G.-3.

Caldwell and Son have completed their tramway, and are now sending good coal to market from their Pakawau Mine. Mr. Joseph Taylor, at Poponga, has struck good coal; and Mrs. Taylor has applied for a lease of an adjoining area upon which good indications have been discovered. Dredging. During the year eleven licenses for dredging claims, of a total area of 620 acres 2 roods 34 perches, were granted. Nine of these are on the Aorere Eiver, and the remaining two on the Parapara Eiver. There are not any dredges at work yet, but I understand that dredges are in course of construction for some of the claims, and a further number of applications for dredging claims are now before the Court. But it is not only on dredging that great expectations are based ; hydraulic sluicing is commanding attention, and I was struck by a comparison made by Mr. Howard Jackson, of Otago—which he has kindly permitted me to make use of —between the respective merits of dredging and sluicing on Druggan's Flat, Collingwood. He says, " Comparing the quantity of work done with that likely to be accomplished by a dredge sufficiently powerful to cope with wash of a similar character and 4 cubic feet buckets, it will be found that the advantage lies very largely with the sluicing proposition. The dredge would cost, say, £7,000, and £35 to £40 per week to run, and would require extensive repairs; with the necessary cessation of work probably as much time would be wasted in this way as short water-supply would cause to sluicing. Fifteen heads of water would treat 720 cubic yards per shift. The dredge would do well to treat 520 cubic yards. The weekly expenses of the sluicing claim would not exceed £17 to £20. A bucket-dredge cannot possibly clean up a hard and irregular bottom; thus it is certain to leave behind some portion of the gold, probably the best; whereas by clearing the bed-rock, as is done by sluicing, every crevice can be carefully examined and the gold saved." It struck me that this comparison by an able expert of the merits of the two methods would be useful to show that, while dredging is being cultivated to the neglect of other methods, here is a method which is more economical even rhan dredging, and can be utilised without delay, whereas there is no telling just now how long a dredge may have to be waited for. I have mentioned Druggan's Flat in this connection. This is a considerable area about four or five miles from Collingwood, which has recently been taken up for hydraulic sluicing. Quartz and Alluvial. Collingwood Goldfields (Limited). —This company has an area of about 250 acres, and employ from twenty to thirty hands. The development-works mentioned in my last year's report were brought to completion during the year at a cost of something like £15,000. Sluicing operations commenced on the 28th August last. Some delays were experienced during the first three months on account of slips on the race, but 250 oz. of gold was won up to Christmas last, and one washingup since Christmas yielded 170 oz. The cost of shifting the washdirt was fd. per cubic yard. Fresh faces are to be opened up, so as to utilise fifty heads of water in all. The water-supply was excellent all through the drought, which lasted some months. The race and flume carries fifty-five heads, and the workings are proceeding in a most satisfactory manner. Parapara Hydraulic Sluicing and Mining Company (Limited). —The estimated quantity of material treated at this mine during the year was 427,333 cubic yards, and the gold won was 1,319 oz. 18 dwt., and the number of miners employed twenty. The operations are now confined to the Hit or Miss and Glengyle portion of their property. Since commencing operations here in May, 1899, the saddle from the top of Glengyle through into Appos Gully, a distance of 10 chains, and of a depth varying from 90 ft. to 150 ft., has been worked through. This has enabled the manager, Mr. Peters, to take advantage of the water in Appos Creek, which is diverted on to the workings, and is a very welcome addition to his water-supply in such dry seasons as last summer. Leaving the Hit or Miss the material is conveyed some considerable distance in the direction of Glengyle. About midway the main run of boxes terminates, and the water is allowed to tear away all useless material from the top of the Glengyle workings. Beaching Glengyle, the water is again brought over another face of wash, and finally passes through a long 4 ft. sluice, all material being dumped into the Parapara Eiver at the foot of the hill. The present level at Glengyle is being carried on to work the deep ground at the Hit or Miss, and commands a large portion of the company's property. As the ground above referred to lies between two hills, great care has to be exercised in the working of it to prevent slips, the ground being of a very rotten and loose nature. There is 1 chain of 4 ft. boxes and 7 chains of 3 ft., all rippled with angle-iron, flat, and railway-rail ripples and cocoa-matting. Further information about this mine and the works of the Collingwood Goldfields (Limited) are published at pp. 269-271 of the New Zealand Mines Becord of February last. Taitapu Gold Estates (Limited). —This company employs nine miners and prospectors, and four men temporarily on roads, and one man regularly at sledging, packing, &c. No quartz has been crushed during the last twelve months, but prospecting has resulted quite recently in striking the reef, which gives good prospects, and very sanguine expectations have been raised by the outlook on this property. Golden Blocks, Limited (Taitapu). —The work at this mine has steadily proceeded during the past year, with very satisfactory results, and excellent returns for the future are anticipated. Crushing with the three-stamp battery has produced for the year ending 31st March last 2,168 oz. of gold from 650 tons of stone, which has realised net, after payment of all charges for realisation, £8,545. The company has just erected a five-stamp battery driven by steam. The stamps are 6001b. each, and the old three-stamp battery has been connected. The whole eight stamps have been working steadily since the 26th March last. The plant is on a site under new and commodious buildings, and is connected with the mine by about half

120