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As so very few persons have been engaged in the work, a very small portion of the valley has been searched, and none of those employed have as yet dug down to the surface of the rock where the large pieces of gold lie deposited. All the gold which has hitherto been found has been taken from among the loose gravel and sand, and consists of the lighter particles. I have no doubt but that when more people arrive and the search is conducted steadily and systematically, gold will be found in very remunerating quantities.

I also enclose a letter addressed to Mr. Heaphy from the Messrs. De Thierry, who report having found Gold at Waioa, at a distance of thirteen miles south of the Kapanga River.

I have, &c.,

(Signed) C. W. Ligar,
Surveyor-General.

The Honorable
The Colonial Secretary,
&c., &c., &c.

Kapanga River Diggings,
Coromandel Harbour,
4th November, 1852.

Sir,—I have the honor to furnish for the information of His Excellency the Lieutenant-Governor, the annexed tabular report of the work at this Gold-field since my arrival.

I have much pleasure in stating that wherever I and the Messrs. Ring have “prospected” on the Kapanga and its Eastern tributaries, we have found gold, and that the greatest number of flakes in the prospecting dish, appeared upon washing some earth yesterday, at a bar about half a mile lower down the stream than where the path from Kiko Wakarere strikes it; and below all the present diggings.

From the table it will be seen that Mr. Coolahan and party who have worked with much energy, have apparently averaged fair daily wages by their digging. They labour under the disadvantages of the absence of proper troughs, pumps, and the means of raising the heavier rocks. A more complete equipment would enable them to economize the labour of one man.

The party of Messrs. Ring, and myself, are rather “prospecting” and examining the Ravine, than digging continuously, and thence the fluctuation in the daily yield of our workings.

The gold appears to come chiefly down the main stream, the tributaries, as far as they have been examined, appear less rich, although the gold is disseminated over the whole district immediately East of the Kapanga.

The clay banks of the main stream, to a height of two or three feet above the water, contain gold, but in such small flakes as not to be preserved in the ordinary method of washing. The nuggets and heavier grains are invariably found below the level of the water; and the nearer to the bed rock the excavation is carried the more plentiful is the yield of gold.

The gold is in dust and nuggets. The larger nuggets are chiefly of gold richly ramified through yellow quartz.

The formation of the whole district is granitic. The bed of the Kapanga consists of rocks of quartz, trap, and a blueish granite; the latter containing much iron pyrites.

The implement most effectual in economising labour is the “Long Tom,” or trough strainer; cradles are but of little comparative service.

As the most advantageous manner of working the field I would submit the following plan, viz.:

That when the water is low, in the forthcoming summer, the stream be diverted, and carried in a lead by the side, and above its present bed. That where the ravine is too steep to admit of a side cutting, the water be carried in wooden troughs. That by such means the bed of the stream shall be laid dry for excavation. That the troughs and lead be made by the diggers: each party supplying an additional length, proportionate to his working ground, the present channel being tortuous, the troughs need not be equal to it in their collective length.

That beams be laid or trees fallen across the ravine in order that the heavier rocks might be raised by a purchase, and so the bed rock be laid bare.

Such a systematized manner of working could, I am confident, be carried on by the diggers themselves. The plan is not more difficult of accomplishment than those adopted by the California miners, who from the scarcity of timber frequently use even canvass for the material of the troughs.

The great fall of the stream and the abundance of Kauri timber on its banks, would much facilitate the accomplishment of the plan.