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to these tables being constructed this gold was run down a tail-race and was considered lost. Probably some of the gold in the tail-race will yet be got, but certainly not the whole of it. They were proposing to wash up at the time of my visit, and were constructing a flushing-race to enable them to cut up the channel to allow the claims to be worked to a greater depth. Vinegar Hill. John Ewing's Claim. —The character of the ground worked the last season is similar to that mentioned in my last report, the depth of the face being from 50ft. to 70ft. The uniform layer of wash is only from lft. to 2ft. thick, consisting of a quartz gravel lying on the top of the schist rock. The sedimentary deposit overlying this wash has the appearance of a highly-consolidated glacial mud. It is formed in bands, having only a slight inclination from horizontal. Last season he had taken a cut-in towards the range, and found a fault in the sedimentary deposits, which shows that the side next the range has been lifted up about 12ft. since the material was consolidated, every band being distinctly seen corresponding with those at the 12ft. deeper level. The most interesting discovery made in this claim is on the end of the cut next the mountain range. The old quartz drift is found to join on to the schist rock, dipping away into the range at a high inclination. This shows that the deep run of quartz drift is between these workings and the range, and this deposit has never been tested in this locality. There is a little gold through the drift, as far as it has been tested, below the level of the schist rock, and in all probability a rich run of this ground will be found between the present cut and the range. Taking tho run of this deposit at St. Bathan's, and the similarity of the ground worked by the St. Bathan's Channel Company, there is little doubt but that the channel of the ancient water-course goes through this claim. Whether there is sufficient gold in the drift to pay for working remains to be proved, but there is a great probability of Mr. Ewing being well recompensed for the outlay he has been at and for the enterprising manner in which he has conducted this mining-venture. He employs on an average five men. He was busy washing up a large paddock the result of over a year's work. From this he has obtained 2000z., from a box 100 yards down race. No gold has been taken out of race or paddock. From these he expects about 700oz. more. He started, and has a large paddock (about 4 acres) stripped, on some new and shallower ground, from which he expects good results. He also worked during the year, when water was short, 2 acres of shallow ground 4ft. to 20ft. deep for 200oz.—a result hardly payable. Hughes and Morgan's Claim. —This claim is closely adjoining Mr. Ewing's, and on the side of hill facing Vinegar Flat. The quartz drift here is formed in bands, highly contorted, and lying at a steep inclination. The party have worked a considerable area of ground, which is said to have paid them fairly well. Eecently they sold a portion of the worked-out ground to another party, who is working by tunnelling and paddocking, taking up more of the bottom and side of the reef than Morgan and Hughes had done; and this is said to pay very good wages to the men working the ground in this manner. The depth of face where Morgan and Hughes are working is about 90ft. Vinegar Flat. Watson and Party's Claim. —This party has worked a considerably larger area of ground last year than formerly, but it has not been so rich. Still it has paid good wages for the three men employed, the yield of gold being about 2500z. The reason assigned for the ground being poorer this season is that they have been working farther into the flat than they had done formerly. But, the party adjoining them having worked out their claim, it will allow them to work to more advantage, and they expect to do better next season. Thomas Morgan and party have a claim lower down the flat than Watson and party, but the ground is poorer. Still, by being able to work continuously, they make fair wages. The ground in this flat is a coarse gravel wash, having none of the quartz drift that is found higher up near the foot of the range. Davis and party, referred to in my previous reports, have abandoned their claim in this flat, as it was too poor to work at a profit, and they are now working ground south of Cambrians which is commanded by their water-race. Cambrians. There are a few individual miners fossicking here in the old ground, some of whom are said to be doing better than they have for the last twenty-five years, by driving out pillars and ground on the Saddle between Cambrian's and Soldier's Gully, where the gold is in a layer of quartz-drift wash. There are two parties of Europeans and one party of Chinese working ground by sluicing, who are said to be making wages. There are also several parties of Chinese who have taken up ground south of Cambrian's, which is reputed to be good. One man obtained gold worth £70 from this place for seven weeks' work. A party of Chinese in lower end of the gully are doing well, although working in a very primitive manner. Mr. J. Ewing has taken up a terrace just above them and opposite the township, which he intends to work with his lower race—the first right from Dunstan Creek—and expects good results. He will use a large body of water and elevate the material. Fordham, Guy, and party are making good wages higher up the gully, alongside the old workings ; but their supply of water has not been good. Several small parties at Cambrian's and on Station Hill are making wages, in some cases sinking and driving, and in others sluicing. Excell and Coulson, at Vinegar Hill, are making very good wages, driving and paddocking in ground left behind by Morgan and Hughes, and have many years' work ahead of them. Muddy Creek. There are four parties working ground which is sluiced into the Muddy Creek Channel, but none of them, with the exception of the Scandinavian Company, are not doing much ; it is only by the economical method they have of working that makes the latter company's ground payable. 17—C. 3.