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Hamilton's. There is really nothing to report concerning these old diggings, which appear to be almost abandoned, there being only two parties at work—viz., the Perseverance (employing four men) and the Eoberts family. Both parties are engaged ground-sluicing, and are said to have enjoyed a fairly good water-supply. Smoburn and Patearoa. On the Sowburn Creek five parties of Europeans and a few Chinese are ground-sluicing, some of the latter being likewise engaged on the Pigburn Creek, all, it is understood, with favourable results. Hambly Brothers, at Patearoa, have been ground-sluicing in the one claim for the last thirty years. Kyeburn. At Upper Kyeburn there are nine parties of Europeans, aggregating twenty-six men, also three parties of Chinese ground-sluicing. At the Little Kyeburn there are about half a dozen parties sluicing, and an elevator is being placed by Parfit and Son on their claim in this creek. Dredging. —As in other portions of the Naseby district, I regret to say that dredging has not so far proved a success in this locality. Both the Kyeburn and Mount Ida Companies have been forced to sell their dredges, the former company's dredge going to the First Taieri Claim on the Taieri Eiver near Middlemarch, and the latter's to a claim on the Shag Eiver. Another portion of this district is, however, to be shortly tested. The Naumai Company are having a dredge built on their claim on Church Flat, Upper Kyeburn, and it is expected to be finished about the end of May. I have seen some splendid prospects which were obtained from this claim. Mount Blister. The Messrs. Inder are still working their claim with satisfactory results. Eweburn. The large storage-reservoir is almost complete, and has already proved of service. Though there has been no prospecting of any importance done during the year, the exceedingly good water season has caused mining to be briskly carried on, and given fairly good employment to miners in every portion of the district throughout the year. Waipori. Bakery Flat Sluicing Company (Limited), Waipori (Secretary, Mr. A. J. C. Brown, Dunedin; claim-manager, Mr. J. Johnson). —An area of 84 acres is held. Ground averages 16 ft. deep to a false bottom of yellow clay. About Ift. 6in. of wash next the false bottom is richest in gold, although the gravels above this also carry a little. Overlying clay varies from Ift. to 4 ft. in thickness. Method of work : Hydraulic sluicing and elevating. Eight persons are employed. The water-supply is as follows : From Deep Stream, twenty-eight miles of race ; from Nardoo Creek, three miles of race; from Stony Creek, four miles of race ; from Burnt Creek, four miles of race : total, thirty-nine miles of race, carrying an average of fifteen heads. Also twenty-six miles of races are leased from Slater and Nicholson : these carry five heads. Penstock is 300 ft. above claim, and the main pipe-line over 700 yards long, in lengths and diameters as follows: 80ft., gradually reduced from 36 in. to 15 in. diameter; 1,500 ft., 15 in. diameter; balance, 13 in. diameter, with some 800 ft. of 9 in. branches. Sluicing-jet is in. diameter; elevator-jet, 2f in. diameter; throat, 8 in. diameter; uptake-pipe, 12 in. diameter; height of elevator, 30 ft.; boxes, 60 ft. long by 3 ft. wide. The ripples are in 3 ft. sections, shaped as under : — r _ r „ r - , | j 3' O" —>-! Space between bars, f in. Mr. Johnson claims that this pattern is handier, and not so easily choked as a ripple constructed entirely of angle-iron. O'Brien and Party's Claim, of 16 acres, is about half a mile above Bakery Flat Claim. Four men are employed. The nature of the ground is very similar to that at Bakery Flat, and the method of work is by hydraulic sluicing and elevating. Lammerlaw Flat Hydraulic Mining Company, Waipori. —Mr. W. Knight is manager and secretary to this company (which is a private concern), holding an area of 54 acres. The ground being worked consists of fairly rough pebbly quartz, resting on schist rock. Considerable care is taken by brushing and scraping to extract the gold from crevices and inequalities on the bottom. Above the wash is a layer of dark peaty clay overlaid by old tailings from the early diggings, making a total overburden of 9 ft. thick, or thereabouts. Method of work: Hydraulic sluicing and elevating. Eight heads of water are conveyed in races fifteen miles in leiio-th in the aggregate, and which tap the N.W. Creek, Shepherd's Creek, and Lammerlaw Creek. A pressure due to a vertical head of 250 ft. is attained, the water being conveyed to the paddock by a main pipe-line 13 in. diameter, with 9 in. branches. Six persons ordinarily employed, and three or four extra men, as required. Eeturns are said to be satisfactory. Farrell's Claim, Waipori. —This is what was formerly known as the Deep Lead Company's claim. Present workings are on Mr. Cotton's private land, the owner receiving £10 per acre, and a percentage on gold won. The. ground is said to yield from 150 oz. to 200 oz. of gold per acre. The gold is very fine, and, what with the strong pressure of water, the short run of boxes, and absence of side-tables, coupled with the fact that one-third of the material being sluiced and elevated is stiff clay, I am forced to the conclusion that a considerable amount of gold (which might be saved at comparatively little expense) is being regularly lost.

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