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At Waimumu there is only one dredge at present working, viz. : The Waimumu Gold-dredging Company. Two others are being constructed, viz. : the Waimumu Queen and the Waimumu Central. The only other mining operations carried on in this district are by a few Chinamen working sluicing-claims at Waikaka Valley. Tapanui. A good deal of prospecting has been done in this district during the past year, particularly in the vicinity of the Pomahaka Eiver. One dredge has been constructed recently to work a claim at Scrubby Flat. Beyond this there is nothing new to report. I have, &c, H. A. Stratford, Warden. The Under-Secretary, Mines Department, Wellington.

Mr. Warden Dalgleish to the Under-Secretary for Mines, Wellington. Sir,— Warden's Office, Naseby, 24th April, 1900. I have the honour to forward herewith the annual return and statistics of the mining industry for the Mount Ida District, and in doing so submit the following remarks : — There have been but few changes in the general workings in the district to comment upon during the past year. No new discoveries of any significance have been reported. The rainfall has been very satisfactory in most parts of the district, and consequently the supply of water for mining has been proportionately good. A great deal of attention has been paid to dredging, leading to very noticeable activity in. many portions of the district; but I regret very much lam not in a position to report favourably on the results so far. Several of the companies which have been inaugurated for that class of mining have been compelled to cease operations. Whether that has been caused by an actual scarcity of gold in the wash treated, or defective manipulation by the dredges, I cannot say with certainty, but I incline to the latter opinion. So far as I am informed, undoubtedly good prospects were obtained in every instance before dredges were built and placed on the claims, but the issue in several cases has not been by any means equal to the prospects. I am of opinion that the preliminary prospecting carried out was not sufficiently exhaustive in many cases, and too hasty conclusions as to the payable nature of large areas were arrived at when only small portions of the whole were exploited. The disappointment experienced by the companies alluded to in the immediate past will, I hope, be the means in the future of more complete initiatory work being insisted on before large expenditures are incurred in dredge-building. Many more dredging-claims have been and still are being taken up, and there appears to be little or no doubt that most of them will be given a good trial. The phenomenally rich yields obtained by some of the dredging companies on the Clutha Eiver have raised the usual furore on the part of a large section of the public to secure opportunities for investment in dredging. Consequently, a very large number of companies have been floated for that purpose throughout the district, including the Manuherikia Eiver and its tributaries, Ida Valley, Taieri Eiver down as far as Middlemarch, Naseby, Kyeburn, Macrae's, and Shag Eiver; indeed, I may say that the whole district, in a mining sense, seems to be in a state of transition from a sluicing and elevating system to dredging. I sincerely hope the favourable anticipations indulged in and expressed by many experts may be fully realised. It is certain that if even a comparatively small proportion of the ground taken up for this class of work should prove as payable as expected, it will mean a most favourable change in the district, for outside of this activity there is no doubt that there is a gradual shrinkage in other descriptions of mining. I trust this may be only temporary. The works on the Eweburn Eeservoir are being carried out in a satisfactory manner, and are approaching completion. lam informed that the quantity of water being saved and utilised so far is in excess of anticipations, and there is every ground for believing the undertaking will be of great benefit to the whole neighbourhood. The elevating-claims in the vicinity of Naseby have been carried on with a fair amount of success, and I believe I am justified in saying the same with regard to the ordinary sluicing operations, but nothing sensational has been reported to me. From the various outlying portions of my district I am in receipt of the following information :— At St. Bathans the majority of the claims have been worked with satisfactory returns. Hesson and Simmonds have had a good season with regard to water, and worked a considerable area of ground in their claim on the east side of the Manuherikia near Hawkdun. Garty and Gallagher's workings at Surface Hill have also given good returns, making some amends for their somewhat unfortunate endeavours during the last year or two. The Scandinavian Water-race Company have recently increased their supply by purchasing the St. Bathans Water-race Company's property, enabling them to work two claims at that place, it is believed with considerable success. The United M. and E. Company has also been enabled to keep working pretty constantly, and, I am informed, with satisfactory results. Considerable improvements have been effected on the St. Bathans Channel under the supervision of Mr. Eagle. It is now in good working-order, and is proving beneficial to those discharging tailings therein. Improvements have also been made on Muddy Creek Channel. Mr. John Ewing has been carrying out his works on some of his claims with energy, as usua.l His Vinegar Hill claim has been in pretty constant work, with returns, I believe, about equal to former years; his Cambrian ground is now worked out. At Vinegar Flat he has altered the. position of the plant from Cambrians to that place, and has been prospecting there, but I hear