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forfeiture of abandoned but still existing rights that have been permitted to accumulate during past years. Resident Magistrates' Court: Criminal cases, 277 ; civil cases, 407 ; aggregate amount sued for, £3,354 Is. 7d.; recovered £1,879 19s. It will be noticed that the number of criminal offences has decreased considerably during the past year, being 277 as against 332 for the preceding year. Faeroa returns are not included in this. I have, &e., Haeet Keneick, The Under-Secretary for Gold Fields, Wellington. Warden.

No. 3. Mr. Warden Keneick to the LTndee-Secretaey for Gold Fields. Sib,— Warden's Office, Te Aroha, 18th April, 1882. I feel much gratification in being able to report that the favourable opinion of the future of this district given in my last report has been realized even sooner than I anticipated. It will be remembered that the rush that took place in November, 1880, was caused by the discovery of some loose, rich pieces of stone, found on the western slopes of the Aroha Mountain. The hard belt of country met with in driving and sinking in the various claims so disheartened the men engaged that the field was deserted by all but a few believers in its future. Strange to say, little or no prospecting was done on the eastern slope of the mountain. The heavy timber and precipitous nature of the country might, perhaps in a measure, account for this. However, during the winter of 1881, Hone Werahiko, the original discoverer of gold at the Aroha, thoroughly prospected the valley or basin on the eastern slope of the main Aroha Bange, at the head of the Waiorongomai Creek, in the face of obstacles of no ordinary kind. In November last he discovered gold on the face of a large reef exposed on the side of the range for a considerable distance, (about one mile and a half), cropping up to a height of from 100 to 300 feet in places, above the tops of the trees This reef has now been traced from the plain at the mouth of the Waiorongomai Creek, in a direction west of north, for nearly two and a half miles through a densely-timbered country. Claims have been taken up on the course of the reef for that distance ; and in several claims gold has been discovered on the face, or rather outcrop, of the reef. A drive has been put into the prospectors' claim (new find) at about 100 feet below the place where gold was first discovered by Hone Werahiko. This drive has been driven 20 feet into the solid reef, without reaching the wall; 5 feet of this shows gold freely as on the outcrop ; in the rest of the stone gold is only visible occasionally ; but the pestle-and-mortar tests give good results. The gold is very fine, and contained in small, black veins permeating the stone. Though fine, the gold is heavy, and easily saved. I had a piece tested at the Bank, with a result of 2 oz. to the ton, value about £2 16s. an ounce. The value of this discovery is much enhanced by the peculiarly favourable nature of the country in which this great outcrop of gold-bearing quartz is situated, the very precipitous nature of the country affording every advantage for economically and quickly testing the value of the stone, no pumping, winding, or ventilating machinery being necessary, and but little timbering in the drives. The soft wall has in course of ages worn away, leaving exposed this great outcrop or wall of quartz standing up in places over 100 feet in height, overtopping the dense forest in which it is imbedded. This, coupled with the presence of water-power with plenty of fall, should enable the reef to be profitably worked for less than oz. of gold to the ton. Of course it cannot be expected that the whole body of the stone is equally payable, but sufficient is proved to justify the present prevalent belief that a good, payable reefing district has been discovered. In addition to these claims on the main line of reef, broadside claims have been taken up in three instances, resulting in the discovery of cross-reefs running into the main reef. As is usually the case on this peninsula, the cross-reefs are richer than the main lode. In the Golden Crown, now the Bremier claim, £ oz. of gold has been obtained from a rough crushing of 5| lb. of stone. In the Eureka good results are obtained from every test made. Two tons crushed at the Thames yielded over 3 oz. of melted gold, but of course all tests short of the battery are more or less unreliable. However, experienced men from the Thames have satisfied themselves of the payable nature of the field, and are backing their opinion as to its permanence. Arrangements have been completed for the erection of two batteries, one of 40 heads. The old Biako battery from the Thames is to be erected at the mouth of the Waiorongomai Creek. A large amount of capital is being spent in the construction of a water-race and tramway in connection with this battery. A second battery of 20 heads is to be erected farther up the creek, close under the reefs. The Piako County Council have, with the aid of a subsidy from the Government, constructed a fair pack-track along the eastern slope of the main range to the mines, starting from the main Thames and Katikati Boads, near the mouth of the Waiorongomai Creek. This track rises to the height of 1,300 feet from the plain; and ends on the Bremier claim, but it is intended to push it on to the Thames County boundary, beyond which claims have already been taken up. It must be remembered that the outcrop of the main reef is more than 2,000 feet above the plain. A second road is being constructed, commencing at the mouth of the Waiorongomai Creek, following as far as practicable the side of the stream, and gradually rising to a height of about 700 feet. This road is also subsidized by the Government, and is intended for the carriage of machinery up the creek to the sites chosen for the batteries ; also, to bring quartz down by tramway from the mines to the batteries at the mouth of the creek. The prompt action taken by the Piako Council has materially assisted in developing these discoveries, but a considerable expenditure will still be required on roads and tracks to the mines. A foot-track has also been made from the Hot Springs on the western side over the mountain to the new find on the eastern slope. I have every belief that a permanent reefing district has been opened by this new discovery, and that the ground taken up at present will prove but a small portion of the gold-bearing country. Standing