a—3

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Cedar Creek. About seven years ago an auriferous quartz-lode was discovered in the bed of Cedar Creek, from which very rich specimens were obtained. Licensed holdings were taken up in every direction near the new discovery, and a good deal of surface prospecting was done on every small quartz-vein found in the locality. Companies were formed to work the ground, and for a time those who considered themselves fortunate enough to hold an interest in claims thought that a new Eldorado was discovered which would prove amazingly rich. The William Tell Company, who held the ground of the prospectors, constructed an adit to cut the reef somewhere between 50ft. and 60ft. under the outcrop, but this adit, being constructed at right-angles to the line of reef, cut the lode at a considerable distance to the north-west of the outcrop in the creek. The lode was driven on for some distance, and several tons of quartz taken out to test before going to further expense. A small five-head-stamp battery was erected, and portion of the stone was crushed, but the result proved very disappointing—only a few pennyweights was obtained per ton. The crushing-battery having been erected in a very crude manner, every one supposed the gold was lost in the crushing, and no doubt a considerable portion of it was. A good deal of fine gold could be seen in the stone before crushing, but the quartz being of a very white colour, and the gold in a free state, most of it would readily be seen. After this trial-crushing work was suspended for some time. Another start was made and the lode driven on towards the creek, where rich stone was obtained on the outcrop, and some fairly-payable stone was struck, the lode being from 2ft. 6in. to 3ft. in width. A winze was sunk on the lode at a point about 84ft. distant from the original adit to a depth of 70ft., having, it was stated, a good lode all the way down with richer stone at the bottom of the winze, and greater thickness than it was at the top. A new adit was now constructed 86ft. below the top of the winze ; but in the meantime a crushing-battery, consisting of ten heads of stamps and four berdans, driven by a Pelton water-wheel, were erected, and an aerial tramway constructed to convey the quartz from the hoppers at the mouth of the low-level to the battery. On the completion of the new adit the bottom of the winze was tapped, but it was then found that the lode cut out at about 22ft. from the top, and there was no sign of a lode below this. However, as there appeared to be a considerable quantity of stone in the upper level likely to pay, it was driven out and sent to the quartz-mill. The result of this crushing proved so disappointing that the company was put into liquidation, and the whole property was purchased by Mr. Perrotti, of Greymouth, who has since removed the machinery to Blackball Creek, and no further work had been done on these reefs up to the time of my visit with Mr. Alexander McKay, F.G.S., in December last. Although a good deal of work has been done in this mine, no systematic prospecting has been carried on, and scarcely any work done to prove conclusively that the lode cut entirely out, or that a throw had taken place. On examining the ground in the lower adit, which had been extended for some distance beyond the bottom of the winze, at the end of which a cross-cut was made for about 60ft. in a northward direction, a body of quartz was cut through which has all the appearance of being of the same character of stone where the gold was found on the upper levels, and. may probably prove to be a continuation of the same lode. This body of stone has not been driven on, to test whether this is so or not. It is possible that there is no gold in the stone where cut; but this may sometimes occur in a highly payable lode, it is very seldom that the run of gold continues for a great distance, it being more in shots and ledges ; at all events, this lode or leader is well worth prospecting, and driving on for some distance, to prove what it is like. The quartz has all the characteristics of being gold-bearing, and the country rock also all favours this supposition. A few chains higher up Cedar Creek than the William Tell ground, another large quartz-lode is cropping out in the bed of the creek, in what is termed the Swiss Eepublic Claim. Several fair specimens of gold-bearing stone have been taken from the outcrop, and a good deal of surface prospecting has been clone, and also some small drives and winzes have been constructed ; but the latter being full of water they could not be examined. The quartz in this outcrop is slightly different in character from that found in the William Tell lode; and has every appearance of being gold-bearing stone. The formation of the country in this locality is somewhat similar to that in the Eeefton District, gold being found in all the creeks and streams, holds out inducement for prospecting for auriferous lodes in the locality. Mr. Halligan, of Eoss, who accompanied us to the reefs, informed me that it was intended to drive an adit from the low level in the William Tell ground to cut the lode in the Swiss Eepublic ; and since my visit a subsidy has been authorised to carry on prospecting drives in this direction. West Coast Disteict. Blackball. Hitherto there has not been any auriferous lode worked in this locality. Some prospecting has recently been done on a lode on the western side of Blackball Creek, where a little gold was found, but not sufficient to warrant any expenditure in the erection of crushing machinery. This lode was traced across the creek to the eastern side, and an adit driven for some distance, which proved it to be gold - bearing, and which with crushing machinery would probably yield from 3dwt. to 4dwt. of gold per ton. A winze was then sunk from this adit on the lode for about 40ft., which Mr. Perrotti, who accompanied me, stated showed the gold to increase going down. The water became so heavy that they had to suspend sinking, and they drove into the lode for 22ft. from the bottom of the winze without finding the opposite wall of the lode. Mr. Perrotti stated the quartz taken from this winze will average at least lOdwt. to the ton. As the winze was full of water there was no opportunity of seeing the lode here; but the outcrop on the western side of the creek shows it to be about 6ft. wide, the quartz being white, with bluish veins, and greatly laminated, having all the appearances of gold-bearing stone. A ten-stamp