143

C.—3

Very large areas on the beaches, lagoons, and rivers in this district have been taken up as dredging-claims, and should the holders use reasonable diligence in prospecting, and be able to show payable gold, it is only a question of capital and time when this new departure in goldmining will add immensely to the output of gold and to the general prosperity of the district. Okarito and Jackson's Bay Sub-districts. The most important feature in connection with mining in the Okarito district during the year was the successful completion of the waterworks of the Waiho Hydraulic Sluicing Company. From thirty-five to forty Government heads of water are constantly available at the company's claim on the terraces near the mouth of the Callary Eiver. The water was brought from the Totara Eiver at a cost of some £8,000, and was turned on in the end of May last year, when a face was opened up on the banks of the Waiho Eiver ; but the returns from this face not proving satisfactory it was abandoned. On the arrival of Mr. Bloxam, managing director, from London, a new face, showing first-class prospects, was opened up. It now shows a face of 130 ft., with the wash dipping into the hill, the lower strata showing clean river-gravel and boulders. This face was worked for some months, and a large amount of material dealt with ; but, notwithstanding the good prospects obtained in the face, the washing-up has not come up to expectations, and the whole of the works have been stopped pending the arrival of an expert from London. The prospects on which the company was floated were obtained from an old tunnel and an open paddock 15 chains from where the face was opened, and the race will require to be extended to that point before an opinion can be given as to the value of the claim. All the evidence points to the fact that they are on the southern bank of an old river-bed—most probably the Callary—and until this is crossed by a cut taken in by the water, or by level adit, the value of the claim cannot be even approximately fixed. It is characteristic of the auriferous wash found in the Callary Eiver that it is only in the wash near the bottom, or bed-rock, that the heavy deposits of gold are found. It is therefore necessary that the race should be extended to the points where the gold was found by the old miners, or else prove the bottom of the old river-bed by drifts or adits. I have a strong belief in the ultimate success of this claim, and trust the company will yet benefit largely by the undertaking. A number of men are working in the flat opposite the mouth of the Callary, and when the river is low a good deal of gold is won. A party of men are at present bringing up a tail-race, assisted by subsidy from the Government, to drain this flat, and if they are successful a number of good claims will be opened up and worked. On this river, as elsewhere, a large number of prospecting areas have been applied for, and several special claims. The same on the Okarito Eiver and Lagoon, and nearly all the beaches. The road to the Waiho is being formed and widened, but it will be some time yet before drays can be taken through from the lake. The overland road from Hokitika is now available for dray-traffic as far as the Wataroa, and only three miles more —from Gunn's to the Waitangi—remains to be widened, to enable vehicles to get right through to Okarito. In the absence of bridges light punts are badly wanted on the Big Wanganui and the Wataroa Eivers. Communication by sea is kept up by the steamer " Jane Douglas " making monthly trips. The " Waipara " is still lying sunk in the lagoon, and although attempts have been made to lift her, they have not yet succeeded. The overland road from the Waiho Eiver to Cook's Eiver will shortly be opened for pack-horse traffic. A. slight deviation has to be made on account of a heavy slip on the original line. From Cook's to the Makawihu, or Jacob's Eiver, the road is nearly finished. In the Jackson's Bay district very little in the way of mining is being done, the settlers being mostly engaged in stock-raising. Some very rich prospects of gold were found at the mouth of Bullock Creek, and the ground has been applied for as a dredging area. Seven prospecting dredging areas have been applied for on the Haast beaches—one at Barn Bay and two at the Gorge Eiver and Brown's Eefuge beach. In connection with this block, a pack-track from Barn Bay is badly wanted. An expenditure of about £300 would open up a block of country that would carry a large mining population. The approach by sea is too dangerous—as witness the many valuable lives lost on several occasions in attempting to open communication with the shore. This block—from the Hope Eiver to Big Bay —being at the extreme south-west end of the County of Westland, and uninhabited, is not considered by the county authorities : they receive no revenue from it, and consequently spend nothing in helping to open it up. I would therefore suggest that the Mines Department take this matter in hand, and render available a large and valuable tract of country that will be eagerly taken up by the miners, and that will repay the outlay a hundredfold. Communication with Haast is kept up by two-monthly trips of the s.s. " Jane Douglas," and with the East Coast and the Sounds by the s.s. " Hinemoa " coming south about every three months. Telephonic communication has been established at a number of ferries on the rivers, and this will be a great boon to travellers, who, from being unable to communicate with the ferryman, had often to spend the night on the river-beds. This will deprive the mailman of a much-made-use-of excuse when behind time with the delivery of the mails. Conclusion. In conclusion, I have to observe that the Coast is fairly prosperous. There are very few idle men about, and in some cases great difficulty is found in getting men suitable for the work, especially in pontoon-building, where shipwrights are required ;- and, in view of the large number of dredges likely to be required, the difficulty in obtaining suitable men will be more pronounced than at present. The increased activity in mining matters, as shown by the number of applications dealt with in the various Courts since the beginning of the year, will, when they get to work, largely increase