51

C—3

Quartz Ranges.— This highly payable sluicing claim at the Quartz Ranges is owned by Mr* Charles Y. Fell, of Nelson (lately the property of the Collingwood Goldfields Company), and now leased by him on tribute to Diamond and party. This party have command of an exceedingly good supply of water taken from the Boulder Lake, which has enabled the party to work the ground continuously during the past year. Johnston's United, at Bedstead. —This well-known-ground, from the result, I am informed, of acon- nsiderable amount of prospecting-work done during the year 1905, has been again taken up by a syndicate in the name of Mr. Charles Y. Fell, in two special quartz claims—viz., 100 acres, Cole's Gully;}and 10 acres, Decimal Gully. The Slate River Diedging Company's Claims and Dredge. —This company at the beginning of the year (January, 1906) went into liquidatior, and Mr. West, of Collingwood, was appointed liquidator. The dredge and one of the special claims of the company was purchased by Mr. William Grant, who is Chairman of the Collingwood County Council. Mr. Grant having secured the services of a first-class dredgemaster (Mr. H. Lloyd), the dredge was put in order, and dredging operations commenced in the month of August last. Taitapu Gold Estates (Limited). —This freehold property of 80,000 acres is an English company. Mr. J. Carroll is the company's mine-manager, and Mr. N. L. Buchanan is the company's attorney here. Golden Blocks, Taitapu (Limited). —Mining operations on this property do not maintain their previous standard in value. Minor Operations and General Remarks. —Individual|mining, as it was known a few years ago, has nearly disappeared from this district, this branch of the industry being now only represented by a few miners known as " hatters," in some of the lonely gullies. Prospecting. —A considerable amount of prospecting has been done during the past year, both in the Collingwood and Takaka Counties. There were at the beginning of the year 1906 no less than six prospecting licenses still in force, covering an area of 500 acres, and there were nine prospecting licenses granted during the year over an area of 600 acres —two in Collingwood County and seven in Takaka County, and there are on the file five applications for prospecting licenses for hearing at the next sitting of the Court over an area of 400 acres. Three are for areas in Collingwood County and two in Takaka County. Takaka Subdistrict. Nineteen applications for mining piivileges were issued during the year ; seventeen were granted and two withdrawn. At Upper Anatoki six prospecting licenses were granted, and two water-race licences. Prospecting for quartz reefs is vigorously proceeding, and some nice specimens have been brought to Takaka. At Waingaro several parties were out this summer prospecting for reefs; several were found, but whether payable or not has to be proved. All the gold brought from there is of a nuggety nature, impregnated with quartz. The great difficulty in prospecting there is the rough and hilly nature of the locality and the absence of tracks to get up provisions, which at present have to be carried on men's backs from West Takaka. The Hidden Treasure Claims are idle since the death of Joseph Jacobsen, and some of the ground has been taken up for iron-deposits by Messrs. Jones and Wayne. Motoeka Subdistrict. There have been no fresh developments of the gold-mining industry in this part of the district since the date of my last annual report, and only three or four persons have been employed during the year. A mineral-prospecting warrant over 1,000 acres of ground in the Mount Arthur Survey District was granted to an Auckland syndicate in order to prospect for asbestos, a lead of which has been known to exist for some years past. The syndicate have two men engaged prospecting the lead, but some time must necessarily elapse before the extent and value of the deposit can be determined. No other mining privileges were applied for during the year. The Iron Industry. On tho 2nd October last year there was granted to Mr. Thomas A. Turnbull a mineral-prospecting warrant for five years over 860 acres of iron-bearing land south of the Onekaka Stream and Cadman's lease. This area is rough and mountainous, rising from 200 ft. above the sea at its northern end to ■3,000 ft. at its southern, and it is densely covered by native bush, principally scrub and birch. Here and there along the principal ridge bare knobs of iron-ore are exposed. With Mr. Turnbull are associated Mr. G. Wayne, colliery-owner and engineer, and Mr. J. Beynon Jones, of Dowlars and Swansea, South Wales. lam led to believe that an application for a mineral lease will be made almost at onct. Cadman's Lease. —About £1,200 has been expended by the Public Trustee, who holds the property as executor of the late Sir A. J. Cadman, in preliminary work, and I hear on good authority that the whole