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junction of the Tuapeka River with the Clutha. W aitahuna is well supplied with lignite, obtained from the flat in the vicinity of the township. At Waipori trees are found imbedded in the soil a few feet below the surface, and so well preserved are these as to be available for any purpose. On the Tokomairiro Plains an extensive deposit of lignite is now being worked; and at Coal Creek, in the Highlay District, the same mineral crops out of the banks throughout the Province; and by a little judicious outlay for roads, timber may be brought within the reach of our miners in almost every locality.

Administrative and Legislative.

During the session just concluded the General Assembly of New Zealand passed a new Gold-fields Act, which it is believed will in some degree amend the defects of the present unworkable Act. The Regulations formerly in force have been cancelled, and an amended code issued. One Mining Board—that of Gabriel’s District—has been established, and the election of members took place on the 24th April. Bye-laws have been drafted, but not yet finally passed by the Board, and consequently the old Regulations still remain in force upon that part of the gold-fields. The recent “rushes” have prevented the establishment of similar institutions elsewhere; but it is hoped that when the miners become more settled, they will avail themselves largely of the power to legislate for the regulation of the gold-fields.

I have elsewhere referred to other important changes.

A Mining Surveyor has been appointed for the Tuapeka, and the beneficial effects of his presence there are already beginning to be felt.

The Nokomai and the Dunstan gold-fields have been proclaimed in the Gazette. To the former district Mr. Commissioner Worthington has been appointed, and the district of Waipori—formerly under that gentleman’s charge—has been temporarily merged in that of Waitahuna. Mr. Keddel has been appointed to the Commissionership of the Dunstan field, for which office he had previously evinced his fitness, whilst in charge of the district pro tem.

Prospecting.

Three prospecting parties were fitted out by the Provincial Government in the month of April.

The first, under the leadership of Mr. H. Stebbing, explored the country north of Tuapeka; and on the 18th August it was reported that he had discovered a payable gold-field extending from the head of the Teviot stream to the junction of the Clutha and Manuherikia Rivers.

Another party, headed by Mr. John Meade, crossed the Clutha from Waitahuna, and proceeding towards the Mataura found good prospects on Waikiki Creeks, from two to four grains of gold to the pan being obtained from every gully tried. Respecting this locality Mr. Meade reports:—

“Some of the gullies are more than a mile long, all containing a little gold, and though they would not permanently occupy the labor of many miners, yet they would be gladly sought after in Victoria. During the time of working, men might realise from £2 to £3 per week. This is writing within bounds. . . . On every side the country looks favorable for prospecting; but we have been particularly directed to Waikiki and Otaria Creeks. From what I have seen of Otaria Creek, I highly approve of it.”

In a subsequent report he states:—“I am thoroughly convinced that good sluicing ground exists in the neighborhood.”

A third party was despatched from Waipori, and prospected the head of the North Taieri Plain, finding gold in small quantities wherever they tried for it.”

Mr. Gabriel Read has also furnished the Government with an account of his explorations since September, 1861, from which I extract the following passages:—

“I found gold in small quantities on the Waipahi, near its junction with the Pomahaka, and also on the latter river. . . .

“My next journey was to the Landslip Hill. I could wash fine gold in every place I tried, but was not able to attain to the slate bed rock. The creeks are full of lignite, by breaking up the surface of which, and washing it in the prospecting pan, I could obtain as much as sixty or seventy minute scales of gold. . . . I am of opinion that the hills throughout the whole range of runs 167, to the north of the Landslip Hill, will some day be valued for their auriferous treasures. . . .

“Passing to the right of Mount Wendon, I struck the Lathan, at Mr. Manley’s station. In the slate laid bare in the bed of this stream, very minute gold may be washed out in every pan.

Mr. Read also tried the Okapua, Wendon, and Otaria streams, and found light gold, intermixed with magnetic iron sand, in all of them.

Deep Sinking.

Alluvial gold mining in Otago has hitherto been confined to workings in the newer tertiaries, at a moderate depth. Below these, older tertiaries—constituting a second bottom—are now known to exist. Whether the