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only £30,656 more than the cost of the construction of the work. It is possible that the bridges may be kept up another year, or even two, by incurring a heavy expenditure on maintenance, but it is evident that before long either the wooden structures will have to be renewed or siphons substituted in lieu thereof, or else the whole must be allowed to collapse. It is therefore a question which "requires mature consideration, and also minute examination of the locality as to whether there is sufficient auriferous ground left that is likely to prove payable for working to justify the large outlay. The dam and headworks are permanent structures, and the reservoir, which is Lake Hochstetter, is capable of supplying a hundred sluice-heads of water continually for at least four months without any supply coming into the reservoir. The following table shows the results of the working of the water-race during last year:—■

This table shows the receipts from sales of water to be £529 18s. 4d., whereas the receipts for the previous year were £427 lis. Bd. ; this shows an increase of £102 6s. Bd., but in reality there is no increase, 'the difference in the receipts of the two years being due to a break in the water-race during the first year, which necessitated a new deviation being constructed, so that the year's receipts were only for ten months' sales of water. The expenditure on maintenance last year was £917 10s. 4d., as against £994 15s. 3d. for the year previous. This is very satisfactory, inasmuch as the wooden structures on the race are gradually becoming mqje decayed every year, and necessitate more repairs; nevertheless, there is a decrease in the expenditure last year of £77 4s. lid., but it still leaves a loss on working for the year of £387 12s. The value of free water given to open out claims last year was £128 155., as against £172 19s. 2d. for the previous year. The average number of men at work in claims supplied with water from this race is twenty-seven, and the approximate amount of gold obtained by them was 8400z., representing a value of £3,235 19s. After deducting the value of water sold from the total value of the gold, the average earnings of the miners would be about £1 18s. 6d. a man per week, as against £2 os. sd. for the previous year, thus showing the ground is every year getting less remunerative for working. Argyle Water-race. The revenue derived from sales of water from this water-race last year was not sufficient to cover the cost of maintenance, owing to the very dry season, which caused a scarcity in the supply of water. There are no permanent streams coming into the reservoir—the supply has to entirely depend on catch-water; therefore in a dry season such as was experienced last summer the supply soon becomes exhausted. There are only two sources from which a permanent supply could be obtained —namely, from the Nile Eiver and from the Four-mile Creek. A survey was made some twelve or fourteen years ago by the Public Works Department of a water-race from the Pour-mile Creek, which is about 6 miles 26 chains in length, and at that time the estimated cost of construction and of raising the Argyle Dam was £13,400; but since then the dam has been raised, so that the cost of the water-race might be set down at from £8,000 to £9,000. The sales of water are, however, so low that there is no encouragement to make further expenditure on this work at the present time. The ground the race commands in the vicinity of Candlelight Plat is getting worked out, and, indeed, so is most of the ground along the race until it crosses Ballarat Creek. There is a considerable area yet to be worked about Sardine Terrace and the Back Lead, and also on the flat between this and Charleston ; but it is questionable if the whole of this could be made payable for working even by the most improved methods. There is no doubt but that the beds of some of the gullies and creeks will pay for working on the hydraulic elevating system. One party, Weir Brothers, have been working a claim in the bed of Ballarat Creek by elevating the material, and this is said to be paying very well. A great deal of the auriferous ground in this locality is of hard cemented sand, which cannot with the head of water available be broken up sufficiently to liberate the particles of gold it contains. Solutions containing iron have cemented the sand to such an extent that it comes out in large blocks of ferruginous brown soft sandstone. Three parties of miners have erected crushing-batteries of four heads of stamps each to work this cement, and it is said that their ventures are likely to be remunerative. The liiain water-race is in good order, but the siphon across Ballarat Creek continues to give a good deal of trouble by bursting occasionally. The construction of this portion was done under the superintendence of the County Council, and the result is that the pipes comprising the siphon, although of the thickness specified, were very badly constructed, and the material was not of the

Month. Sales of Water. Expenditure. Number of Men employed. Approximate Amount of Gokl obtainea. Value of Gold. April May June July August .. September October .. November • December 1889. _ s. a. 39 12 6 44 5 0 73 11 8 70 17 6 24 0 0 15 5 0 63 10 0 34 3 4 24 3 4 £ s. d. 71 12 0 77 19 0 71 18 0 77 18 0 77 17 0 • 73 15 0 77 14 0 79 2 3 75 8 0 29 30 31 31 27 19 25 20 23 Oz. 75 84 98 92 49 13 ' 66 51 57 £ s. d. 286 17 6 321 6 0 374 17 0 351 18 0 187 8 6 49 14 6 252 9 0 195 1 6 218 0 6 1890. 31 8 4 60 18 4 48 3 4 90 10 1 68 17 0 75 0 0 26 32 31 70 97 94 267 15 0 371 0 6 359 11 0 January.. February March .. Totals ) 324* 846 3,235 19 0 529 18 4 917 10 4 * The averaj ;o number of men employed being 27.