C—2.

Coast Sounds is only commencing, and that a prosperous future awaits mining enterprise in this remote portion of the colony. Attention is also being directed to other quartz-fields in the ranges bounding the Clutha Valley; whilst in the Taieri Eiver district the reefs at Barewood are being prospected with the aid of English capital. In the Nenthorne district also the attention of investors is being to some promising reefs. The quantity of quartz crushed during the year was 9,450 tons, for a yield of 10,247 oz, 18 dwt. of gold, and a parcel of 19 tons of tailings treated for a yield valued at £69 14s. : making a total value of £41,061 6s. ALLUVIAL MINING. This branch of the mining industry is confined to the Middle Island— in the Marlborough, Nelson, West Coast, and Otago Districts. MAELBOBOUGH. The principal fields in the Marlborough District are Wakamarina, Mahakipawa, and the Wairau, but at none of these centres is the industry in a very active state. At Mahakipawa the wash in the creek-bed has been worked out, and attention is being directed to working the terraces and deep ground in the flat; a large extent of country where little or no prospecting has yet been done, and which, judging from the formation of the ground, ought to contain auriferous gravels, might well receive attention. NELSON. The principal goldfield in this district is at Collingwood. The Parapara Hydraulic Sluicing Company is still working, but no returns have been made known. A number of men are also engaged on the Takaka and Waingaro Eivers. To the latter a track was constructed by means of a Government grant. On the Baton and Wangapeka Eivers a revival has taken place, and it is expected that the operations on McEae's freehold will be conducted on an extensive scale. At the Mount Arthur tableland a number of claims have been taken up, and the asbestos deposits in this locality are also receiving attention. WEST COAST. The West Coast goldfield, which extends a distance of over 270 miles from Karamea to Jackson's Bay, has been one of the best gold-producers in the colony, and will, as the water-supply is improved for working the deeper ground, continue to yield satisfactory returns. The Addison's Flat district affords employment to a large number of men, and it is hoped that the introduction of capital will shortly enable the low-grade cement in the vicinity of Charleston to be profitably worked. Dredging is also carried oil in the Buller Eiver at Fern Flat, and also at a place below Lyell. Grey Valley. This district has in times past afforded remunerative employment for large numbers of men, but, the shallow levels having been practically worked out, it will be necessary for an abundant water-supply to be provided for the successful working of the deeper auriferous drifts, which can only be done on an extensive scale, and with modern and improved appliances. Kumar a. The excellent water-supply brought in by the Government in the WaimeaKumara Eace has enabled the miners in this district to profitably work extensive layers of gravel, which without the aid of this water-supply could not have been done. The recent improvements in the storage of water will enable large areas of comparatively poor ground on the low levels to be sluiced away, and will continue to afford remunerative employment for a number of men. Bimu and Kanieri. The ground in the vicinity of the Kanieri Forks is being worked by means of the Kanieri Water-race, but at Back Creek and Seddon's Terrace operations are retarded by the lack of an efficient water-supply. Surveys have, however, been

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