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and dams, is now making preparation to use water from the Callaghan's Branch Bace, as their own supply is inadequate. A quantity of waste water was given to parties engaged in prospecting, principally during wet weather, and only after all paying parties had been fully supplied. The following statement shows the revenue derived from sales of water, and also the cost of maintenance, in the Callaghan's branch race for the year ended the 31st March, 1900 :—

Kumara Water-race. The sales of water from Kumara Eace for the year amounted to £2,458 15s. Bd., and the expenditure for maintenance and repairs during the same period was £1,904 7s. 9d., showing a credit balance of £554 7s. lid. The average number of miners supplied with water from this race during the year was 69-66, and the approximate quantity of gold obtained by them was 4,439 oz., having a value of £17,312 2s. The sales of water are £252 18s. 9d. less than during the preceding year, and the yield of gold is less by 232 oz., having a value of £904 16s. The decrease in the sales of water and the amount of gold obtained can only be accounted for by the increasing poverty of the ground sluiced during the year, and the abandonment of several claims on account of their non-payable character. The expenditure on maintenance and repairs during the year, although still large, is £269 16s. 2d. less than during the preceding year. A large portion of the head-race tunnel had to be retimbered, at a cost of about £480, as it was in a very bad and unsafe condition. This tunnel has always been expensive to maintain owing to the manner in which it was originally constructed. The whole of the bad portion of the tunnel has now been retimbered, with the exception of thirty-three sets, or 132 ft., near the head. During the year 195 sets of new timber were put in, and a total length of 780 ft. entirely renewed, the whole being substantially slabbed at the back of the sets and lined with planking on the inside. A track about 50 chains in length was constructed from the siphon that supplies No. 4 channel to the siphon that supplies No. 5 channel. This track was necessary to enable one ganger to attend to both siphons. The Kapitea Hill Eace was made deeper and enlarged, and the timbered portions were lined, to make the race carry a larger quantity of water, as its capacity was not enough to carry water for two channels at the same time. In retimbering the head-race tunnel it has been made higher by about 2 ft. than it was formerly, and will now carry a hundred and fifty sluice-heads if necessary without the water touching the roof. There is no doubt that the best of the ground in Kumara, so far as at present known, has been worked, but there are still large areas of ground unworked that will yet be sluiced for small wages, and extensive sluicing operations will be carried on in Kumara for many years to come. The methods of sluicing are being constantly improved, larger supply-pipes are being used, the width of sluice-boxes is being increased, and larger quantities of wash are being sent away, with the result that more gold is saved and blockages in tail-races and channels are now not so frequent as formerly. Besides the sales of water above referred to, water to the value of £549 14s. at ordinary rates was supplied to claims having a succession of poor washings. In all cases where water was given to claims having a succession of poor washings full inquiries were made as to the necessity for so doing, and the claims would have been abandoned if such assistance had not been given. In wet weather, when water was plentiful and running to waste down the creeks, extra water was supplied to claims using race-water, and water was also supplied for prospecting. Large quantities of water were also supplied free for flushing the channels. The quantities authorised to be supplied for flushing channels are : No. 2 channel, ten sluice-heads ; No. 3 channel, twenty-three sluice-heads ; No. 4 channel, ten sluice-heads ; and No. 5 channel, twenty sluice-heads. The quantity actually supplied was in excess of those quantities. For six working-days during the year the dams were empty, and for fifteen days water was short; but upon the whole the supply was good, and there was plenty of dead-work to do in the claims when water was not available. If the Loop-line Dam had not been raised, thus increasing

Month. Sales of Water. Cash received for Sales of Water. Expenditure. Outstanding JMoneys at the f End of each Month. Number of Men employed. Approximate Quantity of Gold obtained. Value of Gold obtained. April May June July August .. September October .. November December 1899. £ s. d. ! 26 15 0 36 0 0 7 15 0 27 10 0 6 5 0 39 15 0 £ s. d. 26 15 0 43 15 0 33 15 0 £ s. d. 10 0 0 10 0 0 10 0 0 10 0 0 10 0 0 10 10 0 10 0 0 20 0 0 12 10 0 £ s. d. 14 14 10 10 10 16 Oz. 53 70 16 54 18 75 ; £ s. d. 206 14 0 273 0 0 62 8 0 210 12 0 70 4 0 | 292 10 0 39 15 0 ! 24 i6 0 26 10 0 24 10 0 26 10 0 14 14 54 57 210 12 0 222 6 0 1900. 7 10 0 10 0 0 10 0 0 17 8 8 12 January .. February Maroh .. 7 10 0 18 70 4 0 37 i6 0 37 10 0 i(3 77 300 6 0 Totals i 240 0 0 202 10 0 140 8 8 11 (average) 492 1,918 16 0

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