D.—No. 6

• The different runs of gold from Wetherstone's and adjacent gullies have not been traced further than Wetherstone's Flat. Tlie runs from Gabriel's have not been traced further than about one mile below the junction. The run from Munroc's Gully has not been traced further than its junction with the Tuapeka stream. Nearly the whole ofitlie Tuapeka flat and spurs are unworked; and, as an instance of the auriferous nature of the township, I may state that duriiu' the formation of the road payable prospects were obtained from the gravel used for metal. At W aipori gold can be obtained on almost any of the spurs, flats, or gullies, and some very good patches have been found. I am of opinion that the Waipori will yet yield large quantities of gold. At Waitahuna a large extent of ground still remains to be opened out; the runs of gold from U aitahuna and adjacent gullies have only been traced to near their junction with the Waitahuna stream. Only a small portion of the Waitahuna stream has been worked, and the river has only been partially tried. The three districts of this gold-field I consider as admirably adapted for sluicing purposes, for the following reasons, viz. : the favourable nature of the soil for si mem* it being very gravelly ; the ample supply of water, which, besides being used for sluicing purposes is also used as a motive power ; and the great natural facilities for erecting reservoirs at a comparatively small cost. The length of the head races at present cut I estimate at about one hundred and twenty miles, representing about two hundred sluice heads." 66. Referring to Mr. Drummond's remarks on the existence of " false bottoms " I attach a sectional diagram showing the relative position and average thickness of the various strata found m the claim of the " Aelson Company" at the Blue Spur, in Gabriel's Gully, and for which I am indebted to the courtesy of John Hughes, Esq., Member of the Provincial Council of Otago and Manager of the Company's Works :— e '

Mr. DrummondV. n . ■■*■ °n the existenceof f»lsebottoms,

,• r , !' Iv'itil':V(' sot success are by no means untrequent. Major Croker. the Warden Ol Gabriels District, reports that "Mining matters continue in a highly satisfactory state; as instances of which the following detailed statement of the operation often parties On the ' spurs' of Wetherstone's are submitted :"—

instances of Indivi dual success,

15

GOLD FIELDS OF OTAGO.