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Taipo River District. Sluicing operations have been carried on by several parties, and also by the Taipo Sluicing Company at Seven-mile. The returns, as far as can be ascertained, are unimportant. The road up to the Seven-mile is being improved and widened by the Westland County Council, with the aid of grants and subsidies from the Government. Some prospecting is also carried on in the direction of Browning's Pass. Waimea District. A few parties still continue to carry on sluicing operations at Callaghan's and Italian Gully, but much more work should be done in the district considering the good supply of water from Callaghan's branch race. The most promising part for future gold-production is the ground commanded by the Waimea main tail-race. The tail-race, which is managed by trustees, and has been subsidised by Government to the extent of £1,020 on a proportion of five-eighths to three-eighths, is nearly completed, and the extension of a branch race from the Waimea Water-race is in a forward state. Consequently, as soon as a storage reservoir is completed, water will be available for use in sluicing through the main tail-race. On the church property, mining work has been carried on successfully for several years, but operations were expensive through the parties having to bale the water. On the completion of the main tail-race, and of the branch races to the several claims, the greater portion of the surrounding land will probably be drained, and some parts of the lead may then be worked from shafts. It is, however, to the hydraulic-sluicing operations that will be undertaken by the owners of the claims that we must look for increased gold-production and the future prosperity of the district. A few parlies are using water from the Waimea Eace in sluicing on the terraces lying towards Fox's and in the direction of Stafford. Kelly's Terrace Drainage-tunnel. —This tunnel, which is being driven from Flowery Creek in a line in the same direction as the main road, has now reached a distance of 3,600 ft. from the entrance, the distance driven during the year being 1,000 ft. The work is carried on by three trustees, who find three-eighths of the cost, the remaining fiveeighths being subsidised by the Government, and contracts are let for different sections as the work proceeds. As this tunnel is carried on with as little fall as possible, the difficulty of trucking the material for a long distance has been obviated, by the construction of two shafts, through which the gravel is hauled to the surface. The last shaft sunk was about 60 ft. in depth, and was constructed so that the material could be hoisted by a water-balance ; the tank filled with water passing down one division while the cage with the loaded truck was raised up the other compartment. There is still a further distance of 2,400 ft. to which the tunnel must be extended before the ground at Kelly's Terrace can be drained. The cost of this tunnel has already amounted to £1,076 7s. 9d., the proportion paid by the Government being £875 lls. Id. The Wheel of Fortune Claim was formerly worked by Messrs. Batchelor and Noble by means of a water-wheel elevator, but operations were not profitable, and work was given up some years ago. The claim is now under the management of Mr. Betram. The work carried out during the year was the conserving of water, constructing large dams, and extending the water-race for a distance of two miles and three-quarters. As there is some difference between the vendors and the new company, the manager will not give information about further operations until this is settled. Hokitika District. Craig's Freehold and the University Eeserve are being worked by alluvial miners, twelve in Craig's and nine in the University Eeserve. Several parties are also prospecting on the old Alma lead. At Lake Mahinapua the Shanghai Claim, owned by Mackintosh and party, is worked on the elevating principle. A Priestman's Grip, driven by a steam-engine, is used to raise the stripping and deposit it clear of the work, as well as to raise the washdirt to the sluice-boxes. A few parties are engaged about South Terrace, and Douglas and party have driven a tunnel 600 ft. in length. Several claims are also worked on the North Terrace. Cundy and party, Monday and party, O'Brien and party, Leece and party, and McCormick and party are all engaged on ground-sluicing. At Seddon's Terrace and Back Creek a considerable number of miners are employed, three parties hydraulic-sluicing and the others ground-sluicing. The chief supply of water is derived from Handley's Eace, now the property of the Eimu Miners' Association, but there are other catchwater races from which water for sluicing purposes is obtained after a rainfall. Two sections of land, the property of Mr. P. O'Neill, were resumed for mining purposes. The land, being directly convenient to the terrace, and lying between it and the Hokitika Eiver, was in the way of sluicing operations. Kanieri District. Main and party are driving a tunnel, which is now 1,200 ft. in length, to drain a lead where the ground is wet, and which was deserted at the time of the Kumara rush. It is expected that if the ground can be unwatered by this tunnel profitable employment will be found for a considerable number of miners in again working the shallow lead. Holmes and party are also driving a tunnel, which is 544 ft. in length, to drain Tucker Flat, where it is expected payable ground will be found when the water is drawn off. 16—C. 3.