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machinery, and, if sufficiently rich, doubtless it will
be worked extensively. There is another reef, about
fifty yards from the large one, and apparently
running in the same direction, but whether it is
gold-bearing or not, I cannot say, as it has not been
thrown into.

"I only arrived here a few hours ago, and have
had a very little chance of examining anything; but
I thought it would be satisfactory to you to hear
from me by the earliest possible chance, particularly
as my examination so far is exceedingly satisfactory.
I will spend another day or two, and then return if
nothing further turns up.

"I have, &c.,

"JAMES BURNETT.

"Blue Creek, October 18, 1869."

With the kind assistance of Mr. George Sinclair,
I have compiled a rough sketch map of the district,
from the junction of Rolling River with the Wanga-
peka, to the outcrop of reef on Culleford's claim
between Blue Creek and Nuggety Creek, (marked
B on the plan and section). It must be remembered
that this plan is only intended to give an idea of the
nature of the country and the position of the reef,
and must not be supposed to be accurate in details,
though the general features are sufficiently correct
to illustrate this report. I regret, exceedingly, that
I did not take an Aneroid Barometer, so as to ascer-
tain the height of the outcrop of the reef above the
level of the creek; the 800 feet put down by me
being merely a guess.

It will be seen from the plan and section, that two
reefs crop out in a small gully on a very steep hill-
side, forming a spur between Blue Creek and
Nuggety Creek; so far as I can judge, the direction
is a few degrees, to the west of true north, and as
it has been struck in two or three places there will
be no difficulty in ascertaining the general bearing
when a proper survey is made of the district.

A short distance up Nuggety Creek a large
quartz reef crops out very much resembling
the one on the hill, and apparently running
nearly in the same direction; so I have
presumed that it is the same, and, on this pre-
sumption, have presumed the supposed continuation of
the reef to the Wangapeka river, that is if it runs in
the same straight line, which of course is uncertain.
On the section, I have presumed that the reef con-
tinues down the level of the creek, at the same
angle as it shows itself on the surface, and possibly this
may be the case, and possibly it may be lost a few
feet below where it is visible; in short it requires
to be proved. All that we at present know is, that
two reefs exist, one of which I am certain contains a
considerable quantity of gold; and the other is said
also to be gold-bearing, and I do not doubt it, though
I have not actually seen it in the solid reef.

From its position, as seen on the section, the reef
can be very easily worked by driving from the steep
hillside, and till it gets down to the level of the
creek (if it can be traced so far) no machinery will
be required for pumping water, or raising material.
At the same time it will require much judgment and
discretion to lay off the various claims in such a way
that the natural advantages of the situation may be
secured; and that no artificial obstacles shall be
created by the conflicting interests of the various
claimants. Of course this can only be done after a
careful and accurate survey has been made of the
natural features of the locality, particularly of the
land between Blue Creek and Nuggety Creek, show-
ing the actual position of the outcrop of the reef as

far as it can be traced, and its perpendicular height
above those creeks. And as the ground is exceed-
ingly rough, and difficult to survey, a moderately
accurate plan will of course be expensive; and yet it
is absolutely necessary, as it is quite possible that
parts of this land may be enormous, and in the end
an inaccurate survey might cause endless litigation.
I have myself known a case on the West Coast where
a discrepancy of four inches on the boundary line of
a small claim was made a ground of action for heavy
damages; and three surveys were made before the
boundary line was fixed, and legal action taken in
the matter. While on this question, allow me to
suggest the propriety of surveying from the junction
of the Wangapeka and Rolling river to the quartz
reef; and a few miles up the Wangapeka itself,
in short, to get a correct plan of the district shown
on my sketch.

Of course it is not within my province to comment
on the complications which have unfortunately
occurred between the purchasers of land supposed to
contain this quartz reef and the men who have
actually pegged off claims on the ground, where it is
either known or expected to exist; but I may
mention that, owing to the peculiarity of the position
of the ground, it is quite possible that claims may
be selected in such a way that, if any, all
the claimants may reap any advantage from the
ground which they now fondly hope and expect is to
be the foundation of enormous fortunes. And this
I say, even supposing the reef to turn out as rich as
the most sanguine could anticipate, at all events
many will find that the blocks purchased or taken
up by them are not worth the purchase money and
cost of survey, which will necessarily be considerable.
My reason for forming such a strong opinion on this
point, is that quartz reefs can only be worked with a
considerable amount of capital, so that in most cases
the parties interested must form companies before
they can even commence operations, and as most of
the individual claims do not possess within themselves
all the advantages which would justify the expendi-
ture of a large capital they must remain unworked,
unless some arrangement can be made to combine,
and make use of the natural advantages of the
situation.

In my opinion, the best thing to do under the
circumstances will be for all the parties interested to
unite and form a large company, to test the real value
of the reef in any part of it which may be thought
advisable, each one sinking his individual interest in
exchange for shares in a largo undertaking, which
will test the value of the discovery, and cost
cost to each; and which, if successful, will secure him
a share in the profits such as he could not expect to
have from one of a number of small companies,
working under disadvantages, local and otherwise,
which will not be felt by a large concern enjoying the
combined advantages which might be secured by an
amalgamation of interests. Whether such an amal-
gamation is possible under the circumstances is
exceedingly doubtful, but without something of the
kind, I feel certain that most of those interested will
never receive the value of the money paid in pur-
chasing and surveying, or the time spent in shepherd-
ing their claims.

It is very probable that more reefs will be found
in this district, as quartz may be picked up in almost
every stream; and small strings and leaders are seen
in every direction; but owing to the very rough
nature of the country, and the dense bush, it is
exceedingly difficult to follow any indications which
may be discovered.