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ever, operations have been suspended owing to the high state of the river. It is intended shortly to begin again a little lower down the river, the proprietors having lately taken up the claim originally occupied by the Gentle Annie Company Caedrona. Mining in the Cardrona Valley has not improved during the past year. Much is expected, however, from the operations of the Criflel Lead Company on the Criffel Pace, opposite the Cardrona Township. The company has been vigorously prosecuting their work, and have been to considerable expense in preliminary operations in connection with the undertaking—water-races have been made, old ones have been improved and repaired, tail-races have been constructed, and an efficient hydraulic, plant placed on the ground. Some difficulty has been experienced owing to the unstable nature of the ground, which has a tendency to slip away as work proceeds, but the management are confident of overcoming this difficulty. There are at present thirteen men employed. The races are three and a half miles in length, and give the right to the use of thirty heads of water, but owing to the shortness of the supply not more than twelve heads are at present available. The Lone Star dredge is the oidy one at work in the Cardrona Valley, and has been kept regularly employed. Little and party are still working their hydraulic-sluicing claim in the old bed of the Cardrona River. They have a fine supply of water, brought on to the claim in iron pipes, and a complete plant for hydraulic sluicing and elevating. Operations have, however, proved far from successful, and workis being carried on in the face of great discouragement. Cromwell. During the year ended the 31st December, 1906, there were granted ten dredging claims, fourteen alluvial claims, and four quartz claims, as compared with twelve dredging claims, nine alluvial claims, and no quartz claims during the previous year. From these figures it would appear that, while dredging is on the decrease, the number of alluvial and quartz claims is more than proportionately increasing. A few large areas were taken up in the hope that the black sand which is found in great quantities in several parts of the district could be profitably worked owing to the presence of tin and other minerals, as well as the gold, but I understand that the reports made upon some samples that were sent Home for analysis were not sufficiently encouraging. Some very fine specimens of antimony have been got on the Carrick Range, and a special claim and three prospecting-areas have been taken up for the purpose of thoroughly testing this important find. Great activity has been displayed at Bendigo, a Dunedin syndicate having acquired several rights in the locality, and it is proposed to carry on extensive hydraulic sluicing. The old quartz claim there has lately been worked for scheelite, which is believed to have been found in payable quantity. The dredging returns for this period must be looked upon as disappointing. The high state of the river during the winter months has militated against steady and continuous work. This has contributed largely to the comparative smallness of the returns from the electric dredges on the Kawarau River. On the Molyneux the two dredges left—the Hartley and Riley and the New Alpine Consols — have had a fairly successful year. The three dredges that were taken from the Molyneux to the Clutha above Lowburn have had short and unsuccessful careers, and none of them are working at the present time. The Rising Sun dredge and the two Rise and Shine dredges have all been working steadily, and have paid dividends. The Punt and Revival dredges have not had a good year. Comparatively speaking, the most encouraging work for the period has been done by the Clutha River dredge, working on the river close to the borough. The Junction Electric Company had a very disastrous year, having lost one of its dredges which was getting about 50 oz. a week. This company's claim has since been acquired by the Electric Dredging Company. Another of the Junction Electric Company's dredges has been working at the mouth of the Kawarau River, but has not paid expenses. A new company, called the New Cromwell Dredging Company, was formed for the purpose of acquiring the third dredge belonging to the Junction Electric, and of working a claim with it on the Kawarau River, near Bannockburn ; but the venture proved unsuccessful. In the Nevis district miners, both dredging and sluicing, have had a good year. In spite of the dry season experienced elsewhere, there has been no want of water, and the sluicing claims have quite kept up their average. The old Ngapara 111 dredge, now owned by the Lower Nevis Dredging Company, has had a better season than formerly, and all the other Nevis dredges have had a good season. At Upper Nevis the Crewe Company's dredge has not been as successful as was anticipated, but all the sluicing claims have done very well during the past year. A company called the Ben Nevis Sluicing Company has taken over Mr. Me Williams's mining rights in that locality, and intend to carry on operations on a more extensive scale. Dredging. In consequence of the high state of the Molyneux River duiing the whole of the past year dredging in the gorges has been practically suspended. The stretches of the river mostly affected embrace the claims upon which the Monte Christo at Clyde, and the Moa, Manuherikia, Sailor's Bend, First Chance, Bendigo, and the Fourteen-mile Beach dredges at and below Alexandra arc situated. The whole seven dredges only succeeded in obtaining 1,245 oz. during this period, more than half of which quantity was won by the Fourteen-mile Beach. Such disappointing results from these dredges are not altogether the consequence of the unfavourable state of the river, and much less arc they so from the absence of gold in the river-bed. Two dredging claims of three miles of the river have recently been applied for, including portions of the gorge upon which smaller dredges have worked with not very satisfactory results.