a strong glowing heat—is durable, and possesses the property of retaining fire when smothered up for several days. The whole of the cargo shipped by the “Ann Jane” for trial has been mined from this bed.

4th, Black bas, No. 9—a hard, bituminous, black clod, 6 inches thick within the mine, but on the beach, when first cut through, 20 inches thick; and there contained a few imperfect fossil plants.

5th, The bottom coal, No. 10, is a fine bed, 4 feet 7 inches thick, appears to be of a superior quality, approaching very near to the Cannel coal of England and the Parrot coal of Scotland. It will probably prove a valuable coal for gas, bakers’ ovens, stoves, and other purposes. Being under water, great difficulty was experienced in cutting through to prove it. When the mine is effectually drained, this might be advantageously worked with the other beds.

The coals from all the beds emit a slightly sulphureous smell when first placed or broken upon the fire; but this may not be the case when they are worked at a greater distance from the sea. The ashes being white affords good reason to hope this; those from really sulphureous coals being red.

As regards the capability of the mine to produce quantity, it must be obvious from the great thickness of the seam and the extent of unbroken ground, that any demand that is likely to arise for some time to come may be supplied, supposing capital and skill to be brought into action.

The only real difficulty that presents itself arises from the weak, heavy, tender nature of the roof, rendered doubly so by the weight of water in the quicksand. This is a serious difficulty, and unless it can be removed may prove an insuperable one. That the quicksand and coal are both supplied with water from the same source is evident from the fact that when the coal was first touched by forcing a crow-bar through the quicksand, a strong rush of tar water immediately followed; and in cutting through the joints in the coal, they are found full of sand from above.

This being the case, it would be possible to find the feeder and cut it off, there being prop wood of the best description. In estimating the probable cost of the coal on the river bank, the expense of conveying it from the mine to the river forms a very heavy item; and should any considerable quantity be required, it would become necessary to substitute a cheaper and more expeditious mode of conveyance than by bullocks. The cost of a metalled road would be enormous, on account of the absence of material. A railway, then, appears to be the only alternative; and with a view to ascertain the practicability of one, I have carefully examined the nature of the ground and taken such levels as are necessary, and find it is admirably suited for a line, which may be carried from the mine delivery on a level to the river, except down the hill, near jetty, where a self-acting incline plane might be advantageously worked. A firm, well-framed timber railway, with iron bands, forms a cheap, serviceable, and durable line. The cost of carriage by such a line would be reduced to one-third of its present amount, including the interest upon the outlay.

I have estimated as nearly as circumstances will allow, the cost, including the Government royalty and a fair remunerating profit, at which the coals may be offered on the banks of the Clutha River, and have taken it in two ways.

1st, Supposing the coals to be continued to be worked upon the present imperfect system, and to be conveyed as at present by bullocks: in this case a less price than 20s. per ton would not be remunerative.

2nd, In the event of an adequate capital being employed, the most improved system of management and working to be introduced, and railway laid down, with proper conveniences for shooting the coals into the vessels, the price may be reduced to 12s. per ton.

I remain, with due respect,

Your Honor’s most obedient Servant,

JAS. GEO. LEWIS.

Printed for the Provincial Government by DANIEL CAMPBELL, Dunedin, Otago, New Zealand.