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they will be enabled to deal with the quartz drifts under and at the back of the township, part of which will prove to be virgin ground, likely to yield good returns. At Hyde gold was first found in the rough creek-wash within the upper part of the present township, but on the rush taking place during January, 1864, gold was found in the quartz drifts on each side of the gully, and in some particular spots very rich returns were obtained from the quartz drifts. The creek rubble, up to a certain point, also paid fair wages, but beyond the upper limit of the quartz drift on the spurs on both sides the creek gravels became poorer, and shortly ceased to yield payable gold. This pointed to the quartz drifts as the probable source of the gold obtained from the wash of the creek-bed, a fact which the miners at first were slow to apprehend, but which latterly has been fully appreciated, if not quite understood. The quartz drifts resting on the slope of the range, and having a general dip in the direction of the Taieri Eiver proved very rich in gold at the point where the lowest beds made junction with the schists in the bed of the creek. From the creek-bed the rich lower stratum was traced through the spur to the south-west to the next gully in that direction, and was worked first by driving out the wash, and afterwards by ground-sluicing as far to the dip as the richness of the material was sufficient to yield payable returns, or water would admit of. In working this old ground on a large scale, and with an abundant water-supply, there is a probability of its being made to pay, while there are areas of ground as yet untouched that may prove comparatively rich in gold. At the Four-mile (Fullerton's) there were worked some very rich patches of quartz drift, and by way of Mareburn to Highlay Hill, and more to the south in Station Hill, there are areas of quartz drift that, were a better supply of water available, should be made to pay well. Blachstonc Hill. There are only about seven parties of miners working in this locality, and from all the information that can be obtained as to the yield of gold, the ground is not rich; it is only when a large quantity can be washed away that it can be made to pay decent wages. Mr. E. Johnstone has been for the last two or three years carrying in a prospecting-cut, and it will take him yet about another year before he will get into the ground where he expects to find gold. Mr. C. Eose has about one of the best claims in this locality; he has been working here for a number of years, carrying on his operations energetically and continuously, with the exception of about two months in winter, when the ground is in a frozen condition and cannot be worked. The Blackstone Hill Goldmining Company have completed about ten miles of their water-race, and a tail-race is in course of construction, where sluicing operations are to be commenced. The water-race conveys at present about twelve sluice-heads of water, but this quantity will soon be increased to about seventeen sluice-heads, which will give a very good supply to carry on sluicing operations. The company intend to extend this water-race along the face of the range to Black's. This will, however, be a costly undertaking, and one that is not likely to be an accomplished fact for many years to come. There is no doubt a large quantity of gold in the surface-drifts about Blackstone Hill, but this water-race is not at a sufficient elevation to command much of the ground. The only water that could be brought on to command this ground is that from the race the Government purchased from the liquidator of E. Johnstone's estate. The Blackstone Hill Company are said, however, to have a large area of ground that will pay fairly for working with a good water-supply. There is a large area of auriferous country comprised in the slopes of Blackstone Hill and Home Hills. The ground is mostly shallow and patchy, and a local knowledge is essential for much success in finding the small patches of payable ground. Two or three small parties have, however, worked in the same localities for many years, and occasionally do very well. The Blackstone Hill Water-race Company have completed their water-race from the Manuherikia to Johnstone's Gully, and are now engaged in constructing a tail-race to their claim there. They intend to work this locality for some time before carrying the race farther towards Poolburn and Ophir. They have prospected a large area in Johnstone's Gully, and found gold they consider will pay them well with the large and constant supply of water they are able to bring to bear upon it. The pressure is not good, only about 80ft., but the ground is easily broken up. Marionburn and Upper Manuherikia. A long line of quartz drift runs along the south-western base of the Mount Ida and Hawkdun Eanges, from the gorge of the Wetherburn to near the head of the Mount Ida Water-race. Along this line, the quartz drift is of the same age as those of St. Bathan's and Vinegar Hill, which are richly auriferous. The beds along the base of the Hawkdun Mountains have not been sufficiently prospected to show whether or not the gold they contain would pay for working the gravels. Towards the south-western end of the line in Gorge Creek and the upper part of the south branch of Idaburn, perhaps in the Wetherburn also, the beds at places are likely to pay for working. A party has set in at Gorge Creek, but hitherto they have been working the rough creek-wash, enriched with gold from the quartz drifts which forms a ridge of hills immediately at the back of the ground being worked. This, as has been pointed out, is the usual process by which gold is discovered in the quartz drifts. The quartz drifts at the place being auriferous, these, on being denuded, yield a portion of the gold they contain. The quartz drift being lighter, and the greater bulk of it of smaller size than the ordinary rubble in the creek-bed or other channel carrying forward the proceeds of denudation, the gold is detained amongst the coarser material, and so parts company from the quartz drift with which it had been so long associated. The working of such a creek-bed as that which has collected gold in the manner above described necessarily leads to the discovery of gold in the quartz drifts that lie higher up the valley. Special prospecting in the drifts of this vicinity has shown that they are auriferous, and would pay to work with a plentiful supply of water