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ing, further extensions will have to be made to bring the water to command new ground that has been taken up further down the flat. Two new tunnel tail-races are now in course of construction, one of which, known as the No. 4, should have been completed by this time. It is, however, now nearing completion, and this will allow additional new ground to be worked. Its length is 42 chains, being timbered, and boxed throughout with sluice-boxes 2ft. Bin. in width, having a depth of 3ft. on the sides, and filled with a false bottom of wooden blocks cut on end Bin. deep. A commencement has been made to construct the No. 5 tail-race, which will have a length of about 70 chains when completed ; a portion of this tail-race is constructed at the lower end, but it was found, on sinking one of the shafts, that the ground is of such a character—being a puggy blue reef —that it will not stand :it swells-to such an extent that it breaks the timber in the tail-race. It is now proposed to raise the level of this tail-race about 9ft., which will get out of this bad ground, and allow the work to be constructed in a permanent manner. This tail-race is taken in to work entirely new ground; and, from the prospects got from the wash-drift taken from shafts sunk on the claims taken up, it ought to give a new life to the Kumara field. The claims referred to comprise an area of 69 acres, and it is stated that in this area twenty-nine shafts have been sunk at different places where payable prospects have been obtained. In order to get the whole of the water utilised from the Kumara Race, the Government have granted a subsidy towards the construction of these tunnel tail-race channels —viz., £1,000 towards No. 4, and free water to the value of £500 to open out the claims; and a subsidy of £3 to £1, up to the limit of £3,000, in cash, and free water, towards the No. 5 channel. In order to give water to the mines when the No. 5 tail-race channel is constructed, it will be necessary to extend the Kapitea Hill branch of the Kumara Water-race for about 40 chains, and lay down about 30 chains of supply-pipes. This branch extension has been surveyed, and the cost of the extension to supply the claims working into No. 4 channel and towards No. 5, ap to the end of March last, was £376 18s. 7d. When this extension and tail-races are completed, no further expenditure on new works will be required for some years. It may be well to mention, for the information of those who are using wrought-iron and steel pipes, that experience has shown at Kumara that thin steel riveted pipes have not been the success that was anticipated when they were new. A steel plate of much lighter gauge than one of iron will stand the pressure better. But in the construction of pipes of a large diameter thin plates are not desirable, for the following reasons : that the water in flowing through the pipes causes a throbbing movement, and tends to loosen the joints and the pipe becomes leaky; also, thin pipes require to have a much firmer bed than is necessary where the plates are thicker. .Further, thin steel pipes require to be very carefully coated in the first place, and to be kept coated, as they are far more liable to oxidation than wrought-iron pipes. This is the experience gained by using pipes 2ft. 6in. in diameter, of steel No. 16 8.W.G., made at the Greymouth Foundry some years ago, for a deviation of the Kumara Water-race to allow Pascoe and party and Palmer and party to work the ground on which the water-race was formerly constructed. It is found that oxidation causes small holes in -these pipes, and it is now becoming a difficult matter to keep them from leaking. It is, however, but right to state that the coating on these plates was never properly done in the first instance. The wrought-iron pipes, however, which have been for twice the time in use, are in better condition now than the steel ones. The following statement will show the revenue derived from the sales of water, the expenditure on maintenance, and the approximate quantity of gold obtained from claims in which water from the Kumara Eace was used, for the year ending the 31st March last: —

It will be seen from the above statements that the value of the sales of water last year was £4,646 19s. 9d., as against £5,582 4s. 7d. for the previous year, thus showing a decrease in the revenue from this source for the past year of £935 4s. 10d.; the expenditure on maintenance being £1,976 17s. 7d., as against £1,919 Bs. sd. for the former year. The clear profit on the transactions of last year was £2,670 2s. 2d. The expenditure on maintenance is greater than what it was some years ago, when the sales of water were far more than at present. The manager's attention has been directed to this, and he has been requested to keep down the cost of maintenance as far as possible, consistent with the safety of the race and efficiency of working. In addition to the sales of water, the value of free water supplied to claims which have not proved profitable for working during the last year was £1,054 12s. Bd., and the value of free water given for deviations of race for same period

Month Sales of Water. Cash received for Sales of Water. Expenditure. Outstanding Moneys at the End of each Month. Number feoxiMen emjoStalned. Value of Gold obtained. 1894. £ a. a. 477 1 8 437 17 4 501 8 4 482 1 3 513 7 11 413 0 5 213 19 2 375 7 6 428 8 9 £ s. d. 428 1 11 523 9 2 516 7 6 456 0 0 521 8 9 347 18 4 198 4 0 348 10 0 480 0 0 £ s. d. 152 19 1 161 12 10 158 3 6 135 4 0 138 2 5 129 5 10 196 6 5 194 2 5 194 4 7 £ b. a. 142 16 0 134 10 3 132 9 11 120 17 3 111 2 0 151 1 7 160 12 9 175 15 2 139 17 8 Oz. 715 655 750 720 765 620 320 560 040 £ s. d. 2,788 10 0 2,554 10 0 2,925 0 0 2,808 0 0 2,983 10 0 2,418 0 0 1,248 0 0 2,184 0 0 2,496 0 0 April May .. June July August September October November December 105 103 109 114 116 113 113 111 102 1895. 209 12 3 148 15 7 158 8 8 126 9 1 180 4 11 103 9 5 113 101 90 456 300 460 January February March 298 2 5 198 7 1 30b 2 11 304 17 8 111 11 10 370 15 1 1,778 8 0 1,170 0 0 1,794 0 0 Totals and average .. 4,046 19 9 4,607 4 3 1,976 17 7 108 (average) 6,961 ;27,U7 18 0