on the east and west tributaries of that river, mainely, on Dunstan Creek (where gold was originally discovered by Peyman's party early in 1862) on Hill's Creek, and at Blackston Hill, and in the valleys of the Idaburn and Lower Poolburn, altogether; an extensive and rich field, requiring only men to work it. McCrae's Flat, on the Deep Dell Creek, an affluent of the Waihemo, presents another extension of the known auriferous area, and promises well for future operations. Nearer Dunedin the creeks flowing into the Silverstream from the Boulder Hill watershed have been successfully examined and found to contain payable gold. 4. Outside the Proclaimed Gold Fields. —Beyond the existing boundaries several localities have been discovered to be auriferous. The principal of these is near Tuturau, on Dr. Menzies' station, at the Mataura River ; a small " rush" occurred some months since, and still a limited mining population is located there. It can scarcely be said to have been fairly prospected yet. The northern slopes >of the Dunstan Banged have also been tested with satisfactory results, and two gullies, named respectively " Bendigo" and " Tipperary," on the Ardgour Creek, are now being worked on a large scale. Robert's Flat, below Dusky Hill, where about thirty miners are located, may be regarded as an extension of the Pomahaka Diggings. The whole of the watershed of the Pomahaka is now known to be auriferous, and although this district attracts but little attention at present it bids fair to be more ■conspicuous as a gold field hereafter. I may here state that several promising-looking specimens of copper ore, said to have been discovered in this district, have lately been exhibited to me. A short time since a "rush" to the Matukituki, on Lake "Wanaka, was reported, but I have not received any information of the result. Some of the flats abutting on the Awamoko, a branch of the Waitaki River, were, in November last, reported as auriferous by Mr. Thornlcy, of the Survey Department, but no steps have yet been taken to test the payable character of the locality. And, finally, in the ranges known as the Chain Hills, beyond Green Island, solne miners have discovered and worked ground sufficiently remunerative to induce the belief, founded on a personal investigation of the place, that a gold field will some day be opened out there, and that in all probability an auriferous quartz lode will be found in the vicinity. 5. General Distribution of Gold. —These discoveries, taken in connection with those referred to in my former Reports, and with others of daily occurrence, prove incontestably that gold is distributed in greater or less proportion over nearly the whole of that portion of the Province which lies to the eastward of Southland and Lake Wakatipu. Indeed it is now quite impossible to say where gold does not exist throughout the vast area thus indicated, and it is beginning to be understood by practical men as a fact, that the only limitations to productiveness are men and water. Anyone of our numerous —I had almost written " too numerous"-—gold fields con'ams sufficient payable ground for the constant employment, for very many years to come, of a much larger number of miners than are scattered over the entire Province. With the present limited mining population, the desirability of further discoveries is, to say the least, problematical. In the fierce excitement caused by a new "rush" valuable claims and mining properties are recklessly abandoned, or disposed of for a mere trifle ; and the result is a general disturbance of that settled industry, which, in the long run, always yields higher remuneration, with a larger degree of comfort, than is j'ossible in the blind scramble for new ground, wherein it too often occurs that for every individual who succeeds in securing a rich claim, ninety-nine fail to obtain ordinary wages. 6. Tuapeka. —Old Tuapeka maintains its position as the leading gold field. The recent discoveries at Gabriel's have inspired renewed confidence in its resources. The supplies of water are being constantly increased; for the more water there is brought in, the greater becomes the demand, and the price per sluice-head is now twice as much as when only three or four heads were procurable in all the district. Waitahuna still languishes for want of capital and energy. Waipori is attracting a greater degree of attention, and its magnificent resources are now, for the first time, being gradually developed. A Report on these districts by Mr. Mining Surveyor Drummond, is appended. (See page 5.) 7. Mount Benger. —This field has shared in the general application of capital which constitutes such a marked feature of the past year's operations. Many fine races have been constructed, and large tracts of auriferous soil have thus been brought under the magical influence of water. Improved ■dredging machines have been built for sweeping the floor of the golden River Molyneux, and a considerable extent of new ground has been opened on the western bank, amongst the spurs and ravines of the Spylaw and Benger Ranges.

FURTHER PAPERS RELATIVE TO THE OTAGO GOLD FIELDS.

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8. Dunstan.- —The same remarks apply to this gold field. The new district of the Upper Manuherikia lias already been referred to in connection with " Discoveries within Proclaimed Gold Fields." I append a very complete and valuable Report on the Mount Benger and Dunstan Fields, furnished by Mr. Mining Surveyor Coates. (See page 7.) 9. Taieri and Mount Ida. —These fields have perhaps shared less than any other in the advantages derivable from the introduction of capital. Their progress has, nevertheless, been steady and satisfactory. In a very marked degree is this observable at Hamilton's and the Hogburn, in both of which districts, enterprise, aided by the introduction of water from every readily available source, and fostered by a liberal interpretation of the Mining Rules and Regulations, has latterly caused a considerable accession of population, and a corresponding increase in the Escort returns. Mr. Mining Surveyor Keenc's Report, attached hereto (see page 18), furnishes a concise and satisfactory account of these fields. 10. Wakatipu. —Probably the Wakatipn Gold Field has suffered more than any other from the West Coast ': rush," a circumstance not resulting, however, from the absence of highly payable ground, of which there is abundance in every part of the several district s. Rather I should be inclined to ascribe it to the very natural curiosity so confessedly felt, and which has in so many ways developed itself amongst the miners, to ascertain the nature of the country lying beyond the snow-clad ranges which intervene between the heads of the Arrow and Shotover Rivers, and the sea coast. But, as will be seen from Mr. Mining Surveyor Wright's very excellent Report appended hereto (see page 15), the future prospects of Wakatipu are brighter than ever. 11. NoJcomai. —The Nokomai Gold Fields, including the districts of Nokomai Proper, Nevis and Switzer's, has continued to prosper in, at least, an equal degree with other fields. The Nokomai has more than justified the expectations raised by its discovery in 18G2. The Warden's Reports published from time to time show, that with increased energy and greater experience, the miners there are securing a highly remunerative harvest. The Nevis, so isolated and remote from every centre of population, yet situated in the very heart of the auriferous belt, is just beginning to be discovered, in the sense in which that phrase is ordinarily applied. This cold, sequestered, and ice-bound region, hemmed iv on all sides, save where it opens out to the Kawarau, will probably never attract a very large population ; but that it will, for a very lengthened period, be a storehouse of wealth to the hardy adventurers who arc prepared to brave its inclement climate, there cannot be any reasonable doubt. Switzer's has somewhat declined both in yield and population. Unfortunately there has not yet been a Mining Surveyor appointed for these districts, so that I am not in possession of definite information regarding them, and the amount of capital invested is not ascertainable. 12. Mining Surveyors* Reports. —The various Reports already referred to, as contributed by the Officers of the Mining Survey Staff, are of an exceedingly valuable nature, and the diagrams by which they are accompanied furnish fresh contributions of the most useful character, affording great assistance to the miners in their search for gold, the conditions of the deposition of which have so long been only vaguely understood. 13. Quartz. —The existence of a well-defined and connected series of Quartz Reefs has been proved beyond a doubt by the discoveries of the last twelve months. Most of them contain fine gold, generally diffused throughout the stone, and averaging from 15 dwt. to 2 oz. to the ton. Capital, encouraged by a liberal application of the Gold Mining Leases Regulations, is now being invested in these lodes, and there is now a satisfactory prospect of quartz mining becoming a profitable and extensive institution in Otago. 11. Produce. —I append tables showing the total and comparative amount of gold brought down by Escort for each quarter since the discovery of Gabriel's in July, 1861. The quantity escorted to Dunedin during the twelve months ending 31st March, 18G5, was 353,555 oz. 8 dwt.; for the same period to 31st March, 1564, 500,083 oz. 9 dwt., and to 31st March, 1563, 377,137 oz. 18 dwt. The total quantity brought down by the escort from the commencement to the same date, is 1,562,326 ounces. The quantity which passed through the Dunedin Custom House is 1,699,667 ounces ; and 63,970 ounces, the produce of Otago, have been exported from trans-provincial ports. This gives a us gross total of 1,763,637 ounces, of the estimated value of £7,051,544 for three years and nine months, or an average of nearly Two millions sterling (£2,000,000) per aimuin.

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.FURTHER PAPERS RELATIVE TO

of Gold Exported from Dux from othi edix, exclusive er Ports in N< of Gold, the produce of O sw Zealand. :ago, Exported I" 1861. 1862. 18G2. 18G3. 1863. 1864. 1864. 1865. Destination*. Aug. 1 to July 31. Aug. 1 to July 31. Aug. 1 to Mar. 31. Totals. Aug. 1 to July 31. Oz. Dwt. Gr. Oz. Dwt. Gr. Oz. Dwt. Gr. Oz. Dwt. Gr. Oz. Dwt. Gr. 'o Great Britain 13,883 11 0 202,297 13 0 82,824 7 0 11,142 6 0 310,147 17 0 'o Australian Colonies, &c •113,355 19 6 312,088 4 0 414,207 2 0 219,868 5 0 1,389,519 10 6 Totals 457,239 10 6 514,385 17 0 497,031 9 0 231,010 11 0 1,699,667 7 & In addition to the above, 63,9' a to1 70 ounces of Otagi tal of 1,763,637 02 3 Gold have been ;. 7 dwt. 6 gr., ol ixported from othe the value of £7,0! :r Ports in New Zi 54,544. md, making

C—Ko. 4a,

15. Population. —From the annexed Beturn of Immigration and Emigration, it appears that thepopulation of the Province has been diminished during the year ending 31st March, by 8399 maleadults ; whilst there has been an increase of 501 female adults, and 313 children —leaving an actual total decrease of 7585 souls. From Great Britain we have received an accession to our population of 781 male and 517 female adults. On the other hand, 3440 males have returned to the Australian Colonies, and other 5740 have departed coastwise. Of the latter upwards of 4000 left in March alone —a circumstance accounted for by the West Coast discoveries. Of course these figures only represent Immigration and Emigration seawards from the Port of Duuedin, and would no doubt be materially altered if the Immigration and Emigration landward— i.e., through other Provinces—could be ascertained. IG. Census. —By the Census of December, 1864, the total population of the Gold Fields waftenumerated at 15,700 persons. Of these certainly not more than 10,000 were actually miners, and at present (31st March) I estimate them at only 7000. In April, May, and June last over 0000 left for Wakamarina, and although many of these returned to Otago, numbers went straight back to Australia. I therefore estimate the average mining population during the last twelve months at, say, 10,000 male adults. The return of gold during the same period (not reckoning for such as is taken out of the Province clandestinely) amounts to 396,097 ounces, of the estimated value of £1,584,388. This will give an average wage to every gold miner in Otago of forty ounces or £155 per annum ; or VS\ dwts., value £2 19s. 4d., per week. Without seeking to draw any invidious comparisons, I think I may safely challenge any other gold-mining country in the world to show an equally splendid return. 17. Settlement. —From the attached return it will be seen that 175 applications have been made for agricultural leases, covering 1G93 acres 3 roods, and that 508 residence areas, comprising 238 acres 1 rood, have been taken up under the Gold Fields Regulations, giving a total for settlement of 1932 acres. This system of leasing for agricultural purposes has lately been suspended with a view to the sale of the lands, which, owing to the obstructive nature of the 48th Section of "The Gold Fields Act, 1862," caunot be effected concurrently with the operation of that Act. But lam strongly of opinion that a return to the leasing system, with an extension of the area to, say, 100 acres, would be most beneficial both to the people and to the Province. IT auriferous land is only leased, it can be reserved upon discovery of its true character ; but if once sold, it is lost to the State for ever. 18. Systematic Mining.- —The same Eeturn informs us that 76 gold-mining leases, covering 370 acres, have been applied for ; and that 594 Extended Claims (requiring five men to the acre), comprising 620 acres, have also been taken up. The comparison suggested between the two systems is instructive. The Extended Land Claim Eegulations were only assented to by His Honor the Superintendent in August 31,1864. Yet in the short space of seven months a larger area has been taken up under their simple conditions (and by hona fide working parties of miners) than in the twenty-one months during which the more complicated leasing system has been in operation: the proportion of Extended Claims to Mining Leases being in number as nearly eight to one, and in area as five to three.

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THE OTAGO GOLD FIELDS.

tJN showing the otal and Cojiparatite Aiiot'XT of Gold brought d< iwn by iscor for each Month jid Quarter since the discovery of Gabriel's, in July, 1861. 1801. 1862. 1863. 1864. 1805. Oz. Dwt. Oz. Dwt. Oz. Dwt. Oz. Dwt. Oz. Dwt. Oz. Dwt. i Oz. Dwt. Oz. Dwt. Oz. Dwt. Oz. Dwt. lanuary 47,391 0 48,567 5 32,335 14 20,868 8. ?ebruary... 42,473 0 72,311 14 38,042 7 22,025 1 Harch 32,202 5 122,066 5 22,862 10 46,691 12 107,570 11 70.010 12 37,614 18 107,992 19 43,649 11 24,590 16 67,484 5 Lpril Jay 22,945 10 47,631 5 52,845 6 12,876 10 43,613 8 161,255 5 30,398 9 22,141 15 fuly 10,375 18 184 10 118,630 12 24,323 7 Lugust 5,056 0 14,186 0 22,904 2 28,906 5 September . 19,039 15 21,095 15 46,613 5 12,618 6 41,161 6 26,353 16 )ctober 37,180 4 38,777 14 94,463 17J 40,612 14 I 79,583 8 29,939 8 November.. 73,904 0 37,664 IS 4-3,803 8 33,283 18 December... 58,870 0 179,387 5 37.2G0 1 113,702 13j 331,033 12 57,955 6 [ 142,371 8 24,527 17 ■j 87,851 3 394,064 2 Totals... 203,483 0 565,601 1 67,484 5Cckaxd Total 1,562,326 ounces.

G—No. 4a.

19. Management. —The reduction of the Gold Fields staff has been gradually but continuouslycarried on, principally by the amalgamation of districts and officers. It has, however, been found necessary to effect still further reductions, and several officers have, in consequence, been removed from the remote and least populated localities. I do not think any further reduction can be judiciously made ; indeed, as every officer of the Department is now in some way a Revenue collector, the revenue itself must suffer from undue economy in this direction. At present the expense of managing the Gold Fields (so far as my Department is concerned) is much smaller in proportion to Revenue than in either Victoria or New South Wales. 20. Future Prospects. —It will be apparent from the foregoing remarks that the future prospects of the Otago Gold Fields are of the most promising character. From the past we may judge of the future. Speaking calmly, and without prejudice, I honestly believe that the best days are yet to come. The Gold Fields have now happily passed through that probationary state when their capacity and extent was a matter of theory, and their continuance a doubtful question. Time has afforded a certain and satisfactory solution of these problems. And if the results of unsystematic labour, and of individual exertion, uninstructed by experience and unaided by capital, have been thus far profitable, it is evident that richer and more assured returns may be anticipated, now that a vast amount of available information has been acquired, and confidence, begotten of knowledge, has been productive of such permanent and extensive mining undertakings as those for which the Gold Fields of Otago are rapidly becoming famous. I have, &c, Ves'cext Pike, To the Provincial Secretary. Secretary for the Gold Fields Department.

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FURTHER PAPERS RELATIVE TO

EETUEN showing the Total Immigrai ion and Emigrat :on at Dunedin during the twelve months em ling 31st March, L8G5. australian Colonies. Coastwise. Great 3EITAIN, 'C. Totals, Adults. Children. i Adi Its. Chili Iron. A«!i lite. Chili Iron. Adi Its, Chili Iren. Immigration II. F. ] 1,526 649 :4,96G 605 44 j 3,440 ... I M. 262 F. 241 M. 5,508 i F. M. I 546 124 | 606 195 F. 72 M. 885 F. 560 M. 178 F. 143 M. 7,919 | F. M. I i . 1,755 564 F. 456 Emigration Excess of Immigration 199 i 63 1661 75 I | 11,248J i i 126 lol. i 781 43 517 12 166 9 134 16,318 1,254 ] 406 501; 158 301 155 ... : ... | Excess of Emigration I I 1 I 5,740 60 71 54 8,399 Total Emigration ... ... ... ... ... 18,279 Total Immigration ... ... ... ... ... 10,694 1,279 i,694 Balance in favour of Emigration ... ... 7,585 EETUEN showing the Number of and Extent of Land comprised in applications for Agricultural Leases, Mixing Leases, and Extended Claims, and the number of Eesidence Sites, registered on the Gold Fields of Otago. ■RICrLTUR. x Leases. Eesidence Aeeas. JIinik& /EASES. IXTENDED Jlaims. Districts. BM No. Area Applied for. Area Surveyed. No. Area Applied for. !No. Area Applied for. Area Surveyed. No. Area Applied for. Area Surveyed. Gabriel's Waitahuna Mount Benger Dunstan Arrow Quecnstown Upper Shotover Nokomai Nevis Upper Manuherikia Hamilton 7(i 29 ■I17 28 30 2 A. B. P. 691 3 15 284 0 0 40 0 0 165 0 0 230 0 0 263 0 0 20 0 0 A. B. P. 641 3 15 284 0 0 40 0 0 129 2 4 227 0 22 226 1 19, 16 0 0 164 65 : 75 47; 23 21 18 i 31 43 A. E. P. 66 1 OJ 32 2 0 37 2 0 23 2 0 11 2 0 12 0 0 9 0 0 8 2 0 0 2 0 15 2 Oi 21 2 0| 32 29 1 i A. B. P. 99 1 2 170 0 0 3 0 0 46 0 0 16 0 0 18 0 0 A. E. P. 99 1 2, 43 0 0! 3 0 0, •13 0 0 16 0 0 17 3 18! n 60 18 74 23 il20 91 83 2; 75 15 i 33 A. H. P. Ill 3 0 15 0 0 37 2 30 24 3 0 47 2 0 250 1 4 55 1 29 Area not 26 2 0 15 2 12 36 2 0 A. E. P. Ill 3 0 15 0 0 30 0 30 22 0 36 31 3 0 28 1 33 17 2 16 given. 3 0 0 7 2 0 36 2 0 4 18 0 0 10 0 0 Totals.. 175 1693 3 15 1564 3 20 508: 238 1 0 76 I I 370 1 2 232 0 20 I .39 620 3 35 303 3 35

C—No. 4a.

BEPOKTS OF MINING STTEVEYOES. Mr. Drummond's Report. Sic, — Gold Fields Department, Mining Survey Office, Lawrence, Ist April, 1865. I have the honor to forward you the following report on the Tuapeka Gold Field, along with Statistical Tables, showing the amount of Population, value of Mining Plant, number of Agricultural and Mining Leases, Extended Claims, &c. Since the date of my Eeport ending 30th September, 186-1, this Gold Field has been steadily progressing both in mining and other matters ; and though the miners have been working at a great disadvantage, owing to the unusual dryness of the season, the yield of gold has still been up to the average. The principal scenes of mining operations in the Gabriel's District still continue to be those of the Blue Spur and the spurs of Wetherston's ; upon which large areas of ground have been taken up cither under the Leasing or Extended Claims Eegulations. As the various claims get opened out and in good working order, the value of shares increase ; some shares having lately changed hands varying from five hundred pounds sterling to eleven hundred pounds sterling (£5OO to £1100). Water is still very scarce, and although about eight heads have lately been brought in from the Waipori River, the supply is still far below that of the demand. Another race is in course of construction from the branches of the Waipori and head of the Beaumont Eivcrs, and will in all probability be completed in about four months time, and which will in some measure tend to meet the demand. Water in this district must always command a good price, as it has now been proved that the more water is brought in, the more claims are taken up. The scarcity of water has led some of the enterprising miners to examine the watersheds and sources of the various streams of the district, which has resulted in the formation of a company, who propose to bring in the Deep Stream at a computed distance of about eighty miles in length. The miners on Wetherston's have almost been at a standstill for water, both owing to the dryness of the season, and also to the bursting of Ward's and Gascoine's dams, from which the chief supply was obtained for Wetherston's. Both the above sites (Ward's and Gascoine's) are admirably adapted for storing water. A survey has been made and the levels taken for the purpose of erecting two large stone reservoirs, which, when full, will, I am of opinion, keep that portion of the district well supplied with water. The estimated cost of the reservoirs I have put down at fifteen hundred, and six hundred pounds sterling, each. That a large supply of water is wanted at Wetherston's is an undoubted fact, as the cement has been prospected and found equally as good as that of the Blue Spur, Gabriel's. About forty acres have been taken up, mostly under the Extended Claims Regulations. The depth of the cement when struck in the prospector's claim is twenty-five (25) feet. Owing to the spurs of Wetherston's not having the elevation of those of Gabriel's, and having necessarily less fall, it will be impossible to work a great portion of the cement by means of ground sluicing ; but I am in hopes that the deep ground will be prospected, and payable ground may yet be found for raising and sluicing. The cement from the spurs crosses the flat, and is again found on the Slaughter-yard Hill, and from that on to the next gully ; and I am of opinion that the cement or conglomerate will yet be traced through Waitahuna and on to near the Woolshed Diggings. It is now an ascertained fact that all the spurs around Gabriel's, Wetherston's, Waitahuna, and Waipori are more or less auriferous; and taking the large masses of auriferous cement known to exist in this district, the only thing the miners now want is a good supply of water. The scarcity of water having been severely felt this season, has induced several local capitalists to invest; and lam in hopes in course of another twelvemonths to see the district tolerably well supplied with that essential. In order as much as possible to counteract the scanty supply of water for the hill sluices, reservoirs are being formed (the method usually adopted being that of sluicing out the ground) on or near each of the various claims, so as to store the night water. The other portions of Gabriel's District are still being worked satisfactorily —Monroe's, Tuapeka Flat, Wetherston's Flat, and adjacent gullies, still afford remunerative employment to a settled population. Waitahuna District. —Waitahuna District, as elsewhere, has suffered from the dryness of the season, and a limited supply of water. Blocks of good payable ground are still being met with in the old ground in the main gully. Little work has been done on the spurs owing to the want of water. Sjme good ground has been found about half a mile below the bridge on the Waitahuna River. Woolshed. —Numbers of the miners of the Woolshed have removed to the Waipori District. Those left are still making good wages in and on the banks of the river. Waipori. —From a glance at the accompanying statistical tables it will be seen that a comparatively large population has set in at Waipori, most of the workings being on the Waipori Flat and Eiver. The ground is easily worked, being from six to nine feet deep through a fine wash. Each claim is supplied with a water-wheel and California pump, for the purpose of keeping the workings dry. Waipori, I am of opinion, could sustain a large population, as most of the flats and spurs are known to be auriferous. Pioneer Quartz Mining Company. —The Pioneer Quartz Mining Company is still in active operation. They have lately been engaged sinking a shaft, and a few days since again struck stone at a depth of eighty-eight (88) feet from the surface. The stone looks exceedingly well, and I imagine will yield about two ounces to the ton. The thickness of the stone at present struck is three (3) feet. The finding good stone at the above depth has had the effect of increasing the value of the shares, one or two of which have changed hands at about eight hundred pounds sterling (£800) for a twelfth share of the mine, making a market value of the claim and plant of about ten thousand pounds (£10,000). 2

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THE OTAGO GOLD FIELDS.

C-No. 4a

lam of opinion that those works show the value of our quartz reefs —a party of twelve miners, who took the claim up about three years ago, with little or no capital, having been able to purchase machinery, lay tramroads, and erect all necessary plant, besides receiving various good dividends, and being able to sell out for eight hundred pounds. From the accompanying tables it will be seen that we have lost some of our population, who have gone to the West Coast Rush ; but I do not think we are likely to be seriously affected thereby, as this Gold Field is from year to year assuming a more permanent and settled character, and, for miners who choose to settle down to a steady income, offers an inducement for remunerative employment for many years to come. Agricultural and business pursuits are still being busily prosecuted. Allotments in the township have lately been sold at about £4 per foot frontage ; and altogether the various districts of this Gold Field seem in a very healthy condition. I have, etc.. John DsrMMOND, Mining Surveyor.

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RETURN showing the Various Descriptions Machinery used in the Tuapeka tnd Totj x A: 'POX :mate Value of Mixing Gold Yv sld, i 1st March, 18G5. Localities. Ce. IIE3. IEAULIC [OSE. Sl Box T. -uf E Water OMS. WHM' 'UMPS. w tTER .CES. Quartz Minini - H a M . o w a - •4 H I 6 i £ d £ s. £ I d I S22; L80 ISO 80 2 "3 Id £ I 1,644 14 i I 360 ... I 700 45 I 160 .11 J £ 140 '4 i £ s. 14 56 0 A 3s I « 234Ji 14085 L84£ 11070 ... I ... L18 7080 10 I 16 Description. I £ £ ». 15,925 0 Gabriel's District. I 822 14 234Ji Waitahuna do. ... 5 15 1 2 10 180 40, 90 0; asu Driven "| by Over- I shot Wheel. J 11,422 10 Waipori 350 450 60150 0 118 ! 1200 9,580 0 Woolshed 110, 11 38 10 6 300: 608 10 I App >roximate "^ 'alue of Reservoirs.... 1,500 0 39,036 0 EETURX showing the Total Population and their Various Pursuits in the Districts of Gabriel's, Waipori, 'Waitahuna, and Woolshed, on 31st March, 1865. Gabriel's District : — Number Engai OF JKD iIine: in— Nu: MBEE Eng. OF PERSI .OED IN — 1X3 Total Total Total i a g 0 Population Population Population Engaged in LOCALIIIIS. si | J: 53 — t't: - i M Engaged in Gold Mining. I e DO .1 '& ill 5& a I I o Business of the District. 50 I Pursuits. Gabriel's Gully Blue Spur Munroe's Gully Munroe's Spurs Munroe's Flat AVctherstone's Flat i Wethcrstone's Gullies... Wetherstone's Spurs Hospital Flat Tuapeka Flat Tuapeka Spurs Tuapeka Gullies Other Gullies 50 35 85 80 100 110 5 120 30 60 60 125 16 160 12 4 6 "e 56 125 51 160 85 80 112 120 5 120 40 60 GO 5 8 3 4 9 1 2 i i 9 6 12 5 8 15 1 1 3 4 29 21 9 7 17 68 1 7 21 10 77 134 58 160 102 148 112 121 12 141 50 60 60 a 2 6 4 Id 1 4 10 1,074 •en 1,235 400 >men and ■hU< 1,635

a—No.

Mr. Coates' Report. g lEj _ Milling Survey Office, Clyde, 11th April, 18G5. In compliance with instructions contained in your circular letter (No. 1775, 1864), I have the honor to furnish you with the following Report relative to the progress and present condition of mining operations within this district. In particularly describing the condition of mining operations, I find it necessary to refer severally to the workings of each Warden's District. In the vicinity of the Dunstan the chief workings are those upon the Manor Burn Flat and at Sandy Point, the fatter locality situate upon the western bank of the Clutha, between four and six (4 and 0) miles below the township of Clyde. Upon the Manor Burn Flat operations generally,,

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THE OTAGO GOLD FIELDS.

Waipoei District : — Eng. 1 OF MlSEES Nu: 1111:11 ; of Peesi .OED IN —■ (St .OED IN Isoj Total Total Population Total Localities. bb to a I cPopulation Engaged in so 1 2 3 fi be . r- BO .3 9 a 3 I S bb I i. a I k I o Engaged in Business Population of the District. Gold Mining. bb 3 O so d "C '- 53 bb □ i -1 Pursuits. Waipori Flat and River 226 226 5 8 1 20 246 Lammerlaw Creek & Ranges. 80 80 1 1 81 BungtoTvn 5 5 5 Bohemia Gully 10 10 1 1 11 Back Creek 26 26 1 1 27 Mitchell's Flat 8 8 1 1 9 Other portions of the District 50 50 5 1 6 56 405 Children 435 120 Add far omei and 'otal. 555 jta: :u]S"A Dist: :ict Waitahuna Gully McGregor Gully Tucker G\Jly Maori Gully Sailor's Gully Waitahuna Flat Paddy's Gully Mansbridge Gully German Gully Kuggety Gully Waitahuna Spurs Other Gullies 4 100 4 12 10 10 95 6 10 10 ].'. 119 4 12 10 10 95 6 10 10 4 3 4 3 4 1 2 T(i 18 28 1 21 147 5 12 10 10 116 6 10 11 1 1 30 30 30 i 1 31 30 30 336 Add For omei and Children 388 180 'otal. 568 (XI hied Distk: :CX: — Woolehed Creek...- 90 ... 6 Millar's Flat 15 Adam's Flat 10 Other Gullies 15 i 96 15 10 15 4 4 | G 14 Add for Women and Children 110 15 10 15 90 I Total 136 Total 240

C— No. 4a.

including the cutting of head and tail races, have been carried on with great activity, and Extended Claim applications have been frequent. From the scattered and isolated position of the several excavations made in this ground, there can be no doubt of the immense area constituting it being continuously auriferous, and although, as compared with other portions of the district, it is not extremely rich, yet its shallow depth (from six to ten feet) necessitates but a slight outlay, thus rendering the working of it more remunerative than that of richer but deeper ground. From several inquiries I have ascertained that the proceeds from claims in this locality vary from six to twelve pounds (£6 to £12) per week, the smaller sum being less general than the greater. In the banks on either side of the Clutha, between the township of Clyde and the northern boundary of the Mount Benger District, a good deal of activity prevails in sluicing operations, particularly at Frenchman's Point, situated upon the western bank, slightly below the township of Alexandra. This ground has been long known to be of extraordinary richness, the amounts of gold obtained from the Frenchman's, Harp of Erin, and Hit or Miss Claims being unprecedented since the working of the richer gullies in the earlier days of the district. From the claim of Ferand and party as much as two hundred and fourteen (214) ounces have been obtained from a single paddock since the commencement of their operations, and ground equally rich has been worked in the other claims referred to. As the perfect working of the ground upon this point could only be accomplished with the assistance of costly machinery, and as the means of some of the proprietors of claims on it were so limited as, for a long time, to preclude the possibility of their providing themselves with expensive appliances, it is only in the case of the claims already referred to that operations have been systematically conducted, and much of this valuable ground is as yet but slightly worked. Upon the northern bank of the Manuherikia Eiver, and about one mile above the township of Alexandra, some systematically conducted sluicing operations have been commenced by Drummey and party, the proprietors of one of the most extensive and perfectly cut races in the district, taking its head from the Chatto Creek, and following a tortuous course of some twenty (20) miles through the gravel terraces of the Dunstan Basin. The quantity of water conveyed in this race is about fourteen (1-1) sluice heads, not more than one-third of which is actually in use ; but from the fact of most encouraging results having been obtained from the recently commenced workings of the proprietors, we may reasonably expect ere long to see the entire supply profitably expended on other workings in the neighbourhood. Upon the eastern side of the Manuherikia the next extensive but most costly race in the district has been cut by the Hose, Thistle, and Shamrock Company. This race heads from the gorge of the Manuherikia, in the vicinity of Tiger Hill, and thence by the eastern margin of the Dunstan Basin to some valuable dry gullies on the west side of the Manor Burn, and it is further contemplated to extend it along its southern margin to some rich terrace ground in the neighbourhood of the township of Alexandra, and nearly opposite the sluicing claim of Drummey and Company already referred to. The crossing of this race over the Manor Burn is by a timber flume, the most extensive in the district, and constructed at a cost of nearly a thousand pounds (£1000). This flume has been erected, with some degree of engineering skill, on the strut and brace principle, so as to combine the greatest amount of strength with the least possible amount of materials ; its length is about two hundred (200) yards, and its greatest height above the river surface ninety-four (0-1) feet. This company's claim has been proved by their workings, up to the present, to be extremely remunerative. Another method of working adopted in this locality (which I consider worthy of mention from the fact of its being the first introduction of its kind) is that of conveying the wash-dirt from the dry gullies already referred to by means of trucks on a tramway of considerable length, leading to the margin of the lowest terrace, whence it is lowered through a shoot to a head of water on the Manor Burn Flat immediately beneath, and run through sluice boxes as quickly as received. This rather novel plan has been attended with success, and as there is a great extent of ground immediately adjacent on either side, almost identical in its characteristics with the portion thus worked, I have no doubt but that the same method will be speedily adopted by others, thus rendering lucrative, ground which would otherwise remain unworked on account of its position being inaccessible to water supply. In the tJpper Dunstan District sluicing operations in the gorge drifts are becoming daily more general, extensive, and remunerative. Kitchingham and party, who are the pioneers of this method of working, have continued for the last twelve months in receipt of most encouraging dividends. A great drawback to the working of the valuable drifts forming the terrace banks on either side of the Kawarau Kivcr, between the junction of the Kirtle Burn and Cromwell Flat, is the difficulty experienced in procuring a sufficiency of water, the only supply hitherto available being a very limited quantity collected from tho southern and a portion of the eastern slope of the crown range, and flumed across the river by means of canvas hose. This want, however, it is proposed to meet by cutting a race some twenty-three (23) miles in length, commencing in the Nevis River at a short distance above the township, and thence conducted along the western slope of the Carrick Eange, whence it will circumscribe that which forms the southern boundary of Kawarau Gorge, thus furnishing ample water supply not only for the banks of the Kawarau, but throughout the entire extent of the Bannockburn Basin.

Should this undertaking be satisfactorily completed, there cannot be a doubt but that the proprietors will be amply remunerated for their outlay, as the amount of ground payably auriferous for sluicing in both of the localities mentioned is, comparatively sj^eaking, inexhaustible. In the vicinity of the township of Cromwell there is a mining locality known as Duffer Point, the ground of which, during the low level of the Kawarau, proved extremely rich; but when the volume of water in that river increased, it became impossible to work it, so that for some months past claims upon it have remained, in most instances, unworked. Xow, however, that the river is again receding, the proprietors of the most valuable ground have erected a costly water-wheel, which, with appertaining drainage appliances, is now vigorously and profitably at work. As the general course of auriferous drift in this locality is in tho direction of Cromwell Flat, it is to be hoped that the working of these claims will lead to an extensive opening of the terraces in this neighbourhood.

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On the southern bank of the Kawarau at its junction with the Clutha, and immediately opposite Cromwell Township, sluicing operations have shown that a great extent of river terrace is exceedingly valuable, so that I have no doubt of the whole of this ground being worked with profit; the underlying bed rock, which is found to stand at a considerable height above the river surface, affording great facilities for satisfactorily conducting sluicing operations. At Quartz Reef Point, mining operations have continued to progress rapidly, and this locality now presents one of the busiest scenes throughout the district. The bank claims of Novello, Harris, and McLean and parties still continue to be most systematically worked on the hydraulic principle, and are, beyond a do,ubt, the most perfectly conducted mining operations which I have seen. The Nil Desperandum-Company are still actively engaged in the construction of their dams, and the main volume of the Clutha at this point is fast leaving the eastern for the western channel, and should they succeed in satisfactorily accomplishing the draining of the immense extent of river which they propose, viz., sixty (60) chains, their undertaking deserves to be attended with success. In the vicinity of the Lindis Junction, the old worked ground of Bendigo and Tipperary Gullies has recently been^taken up by a large number of miners, who have either already completed, or are engaged in cutting water races from the Ardgour Creek, (the main source of supply), or from some minor creeks draining the western slope of the Dunstan Eange, immediately south of these gullies. Eecent mining operations in this locality have proved the existence of payable sluicing ground throughout a great extent of terrace drift, and already portions of it have presented greater attraction than that of the main gully trough ; claimholders upon the latter having fcaind it more profitable to sluice the drift of an adjacent terrace thereon. The points in the terrace drift at which payable gold has been struck, are nearly all at about the same level above the gully surface, and in section, present the appearance of long continued auriferous layers of uniform depth, generally resting upon drift strata containing a sufficient admixture of clay to render their compactness favourable to the retention of gold. Such circumstances, considered geologically, and in connection with the physical aspect of the locality and its proximity to the main range slope, leave but little doubt of the fact that the ground here is payably auriferous throughout a vast area. In the main and already well-worked gullies of the Bannockburn Basin, mining operations have been principally transferred from their troughs to the terraces forming their immediate sides. As excavation proceeds into these terraces, the stratigraphical arrangement of the gravel and boulder drifts which mainly constitute the ground, is found to assume the form of a series of ancient river beds of ever varying gradations of levels, and in almost all cases taking a direction transverse or oblique to the courses of the present gullies. I have constructed Section I. from a survey of the terrace between Smith's, Pipeclay, and the Forked Burn Gullies, from which will be seen the great extent of such ground. Mining operations in the Upper Manuherikia District have not been of that lively and extensive character which the immense area of highly auriferous ground known to exist in the several digging localities would warrant; this circumstance is, however, alone attributable to a deficiency of water supply. At Dunstan Creek, the workings generally have become of a settled character, and sluicing the recognized method of working ; these operations, however, although conducted by an economically divided water supply, are in but a small degree commensurate with the amount of payable sluicing ground known to exist in the locality. All the gullies in the vicinity of Dunstan Creek may be divided into two classes, viz., those which trend in a southerly and south-westerly direction as tributaries of the Dunstan Creek proper, and those which bear in easterly and south-easterly directions as tributaries to the Manuherikia River— the sources of all existing in and divided by the most easterly spur of Mount St. Bathan's Range. Since the date of my last Report the investigations of prospectors have very considerably augmented the previously known extent of auriferous ground. These discoveries are entirely confined to the terraces formed by the junction of Spectacle, Stewart's, and Long Gullies, with the main stream which I have named Lagoon Creek, and which bears principally in a north-east and south-westerly direction. The amount of terrace-ground so situated, is about forty (40) acres, the greater part of which has had its auriferous capabilities tested either by the sinking of shafts, cutting of tail races, or by open fall sluicing. I forward you a section which I number 11., from which it will be seen that terraces descend in I the form of gradatory steps from the top of Stewart's Gully to the extreme base of the range in the immediate vicinity of the Manuherikia River. In the Dunstan Creek District a great scarcity of water for mining purposes prevailed for a considerable time, the only supply available being derived from the tributaries on the southern side of the range spur referred to, and distributed among the lower gullies circumscribing Kildaro Hill. This supply, however, was further augmented by a race carrying some eight (8) sluice heads cut by the Mountain Race Company from some tributaries of the Manuherikia upon the eastern slope of Mount St. Bathan's Range, between five and seven (5 and 7) miles above the township. Some time after another race was cut from and beyond the same sources of supply, and, like the Mountain Company's race, was thence conducted along the slope of the Mount St. Bathan's Range to its main spur standing over the township, which spur, from its great altitude, enabled these races to command the entire of the then known auriferous ground. Previous to the completion of the second principal race the Mountain Company supplied miners with what they termed a "head" of water (about three-fourths of the present sluice head) at rates varying from ten to fourteen pounds (£lO to £14) per week, the water flowing only for twelve (12) hours, the supply for the remaining twelve (12) hours being eagerly taken up by night workers. Bearing in mind the difficulties under which mining operations were hitherto conducted in the Dunstan Creek District, we must naturally conclude that the auriferous ground was of a very valuable 3

See Diagram A., (Section 1.)

See Diagram A., (Section 2.)

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THE OTAGO GOLD FIELDS.

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character to leave a satisfactory dividend after paying such an exorbitant tax for water ; and that it really was so is evident from the fact that many diggers, after defraying every expense, amassed large sums of money. After the completion of the second large water race the Mountain Eace Company lowered the price of water to between six and eight pounds (£6 and £8) per week per head, but as the additional supply was attended by a more than counterbalancing discovery of payable sluicing ground, the holders of water-rights saw that the amount of payable auriferous ground was of such extent that the mining population would be, for a great length of time, proportionate to the quantity of water which they could supply. The whole amount of water conducted m the two main rages referred to I did not iirtd at any time to exceed sixteen (16) sluice heads, and as the supply of the minor races would, in my opinion, be over-estimated at two and a half (2 j) sluice heads, a fair idea of the value of the Dunstau Creek ground may be arrived at by comparing the water supply with the population and the amount of gold produced. Of the diflierent methods of working, that of ground sluicing is most universally adopted—a ground sluice being nothing more than a rectangular drain cut for a depth of about a foot into the surface soil, which is here tough and much traversed for that depth with the roots of vegetation. Into the bottom of such drains or ground sluices a quantity of large flat boulders are introduced as ripples, for which I found that they were admirably adapted, preventing the wearing action of the coarser drift of the wash dirt as well as the loss of even the finer particles of gold. The next most important description of mining is that of shaft sinking, the principal seat of which is on the Kildare Hill, which has been penetrated to a depth of one hundred and twenty (120) feet, without striking the main rock bottom, the vast quantity of water to be contended with at this great depth alone preventing the reaching of a deeper level. In that portion of my former Report referring to Kildare Hill, I stated that the greatest depth attained was one hundred and twenty (120) feet, and that depth seems to be the maximum for all shafts sunk upon the south-western side of the hill, or the face of the dip, as at this point water is invariably struck in such quantities as to leave no probability of its being raised to the mouth of the shaft with sufficient rapidity to permit further sinking. Upon the eastern side of the hill, however, the auriferous drift sought for, on account of the great angle and direction of the inclination of the drift strata, is found at but little depth below the surface, and, as soon as struck, is removed from between its walls, after the fashion of a similarly inclined quartz reef. Without exception the stuft" raised from the shafts sunk in the neighbourhood of Dunstan Creek is ground sluiced as hereinbefore described. Two undertakings of gigantic proportions, which when completed must necessarily augment the extent and general prosperity of mining operations in this district, are now about to be commenced. I refer to the cutting of a main, tail race from Kildare Hill to the Dunstan Creek, a distance of about fifty (50) chains, and also a large water race from the Manuherikia River. The value of these undertakings can hardly be over-estimated, as in addition to the fact that the proprietors of the deeper shafts had been compelled to suspend operations when in the midst of extremely rich wasli-dirt, which will thus become workable, sluicing operations generally upon Kildare Hill, can in future be conducted with far greater facility, system, and profit. The water race referred to it is proposed to cut from the Manuherikia River, along the eastern slope of the Mount St. Bathan's Range, thence longitudinally with those already cut to their termination, and thence by minor branches to those localities, upon which a supply is most wanted and which remain merely tested, or but imperfectly worked. For this undertaking a prospectus has already been compiled and issued, and judging from the respectability of the parties whose names appear as the committee of management, I am of the opinion that this work will soon bo energetically undertaken. The length of this race, when completed, will be about twenty-five (25) miles. The mining locality next in position to Dunstan Creek, is Hill's Creek, distant about eight (8) miles eastward. The ground in which the Hill's Creek mining operations are conducted, although differing in its physical aspect and the order of deposition in its strata, as well as in the character of the gold obtained, nevertheless owes its origin to the same cause, viz., the action of the lake wave and margin current. That this form of lacustrine action created the boulder and gravel drifts, which we now find along the slopes of the Blackstone and Rough Ridges, there can be no doubt —the composition of and regularity with which one stratum succeeds and overlies another rendering tranquil and violent aqueous action, without any specific direction, save that of the main fiat, palpably plain. Sections 3 ) and -I show the different descriptions of ground in which the Hill's Creek and Woolshed workings are at present being conducted. Owing to the extremely limited watershed of the Blackstone Range, the natural supply in the several small gullies throughout its length, although combined, was totally inadequate to the requirements of mining operations on any one of the patches of auriferous ground opened upon its eastern slope, including Hill's and the several gullies in its vicinity, German Gully, Woolshed, and the more recently opened ground in the vicinity of the track between German's Hill and Black's diggings ; and to this cause alone must be attributed the limited extent to which the workings of these localities have as yet been carried. To meet this deficiency the truly excellent water race of Dodd's and party has been cut, heading from the most easterly tributary of the Manuherikia at the base of the Hawkdun Range, whence it is conducted in an extremely serpentine course along the contour of the slope of the Blackstone Range to the Woolshed, via Hill's and German Gullies, the whole extending over a distance of nearly twenty (20) miles, and commanding ground almost continuously auriferous, which, as far as has been tested, has proved payable, and in some instances extremely rich. Although this race has been carried with the least possible gradient, the intervention of a saddle at about one and a half (1 i) miles above Hill's Creek, necessitates a loss of some seventy (70) feet of head, which loss, as the race proceeds, is found to be an unfortunate circumstance, as the level for

See Diagram B. (Sections-3 and 1.)

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some three or four miles above its termination is only sufficient to command a portion of the richer and easier worked gully troughs. The crossing of this race over the main Dunedin track is also through a saddle, and here it is conducted in a flume of considerable length, and about fifty (50) feet at its highest point above the lowest level of this saddle. The Slime is a well executed piece of work, and is remarkable from the extreme simplicity and apparent strength of its construction. Since the recent introduction of the water across this flume to the diggings towards its termination, the demands for sluice heads have been far more extensive than could be complied with, and as the amount of payable auriferous ground is even in a greater ratio than that of Dunstan Creek, beyond the water supply commanding it, I consider it most probable that ere long a company will be formed for the cutting of another race to these mining localities from the same source. At present I see nowhere within the district a speculation of its kind so certain of a speedy and remunerative return for the outlay. A race in this position can be flumed across the gorge of the Idaburn, after which the diggings on either side of the range in the vicinity of Black's could bo commanded by it at the highest required level. Since the discovery of the several auriferous localities below the junction of the Ida and Pool Burns, the water of those creeks has throughout its length been surveyed for the purpose of ascertaining the practicability of its being conducted to them, and with the exeejjtion of one or two points it is found that the difference of level is unfavorable, those points which are found most favorable being between the Idaburn and Hill's Creek, in the neighbourhood of the township of that name and German Hill. From the former a race is now being cut along the western slope of the Rough Ridge to those diggings, which also receive a supply upon the southern side from the streams of Maori and Wether Gullies. Upon the recently opened ground between these and Black's Diggings, want of water is greatly felt, and could a sufficient supply be obtained, a large amount of ground would be profitably worked. The next mining locality to those already described is Black's, which, as a diggings, is one of our earliest discovered ; and as I have in former Reports described its position and characteristics in a geological point of view, I presume that this information will now be unnecessary. Since the date of mj last Report, however, discovery has progressed, and the amount of the then known auriferous ground thereby greatly increased ; it is now known that the wide belt of auriferous ground connects Black's Diggings with those more recently discovered upon the eastern slope of the range. This ground in some patches was found extremely rich, and generally may be considered good sluicing ground ; however, from its great altitude, it can only be commanded by a race from the source of that of Dodd and Company, already described. The next extensive mining district, though last here, by no means the least in importance, is that known as Thompson's, and also a few minor localities in its immediate neighbourhood. Ali hough Thompson's Diggings have been in existence for more than two years, the amount of population was generally so small as to result in few comments having been made upon, and little importance attached to them, in official communications. These diggings are situate at the base of the eastern slope of the Dunstan Range, about twenty (20) miles due north of the township of Clyde, and stand immediately on either side of the Spottisburn. About six (6) months ago my professional services were for the first time demanded in this neighbourhood, when from the extreme pressure of work I was unable to devote sufficient time to fixing the position of the several workings, or otherwise performing feature survey such as would enable me to construct a map. Mining operations were at this time conducted only in Devonshire, Tinker's, Thompson's, and Schicer Gullies, the whole extending for a distance of about seven (7) miles along the base of the range slope. With the exception of Devonshire, the several auriferous gullies, as then worked, were cut through the main gravel terrace, above and below which in those channels payable gold could not be found, even although prospecting was satisfactorily conducted, the bed-rock having almost in every instance been reached. This circumstance led me to imagine that those gullies had received the gold laterally from the wearing down of this the highest terrace, whereupon I determined to examine the strata composing it, in which investigation I was assisted by a few landslip sections, which clearly exposed the stratigraphical arrangement for a depth of about fifty (50) feet. From this investigation I learned that the auriferous terrace drift took the form of broad layers, varying in depth from one to six (1 to 6) feet, and most regular in their order of deposition, lying almost horizontally, until they approached their junction with the range slope, when I found them to rise suddenly at a considerable angle. This latter circumstance, together with their extent and regularity, led me to the inference that lake action alone upon the range side had made these deposits. The first section of this kind which I found clearly exposed to view was in Tinker's Gully, about one (1) mile south-west of Thompson's (Glassford's) homestead. Travelling northwards from the station for a distance of three (3) miles, I arrived at Sehicer Gully, in the terrace forming the north side of which I discovered an excavation revealing the existence of auriferous layers, corresponding exactly with the more regular or horizontal portions of those seen in Tinker's Gully; those in Tinker's, however, stood at a distance of only about two hundred (200) yards, while the drift examined in Schicer Gully was distant fully a mile from the base of the range slope. From these circumstances I am of the following opinion : —That the auriferous drift was universally spread in the form of layers or broad beds, where it now exists in isolated or disconnected portions, caused by the wearing of the gullies, the heavy deposits of gold in which are attributable to the vast natural sluicing action of the streams which traversed them. As the area of the gully troughs forms little more than half the entire area between the limits of Tinker's and Schicer Gullies and the base of the range to the westward, some estimation of the extent of this ground maybe arrived at; and even though it should not proceed further than actually proved payably auriferous for sluicing, the quantity of ground adapted for this method of working may be regarded in a mining point of view as almost inexhaustible. Another circumstance of an interesting character in connection with this ground is, that the natural water supply possesses, at comparatively easy distance, sufficient fall to command almost the entire of the proved auriferous area. Notwithstanding that the supply contained in the Spottisburn and Lauder Creek would afford a quantity proportionate even to this great extent of ground, there are

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as yet but three (8) races constructed, the most extensive of which is that cut by Clark and party across some minor tributaries from the range slope upon the northern side of the Spottisburn to the terrace ground of Schicer Gully, and two other races from the range slope at the southern side of the same creek pursuing a south-easterly course to Sugar Cane and Tinker's Gullies. The position at which the auriferous ground stands above the gully troughs varies in altitude from twenty (20) to fifty (50) feet, and as these gullies, from their great width, are all that could be desired as receptacles for tailings, I am of opinion that if the value and extent of this ground was known, Thompson's Diggings would become a most important sluicing district. In the Mount Benger District the progress of mining operations has been most satisfactorily progressive, many water races having been or are at present being cut; and although the natural supply is not yet as perfectly exhausted as that in the Upper and Lower Dunstan Districts, yet there is no creek within a reasonable distance of payable sluicing ground which has not a race cut from it. Trorn the Teviot Stream two (2) races have already been and two (2) others are now being cut; the former to the Clutha bank upon the Roxburgh Plat, where they are profitably employed in sluicing the river bank. It having been latterly ascertained, in the progress of these workings, that the principal stratum of auriferous wash-dirt stood either partly or wholly below the river's surface, two water-wheels in connection with Californian pumps are employed in its drainage, and most satisfactory results are the consequence. In the river, and about one and a half miles below the township of Koxburgh, mining operations .are conducted in a spirited manner. This ground is extremely wet, and in its working constant pumping is necessary; the ground, however, is sufficiently rich to pay good wages, notwithstanding this difficulty, and now forms one of the principal sources of attraction'in the vicinity. At intervals along the banks on either side of the river, between its junction with the Teviot and Mount Benger Streams, sluicing operations still continue to be spiritedly carried on. The principal among such operations however are those situated upon the Clutha bank, where it forms the south-eastern extremity of Moa Hat. To this point many races have been conducted from the Benger Stream, at a point about two and a half (2i) miles above its junction with the Clutha, and Extended Claim applications upon this ground have latterly been frequent. Another of the principal mining localities in the Mount Benger District is Horseshoe Bend, upon the eastern bank of the river, about seventeen (17) miles below the Teviot junction. Here, as I stated in a former Eeport upon this locality, workings are confined to an old river bed, from which the Clutha has receded in a lateral direction to its present position. Operations on this ground are now, and have been for the last twelvemonths, conducted in a most systematic manner, and as the river drift composing it is auriferous almost throughout its depth, which varies from ten (10) to fifteen (15) feet, handsome dividends have long continued to be obtained. In the vicinity of Beaumont Junction sluicing operations have latterly been considerably extended, and two (2) new races have been conducted to the ground which I formerly marked off as a mining lease area for Nicholas and party. As the existence of gold in this ground is found to commence at but a shallow depth beneath the surface, its auriferous nature can easily be tested, and from the investigations of prospectors we have ascertained that an immense extent of the banks on either side of the river in this neighbourhood is superficially similar to that at present being worked. In the Pomahaka Basin, mining operations have been resumed, and for the past two (2) months carried on with great vigour. In the old worked ground of the Main or Copenhagen G-ully, for about one and a half (lj) miles below its junction with Italian Gully, as excavation proceeded it was discovered that the first workings were conducted on a false bottom, and that the bed rock actually had never been properly reached ; and as the main bottom, when latterly struck, proved to be of great richness, most lively preparations are being made for the proper working of it. At Campbell's, a considerable population have, for the last three (3) months, been doing remarkably well; the principal scene of operations in this locality being either at Adelaide Point or Potter's Gully. At Adelaide Point, a costly tail race has been cut, which has rendered workable a large extent of valuable ground ; and wherever the main bottom has been reached, claims have generally proved of great richness. As Adelaide Point and some ground in its immediate vicinity constitute the entire portion of Campbell's Gully which has been worked, and as in every instance wherever the bed rock has been reached satisfactory results have been the consequence, most of the miners who have recently taken up ground in this locality are of the opinion that a large extent of valuable ground still exists in the gully. Upon the Waikaia and some of its branches, including Swinbourne's Gully, a few parties of miners have recently opened some good ground, which, however, as is the case in almost the entire workings of this neighbourhood, is at present of an extremely wet character, and much time is lost in the cutting of tail races, and otherwise preparing for drainage, before gold can be reached. Farther down this river, where its banks on either side are clothed with dense forest, I have been informed that a large number of miners are engaged upon the diversion of the river from its bed; and that generally wherever this river has been prospected in the denser portions of the timber, encouraging prospects are obtained. From the inaccessible nature of this country, as well as from the loss of time which my visiting it would entail, I did not consider it advisable to devote a journey to this distant locality ; but, should favourable reports continue to be received, I will take the first opportunity of making a survey of operations in that neighbourhood. In referring to the subject of the population of this district, I find, in comparing notes which I have from time to time taken in connection therewith, that since river-beach workings ceased to be attractive on account of the increased volume of water upon them, as well as since the cessation of local discoveries of new ground, the previous great fluctuations of the mining population had, until the recent attraction presented in the Province of Canterbury, almost disappeared, and mining operations had assumed an aspect of permanency and settlement which could not be regarded as otherwise than satisfactory. The rush to the Province of Canterbury however, although depriving us of some of our population, did not cause as great a diminution in this as it did in the other districts ; and I found as

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a general rule that those minors who did leave left a substitute in their stead, who, for the proceeds of the mining interest, made an agreement to retain it for the proprietor should he return within a specified time. I have seen but few instances of a claim of a payable nature being wholly abandoned during the late exodus. The following table shows my estimate and location of the present population of this district. Since the date of my last Report our mining machinery has received some valuable additions. Upon the Manor Burn Flat, Butcher's, Conroy's, and Campbell's Griillys, many water-wheels have been recently introduced; also at the Horse-shoe Bend, Moa Plat, the Island, the Pomahalca Basin, and in some instances, along either bank of the Clutha River, in the Mount Benger District. At Sandy Point the previously existing large quantity of sluicing machinery is about to receive an addition in a large water-wheel, twenty (20) feet in diameter, constructed of great strength, and furnished with an extensive stock of pumping apparatus, including eight (S) drums, a similar number of Californian pumps, and some other additional appliances, the whole costing about three hundred pounds (£300). This machinery, the property of the Albion Company, it is proposed to work in sinking for the main bottom at Sandy Point, the ground over which previously baffled the most strenuous efforts of claimholders with smaller machinery. Another wheel of nearly equal proportions, accompanied however with more limited drainage gear, has recently been erected at Duffer Point, in the vicinity of Cromwell. In other portions of the district, including Baunockburn Basin, some valuable additions have also been made to the previously existing machinery. Isext to water-wheels, which arc beyond a doubt the best prime movers in drainage operations, the most important introduction is the hydraulic hose, which is now pretty generally used in such sluicing operations as possess a sufficient headfall immediately adjacent to the ground in the process of excavation. Where sluicing operations are conducted in the faces of abrupt terrace slopes, the hydraulic hose is regarded as indispensable by miners who have so tested its capabilities, and in many instances I have seen canvas hose carried to lengths varying from eighty (80) to one hundred (100) feet, for the purpose of securing head pressure. Through a tail race possessing a fall of between two and a half (2.1) and five (5) feet to the chain the amount of onr lighter drifts which can be dislodged by the action of water compressed through a hose is immensely in excess of that which can be removed by the open fall method, a fact with which the sluicing community of this district are becoming daily more familiar. Another desirable and indispensable acquisition in the extension of sluicing operations is the fluming of water across the gorges of larger rivers, by means of canvas hose suspended from wire ropes. By these means some of the most valuable ground of this district has been rendered workable, which would be otherwise inaccessible to water supply. The following is my tabulated description of machinery at present in this district. That the foregoing detailed description of the several localities shows a favourable advancement in the working of the vast tract of auriferous ground within this district there can be no doubt; and such as are competent to form an opinion relative to our progress must predict for the future a prosperous increase rather than a diminution in mining operations. Although within the boundaries of this district the natural water supply, where within short distances, is now diverted and conducted to the many sluicing localities contained therein, vet still there remains ample field for the investment of capital in sluicing operations, and I feel confident that when this method of extracting the gold from the great terrace drifts becomes more systematic and general expenditure for the purpose of securing interests in such workings will not be found a precarious speculation. I have, &c., Vincent Pyke, Esq., R.M., J. J. Coates, Secretary of the Grold Fields, Dunedin. Mining Surveyor. RETURN showing the Total Population and their Various Pursuits, in the Dunstan Mining Survey District, 31st March, 1865.

13

THE OTAGO GOLD FIELDS.

STuji: ieb o: Mi OTE In&. .«e: tb B "3 O bD PI o I o Nu: 'ERSi 1ST— ISS is HEK 1 I' | a % ''o O ■m O m O '•B O n h o 3 Localities. tab q 'o E I 2 e j u I 'a do s ft £ O -.. o3 O I o O | Ph O M t-H 1 Ph to a E a M I o' S ! i A: bo I .2 3 bi 1^5 Ph L "1 I •8 s 03 O Ph 3 si a o bb a ■3 m ti I 'Sd o tb s c C3 ab a "Si | o bb Ph 60 d ■a o £ unslaii Proper : Clutha Riyer, including Sandy Point Manuherikia River and Banks Manor Burn Flat Other Localities, including Butcher's and Conroy's Gullies 35 9 97 17 202 no! 74 22 17 I •! 2S 31 8 287 34 233 145 4 JJ '3 15 211 11 15 11 200 15 3 3 5 3 101 12 5 6 25 7 3 545 43 35 26 832 77 2G8 171 35 a JJ 4

C.—l So. 4a.

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lowmp; OTAL 'optjlatiok, :c.—cor>, 'muei f. LOCiXITIES. ]Stjjl 11:1; IP i 1: i I w q ■ I.NJ r~-™~ :ks Exg. i»E a I 1 -_ o m I Oh 'fi L. O) P J o ti i 'o §D o3 $P 3 o | "3 O Ph 3 e o I I. 1 ■s 8 !_£_ '£ s. 8 15 Nu: i I I 1 60 bo [BEE OF PEJiS' Inoaoed in— J2 - s l W a ■ ol IKS 1 I bD I s 1.1 ra o 3 ! HP4 I P O I I 1 Ah I be a [S '5 53 ti d e .g : "g B a '3 S M I A e I c I do a f 1 3 'M q | a I 5 a 53 s 1 A * I Upper Dunstan : Kav, iu-au Eiver and Baaks ... Bainoekburn Basin Quartz Reef Point Other Localities, including Bendigo and Tipperary Gullies Upper 3tanuherikia: JJunstan Creek Hill's Creek German Hill Black's Thompson's Other Localities Mi int Benger : Clutha River and Banks Horse-shoe Bend Pomahaka Campbell's Other Localities is 15 85 55 75 ■is 15 45 132 45! 321 50! 15 42^ 35' 75 50 292 56| 17' 5 1 4: 17 30 70 12 15 18 21 4 4 4 12 CO 15 8 4 ... 12 g ... 9 20 40 18 96 178 55 81 513 192 224 140 72 104 £ 4 »| t) jj n j) tt 48 22l 12 9 35 18 (J2 9 4 30 ... 3 4 4 2 i A, ...! 4 34 25 15 6 5 ... ...! 6 32 15 ! 4 17 13 9 3 97 70 89 23 5 33 08 2!) 23 17 194 '! 207 78 98 610 262 313 163 77 137 I "I "ii » a 3 5 1 12 » ii n tt I 5! 14 27 12 9 24 10 I 198 43! 451 42 44 16 12 253 55 54 107i 79! }3 5G 6 2 4 2 64 6 7 2j 5s 32 5 212 17 12 19 9 465 72 66 126 88 ... 16 6 25 18 )> |J if 3 4! 11 )) )) i 3> jj 4284 * Note.—Although a nurc excepting at Black's Diggings, Machinery in use. Women ani iber are of Mini of too lildren a •s are ude 1 a incli represented as occu i description to be uded under each hea ipied i retiu iding. in " Pudi rned as ' 'Pill ddlin; tin applianci ;hines," : 33 used in the ied ha >v them, Cable of dch in RETURN showing the ' in tl ■'ai •ious I iscri] 1 Ml! itions and Tota ning Survey Disi x A: trict, PPKOXn , 31st M IAT] Y '•■'). of the Mac ILJfERY te Dunstn arcl Locality. Crai les. ruddling Machines. Hydi He raulic 3se. Sluice iBoxes and Toms. \1 WJ 'ater leels. ■ps. Drc. Mad Iging lines. Othe: cripti Mad r Desions oi liinery Wi Ra iter ses. -2 o a> o 6 ft 13 d 9 ■a £ 42 o d I I £ 195 d i £ 161 £_ J 6 Id o CD a Dunstan Proper: Clutha River, including Sandy Point Manuherikia River and Banks Manorbum Flat Other Localities, including Butcher's and Conroy's Gullies Upper Dunstan: R nvarau River and Bank Bannockbum Basin.. Quartz Reef Point... Other Localities, including Bendigo and Tipperary Gullies Upper Manuherikia: Dunstan Creek Hill's Creek German Hill Black's Thompson's Other Localities Mount Benger: Clutha River and Banks Horse-shoe Bend Pomahaka Campbell's Other Localities £ 19 £ G 72 £ 144 . 6 £ 345 £ 420 121 7028 £ 8,354 13 23 4 28 it 30 62 42 51 32 2400 2,613 4 6 2 11. 67 50 119 100 ft 8 90 1 80 12 12 6a 72 348 217 21J 10 2G02 580 3,239 1,049 5,338 4 88 40 80 84 80 2 <S2 144 81J 4890 5 6 7 7 9 10 4 1 1 24 32 6 37 5 17 55 7 25 3 2 I 27 30 S 4 4 ■in 2(1 20 207 81 120 254 8i 8 1402 528 1,822 707 581 ... 30 13 25 16 5 15 45 27 37 24 7 22 1 2 3 18 24 33 15 11 16 22 14 58 22 16 24 44 28 10 3 70 2! 768 288 448 220 108 156 20 33 14 16 15 5 5000 8250 2940 2000 1875 375 5,954 8,G35 3,141 2,317 2,084 599 25 21 20 18 13 19 100 125 7 63 21 SI 2 140 378 78 9360 10,169 5 4 9 5 7 6 18 7 21 21 18 28 28 32 22 28 4 1 44 12 2 I 6 8 36 81 81 1G0 120 4i 9 5 4 720 675 375 288 844 874 627 464 21 \ 59,681

17

15 C—No.

Mr. Wright"t Report. Sin, — Mining Survey Office, Queenstown, Ist April, 1865. I have the honor herewith to ftirmah Returns of the population of the Wakatipa Gold Field, together with an estimate of the amount and value of machinery and mining plant, and submit for your information the following Report: Population, —By comparing the accompanying Table with that of December, 1804, it will be seen that this district has sustained a decrease in the following proportions, viz. :— December, March, 1864. 1865. ! DeCTCa3eNumber engaged in Mining ... ... ... 2,145 1,229 916 „ „ other Pursuits 1,203 820 333 Total 3,348 2,049 1,299 The prospects of this district during the early part of the preceding quarter were of the most promising character, and were effecting a steady increase in the number of the mining population ; works of all kinds were assuming a most substantial and permanent shape, and the miners had evidently made it their object to develop the resources of their various claims in the most systematic and steady manner. The effects of the late rush had ceased to be felt, and matters of mining and business interest had assumed an appearance of permanence and stability. I regret, however, to state that this smooth course of events has been most suddenly and seriously interrupted. The West Coast Rush. —The existence of a West Coast Gold Field, in spite of repeated failures in making so important a discovery, has for the last two years been recognized as a fact by a great number of the mining population of this place, so that it can scarcely be wondered at that these men who had seen the Shotover and Arrow when gold in abundance was to be had for the mere picking it up, should be attracted by the glowing private accounts that a few weeks since reached this. Although a few had left for the Grey some two months since, the rush from this place did not fairly set in till the latter part of February, and was caused through private information received in the first instance by some workers on Moke Creek, who, though holding a valuable claim, left precipitately ; the news speedily spread, and at the commencement of March the rush had become general, and apprehensions were felt that the district would speedily be depopulated. With the exception of the Upper Shotover Division, which has lost two-thirds of its population, I cannot name one portion of the field that has suffered more from the effects of the rush than another ; it has been a complete stampede, and during thirteen years of gold fields experience, I have never seen the excitement of a rush so general. Had the class that are leaving been working unprofitably, such wild excitement would scarcely be wondered at ; but I am acquainted with very many instances in which handsome returns have been left, and good and costly mining property and plant abandoned or sold for a mere trifle to enable the owners to "go to the Grey." There are few claims that have not lost some of their shareholders, and the evil and depressing effects have, in consequence, been generally felt; many long-protracted preliminary works have been left shorthanded, and have, in consequence, been abandoned. In many places wages as high as £6 and £6 per week have been offered, but men are not found to accept them ; and in several cases the closing or removal of up-country stores have, through the difficulty experienced in procuring provisions, compelled the broken companies to abandon valuable works well nigh completion. I have found, however, in collecting information for these Returns, that several miners have arrived on this field from the lower diggings, having been attracted to ground which was abandoned but known to be highly auriferous ; this is especially the case in deserted terrace workings, as at Moke Creek and the Twelve-mile, Arrow. At Bracken's Gully the holders of a claim informed me that they had taken up an abandoned claim which was yielding them £12 per man per week ; and I could mention many other similar cases. There are a great many instances of shares and almost entire claims being represented by wages men, showing evidently an intention on the part of the shareholders of returning in the event of the new field not meeting their exjiectations ; and many who are holding wages shares have been obliged to do so from the fact of having exhausted their means in tmsuecessful attempts to turn the river, but who are still determined, with the improvements lately made in the mode of working, to again persevere when they have the means at command. River Workings. —Many of the claims upon the Shotover and Arrow, have, during the last three months, been most successfully wrought, and they exhibit a marked improvement both in the methods adopted for diverting the water, and in the mechanical appliances for draining the ground. By far the most systematic and economic way is that in use by the Criterion Company, who hold ground upon the Shotover below the junction of Long Gully ; it will be understood by the accompanying diagram, See Diagram C. in which the arrows indicate the flow of the stream. The great drawback to the success of many of the undertakings upon the Shotover has been the constant recurrence of floods, which overtopping the crates, flow over the claim, filling in tail races, and washing away wheels and other gear. This latter difficulty, as I mentioned in a former Report, has in many cases been obviated by the erection of a frame-work fixed over the wheel, to which, by means of block and tackle, the whole is attached and suspended clear of the water in time of flood ; but in the works of the Criterion Company a twentyfour feet overshot wheel has been substituted, standing clear of the flood-line, which (with the assistance of a smaller wheel attached to the drum axle, and which receives the water after passing the big wheel) effectually drains the ground. This Company, the shareholders of which applied for a mining lease of seven acres of the river, commenced operations immediately on the survey being made. The

THE OTAGO GOLD FIELDS.

C—No. 4a,

ground they took up had been occupied some months by different companies, who entirely failed to drain it, and gave it up as impracticable. The present works consist of the usual line of crates and piles down the middle of the stream, the portion so cut off being worked with a face of from sixty toeighty feet in widtK; the pumps are standing in a paddock which is permanent, and is fitted with hatches that can be screwed down when required, and the tail race flows into it through a covered culvert of stone and timber, with flood-gates affixed, by which arrangement, on the occurrence of a fresh, the whole (being buried under the debris of the worked ground) is quite uninjured. In a recent flood the whole of these works were submerged, but no damage whatever was sustained, the claim being in full working order again in two days. The shareholders are being exceedinj'lv well paid, having divided as much as eight ounces per man per week. The Big Beach Company, which also applied for a mining lease often acres, are progressing rapidly with their works, and by means of theimew cutting nearly a mile in length of river will bo laid dry. Here the prospects of a large claim and the inducement of a continuance of profitable work have acted as a specific against the excitement of the Grey rush, as very few men have left, and even those shares that have been abandoned are again taken up by others. This is the case also in many other river claims, particularly in those where extended areas have been obtained. Extended Areas. —Extended areas in the river beds have been eagerly applied for, and in most cases granted, under the acreage system, and the miners have in consequence incurred an outlay of labour and money that they would not have been justified in expending upon smaller areas. The size of the claims I have so arranged upon the Shotover and other main rivers as to give a claim of 100 feet per man in length, taking care to regulate the width so as to come within the meaning of Clause--13, t-'ection 2, of the Regulations; and claims so laid off appear to give general satisfaction. Terrace Workings —Wherever water is plentifully obtained terrace ground has proved the most profitable of any, and I am not acquained with any ground-sluicing operations that have not yielded a good return. In many parts however where water is not obtainable, or where the drift deposits are too deep lo be profitably worked by sluicing, tunnelling is being carried on most energetically. At the Twelve-mile Creek, and between it and the Eight-mile, Arrow, a lead of gold has been struck on tho terraces on the west of the river, upon which several extended areas have been surveyed. This lead has all the appearance of having been at one time the bed of the Arrow, although now several hundred feet above the present level of the river. The run is not continuous, but is broken by the intersection of numerous small gullies that have apparently cut their way across it. The accompanying sketch shows approximately the lay of the ground, by which it will be seen that the "bed of the tributary creeks which cross it are worn away deeper than the ancient river bed which constitutes the lead. At the Cardrona terrace working has also led to tho discovery of a lead running beneath a stupendous slip which appears to have been deposited by water over the original course of the Cardrona Creek. On both these leads, the existence of which was unknown a few months since, good paying ground is opened, and the runs arc being traced out by tunnels and shafts to a considerable extent. The yield from tho terraces of the Upper Shotover lias been extremely good, and where constant supplies of water are obtainable an average wage may be estimated at £10 per man. It is as well to remavlc, that although some few races have been transferred, that none have been abandoned, which evidently shows that they are considered valuable mining property, and their value is in proportion to the extent of terrace ground that they may command. In working the Pleasant Creek Terrace it was found necessary to combine sluicing and tunnelling operations. The mouth of the tunnel is run out by a tramway, by which trucks are brought to the mouth of a shoot, which falls about 130 feet to the creek, down which the auriferous dirt is emptied into a race beneath. This system is adopted on account of the dip of the rock falling to the hill giving the ground ihe appearance of having been a complete basin, which renders the use of water impracticable. Quartz Workings. —I have' little new to report having reference to quartz workings, but the principal reefs are still being wrought; and taking into consideration the very primitive methods in use for abstracting the gold, the yield is something wonderful. The Scandinavian Beef is now traced about two miles towards tho Shotover eastward, and also some distance westward, three claims being at work upon it. The Arrow prospectors are endeavouring to form a company of twenty, in shares of £100 each, and are giving up their claims upon the most reasonable terms considering the amount of prospecting that has been done ; but lam not aware if they have yet succeeded. The stone now beiug raised will doubtless turn out six to eight ounces per ton at least. It. is a great pity to see such valuable prospects standing idle, or nearly so, for want of machinery, and I feel confident that the development of these reefs would be the dawn of a lasting prosperity to the district. In Victoria they would not stand a single day for the necessary funds, but there are few capitalists here that care to invest money in mining speculations be they ever so good. The Arrow Beef has every advantage of position —it commands water to any extent for motive power, and being on level ground, there can be no difficulty in getting machinery to it. Tho working of it might be as cheaply carried on as at any of tho up-country reefs in Victoria; and I trust in my next Eeport to be enabled to state that one complete battery at least is at work, which being accomplished there is little doubt but that this branch of mining industry will be permanently established. Water Races. —A considerable portion of my time has, during the last three months, been occupied in gauging the water of the various races which, through the long continued drought, were the causes of frequent disputes. I had therefore an opportunity of observing the effect of the new gauge. I find the flow from a box having dimensions according with the new Regulations to be equal to sixty-one cubic feet per minute; and where this is applied to boulder ground and deep stripping it is not all too much, it is however in excess of what is needed for box sluicing and for shallow ground, where a supply of forty cubic feet per minute would be ample. I have given sixty-one cubic feet per minute of a flow in all gauges, both under the old and new Regulations. There have been no schemes for water races carried out of late, the most available sources having been all taken up ; anything further will require capital as well as labour, and more than ihe individual miner can generally

Sec Diagram C,

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command. A fair field is open for the outlay of capital upon such works, and nothing would be of greater service to the district than the construction of races that would reach the higher drift beds, for as the rivers become worked out the population of this field must be in proportion to the amount of available water for mining purposes. Water is doubtless plentiful enough, but the means of conducting it are costly compared to what it would be in other places, and few co-operative companiescan undertake such heavy work. Extended Areas. —The number of extended areas surveyed during the quarter to 31st March is thirty-four, besides very many that were withdrawn. I have also to report the survey of one mining lease, one special site, and six agricultural leases. Agriculture. —Produce of all kinds are abundant, and the market prices low, the crops having, been exceedingly good, and surpassing anything that was expected. I have, &c, W. C. Weight, District Mining Surveyor;

19

THE OTAGO GOLD FIELDS.

Lowing OTAL 'opulatio: , and their Vanoui ursui :s, m he •lBI :nc :atipu,.. Hareh 31st, 1865. IMBEE OF MlN Engaged ]>■— EK8 S"U5IBEli SONS EXl op I (AGE D IN Total Localities. Total Population Total a 53 I I r| d 3 a a H I fcb 's S3 X o . II 5*8 I Population Engaged in Gold Mining. to e s o 3 s s c 8*3 Ph;o i" o Engaged in Business Population. of the District.. a g ti B o V.' Pursuits. jucenstown Division Lrrow Division 324 219 62 80 10 7 117 3 87 12 480 445 43 62 62 38 1652 434 I 4 5 398 70 571 208 1051 653 Fpper Shotovcr Division 75 43 i 38 i 11 12 21 204 18 6 s 41 245. localities unknown I 100 100 100 ... Totals 8, 618 48 135; 15 1229 106 | 2491 476 820 2049 185 221 123 'ETUEN showing the arious Desc used in the n criptiona "Wakatipu and Total Appboxistate Val 1 a District, March 31st, 1865. e of tlio Maoiii: ETiT" Locality. C'rai dies. Puddling Machines lie] [rftuFose. SI To uice tcs & ims. heels. 1'un nps. Wi Km iter ?es. laitz Mining. o 5 "I . M3 eg i_ i £ 'ct £ I £ i Chains 3 £ Description .3 d I d 6 £ 6 £ £ £ QnccnstoAvn Division 125 393 9 320 206 470 I S6 8G0O 77 1910 11823 14498 I 26191 '"I Arrow Division 119 335 10 300 125 I 624 I '1-J. 2250 127 1674 7064 17692 IlandStmp. 10 10 22885 . Upper Shotover Division 89 401 11 570 177 I 021 2250 154 4120 3120 8710 12 CornishW Stamps. !yoo 17272 . 12 Totals I - I I I I I r 333 1129 33 11S0 I 508 131C0 358 7704' 40900 66348 . 1615 US 22307 12 710

C—No. 4a.

Mr. Keene's Report. Sir,— Hamilton, 31st March, 1865. In accordance with instructions contained in the G-old Fields Secretary's letter (No. 1775—■ 1331), T do myaslf tha honor to furnish you with the required returns, as also with a few remarks on t'u prospects of this fiold. It will b3 863 a, by reference to the annexed statistical tables, that although the population has decreased over one-third, the value of the machinery is greater. Although this may appear strange, it •i.i very easily accounted for. The drain on the population caused by the rush to the adjoining Province has not done that amount of harm to this district which might naturally have been anticipated. Those minors who have left for the Hokitika Diggings had for the most part no vested interests at stake, and were generally migratory, and constantly on the move. These men, although beneficial in many xespsets to a district, in opening out new ground, providing labour, and being a source of revenue, have not, in this instance, materially affected the prospects of this field. lam confident in stating that the falling off in the escort returns will not be proportionate to the decrease in population. My v :; ion for asserting this is, that those miners now remaining in the district have either good claims and or doing well, or have vested interests in water races, &c, which bring them in large returns. Several large races are nearly completed, and several others are in course of construction. The method of working in the West Taieri and Mount Ida Gold Field is entirely by ground sluicing, and that of the most simple kind. -V proper Jail is first obtained, and a tail race cut from the ground to be sluiced, and lined, in most instances, with stones. The water is then laid on, and with very little labour the whole of the superincumbent strata is washed awny, and passed through the race. The gold whose specific gravity is far greater than that of the debris with which it is mixed, finds its ivay to the bottom, and lodges amongst the stones or lining. To obtain the gold from the race it is only necessary to turn oft' the head water, and put the contents of the tail race through a sluice-box. By this means a vast amount of labour is saved—two men, with the assistance of two heads (if water, being able to work a ten men's claim. This, of course, is not the case when washing, more men being then required. Since the new Regulations have been in force, numbers of extended claims have been granted, and have proved of great benefit to the mining community. Many miners would have left this for the AV rest Coast had they been limited to the extent of ground laid down by the former Rules, as the amount was not sufficiently large to warrant the expenditure of large sums of money for the erection of machinery, the construction of water races, &c. Since my last Beport, fresh ground has been opened near Fullarton's, (12) mile, and has proved highly remunerative to those miners who were not frightened by the depth, which ranges from 150 to ISO feet. No gutter or lead could be found, the bottom being nearly level; and although situated in a valley, the deposit appears to be of a lacustrine nature. The wash dirt, which is composed of reddish gravel, and overlies a slate bottom, is from six inches to two feet in depth, and has proved remarkably rich, the gold being of a coarse nuggety nature. The superincumbent strata is of an argillaceous nature throughout. Two extensive races are being brought into Fullerton's from the Shag River and the Mareburn, and will once more open out the whole of this valley, some three miles in extent, which, although one of the richest spots in the district, has become almost abandoned for the want of water. The race from the Shag River will be about thirty miles long over a very difficult country, and, I believe, is intended to carry about eight sluice heads of water. This, when brought to the ground, will put an end to the greatest difficulty the miners have at present to contend with—namely, carting their wash dirt from their claims to the creek, which is considerably below the level of the workings. A fresh description of mining has been started in the district — namely, working the banks and bed of the Taieri River. From the formation of the country through which it runs, and the peculiar position of the stream which drains the whole of the auriferous creeks and gullies of the district, I am inclined to the belief that in many instances, if the river were turned, it would well rej)ay the outlay. Unfortunately, it has been tried on two occasions at Hindoo without success. An application was also made for an extended claim, and leave to turn the river about one mile above Dr. Buchanan's station ; but the party having left, the work was never commenced. A small rush took place to this spot about six weeks back, when about seventy or eighty miners set in to work. Fair wages were obtained by the majority ; but most of these being of the nomadic race described above, but few are now left on the ground. The stripping on the banks of the river is but a few feet in depth, and is composed of ahiugle drift on a rock bottom. Mining operations at Hamilton have been greatly retarded, and in some instances suspended, owing to the long drought of the past two months ; and as mining cannot be carried on without a plentiful supply of water, this want has been greatly felt throughout the district. There are four large races bringing water into Hamilton —three from the Pigburn, and one from the Capburn. Several small races also add to the supply, but the former most affect the well-working of the field. The 'population, although small, are doing remarkably well; and, considering the number of men employed, and the amount of gold obtained, I consider this to be one of the most prosperous and permanent localities in the district. A strange feature is noticeable on the western slope of the hill, where the stripping ranges from ten to twenty i'eet. The gold here is coated with quicksilver throughout, and but by the initiated would scarcely be recognized as such. I have ascertained beyond a doubt that no quicksilver cradles have been used in this spot. The Hogburn continues to progress favourably, and the population is again on the increase. The ■Undaunted Company's race has been brouglit in, considerably increasing the supply of water. It is capable of carrying about seven sluice heads. I purpose forwarding a section through main workings, bowing the relative positions of the main and false bottoms, as soon as my other duties will permit of my carefully inspecting the same. I have but little doubt, from the formation of the country in the vicinity, that were the main bottom reached, which I imagine, from superficial indications, to be from forty to fifty feet from the surface, that heavy and payable gold would be struck. It is to be regretted that the prospecting shaft which was sunk some months ago, and which reached a depth of about

•<3fte Diagram ":)

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o.—No. 4a.

thirty feet, had to be abandoned for want of funds to carry out the undertaking when so near completion. My duties are so numerous that I have not yet had an opportunity of thoroughly inspecting the ground, but I trust that I shall shortly be enabled to do so. The population on McCrae's Flat has been steadily increasing for some months, and has aow accumulated to about 300. It is situated about sixteen miles from Hyde in a south-easterly direction, and is surrounded on all sides by rising ground. The depth of sinking ranges from four to sixteen feet, and the ground is worked by paddocking, and the washing by tub and cradle. Good returns have been obtained by most of the miners; and from the fact of there being a large extent of ground untouched, as also from that of the population still being on the increase, it is but natural to conclude that this will prove one of the steadiest fields in the district. In consequence of the workings being in a basin receiving the drainage of the adjacent hills, the miners have a considerable amount of water to contend against. This might be obviated by the cutting of a tail race clear of the flat; but I fear that this wili never be undertaken, as miners have generally a great objection to undertake anything which is not absolutely necessary. In conclusion, I may state that I consider the district to be in a prosperous state. The late rush to the West Coast has doubtless deprived the district of a considerable portion of its population ; but I do not consider that the loss sustained will be anything like proportionate to the exodus. JSfumerous extensive races are in course of construction, which, in a district of this formation, is a certain sign of permanency, as the extent of ground which can be worked by the sluicing process is unlimited. I have refrained from commenting on the different fields separately, as they have all, more or less, suffered by the late discoveries in Canterbury ; and as the mode of mining is unvaried throughout my district, it is but necessary to allude to the most prominent features collectively. I do myself the honor to forward herewith sections through deep sinking—" Fullarton's," as als< through " Kyeburn Diggings" —which illustrate two descriptions of mining in this district. I have, &c, Alfred Keejte, Mining Surveyor. EETUEN showing the Population, and their Various Pursuits, in the District of Mount Ida and West Taieri, 31st March, 1865.

) See Diagram E.

25

THE OTAGO GOLD FIELDS.

Nitmbeb of Mi: Engaged i>* ;ees KUJtBEl! OF I sons Engage: 'eeD IK Total Total Price Population Total Population Rate of Q-old tjo 2 IB Eh O Populatio: Localities. q '3 I of Engaged in Engaged in Wages. per Business of the c5 to g ■z m SO I Gold Mining. • Ounce. Pursuits. District. ■liimilton ff.yde Serpentine iowburn Mount Ida Jindon rullftrton's and Saxon's TJinmerburn Outlying Q-allies 50 30 90 50 40 300 20 200 130, 100 45 10 250 30 30 10 140 150 75 100 300 70 330 20 200 £ s. 4 0 3 12 >) £ s. 3 15 3 10 3 15 40 10 40 20 15 ... 20 ... 70i 201 15 5| 40| ... I1 ... '•' i •" 10 10 io 20 10 15 10 30 60 90 15 30 115 30 70 1 200 240 90 130 415 100 400 21 200 )) J) 780 595 10 1385 24ll 55 30 86 411 1796 1ETUEN showing t in ihe 1 far ■ioui jesci iption nd We 3 and Total I'PEi 3X ATE V. itri Oft] 1S6. lie Mac EllY US' the m ouir 'da a: >st Tai ieri Go Fid <ls list M ■eh, 5. Ci:ILES. Pud: Mac: ILING [INES. Slb Boxei To: ice 3 AND MS. a lTEB .CES. [FAKTZ HlHTNl Total iAI Locality. Approximai 6 9 6 § § 3 Desori iption. 6 Value. lamilton Tyde lerpentine jowburn >Io int Ida lindon uillarton's and Saxton's ximmerburn )uth-ing Gullies 17 10 30 i !? 13 100 7 I 67 £ s. 42 10 30 0 75 0i 42 10 32 10 250 0; 17 0 167 10 2 £ 7o 33 25 11 3 62 8 8 £ 99 75 44 9 126 24 24 Miles 33 38 4 i 40 2i £ 3788 4610 300 20 4080 70 6 9 1 1 4 3 17 liS ■1 21 8 £ a, 3,957 C 4,757 It 374 C 101 C 4,248 It 12G It 274 C 17 t 107 It I ... . I '■■ ... I "' ... | ... ... I 261 657 0 150 401 ! I I 12898 78 70 ! 118 ' 24 14,026 C