c-.—e

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scheme for increasing the supply of water by bringing in a new race, the proposed source of supply being the Otekaike Biver ; and, apparently, it is expected that Government will give some substantial assistance to the work. Nothing in reference to this scheme has been officially brought under my notice, and, so far as I know, the precise course of the proposed race has not been decided on. The race, if brought in, would of course only be available for the west side of the Maerewhenua Biver, and would in no way affect the workings on the Livingstone side. Before this scheme can assume a practical form there will be a good deal to be arranged, not only as to ways and means, but as to possible interference with existing rights. But doubtless, before the Government allows itself to be committed to anything, proper inquiries will be made. I enclose the usual statistical returns. I have, &c, The Under-Secretary, Mines Department, Wellington. H. W. Bobinson, Warden.

No. 17. Mr. Warden Caeew to the Undeb-Secbetaey of Mines. Sic,— Warden's Office, Dunedin, 26th April, 1888. I have the honour to forward herewith the usual annual returns for the Hindon Subdivision of the Otago Mining District for the year ending the 31st March, 1888. In doing so I have to remark that, although the year has been productive of but little change in the district, there has been, if anything, greater activity in mining matters than during the previous year. Alluvial mining is still followed by a certain number as their exclusive occupation, while, by others who know the ground, it is resorted to when other employment fails, and doubtless this wiil continue to be the case for years to come. In quartz-mining there is a prospect of renewed enterprise, several licensed holdings of land previously held under gold-mining leases having been recently taken up. It is, I believe, the intention of the licensees to form a strong company for the purpose of working ground which is known to contain quartz-lodes of considerable eltent, though of comparatively poor quality, but which is believed to be sufficiently rich to pay wheji worked economically and by the most approved appliances'. The' expense of bringing in water for motive-power for machinery being too great, it is intended to use steam, a fair lignite for fuel being procurable in the district. Lyders and party have crushed at their battery during the year the following quantities of stone : Lyders and Hilgendorf, 350 tons, yielding 6dwt. per ton; P. A. Lyders, 130 tons, yielding sdwt. per ton ; A. T. Kenney, 70 tons, yielding Idwt. per ton ; A. S. ]?. Parker, 30 tons, yielding 7dwt. per ton. Four applications for licenses to prospect for antimony were made during the year, two of which have been granted, one in the Silver Peak Survey District, the other in Mount Hyde Survey District. In connection with that in the Silver Peak District the applicant has already made application for a mineral license of over one hundred acres for antimony-mining purposes, and has been for some time endeavouring to form a company for working the mine. He appears to be sanguine of success. The provisions of section 60 of " The Mining Act, 1886," and regulations thereunder have been availed of by two applicants on the mining reserve in Block 1., Silver Peak District: one in the Dunedin and East Taieri District; and by two in Block V., Mount Hyde District. The occupiers of deferred-payment and perpetual-lease land in the district have suffered, in common with many others, in consequence of the unfavourable season and the low prices for all products of the soil, and in some instances, probably, through having to pay high prices for the land. The population of the district is estimated at between three and four hundred. I have, &c, The Under-Secretary, Mines Department, Wellington. E. H. Caeew, Warden.

No. 18. Mr. Warden McCullooh, to the Undee-Secbetaey. of Mines. Sib, — Eesident Magistrate's Office, Invercargill, 19th April, 1888. I have the honour to forward herewith the usual annual statistical returns for the Orepuki, Eoundhill, and Longwood Districts for the past year. All through these districts there has boon, during that period, no change of sufficient importance to call for particular notice. Although there is plenty of ground said to be auriferous in all three of the sub-districts above named, a limited and expensive water supply in but few hands, let at a heavy rental, has an important effect in checking enterprise. Baces are in course of construction, by which the want of water will be in some degree relieved at Eoundhill, but some time must elapse before the water can be brought in. On the Ourawera Flat, and in its immediate vicinity, is a considerable area of payable ground which cannot be worked at present for want of fall; this, in the opinion of practical miners, can only be obtained by taking up a sludge-channel from the beach at Wakapata to the present workings at Eoundhill. During the past year a special claim of thirty acres has been taken up by the Eoundhill Sludge and Drainage Company for the purpose of working the sludge that has been accumulating for many years on the upper portion of the Ourawera Flat, and bringing up such a channel as I have mentioned ; but the difficulties they have had to contend with have compelled them to relinquish this part of their project, and they are now moving their machinery on to their claim, about a mile higher up the flat. I may here mention that two special claims of about thirty acres each, with half-mile beach-frontages, have been taken up at Bushy Point, with the intention of working them with Wellman's dredges. As far as I can learn there has been no great falling-off in the yield of gold during the past year at Orepuki and Eoundhill. Many Europeans and Chinese miners are doubtless deriving fair