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Baces and Dam, Middle Branch. A race from the Callaghan's branch race to the dam in the middle branch of the Waimea Creek has been constructed capable of carrying thirty-five sluice-heads of water. This race is 27 chains in length, and is so constructed as to render available the dam-site in Greek's Gully, for which a right has been obtained, should at any time more storage-room for water be required. An embankment 10 chains in length has been constructed in the middle branch of the Waimea Creek, and the dam thus formed is now available for the storage of water for the use of the claims that will sluice into the Waimea Main Tail-race. An accident happened to this dam during very wet weather on the Bth March, by which a portion of the embankment was carried away, but repairs are now nearly completed, and the embankment will be secured against any future damage by floods. The gates for regulating the supply of water from this dam have been constructed so that the embankment can be raised to a further height of 6 ft. The embankment when raised to this extent will make the dam hold a large quantity of water, and the probability is that the second dam in Greek's Gully will not be necessary for some time to come. The construction of a second dam would, however, greatly increase the storage-room for water, and advantage could be taken of the local supply in wet weather to supplement the supply from the races, and would hold water that would otherwise go to waste. From the dam in the middle branch a race 53 chains in length, capable of carrying thirty-five sluice-heads of water, has been constructed to a point opposite the centre of the claims taken up in the Middle Branch Flat. The claims will be supplied with water for sluicing from the end of this race, or from such other points as will be most convenient. If water is laid on to the claims by pipes direct from the race, the available pressure will be from 70 ft. to 90 ft., according to the locality of the claims. High pressure is not necessary for the claims in the Middle Branch Flat, as the faces will be low and the material easily broken down, but large quantities of water will be necessary, as the gradient of the Waimea Main Tail-race is very low, being only 3 in. per box of 12 ft. Waimea Main Tail-race. This main tail-race is now completed, and parties can at once start to construct their private tail-races and connect with the main tail-race. The upper portion of the main tail-race has been securely timbered. A shaft 8 ft. in length by 3 ft. in width and 40 ft. in depth, in three compartments, has been constructed. One compartment has an efficient ladder-way, one is for lowering material for repairs, and the other is for supplying flush water at the head of the main tail-race. A chamber 16 ft. in length, 4 ft. 6 in. in width, and 6 ft. high has been excavated to store blocks and timber for repairs. A foot-way to enable the man in charge of the main tail-race to get up and down should a blockage occur while sluicing is carried on has also been constructed throughout the whole length of the work. Branch Bace to Callaghan's. The total sales of water from this race during the year was £240, and the expenditure for maintenance and repairs during the same period was £140 Bs. Bd., leaving a credit balance of £99 lis. 4d. The average number of miners supplied with water from this race was> eleven, and the approximate quantity of gold obtained by them was 492 oz., having a value of £1,918 16s. The sales of water are £48 7s. 6d. greater than the preceding year, and the approximate quantity of gold obtained was 1 oz. more, having a value of £3 18s. The expenditure on maintenance and repairs was £23 3s. lOd. less than during the preceding year. Any increase in the sales of water would not increase the expenditure on maintenance and repairs. No new payable ground has been opened up in the vicinity of this race during the year. The ground sluiced during the year has been poor, and has not turned out as expected, but there is still a very large area of ground unprospected. The ground held by Menzoni and party still yields fair returns. This claim, which has'been continuously and profitably worked during the last thirty-five years with water from private races

Month. Sales of Water. Cash received I for Sales of Water. Expenditure. Outstanding Moneys at the End of each Month. Number A PP*J*iof Value of Gold Menem- 1 ,*/ obtained, pioyect. obtame<J 1899. April May June July August September October November December £ B. d. 49 11 8 68 6 8 55 15 10 64 3 10 55 10 5 59 15 10 57 13 1 51 9 2 34 18 1 £ s. d. 51 15 0 67 12 0 54 12 0 63 0 6 54 5 0 54 13 9 54 10 9 63 5 9 31 9 6 £ e. d. 40 9 2 59 16 8 53 19 2 53 9 2 59 11 8 57 8 2 66 14 2 103 9 2 91 16 8 £ s. d. 23 1 5 23 0 8 25 11 2 25 11 2 25 11 2 25 19 6 34 11 2 26 9 4 25 12 1 Oz. £ s. d. 41 150 585 0 0 43 211 822 18 0 41 169 659 2 0 40 198 772 4 0 37 171 666 18 0 40 180 702 0 0 38 177 690 6 0 34 159 620 2 0 33 109 425 2 0 1900. 36 5 5 41 11 6 47 12 1 37 7 6 32 15 0 59 5 0 148 13 11 61 1 8 61 1 2 28 6 1 31 18 8 25 3 8 31 113 440 14 0 29 131 510 18 0 32 149 581 2 0 January February ■ .. March Totals 622 13 7 625 0 9 857 10 9 36-58 (average) 1,917 7,476 6 0

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