S.S. 'Tauranga', 15th May, 1868.

SIR,—I have the honor to inform you that, in consequence of a report received from Mr. George McLeod, that he had discovered alluvial gold at Kennedy Bay, I left Auckland for that place by s.s. 'Tauranga' on the 11th instant, and arrived there early on the 12th inst.

The lands at Kennedy Bay belong to a section of the Ngatiporou tribe, who are connected with the Waiapu natives, but they were located at Mataora and Harataunga (Kennedy Bay) by the late Chief, Paora te Putu. I therefore entered into negotiations with the chief Ropata Ngatai and his people, as soon as possible after my arrival there, with a view to obtaining from them a lease of their lands for gold mining purposes, and succeeded in arranging with them to open up the district on the same terms as those which had been made with the Shortland natives.

On the 13th instant, I proceeded up the valley of the Harataunga for the purpose of inspecting the ground prospected by Mr. G. McLeod. For the first two miles the river Harataunga runs through a fine block of flat land very suitable for a township; the eastern side of this has been leased from the Natives by Mr. James Smart, and the western side is reserved for Native cultivation. The river has, generally, a north and south course. At the southern extremity of the land leased to Mr. Smart, the gold field commences; the line skirting the base of the Konaki range to Tuarawera, thence crossing the Harataunga river at the junction of the Waimoho stream, the western boundary of the Native reserve forms the eastern limit of it. The Harataunga river is fed by five tributary streams of some size, and others of minor importance. Of these, the Kupanakaitaha and Waikoromiko come from the eastward, and the Waimoho, Rongo o te tapa, and Waiwhakaata from the westward. In the Kupanakaitaha, Waikoromiko, Rongo o te tana, and Waiwhakaata, alluvial gold has been found by Mr. George McLeod and his party. Mr. William Hill and his party also got alluvial gold in some of the other branches. The natives procured both reef and alluvial gold from the Waimoho stream. I visited McLeod’s claim in the Waikoromiko, and, from the prospects obtained in my presence, am of opinion that alluvial gold exists in payable quantities. I am not however sanguine that any very rich workings will be found, still I believe good wages may be made by three or four hundred men, by creek and bank mining. Mr. McLeod handed me about seven or eight ozs. of coarse gold, which he had obtained during the period he has been prospecting the district. Some portion of this gold is well water-worn and the remainder has not been so long separated from the reef. There are at least four different classes of gold in this sample, varying in value, apparently, from £2 15s. to £8 10s per oz. I saw several reefs and leaders, the stone in which looked promising, but as yet no gold has been found in any reef, excepting one discovered by the Natives on the Tauihu ridge opposite the junction of the Waikoromiko and Harataunga rivers.

The general appearance of the upper branches of the Harataunga river, as regards formation of rocks, and the character of the gold, is very similar to that of the rocky river on the Collingwood Gold Field, Nelson, and in this view I am borne out by McLeod and other miners, who with myself have had some experience of that locality. The rocky river was as a whole a payable one, the gold was not however evenly diffused throughout it, but was found in patches.

Under all the circumstances of the case, I considered the discovery of sufficient value, to warrant my awarding to Messrs. McLeod, Brimner, Keir, and McGregor, four additional claims as a reward for prospecting; to Messrs. Hill, P. McGuire, J. McGuire, and Matchell, three additional claims; and to the Natives Wi Paikea, Eruena, Perepe, and another, two additional claims.

At the present time there are upwards of one hundred men on the ground, who are engaged in prospecting and marking off claims. Provisions can be readily procured at Mr. Patterson’s store, near the saw mill, and Mr. Macready has opened a very good hotel.

I have for the present left Mr. Spencer, Acting Interpreter in the Civil Commissioner’s Office, to transfer Miners’ Rights, and attend to any question which may arise in the laying off the boundaries of the Gold Field.

These have, however, been all arranged; only the surveyors, Messrs. Gwynneth and Carver, not being acquainted with the Maori language, might have some difficulty in understanding the natives who are employed to assist in the survey. Mr. Gwynneth will lay off a small township at the southern side of the river, on the land leased to Mr. J. Smart, this being the most eligible site for the Gold Field on that side. I have, however, little doubt but that the field will extend northward towards Cape Colville, on to the lands owned by the Ngatitamatera and Ngatiwhanaunga tribes, which have been previously ceded for gold mining. I would therefore beg to suggest the propriety of proclaiming the whole block extending to Cape Colville to be a gold-field under the provisions of the “Gold Fields Act 1866,” also including within its limits the Coromandel Gold Field—and forward herewith a description of the boundaries.

Pending any further arrangements, I have written to Mr. Lawlor, Warden at Coromandel, and requested him to proceed to Kennedy Bay, to take charge of the Gold Field.

I have, etc.,

James Mackay, Jun.,
Civil Commissioner.

His Honor the Superintendent,
Auckland.

Printed under the authority of the Provincial Government of the Province of Auckland, by W. C. Wilson, Wyndham-street, Auckland, Printer for the time being to the Provincial Government.