o—3.

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boundary is some 70 ft. below the surface of its own tailings-bank occupying Gabriel's Gully. The line of fault forming the northern boundary of the claim is clearly exposed, direction east and west, downthrow south, angle of inclination 45 degrees. Local Industry Gold-mining Company (W. 0. Dawson, manager).—During the year the plant was transferred from Weatherstone's to the lower portion of Gabriel's Gully, and a start was made to rework the bed of the gully. Several paddocks were taken out, but with indifferent results, and the plant and claim has been since offered for sale. The extension of this water-race by means of a siphon across Gabriel's Gully and a race cut five or six miles would command extensive areas of auriferous ground, but the construction would be costly. . Kitto and Party's Hydraulic Sluicing and Elevating Claim, Munro s Gully.— -This claim has been at work for many years on the Munro's Gully side of the breccia-conglomerate deposit worked by the Bluespur and Gabriel's Gully Consolidated Gold-mining Company. The modus operandi is to bring down large masses of the cement with blasts of roburite, and further reduce it by hammer and gadspawling the material being then sluiced to the elevator. Eight men are employed. Tuapeka Sluicing Company, Munro's Gully (P. P. Thomas, manager).—Area, 51 acres, .The claim is worked by hydraulic sluicing and elevating, and operations during the year were carried on with success. Six men employed. . P. P. Thomas's Claim, Munro's Gully (C. Thomas, manager).—Terraces bordering Munro s Gully are being sluiced with water under low pressure. Four men employed. Lower Tuapeka River. Tamaiti Gold-mining Company, Tuapeka River (N. K. Wakefield, manager).—ln 1903 a scheme was suggested in which,'by utilising a large body of water on a low head to drive a powerful turbine, power could be obtained to actuate centrifugal pumps in series to raise sufficient water under pressure to sluice the terraces. During 1905 the scheme was taken up by the Tamaiti Gold-mining Company. A dam was erected across the Tuapeka River to raise the water 30 ft. in height. A James Liftel singledischarge horizontal turbine was installed to provide power to actuate combination centrifugal pumps. The plant was started to work in November, 1905, and has since been working satisfactorily, good returns of gold having been obtained from the claim. This company is making application for a second dam-site and water-race license on the adjoining claim. Thomas McLeod and Party, Tuapeka Mouth.— As was only to be expected, the success of the 1 amaiti Gold-mining Company has induced others to take up claims to be worked on the same principle. As this system merely involves the utilisation of a large body of water under a low head, it may be applied wherever the conditions are favourable. There are, however, large areas of auriferous ground throughout Otago and Southland where it is impossible to apply this system as regards utilising water-power. It is now proposed to utilise oil-engines or producer-gas plants to provide the necessary power tor pumping purposes. Waipori. Bakery Flat Hydraulic Sluicing and Elevating Company, Upper Waipori (John T. Johnson, manager) —In 1904 J. T. Johnson designed a novel dredge, known as the submerged ]et dredge, m order to bottom the lead. Unfortunately, although the dredge proved capable of dealing with an enormous amount of material, the operations were not financially successful before the deep lead was reached. A hard bar also interfered with progress towards the lead. The water-races and sluicing plant were then put in thorough working-order, and a start made to bottom the lead by hydraulic sluicing and elevating Additional power was derived from the Golden Point Company's water during the latter part of the work. Aided by a subsidy authorised by the Mines Department, the work was put m hand during 1906 and successfully carried out. Bottom was reached at a depth of 78 ft. from the surface of the valley. The material passed through was found to be payably auriferous, while the bottom wash proved extremely rich. On this paddock being worked out the plant was then shifted to the head of the lead and operations there have been attended with success. O'Brien and Others.— As was only to be expected, the success attending the operations of the Bakery Flat Company on the deep lead have aroused interest in the possibility of working other portions of the lead It is now proposed to bring in a large body of water, twelve or sixteen miles, from the Waipori River to work the deep lead. A survey of the line of Tace is now being made by Mr. L. 0. Beal, jun., mining engineer. . . . , R J Cotton's Dam-site, Waipori River.—lt is proposed here to apply the principle ot pumping water as adopted by the Tamaiti Claim, Tuapeka. There is a splendid natural dam-site at Ballarat Gorge Waipori River, and should a sufficient quantity of water be available for the purpose, electrical power could be furnished from this site to operate dredging and reefing machinery as well as electriclighting plants. . . . . . . There is little else of interest to narrate regarding the hydraulic sluicing and elevating claims m the Waipori district. These continued to operate with fair results, although the extremely dry weather has shortened the water-supply. , ,7 , , Dredging —There were eight dredges at work in the beginning of the year, but this branch ot the industry is now represented by five dredges in active operation. Two of the working dredges are worked by O'Brien's application of -water-power. Beaumont. Plunket Gold-mining Company.- -Formerly the property of the Champion Sluicing and Elevating Company (Limited), this property was purchased by the Plunket Gold-imnmg Company. The