11

H.-4.

Report on Gold Fields of Provincial District of Marlborough for the Year ending 31st March, 1878. Pelorus. —The population on this field has remained at its former level, about fifty men; but at the present time considerable excitement has set in, attention having at last been directed to the terraces so long neglected; and in one of them named Arthur's Terrace a good prospect has been obtained, but not on bottom. A considerable number of claims have been marked out, but at this time, no party having bottomed, the true value of the terrace is left to conjecture. I consider that the prospects of the Pelorus District have decidedly improved, for it is now an ascertained fact that gold in payable quantities is traced at a high level above the present river for a distance of about eight miles. It has been found in four claims, besides the Deep Creek Township, and it appears to be but reasonable to conclude that these claims are parts of the same or similar runs of gold. In addition to the new find in alluvial ground, parties are prospecting a reef near the one spoken of in former reports, and they are pretty confidant of ultimate success. At present there is no material increase to the population, but there is every appearance of a rush setting in. Wairau. —This gold field is at present practically deserted, only about six men being employed there now. An application has been made for a lease of the old Sutherland Reef, which was worked some years ago, and, the trial crushing being of a disappointing nature, the work was abandoned, although the test was by no means a satisfactory one. Queen Charlotte's Sound. —Several applications for leases of reef ground have been made on the Golden Point portion of the field, but no machinery has yet been erected to test the value of the reef. Dr. Hector has examined the ground, and reported thereon, which report has been given publicity to in the Government Gazette. Ravensclif. —Nothing has been done here since the last report, but a company has been formed in England to work the Turner Company's Claim, and a commencement will shortly be made. I think there is every reason to conclude that the Marlborough Gold Fields, as a whole, will soon emerge from their present state of stagnation. W. AVhitehorn, The Under Secretary for Gold Fields, AVellington. Warden.

NELSON GOLD FIELDS. No.°s. Mr. AVarden Guinness to the Under Secretary for Gold Fields, Sir, — AVarden's Office, Colliugwood, 6th April, 1878. I have the honor to forward the annual statistics of the Gold-mining District of Golden Bay for the year ending 31st March, 1878. During the past year there has not been much alteration in alluvial mining in the District of Collingwood ; about the same number of men are employed, and the average yield of gold is maintained. In Takaka the alluvial mining has fallen off, and no new ground has been opened. Iv Collingwood during the last month a few new hands have arrived, and a small party have started to prospect some ground at Snows. I have not yet had any reliable information from this quarter, but, if the roads were improved, there is little doubt that a payable aud extensive gold field would be opened up in that district, as those who have previously tried it found good prospects ; but at present this and other places known to be auriferous are virtually shut up for want of roads. A small expenditure, say, £5,000, judiciously laid out, would enable fully 1,000 miners to find profitable employment here for years. A fresh attempt is being made to test the quartz reefs in Cole's Creek. The Phoenix Company have taken up a lease of sixteen acres there, and have erected a 10-stamp battery worked by steampower. This mine was lately visited by Dr. Hector, whose report will be found in the Government Gazette, No. 13, 13th February, 1878, to which I refer you; his analysis of the quartz gives a very favourable result. I believe the company will commence operations early in April; their, works are nearly completed, and have been well put up. The mine has been opened up in a judicious manner. Should this speculation turn out successful there is no doubt that quartz-mining in this district will again be entered upon with fresh energy. Already four leases have been applied for adjoining the Phoenix Company's lease, and they will be worked as soon as the leases have been granted. I must here call your attention to the want of a mining surveyor in the district. None of these leases have yet been surveyed, although some of them were applied for in January last. This causes much dissatisfaction, and naturally retards the progress of the district. Some efforts are being made to test the silver lodes here, but at present their progress is very slow, and it is impossible to ascertain what tho result of the experiments will be. In Takaka the timber trade is improving—pines are better, and the demand has increased ; but this prosperous state must, I fear, fall off when the winter sets in, as the roads will be quite unfit for the heavy traffic. Great praise is due to the Road Board of the district for the efforts they have made, with the small means at their disposal, to keep open the roads during the summer; but, unless the contemplated tramway is made, or some larger funds are available, the timber trade must fall off very much. This is much to be regretted, as this district is mainly dependent on this trade for its advancement; very few men are engaged in gold-mining (not more than twenty), and but little farm produce beyond the requirements of the district comes to market, save a small quantity of hops, which have been cultivated to some extent, and with much success. Still, the urgent importance of improving the roads, for enabling the timber trade to be upheld, remains. The accompanying returns will supply the statistical information required in your circular. I would venture to call the attention of the Government to the great necessity there is for the