other tunnels, probably 200 feet each in length, have been driven, the one east and the other west of the creek.

About half a mile of fluming brings the water to the feed-pipe, and although, from the very unusual scarcity of water, the work done has hitherto been small, there is little doubt but that the creek in ordinary times will keep the whole sixteen stamps at work.

The "British American Company" have temporarily discontinued work, but the following is a statement of what has been done towards opening up their mine:

The stone crushed from the original works was 450 tons or thereabout, the yield of gold about 370 ounces, the average being about 16 dwts. per ton; but it was found, in stooping out, that at the depth of about 40 feet the stone became so hard as to render it difficult to work to profit at that yield. A prospecting shaft was then sunk to a depth of 70 feet, about 600 feet distant, and nearer the Scandinavian Lease, from which a drive of 100 feet was run into the reef, which was found here to be about three feet wide, and very well defined; eight tons of stone only were taken from it, which, on being crushed, yielded 10 dwts. per ton. This portion of the reef is easily wrought, and the stone not hard to crush. It is also most conveniently situated for conveying the quartz to the machinery. Afterwards two drives, each about 200 feet in length, and 300 feet apart, were entered between the shaft and the western end of the claim, which work was done on account of very rich stone having frequently been picked from the surface of the slip which here covers the bed rock; but the reef not having been met with so soon as it was anticipated, the work was discontinued, owing to the difficulty of driving through the massive rocks composing the slip. The Company are now intending to return to that part of the reef discovered by the shaft, as it is more contiguous to the machinery than any other part of the reef known.

The machinery of this Company consists of twelve stamps worked by a Whitelaw’s turbine, four feet in diameter, the head of water is 40 feet, and the supply pipe two feet in diameter; the water is brought about thirty chains by wooden fluming, and an inclined tramway of 1,300 feet is laid on the slope of the hill, down which trucks of quartz are lowered to the mill.

The aggregate horse-power required to keep the three batteries at work is about 70, and the value of the three plants about £24,000.

I cannot give a description of the other reefs, not having visited them for a considerable time; but prospecting is going on at the "Nugget Lease," and at the claim of the "Justin Reef" prospectors, the latter company had a trial crushing yielding six dwts. to the ton. The stone from the "Nugget Reef" is still shewing well. A trial crushing has been made of the stone from the "Prince of Wales Reef," the result being 15 dwts. per ton for ten tons.

None of the trial crushings have equalled the expectations of the shareholders, nor, I imagine, have the yields from those claims that have machinery in connection with them; but, provided the stone continues of equal extent and richness as that hitherto obtained, there is very little doubt of these reefs being good investments. An adequate water supply is now all that is required, and I trust that spring will bring with it the only thing needed to render the working of them profitable.

The principal terrace workings are on the west side the Shotover, between Stapleton’s Beach and Skipper’s Point; on the west side of Skipper’s Creek; east and west of the Shotover, from Skipper’s Point to the Sandhills at Moke Creek; Few’s Creek, Simpson’s Creek, and the Bucklerburn. Both sluicing and tunnelling are adopted in carrying on this class of work.

The terraces between Stapleton’s Beach and Skipper’s have been found to contain gold remunerative to a depth of 150 to 200 feet below the surface, besides other runs not so deep. Matthews and Company, who are working an extended claim on the Race Course Terrace, north of Maori Point, have drives to the extent of one thousand feet, the main level running northward upon the deepest run. Leyden and Company, whose lease is adjoining, are sinking a shaft which will probably be 200 feet when the wash-dirt is reached. This same run of deep ground is found intersecting all the creeks crossing the terrace formation between Maori Point and Skipper’s Point. In Pleasant Creek, Brown and Company, with a supply of water brought from Pleasant Creek at a point about two miles up, have been for the last twelve months engaged in extensive sluicing operations upon the same lead, and have stripped the ground to a depth of 180 feet, with excellent results. An area at Skipper’s Point now held under lease by "Abrahamsen" has been worked for nearly four years also, on what appears the same lead; no regular or distinct gutter exists, but a succession of deep crab-holes with very rich patches of wash-dirt at intervals on the rock bottom, the drives are of very considerable extent, entering towards the north and intersecting the ground in all directions.

The "Mountain Race" has been extended a distance of two miles or more, making its length about six miles. The ground being worked is a terrace close by Butcher’s Gully, being at an elevation of six or seven hundred feet above the Skipper’s Creek. The Aylmer Race, from the same source is sluicing away some very good ground. These two Races have been the most costly of any in the District, on account of the broken nature of the country and of the great extent of fluming used in their construction, in fixing which the workmen were suspended by ropes while they drilled the rock for fixing the brackets on which some of the boxes stand. Each of these Races will carry from 180 to 200 cubic feet of water per minute.

A new race is being constructed from the creeks on the east side of the Shotover, at Sutherland’s Beach, the ground to be worked being a terrace on the western side of the river. It is intended to cross the river by a flume suspended on wire ropes, the supports being 700 feet apart. The flume will be, perhaps, 200 feet above the river. Two such flumes, of less span, are in existence, the one at the Shotover at "Spratt’s Lease," and the other over Sawyer’s Gully at "Aspinwall’s Lease," the former being about 300, and the latter 150 feet long. Canvas is used in both instances for conducting the water.

At the little lake above Frankton, "Johnston’s Lake," a considerable amount of ingenuity has been used in adapting this lake to the purpose of a reservoir. A dam has been thrown across the natural outlet, fitted with a sluice gate, from which is cut a race from the ground under work. All the small creeks in the locality have been diverted, and races cut round the sidlings to catch the storm waters, which are thus brought to the reservoir. The surface of this lake is from 60 to 70 acres in extent, and the ground under work is on some of the sections of block II.

A race capable of carrying four sluice heads has been constructed between Fern Kill Creek and the "One Mile," near Queenstown, in connection with "Johnston’s Lease."

There are a great many good water races employed on the terraces about Moke Creek and the several creeks running into the lake, and there is scarcely a stream falling into the lake or Shotover but is diverted for mining purposes. The deep lead at Fern Creek is being followed up by "Small and Company," and at Simpson’s (25 mile) Creek "Grant and Company" and others are working some of the best terrace ground ever opened in the district.

The estimated length of water races in the Queenstown and Upper Shotover Warden’s District is 170 to 180 miles; the cost of which would not amount to less than £30,000. These two Warden’s Districts include all under my charge.

The long-continued drought has seriously retarded the progress of mining both in alluvial and quartz workings. Few races have had a full supply of water, and many