If you refer to my report of October 24th, 1861, you will perceive that I describe calcareous rocks, highly inclined on Messrs. Barton's and Riddiford's stations, White Rock and Teawhite. I had now clearly found the continuation of the same series; and more than that I had found "in situ," the dislocating and upheaving rock. The Hornblendic pebbles found in the bed of the Upoko Ngārurū must also have been derived from another variety of the intrusive rock of the same age; and from my previous traverse in that direction, to Messrs. Beetham's station, I have quite sufficient evidence to establish a line of dislocation and upheaval, extending about N.N.E. from the White Rock and Teawhite stations, the action along which line has exposed a series of calcareous rocks, thrown up the strata of the upper sandstones at an angle of 70°, and probably bent and folded a series of tertiary rocks which I was now approaching on the East Coast.

Descending from the calcareous ridge to the valley of the Whakatake the road follows that stream to the sea, and thence South to Castle Point. We now find a series of thin and soft beds of sandstones and mudstones, cropping out on the beach and in the valleys, sometimes nearly horizontal, and sometimes inclined at high angles. What relation these rocks have to the limestones and calcareous grits, I am at a loss to determine, for I could not here find a section which would throw light upon the subject. My impression is that they overlie the calcareous rocks and at the period of dislocation were rucked up on the back of the latter by the force of the upheaving power.

In these sandstones and mudstones I found small seams of coal and numerous impressions of vegetation, but none clear enough to be enabled to judge of their age, but as the coal-seams appear to be lignite, or brown coal, I have little doubt that we may put them down as of tertiary age. In fact I believe them to be of the same age and character, as the coal-shales of the Whanganui River, mentioned in my letter of February 17th, 1862.

The history and age of the calcareous rocks will I believe be best obtained on the Teawhite station, where they approach the sea. They must not be confounded with the upper tertiary fossiliferous limestone of Tepurapura and elsewhere, which seems to be found in patches only.

On January 23rd I examined the reef at Castle Point. This reef is a peninsula forming the shelter to the kūhāraha. Both it and the rock called the Castle are composed of calcareous sandstone, resting unconformably on the sandstones and mudstones just mentioned. In it I found venus, pecten, terebratula, ostrea, turritella, struthiolaria, &c. The reef, which is a ridge perhaps fifty feet high, is penetrated by a cave, through which the tide passes and in which the roar of the wind and waves is very striking. Between the reef and the Castle Rock, the sea has another passage through the rocks into a basin. The Castle Rock is of similar formation to the reef.

In the mudstones and sandstones on the shore I found plant impressions, and in consequence proceeded in the afternoon up the bed of the stream behind Castle Point in the hopes of falling in with some seams of coal. I went on as far as I could penetrate, perhaps three miles, finding plenty of plant impressions, but no actual coal seams.

Mr. Guthrie informs me that some years ago, one of his shepherds, who has since returned to Australia, brought in a handkerchief full of coal, (stating that there was plenty more where he found it) which burnt well and seemed of good quality, and which must have been found within three miles of the Castle; but unfortunately he had neglected to ask him where he got it.

The coal question in the East Coast District may be put as follows:

My impression is that the mudstones and sandstones of the coast are of tertiary age and therefore if any workable coal seams are found in them, that the mineral will be of inferior quality, but there are the little known calcareous rocks to be considered.

Now, at the Kowhai coal fields in Canterbury, there are calcareous rocks in the vicinity similar to the white limestone of our East Coast, and although Mr. Haast, at the time of my visit to that coal mine, had been unable to determine any connection between these rocks and the coal, yet he had a strong suspicion that they formed part of the series. Consequently, although I have seen no indication of coal among the calcareous rocks of the East Coast, except perhaps at Teawhite, I think we have at all events some reason to expect the possibility of its being found; and as from the broken nature of the country it might take years for one individual to explore it thoroughly, I would suggest that a reward for the discovery of the outcrop of workable seams of coal, might stimulate the perceptive faculties of shepherds and others, whose daily avocations lead them through the defiles of these regions.