C.—3

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claims now working have been in operation for some considerab.e time, and their features and plant very fully described in previous reports. In the Marlborough Province a little mining is carried on at Mahakipawa, Wakamarina, Deep Creek, and Onamalutu. A race is being constructed to bring in water to work ground in the last-named locality, the party doing this being satisfied that good results will be obtained. Hydraulic mining, near Takaka (Nelson), is being successfully conducted, and prospecting carried out (further back from the coast) in the Upper Anatoki neighbourhood. Fairly extensive operations by hydraulic power continue to be carried on at Parapara by the Parapara Hydraulic Sluicing Company (Limited). The ground here is very heavy and steep, great care being required to carry out the work with safety and efficiency. Future prospects appear good. At Quartz Eanges (Collingwood Goldfield), a claim was opened out a few years ago by a company, who incurred considerable capital expenditure in bringing in an adequate water-supply. Subsequent operations by this proprietary were not commercially successful, and the property was taken over by Mr. C. Y. Fell, of Nelson, who let it to a party of tributers. I understand that the working-results are satisfactory. The works of the Slate Eiver Sluicing Company (near Collingwood) have been improved as regards the water-supply, increased returns of gold won resulting therefrom. In the vicinity of Westport alluvial mining cannot be generally considered a flourishing About a dozen men make small wages on the beach north of the Orowaiti Eiver, and a few others for similar results at and about German Creek. Some very fair results are being got at Cook Terrace, Fairdown. The gold won gives good average wages, and from present appearances this condition of affairs is likely to continue. Prospecting and tunnel-driving are being carried out in the locality. At Addison's several parties are working successfully. The outlook for this part of the field is considered good for a few years to come. Both alluvial wash and cemented sand are worked locally, the latter being crushed by light stamper batteries and the gold recovered by amalgamation. The most extensive works in the neighbourhood of Charleston are those of the Charleston Beach Sluicing Company and of Messrs. Powell. These claims are close to each other, and work the sanddeposits near the beach by hydraulic sluicing and elevating, the sand being washed over a large spread of amalgamating-tables for the extraction of the gold. These two properties give employment to about sixteen persons. Other parties are extending their operations, both as regards sluicing and cemented-sand crushing ; whilst the small beach claims—of which there are quite a number —appear to give good average wages. Taken all round, the industry in and around Charleston may be said to be more active than has been the case during the last year or two. On the Buller Eiver alluvial-mining works are carried on near Lyell. Below the township, the New Lyell Sluicing Company have taken over the claim formerly held by the Lyell Hydraulic Sluicing Company, and have been constructing a water-race for the more effective working of the property. Above the township, the Newton Eiver Sluicing Company have added to their plant and increased their facilities for carrying out the work more efficiently. In the neighbourhood of Murchison several claims are being successfully worked. The water-supply as a whole being deficient, water-race construction and pipe-line installations have been undertaken by some of the claimholders for the purpose of obtaining a larger and more regular supply of water. Eecent prospecting in this locality- appears to have been satisfactory. The results are shown in further steps being taken in the direction of opening out other claims. In the valley of the Grey Eiver alluvial mining is carried on much on the usual lines, about sixty persons (one-half of them being Chinese) making a living in the vicinity of Blackwater, and about thirty persons (one-third being Chinese) find employment at and adjacent to Ahaura. A similar number, with approximately the same proportion of Chinese to Europeans, are engaged at Eed Jack's and Kangaroo Creeks, also some twenty persons at Moonlight, and a fair number of diggers still make a living at Nelson Creek and No Town. These are independent of those employed in connection with gold-dredges. There are no extensive plants for alluvial mining in the localities mentioned. At Montgomery's Terrace and Healy's Gully hydraulic-sluicing operations are being conducted with moderate results. Along the coast north of Greymouth Messrs. McKay and White are worlring on a fairly extensive scale at Barrytown with profitable results. No other claims in this section of the goldfield have been worked to'any extent during the year. The richest portions (so far as known) of the alluvial deposits at Kumara and Dillmanstown are fast being worked out, and the returns for last year show a gradual reduction in the number of men employed and the amount and value of gold obtained. Taking the areas at Kumara, Waimea, and adjacent localities commanded by the Government water-races (Waimea-Kumara), and from which the supplies of water for sluicing purposes are drawn, the following schedule affords a comparison between the average number of persons employed and the quantity and value of gold won for the periods named below : — Average Numh r Ounces of Value. of Men. Gold won. £ s. d. Financial year 1903-4 .. .. 7700 7,712 27,736 16 0 1904-5 .. .. 56-58 5,166 20,147 8 0 Decrease .. .. 2042 1,546 7,589 8 0 There are about a dozen men working with water obtained from a private race whose returns are not included in the above figures. A proposal has been made to drive another tailings-tunnel to enable ground as yet unworked to be sluiced, and at the end of the year some attempts to prospect this were commenced. No^information^has A reached|nie£as to the prospects obtained. Details of work in this locality,will be found in the report of Mr. Alexander Aitken, manager of the Waimea-Kumara Waterraces.