"In my recent visit to the south part
to the Province of Otago, I found gold
very generally distributed in the gravel
and sand of the Mataura River, at Tutu-
raui; and from the geological character
of the district, I am of opinion that a rem-
unerative gold-field exists in the neighbor-
hood."

No effort was ever made to test the
value of this discovery. Indeed, the
policy of the Government at that period
appears to have been adverse to the encour-
agement of what is termed "prospecting"; for the Superintendent, in his
address to the Provincial Council (Decem-
ber, 1856), commenting upon Mr Ligar's
statement, observes that—

"In no circumstances would it be advi-
sable to allow a searcher to go upon a
run without leave of the lessee, or upon a
Native Reserve without leave of the
Natives."

Still, from time to time, vague rumours
were circulated of gold being found in
the mountain streams, and individuals
occasionally brought into Dunedin small
quantities of the precious metals. These
circumstances, however, attracted very
little attention, for the sufficient reason
that the "finds" were inconsiderable.
The Chief Surveyor—Mr. Thompson—in
his Report on the Reconnaissance Survey
of the Southern Districts, states that
"the existence of gold is undoubted," but
adds—

"I have nowhere yet known of indi-
vidual success at the occupation of gold
washing or digging as a business, nor
have I seen above the small fraction of an
ounce in the hands of any one."

Mr. Thompson tried the sands and rocks
for gold in various localities, without
success; but when it is considered that
his only implements were knives and
pannikins, this result is not surprising.
However, on the Waiau River, near the
Limestone Gorge, one of his assistants
obtained a single speck, the residue of
the sands consisting of black grains—
probably magnetic iron—"and a few
small crystals not unlike the garnet."

More ample confirmation of the pres-
ence of gold was at hand. In the
months of October and November, 1857,
and during the early part of 1858, Mr.
Alexander Garvie—late Assistant-Surveyor
—executed a reconnaissance survey of the
South-eastern Districts, and in his very
full and complete report, he remarks
that—

"The eastern portion, from the coast to
the Manuherikia, appears to be composed
almost entirely of rocks belonging to the
mica-schist systems. Towards the south-
west, clay, slate, and altered rocks appear,
as at Tapanui, the lower part of the
Pomahaka, and the Clutha, below the
Tuapeka. . . Traces of gold were
found in the gravel of several of the
streams and rivers. The trials were all
made on the very surface, at such odd
times as would not interrupt the proper
work of the survey, by one of the party
who happened to have previously visited
the Australian gold-fields. The gold
found was in every case small and scaly,
varying from the smallest specks to about
the roughness of bran. . . It was
found in the Clutha river, above the junc-
tion of the Manuherikia, and in the
Tuapeka stream, in sufficient quantities
to make it probable that it would pay to
work if set about in a proper manner,
with some wholesale system of washing,
such as sluicing. Specks were also found
in the Manuherikia, Pomahaka, and Waia-
tahuna. . . Along with the gold
was found black sand, in some places fine,
and resembling emery; in other places
coarser, and sometimes in square block
crystals."

The person of Australian experiences
referred to by Mr. Garvie was a Mr.
Buchanan, now a resident in Dunedin.

I cannot but regard this as the first
practical demonstration of the mineral
wealth of Otago. Earlier explorers had
merely ascertained its existence, but here
was sufficient evidence to have satisfied
the most incredulous. The announcement
was however unheeded at the time, and it
was reserved for Mr. Gabriel Read and
Messrs. Hartley and Reilly to develope
the hidden treasures of which Mr. Garvie
undoubtedly intimated the presence, al-
though he was probably unaware of the
importance of his discovery.

In a foot-note attached to Mr. Garvie's
report, the Chief Surveyor states that the
best sample of gold which had then been
brought into town was found in the south
branch of the Tokomairiro River. "This
sample," adds Mr. Thompson, "indicates
a workable gold-field." The locality
referred to is now known as the Woolshed
Digging%, where a native of Bombay,
named Edward Peters, was in the habit
of obtaining small quantities of gold
from sands of the River.*

In the same year—1858—the Chief
Surveyor discovered gold in the Lindis
River, a circumstance to which he publicly
referred in a lecture subsequently deli-
vered at Dunedin. Traces of gold were

• I am informed that Peters also obtained
  gold from a gully on Darby and Bowler's run, near
  the north bank of the Tuapeka River, and con-
  sequently not far from Gabriel's Gully.