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new water-race, through which a permanent supply from the Arahura River will be brought to the ground. The work of construction entails nearly eight miles of new race above the present reservoir, and a mile and a half between the Long Tunnel and Black's Tunnel. The old race is being renewed, and all structures replaced by works of a more permanent character. The Long Tunnel has been put in a good state of repair, thus making accessible the gravels lying on the McDonald's Gully side of the property. At least two faces are to be opened in Humphrey's Gully, and the water-supply thus distributed will make available for working all gravels lying between the north side of Humphrey's and the south side of McDonald's Gully. Arahura Flat. Boys' Claim. —Work has not been energetically carried on by this party. Dwyer and party, who are driving a tunnel for which a Government subsidy has been paid, have completed 1,627 ft. The total distance to be driven to reach German Gully is 2,373 ft., and the tunnel when completed will be 4,000 ft. in length. Rimu, Back Greek, and Seddon's Terrace. The claims in this district continue to afford profitable employment to a considerable number of miners. There is not a sufficient supply of water available for hydraulic sluicing to any very great extent. A number of men, however, are engaged in driving out the wash and sluicing it whenever a supply of water can be obtained. The scheme for bringing in water from Lake Kanieri has not yet been perfected, and, so far, survey work only has been carried on. Until a more extensive supply of water is brought to this field no increase in the yield of gold is probable. Craig's Freehold and the other ground further down the river still yield satisfactory returns. A party of seven tributers are engaged on this ground. Kanieri Forks. —The claims in this locality continue to be profitably worked, the Kanieri Lake Water-race furnishing a supply of water for hydraulicing and ground-sluicing. Ross District. Mont dOr Claim. —Hydraulic-sluicing operations still continue to be profitably carried on. Twenty-two men are employed. Ross United Gold-mining Company. —Twelve tributers are employed, with fair results, in the claim at Ross. The Prince of Wales Claim at Donoghue's Creek is also owned by this company. Several other claims are also worked for fair returns in different parts of the district. Donnelly's Creek. — Several parties have been working here throughout the year. Duffer's Greek. —A tunnel, on which subsidy is being paid by the Mines Department, is being driven by Messrs. Marchesi and Scott, and has at present attained, a length of 370 ft. Okarito and Jackson's Bay. The Waiho Hydraulic-sluicing Company is engaged in extensive operations on the terraces between the Callary and Totara Rivers, and a large amount of piping for the race is being carted to the ground. The difficulties of transport have somewhat retarded the commencement of operations, but it is anticipated that sluicing will be started in some four or five months. A considerable number of men have found employment in the preparatory works. Most of the individual miners in this locality intend during the winter to work the beaches of the Upper Callary. The sea-beaches to the southward have furnished profitable employment to a number of men during the year. Prospecting has been carried on with what is reported as satisfactory results in a special claim at Sardine Terrace, near the Ship and Bullock Creek, and a race to carry ten heads of water is to be brought in. Lake lanthe. —The works here are furnishing employment to some six men, who are apparently doing very well. Deedging. Marlborough and West Coast. Wakamarina. —Dr. McKenzie's dredge, which has been at work for a considerable portion of the year on the river, about a mile above Canvastown, yielded payable returns. The dredge was lately sold to a company, and additional ground was taken up. It is probable that a larger and stronger dredge will be built, the present one being of a description unsuitable for dealing with the heavy material of the wash in this river. Mahakipawa. —A small dredge is to be put on to test the gravels in the fiats leading to Pelorus Sound. Buller River. —The Exchange (formerly Cocksparrow) dredge is working near Three Channel Flat. The company that first owned the dredge did not meet with success, and the dredge was disposed of to the wages-men, who are now doing well. Buller Dredge. —This dredge has been working in the river at Fern Flat with satisfactory results. At present, operations are carried on at the junction of Husband's Creek with the Buller River, where there is a wide face of gravel to be dealt with. The owners are building another dredge in the vicinity of the present one. The new dredge, however, is meant to deal with double the quantity of gravel that can be done by the Buller dredge. Mr. R. Tennent, Inspector of Mines, who made a special examination of the Buller Company's new dredge, obtained full information, of which the following are some of the particulars : — "The pontoons are 90ft. long, having a square deck-floor of 75ft. in length by 25ft. in width, including 4ft. 6 in. for well-hole in centre. The front parts are strongly built bulkhead watertight compartments, connected with heavy overhung beams to guard against floating timber in river-flood. The timber is specially selected for their construction, being black-birch for frame-

16—C. 8.