the older Gold-fields miners deserted payable claims, and for a brief period Tuapeka and Waitahuna were nearly deserted. That a re-action should occur was inevitable. It was hastened in this instance by the scarcity of provisions, principally bread-stuffs, which, of course, could not be procured in a remote district in sufficiently large quantities to feed an extensive population. Two shillings and sixpence was readily paid for a pound of flour; other stores were retailed at proportionate rates, and wood for making cradles sold at fabulous prices—as much as £3 having been paid for an old gin case. This drawback is even now only partially removed, and owing to the excessive rates demanded and paid for carriage from Dunedin, from £130 to £150 per ton, stores are only obtainable at extortionate prices. But these rates will, no doubt, undergo a gradual diminution as the field becomes supplied with stores during the ensuing summer. Timber of excellent quality (“white pine”) is now being rafted down from the extensive forests at the head of the River, on the shores of Lakes Hawea and Wanaka, an operation in which private enterprise has been stimulated by the timely offer of a bonus given by the Government.

In spite of every difficulty, about 3,000 miners remained to test the field, and a large quantity of gold is expected to arrive by the first escort.

The auriferous country discovered by Messrs. Hartley and Reilly is at the western base of the Dunstan Mountains. It has, therefore, received the name of the Dunstan Gold-fields, which more nearly indicates its precise locality than any other.

In September, another discovery was communicated to the Provincial Government, by Mr. James Lamb, one of a party of six Victorian miners, who brought to Dunedin about 28 ounces of coarse nuggetty gold, obtained at Moa Creek, on the Nokomai River, itself a branch of the Mataura. His application for a prospecting claim was favourably received, and an area of 200 feet square (equal to 4,000 square feet) was allotted to the party.

Contiguous to Moa Creek is a large extent of apparently auriferous country, bordering on the Nokomai, and extending over the dividing range through the valley of the Nevis Stream to the Kawarau River, along the lower portion of which parties of miners are working with satisfactory results. It is, therefore, probable that the Dunstan and Nokomai Gold-fields will be united by a continuous series of gold-workings.

These discoveries have attracted great attention in the Australian Colonies.

During the month of September 4,800 men arrived here from Victoria and New South Wales, in addition to about 1,000 from the other Provinces of New Zealand.

Having thus traced the history of the gold discoveries from their commencement to the time of my report, I will now proceed to detail the actual results.

The following table shows the quantity of gold exported from Dunedin in the five twelve months monthly: from August 1861 to July 1862, inclusive:—

In addition, 1208 ounces 12 dwts. of gold, the produce of Otago, were exported from extra-Provincial ports, making the total 458,448 oz. 18 dwts.

It is worth while to remark only the Escort Returns for the same period show an amount of 391,599 ounces 18 dwts., being 62,640 ounces 8 dwts. less than the quantity exported; a difference equal to 15 per cent, irrespective of gold on deposit at the office of the Gold Receiver, and that in the hands of the Banks and private holders. We may, therefore, reasonably assume that not more than four-fifths of the gold actually raised is transmitted to Dunedin by the Government escort.

Reckoning 20,000 ounces to the ton, the total aggregate of the year’s produce, as exported, amounts to 19 tons 204 pounds, representing a value of £1,833,792.

In order to form a correct estimate of the position which Otago occupies as a gold producing country, it is necessary to institute a comparison. For this purpose, I have selected the colony of Victoria, the mining records of which are more complete and reliable than those of either New South Wales or California.

In 1852, the yield of gold in Victoria, considered relatively to population, attained its maximum, the yearly average per man being estimated at £233. Since then the decrease has been gradual. In 1860 the adult mining population was officially stated to consist of 108,562