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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