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They make the water do all the work, with only one man to attend to it regularly, and another occasionally when required. This company have been enlarging their head race from the Manuherikia Eiver, so as to have a carrying capacity of twelve sluiceheads. Previously it would only carry eight heads. They sell portion of their water, and have from three to four men employed on their race. They have worked a considerable area of ground, but do not intend to wash up until next spring. The M. and E. Company's ground in this locality has been very poor recently. They only got 1650z. of gold for three years' work. They were at the time of my visit, in conjunction with the Scandinavian Company, washing up a portion of Muddy Creek Channel, which is held jointly by the two companies, who term themselves the Channel Company. They have washed about fifty chains of the channel, beginning one and a half miles from the head. This piece was washed up as an experiment, to see what gold was being saved in it, and to see whether it would be likely to pay to put tables in the channel, to do which the channel would have to be blocked and a drop formed. This would raise the level of the channel for 50 chains up from the drop —hence the place chosen for the experiment. The value of the gold obtained was £504, and the total expense of getting it was slightly under £200. This proves conclusively that much gold is being lost from the claim, as probably in such a rush of water (twenty-five to thirty-five Government heads) in a channel about Bft. wide, and with such fine gold, twice or three times what was got went past. This portion of the channel was washed up seven years ago, with almost similar results. As soon as they have some more of it cleaned up they intend constructing a double set of tables in the channel, which will be covered with cocoanut matting. These will be 24ft. wide on each side of the main sluice, divided into 3ft. partitions, which will be 12ft. in length, divided into two tables, each 6ft., having a dropwell at the foot of each. The miners in the St. Bathan's district are just beginning to see the advantage of having a great width of tables to save the gold, which is of a very finely-divided character, resembling the gold on the ocean-beaches on the west coast of this Island. It has only been by the practical demonstration of the St. Bathan's Channel Company that others have been induced to construct tables to save the gold from their claims. Indeed so conservative was the opinion of the late manager of the M. and E. Company, that it was only after he found that these tables had saved 80oz. of gold during the previous season that he could be induced to go and see them, although he was living within half a mile of where they are placed. There are a number of similar instances amongst the old miners. They tell one plainly that they are not going to adopt any new-fangled idea, and it is only dire necessity which compels many of them to try any new improvement. The other parties at work in this locality are the St. Bathan's Water-race Company and Garty and Gallagher. The latter get water from the Scandinavian Company to work their ground. The latter party are working at the Lagoon Surface Hill, and have done very well last season. They are troubled at times in working the ground, the stripping being a sticky clay, which sometimes slips away in large quantities when least expected, and carries the gold along with it. During the last season they got about 2500z. of gold. Matakanui and Tinker's. At Matakanui there are only a few people at work—that is, the Welshman party, and also Jack and party, and W. Wilson and another ; all are said to be making fair wages. Matakanui Company.— This company's mining operations have been confined to Tinker's. Last year they sluiced off the top of their ground in the ordinary way into their tail-race, and then elevated about 14ft. in depth of the bottom portion. They have eight men employed in their claim. The ground is very stony, which entails a considerable labour in stacking the stones on the worked out ground. During the last year they have increased the carrying capacity [of their head-race by six sluice-heads, having pipes about 13in. diameter, and have got a new hydraulic plant, which they intend to use at Matakanui to test the quartz-drift wash under the old workings. During the last season they obtained about 6390z. gold. Undoubted Company. —This company is still obtaining a large quantity of gold. Previous to my visit they washed up, and got 7000z., and they expect to get a similar quantity by the end of the season. They are working ground which was worked many years ago and has been by many of the miners in this locality considered valueless, the top portion having been sluiced off and abandoned. They are working it deeper, and elevating the wash-drift 26ft., having eight men employed. During the last year they have been constructing a new head-race to carry the water which had previously been conveyed in Ewing and McConnechio's high-level race. This new race will give them about 380 ft. of head at their workings, and is expected to cost about £2,000. This company a little over three years ago paid £6,400 for a water-right, and has since spent £2,500 in the purchase of other water-rights, construction of water-races, &c —about £9,000 in all—and has done this entirely out of profits, without calling up or creating a farthing of additional capital. It has done so, too, out of ground that a few years ago was regarded by the knowing ones of the neighbourhood as not payable. Beid and Party. —This party has been working the last season in the Deep Lead Company's ground, they having amalgamated with that company. This ground was covered with stones stacked from previous workings, and they have erected a water -balance to work a truck to remove them on to another portion of their claim, and intend placing a hydraulic-elevating plant on their claim to work the deep ground. There are five men employed, but the result of last season's work has not proved a success. Mountain Bace Company. —This company is working in the run of the quartz drift down to such a level as the tail-race will admit. They have put in gold-saving tables similar to those constructed by Mr. Ewing in Ewing and McConucchie's claim, and m the St. Bathan's Channel Company's tail-race. They have sluiced away a considerable quantity of ground last season with the limited supply of water at their command, but they do not intend to wash up this season. Their ground

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