a—3

130

The following is a statement of the work done, and the average value of the cement per cubic yard, in each division of the mine: —

The average number of wages-men employed was forty-one, and the wages varies from 7s. to 12s. 6d. per day. The following statement will show the expenditure for wages and explosives in the different divisions of the mine for the work done as set forth in the first statement: —

The total amount of wages paid for the year, exclusive of management, was £4,175 3s. 10d., and the total cost of explosives used, which is Boburite, detonators, and fuse, was £624. Taking the actual cost of producing the gold previously referred to, it shows that in— £ s. d. £ s. d. No. 1 division, 1,536-420z., cost 1 0 8-112 per ounce = 1,588 6 11 No. 2 „ 720-8250z., „ 1 7 1-944 „ = 978 19 4 No. 2b „ 1,532-250z., „ 019 1-03 „ =1,462 4 3 3,789-495 4,029 10 8 It will be seen, therefore, the return for the past year has been 3,7890z. 9dwt. 21gr. gold, representing a value of £14,873 15s. 4d., which will leave a handsome profit on the workings. There were considerable drawbacks last year owing to the dry season causing a scarcity of water. This company has almost all the available water in the place, and yet there was not sufficient to carry on the sluicing operations continuously. To work this claim a large supply of water is required ; there was 18J sluice-heads used for working the No. 1 elevator and sluicing-nozzle, 23-f heads for No. 2 plant, and 27i sluice-heads for the No. 2b plant. Therefore, to keep two of these plants at work, it requires a constant supply of about forty-five sluice-heads. It is gratifying to find that this English company is likely to give the shareholders some returns for the capital they have invested. No doubt they paid a large price for the different mining properties, and it is to be hoped they will yet be well recouped for the outlay. Local Industry Company. —This company are working the tailings in the bed of Gabriel's Gully, about a little more than half-way up the gully between Lawrence and the Blue Spur, and are said to be getting payable returns. They are leasing the Pioneer Water-race, and depending on it for a supply of water, which does not admit of the workings being carried on continuously. However, the company are well satisfied with their property, and they have many years' work before them, if the side of the gully next the range between Gabriel's prove payable for working up to abreast of the Blue Spur. The other side of the gully, some distance above this company's workings, was worked some years ago by Mr. J. E. Perry when he first introduced elevating plants into this district. Gluiha Valley. This is a valley containing a very large deposit of auriferous wash-drift. The beds of all the rivers, creeks, and streams from the Pomahaka Eiver to the Cardrona Eiver, on both sides of the valley, contain auriferous wash-drifts which have proved payable for working, while in some of them extremely rich gold-bearing drifts have been found. The Clutha Valley has been gradually cut down from the high level at which the river was at one time flowing, and during successive periods has been sluicing away the material from the ranges on both sides, carrying the lighter gravels and sand down by the streams, leaving in the bed of the present valley an immense quantity of concentrated material containing in places rich deposits of gold. The scouring action of such a volume of water as that carried by the Clutha Eiver has reduced a great deal of the gold into infinitesimal atoms, and carried a certain quantity of it oat to the ocean ; but the great density of gold tends to deposit it near the bottom of other concentrates, and consequently has left immense riches amongst the drifts present in this valley to be unearthed and collected by the succeding generations. The course of the Clutha Eiver, except in the gorges cut through the solid rock, has periodically shifted about from side to side of the valley, and it is only of late years that this fact has been

Division of Mine. Number of Hours sluicing. Number of Cubic Yards of Cement sluiced. Quantity of Gold obtained. I Average per Cubic Yard. o. 1 o. 2 o. 2b 3,534-5 1,526-0 2,289-5 94,320 50,866-6 76,316-6 Oz. 1,536-42 720-825 1,532-25 Gr. 7-824 6-706 9-637 a. 13-69 11-736 16-85 7,350-0 221,503-2 3,789-495 8-056 14-093

No. 1 Division. No. 2 Division. No. 2b Division. £ s. d. 1,496 6 11 92 0 0 & s. d. 763 11 6 215 7 10 £ s. 1,145 12 316 12 d. 3 2 v ages ixplosives... 1,588 6 11 978 19 4 1,462 4 5