C.—3

147

In regard to subject (1), Mr. Carrick calls it " Auriferous Belt No. 1," and he states : — " Geologically speaking, there is a marked difference between the eastern and western shores of Preservation. The former, including Wilson's Eiver and Long Beach, by which names these diggings have hitherto been identified, is of broken irregular formation. It is, so to speak, jumbled up, the most convenient theory being that this state of things was brought by volcanic or other organic upheaval. In country like that, no guarantee exists of permanency of leads and reefs. Eich in places—excessively rich—patches found to-day may pinch out and be lost to-morrow. The famed Golden Site already shows indications of this uncertainty, and the same contingency may be expected throughout the neighbourhood as a whole. The western side of the inlet is quite of a different formation. In no part is the indication of the same broken irregular strata met with. On this side of the country only the one reef has been partially opened—namely, the Crown and St. George at Cuttle Cove. That reefs do exist in the neighbourhood may be taken for granted, as the gold found on the beaches leaves little room for doubt, as it is all heavy reef-gold, and shows that it could not have travelled far. " The solidity of the western shore justifies the opinion that it wiil turn out more permanent and reliable in its gold finds. By referring to the map, it will be seen that the western district is exposed to the full fetch of the ocean-swell, south-south-east to south-west. That exposure extends from Gulches Head at the entrance to the headland south of Cuttle Cove. Indeed, the last named is the only obstacle that exists along the entire coast as a buffer or barrier to these seas. In that way the cove is the only place at which a landing can be effected with any degree of safety during southerly weather. Te Whara Beach and the neck through to Chalky are terribly exposed to these winds. During my stay in the inlet we had to endure eight days partial starvation in consequence of the inability of the purvey boats to face these beaches in southerly weather. Cattle Cove, on the other hand, is a capital harbour, accessible and safe for landing in all weather. " At the head of Cuttle Covo there are, say, 30 or 40 acres of level land with a fine stream through the centre. It is well protected by an amphitheatre of rising ground, which on two sides is not by any means abrupt or precipitous, so that if the level land came to be too limited for township purposes buildings may, without inconvenience, be erected up the side of the hill. There must be a township at Cuttle Cove of more or less importance, as it is the key to the surrounding country, and during the prevalance of bad weather this is the only point at which ingress can be had. Behind what must eventually be the township there is a fairly well-defined track leading through a strath of timber-country between Cavern Head and the Mainland Eange to Te Whara Bea.ch. About midway there is a creek, carrying from five to six sluice-heads of water, running into the sea on boulderbank on the Cuttle Cove side of Cavern Head. If that beach be not taken up it is a likely place for gold. It comes down the same range as the Te Whara Creek, and what makes it more promising is, that whereas Te Whara Creek tumbles pell-mell to the sea this particular creek reaches it after flowing through some miles of level country. " Te Whara Beach. " On reaching Cuttle Cove on the 18th November, en route to the interior, gales detained me here for eight or ten days. At this time there was not a soul at work, or even permanently located, on the western side, with the exception of one individual, who was employed shepherding a quartzreef claim at the cove, preparatory to arrangements being made for a syndicate taking it up. Before the gale subsided a start was made to join the boating section of the exploration party who were storm-staid at South Port. My travelling mates consisted of two men who were with me. Beaching the beach, we called the midday halt, and while the billy was boiling a cursory examination was made of the bed of the stream. Comparing notes, we unanimously concluded both the beach and the creek carried good specimens. These researches were prosecuted to the other creeks, and kept up on their beaches as long as the limited time at our disposal would permit. The results all through were confirmatory of the first impressions. To avoid headland we made our way through the bush and kept well inland so as to make out of the bush at the head of the bay opening in from Preservation to the Neck. Just as we calculated on descending to the latter we found ourselves meshed in a deep creek —so deep and precipitous we saw at a glance that we would with our goodly-sized swags on our backs have some difficulty in climbing the opposite bank. We halted to rest and prepare for the emergency. It was a short spell, but it gave time to discover further auriferous indications, as also layers of gravel-wash, which time would not permit to examine closely. When these beaches were again visited in January they had all been taken up. The one at the mouth of Deep Creek is now known as Glennie's Workings. The debris was stripped off the beach and the metal—a rough sample of reef gold—picked out of the crevices. The admitted rate of remuneration was then 4dwt. of gold a man per day, the gold being worth 3s. 9d. a pennyweight. Since then they have worked up into the wash at the mouth of the creek, and the other beach parties are said to be doing similarly well. " One of my travelling party from Cuttle Cove went back to work the beach at the mouth of the creek where we first got specimens, and the results of his working has turned out most satisfactorily. By again referring to the map it will be seen that the range fronting the inlet from Cuttle Cove falls away in a face to the Neck, which, it may be explained, is a strath or level track leading through to South Port. This range or face skirts South Port on the north bank, having a tract of magnificent bush-land from the waters' edge to the base of the hill, about one mile in breadth. At the mouth of South Port the range sheers away up Chalky, and forms the continuation of the range skirting Cunaris on its southern bank. One river comes down the face and flows over the level bush-land, falling in South Port on the north side, near its head. At the entrance to South Port, on the north side, there is a semicircular bay of no great depth of water. A large river flowing down apparently along Chalky side of the range falls in at the head of the bay. Between that and the river at the upper end of South Port the beach bears evidence of subterranean streams, the beds of which will probably be found at the foot of the ranges. All these streams rise out of one