C—3.

Previous to the construction of this channel about twenty-nine shafts were sunk on these claims in different places, and, from all information that can be gleaned or obtained from the miners, also from the manager of the Kumara Water-race, who was instructed to prospect the material taken from these shafts, there is a great probability that the majority of these claims will prove payable for working. How far the leads will go clown the flat towards the ocean-beach no one can at the present tell, but in several places where shafts have been sunk a certain quantity of gold, more or less, has been found in the gravels. There is also a probability of a rich lead of gold being found between Kumara Township and the beach. If the line of the Hau-Hau leads be taken, this lead should cross this flat nearly a mile higher up than the railway, and, should it be found intact, without having been denuded by river action since the elevation of the land, very rich auriferous deposits may be expected in this locality. Little or no prospecting has ever been done in this portion of the field, or, at least, none of any great extent, the reason being that, although the ground may contain a certain amount of gold, very little of it is sufficiently rich to pay for working by any other means than by hydraulic sluicing, and there is no water in this locality to work it in this manner. Sufficient is, however, now known of the Kumara Goldfield, as regards the fact that it is of considerable extent, and that the future of the field depends upon the construction of channels so as to insure a fall for the tailings, and also that a large quantity of water is required to systematically work the ground. The following is a list of the number of claims at Kumara, with number of men and quantity of water used :—

Kapitea. —There have been considerable gold-workings on the terraces alongside the Kapitea Creek, between the Hokitika-Greenstone Eoad and the beach, and, although there are not a large number of men now working on these terraces, the workings themselves prove, by the large amount of labour done, that a considerable quantity of gold has been obtained from this place. The same trouble arises here that is to be found in most of the other places on the West Coast, which is, that the drifts are of too poor a character for driving out, and there is not a sufficient quantity of water available to work by hydraulic sluicing. Judging by the amount of work already done on these terraces, and the large area covered by gravel-drifts, it only needs a plentiful supply of water to enable this place to be capable of maintaining a considerable population. About a mile above the railway we find the Lamplough. Lead, which is in the same run or line of country in which the Hau-Hau Lead from the Blue Spur ought to come, and in all probability this is only a continuation of that lead, or line of a lead, which has at some remote period been the line of the ocean-beach. The gold found at Acre Creek Diggings, on the north side of the Kapitea Creek, may be accounted for partly by a denudation of the high-level ocean-beach lead, and partly from another lead formed at a lower level by the action of the sea. Callag han's. On the range of hills above Callaghan's is an accumulation of " Old man "or " Maori" bottom, which belongs either to the Miocene or Lower Pliocene period. This forms portion of a line of drifts, not denuded, which is found below the Mikonui Eiver, Mount Greenland, and Eoss ( and again at Maori Creek; and from there it follows almost in a continuous direction to the Eiver. Some very rich deposits of auriferous wash-drift were found on the face of Callaghan's Eange, and even on the top of it. At the head of Italian Gully, some men who have been working there since the field was first opened are still making a good livelihood, although they are dependent on the limited supply of water which they are able to collect in small dams, 17—C. 3.

119

a o> as« '3 EH p l> •him O o u w sis [5 a o> 43 0> O 6l M o o a w ■ x Name of Party. Name of Party. No. 2 Channel. — Water from Kumara Race. Fahey and party Ireland „ Palmer „ Devescon „ Pasooe „ Watson „ 3 4 6 3 1 4 4 5 9 7 8 9 10 12 10 10 10 9 Private Tail-races. — Water from Kumara Race, Cullen and party Amerioh „ Lee „ Shrives „ Turnbull „ Connor „ Evans „ 6 3 10 5 5 5 3 6 8 7 13 12 7 8 12 8 11 10 10 10 10 No. 3 Channel. — Water from Kumara Race. O'Sullivan and party Dennett „ Light Thomas O'Gonnell Moynihan „ Rochford „ Harris „ Neville „ Connaghan „ 4 4 5 5 4 4 4 6 4 A 8 5 6 8 8 8 8 7 8 8 8 . 8 10 10 8 8 8 8 8 10 Private Tail-races. — Water from Holmes's Races. Eeid and party Pa-yn „ Ames „ Bawden „ Dinan „ 6 3 5 1 i 7 8 9 10 7 10 10 10 12 12 Water from Private Waterraces. 4 8 10 7 Pearn's lease Long Tunnel Company 25 to 30 15 to 20