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has this year been awarded in this school to Mr. Charles Mann, a student in chemistry, assaying, and metallurgy. In conclusion, I have pleasure in thanking those who have given assistance to the school during the year by presentation of minerals, ores, and rocks. I have, &c, Sidney Fry, Director.

(d.) REPOKTS OF WATER-RACE MANAGERS. Mr. Jambs Rochfoed, Manager of Waimea-Kumara Water-races, to the Under-Secretary, Mines Department, Wellington. Sir,— Kumara, 25th April, 1907. I have the honour to forward the following report on the working of the Waimea-Kumara Water-races for the financial year ending the 31st March, 1907 : — Waimea Race. The cash received for sales of water from this race for the year ending 31st March, 1907, was £571 14s. 5d., and the expenditure for the same period on gauging, maintenance, and repairs amounted to £622 Is., showing a debit balance of £50 6s. 7d. on the transactions for the year. The average number of miners supplied with water from the race for sluicing purposes during the year was 2575, showing a decrease of 2-16 as compared with the previous year; and the approximate quantity of gold obtained by them was 1,626 oz., having a value of £6,341 Bs. The total sales of water for the year amounted to £544 os. Id., or £41 4s. 3d. less than the previous year. The falling-off in the value of the sales of water is due to the fact that the Waimea Hydraulic Sluicing Company only sluiced for six months of the year. The quantity of gold obtained was, approximately, 134 oz. less than the preceding year, representing a decrease in value of £522 12s. The cash received for sales of water was £52 4s. 9d. less than during the previous year. The expenditure on gauging, maintenance, and repairs was £36 4s. Id. less than during the preceding year, and the head-works at Wainihinihi and Kawhaka, and the Waimea siphon, the flumings and tunnels, and the main and branch races have been maintained, and are now in good working-order. All the parties using water from the Stafford portion of the race are Chinamen, and the revenue derived from this section shows an increase of £7 over the previous year. Owing to the depth of the ground, the area sluiced away annually is very small, so there is still plenty of unworked ground in the locality, which will probably pay fair wages, and I do not anticipate any falling-off in the demand for water for some time to come. At Tunnel Terrace, in the Goldsborough portion of the district, there are six parties using water from the race, and the results for the year have been fairly satisfactory. There is still a large area of payable ground in this locality commanded by the Government race, and I feel satisfied that the demand for water will not only be maintained, but that the sales of water for the ensuing year from this section will show a substantial improvement. The tributers of the Waimea Hydraulic Sluicing Company used water in their claim on the terrace above Goldsborough from April to August, 1906, when they abandoned the ground, as it was found that payable gold did not run back into the hill, a contingency which I mentioned as probable in my last annual report. The company immediately took up another area, at Scandinavian Hill, and after the Department had agreed to the extension of the Waimea Water-race they removed their valuable plant, and laid down a siphon, about a mile in length, to convey water on to their new property. This was a big undertaking, and the company deserve every credit for their enterprise ; so far, they have only had one short washing, but I understand the result was satisfactory. The Waimea Water-race was extended during the year for a distance of 27|- chains (including 5 chains of siphon) along Tunnel Terrace Hill, to enable the Hydraulic Sluicing Company to siphon the water across the Waimea Creek without interfering with any of the claims at present sluicing at Tunnel Terrace. The estimated cost of the extension was £147, and the work was carried out for about £18 under the estimate, but the balance of the grant was expended in increasing the carrying-capacity of the old race between the new extension and the company's old gauge-boxes. The party of Chinamen at Red Jack's are still taking water from the race. No stoppages from breaks occurred during the year. Notwithstanding the fact that the year was exceptionally dry, the water-supply kept up splendidly, the Waimea siphon being practically full during the whole time. The demand for water was not as great as last year; this was due to the fact that three claims ceased sluicing operations at Middle Branch Flat, and the Hydraulic Company were engaged for five months of the year in removing and re-erecting their plant. No free water was supplied from this race during the year. The following is a summary showing the revenue and expenditure in regard to this race for the financial year ended 31st March, 1907 :— £ s , a. Sales of water .. ... .. .. .. .. .. 544 0 1 Cash received .. .. .. .. .. .. .. 571 14 5 Expenditure .. .. .. .. .. .. 622 1 0 Approximate value of gold obtained .. .. .. .. 6,341 8 0 Average number of men employed, 2575.