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The Turakina dredge and those on the adjoining claims have done excellent work. In the case of the first named a dividend has been declared to the company's shareholders, the first paid by any dredge on the Manuherikia River. The Lion Rock dredge is now at work on the adjacent claim, with very favourable prospects. Cromwell. A great amount of success has not attended dredging on the Upper Clutha River. Talboy's dredge has ceased operations. Crookston's dredge is being removed to below the Cromwell Bridge, where it will be engaged on McPherson's claims. Hotop's is the only dredge on the river above the Cromwell Bridge, but Hartley and Riley Beach Company's dredge is ready for machinery. On the Kawarua the Electric No. 3 dredge is nearly completed, and the company's Nos. 1 and 2 dredges are doing very well on their claims. The Current Wheel dredge, which is owned by Bryce, Kloogh, and Talboys, is working in the stream, but the returns have not been very satisfactory. McLay's dredge, working in the Clutha River at Lowburn, has six men employed, but no returns have been published. Nevis. Four dredges have been at work in this district, a like number being in course of construction. All the dredges at work have done fairly well. The Upper Nevis Company's dredge is now on their claim below the township. The pontoons for Allen and Aitken's dredge are launched, and the machinery will shortly be in position. Tuapeka. William Murray and party, in a special claim near Chinese Camp, have done fairly well, and are said to be satisfied with the undertaking. This dredge is lighted with electric light. J. Harris and party, known as the Tuapeka Flat Dredging Company, stopped work for a great part of the year owing to the delay in getting a new boiler out from England. James Henley and party have only just started. The locality was a rich one in the early days, and it is very probable that it will give satisfactory returns. The Evan's Flat Dredging Company and the Tuapeka Dredging Company are each constructing a dredge. It is expected that the latter will be in working-order about the end of May, and the former by about the month of June. These dredges are being fitted up with all the latest appliances, and lighted with electric light. Three other special claims have been taken up on the Tuapeka Eiver, below the abovementioned, with the object of putting dredges on. Weatherstone's. J. W. Eobertson's dredge has not been working satisfactorily. Tuapeka Mouth. Messrs. Henley and party's dredge was formerly working at the mouth of the Tuapeka Eiver on Watts Goodwin's claim, but, owing to the difficulty in working the ground, was removed to Tuapeka Flat, and is now worked by the above party. Messrs. McLeod and party's dredge has been brought down the river for the purpose of working the above party's claim at the mouth of the Tuapeka Eiver. The returns are considered satisfactory. Waitahuna. The Waitahuna dredge, now owned by McKenzie and party, still continues to work on the riverflat below the township. The average returns are about equal to the previous year. Glenore. John Nelson and party have been working continuously during the year with good results, and about £400 has been spent in replacing the old boiler. Tullock and party have been working steadily during the year, and are on payable gold. Messrs. Robertson and party have built a new dredge during the year. It has been working for about one month on the river below the township, and is reported to be doing well. Tapanui. On the Pomahaka River only one dredge is now at work, and the owner reports doing fairly well. In addition to the foregoing, a number of dredges are in course of construction throughout Otago. Accidents in Dredging. Five fatal accidents happened during the year—viz., Eobert Falconer was drowned off McLeay' dredge, Lowburn, on the 3rd June, 1897; James Drysdale was drowned off the Roxburgh dredge on the 24th June, 1897 ; — Downing was drowned by falling off a plank on a dredge at Nevis on the 10th December, 1897 ; — Johnston was drowned by the capsizing of a boat at the Earnscleugh dredge, at Alexandra, on the 17th December, 1897 ; and Peter Stenhouse was killed by machinery on board the Golden Terrace dredge, at Queenstown, on the 26th January, 1898. The estimated number of men employed about dredges is 420. The proportion of fatalities is thus 11-9 per thousand, which is very much greater than the ordinary average of mining accidents. Some Yields from Dredging. It is at present impossible to obtain complete returns of the gold won by dredging operations. The owners in many instances do not desire their yield of gold to be published ; therefore the following list gives only some of the results which the owners have furnished for public information. The totals show that 10,909 oz. 4 dwt. of gold were recovered in this way :—

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