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former report I stated that the ground between Bound Hill and the sea-beach would probably be worked at some future time. Several dredging-claims have now been taken up on this area. A dredge has been built on one, and the ground will soon be tested. Preservation Inlet. Three quartz-claims have been at work during the year, but the results have been unsatisfactory. Alluvial gold is still being got, but in small quantities only. I have, &c, The Under-Secretary, Mines Department, Wellington. J. W. Poynton, Warden.

WATEE-EACES. WAIMEA-KUMARA WATER-RACES. Mr. Alexander Aitken, Manager, Waimea-Kumara Water-races, to the Under-Secretary, Mines Department, Wellington. Sir,— Kumara, 12th April, 1900. I have the honour to forward the following report on the Waimea-Kumara Water-races for the year ended the 31st March, 1900: — Waimea Eace. The total sales of water from this race for the year ended the 31st March, 1900, amounted to £622 13s. 7d., and the expenditure for maintenance and repairs during the same period was £857 10s. 9d., showing a debit balance of £234 17s. 2d. on the year's transactions. The average number of miners supplied from the race during the year with water for sluicing was 36-58, and the approximate quantity of gold obtained by them was 1,917 oz., the value of which was £7,476 6s. The sales of water are £72 2s. 6d. less than during the preceding year, and the amount of gold obtained was 205 oz. less, having a value of £799 10s. The sales of water and yield of gold show a considerable falling-off, and this can only be attributed to the increasing poverty of the ground worked during the year, as the supply of water was good and continuous, and very few stoppages occurred during the period. On an alluvial field like Waimea a gradual decline in the yield of gold must, after a certain lapse of time, take place, unless new ground is opened up or improved methods of working adopted. It is now thirty-five years since the field was opened, and during the whole of that time it has been a continuous gold-producer. All the best ground was worked out first, and the ground still unworked (except the Middle Branch Flat) is exceedingly poor. The only large area of unworked ground likely to prove good in the district is the flat in the middle branch of the Waimea Creek, which will be worked into the Waimea Main Tail-race. Very few breaks in the races occurred during the year, and these were immediately repaired. Since the deviation of the Waimea Bace at Kawhaka no stoppages or accidents have occurred in that portion of the race. The water from the Wainihinihi Bace has to some extent assisted in keeping up the supply for Waimea. The expenditure on maintenance and repairs was £15 12s. 7d. greater than during the preceding year. This expenditure includes not only ordinary maintenance and repairs, but also the cost of renewing a portion of the original fluming at Kawhaka, which was in such a bad state of decay that it had to be replaced by an entirely new flume. The cost of this work added considerably to the expenditure for maintenance and repairs. Besides the sales of water above referred to, water to the extent of £110 was given to parties who could not afford to pay for the whole amount of water supplied on account of the poverty of the ground sluiced by them. Full inquiries were made in each case, and had such concessions not been made the parties would have had to abandon their claims and leave the district, or add to the number of the unemployed. A considerable quantity of waste water was given to parties prospecting new ground commanded by the race, but this was only given after all paying parties had been fully supplied, and was principally given during wet weather, when there was plenty of water to spare. A considerable number of men are still employed in the back gullies and in other localities not commanded by the race-water. They depend entirely on dams and races constructed by themselves, and the year just past has been a favourable one for them, as the supply of water has been fairly good. The following statement will show the receipts and cost of maintenance of the Waimea Eace for the year ended 31st March last, together with the approximate quantity of gold obtained by those using water for working claims from that supply : —

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