C.—3.

work and yields the partners do not feel despondent. There are those who prophesy that a bright future lies before West Waiau. If patience and perseverance will bring prosperity about, Messrs. Shaw, Hinchy, and party may yet have success crown their efforts. Referring to dredging on the Waiau River, considerable money has been invested in dredging claims; but up to the present time little or no success has resulted. In fact, judging by the number of claims surrendered during the past year, it would appear that a want of confidence in the Waiau now prevails. Possibly in the near future some new method of prospecting may be developed and gold yet found in abundance. Pkesebvation. During the past year various claims have revived, although we do not hear of dividends having been paid; yet there are those who find it pays them to continue operations. Reefs have in the past proved themselves to be very faulty in this part of my district. I have, &c, S. E. McCaethy, Warden. The Under-Secretary, Mines Department, Wellington.

WATER-RACES. Mr. Alexander Aitkbn, Manager, Government Water-races, to the Dndbe-Seceetaet for Mines, Wellington. Sib,— Kumara, May, 1902. I have the honour to forward the following report on the working of the Waimea-Kumara water-races for the financial year ended the 31st March, 1902 : — Waimea Race. The total sales of water from this race for the year ended the 31st March, 1902, amounted to £729 6s. 3d., and the expenditure for maintenance and repairs during the same period was £838 18s. 7d:, showing a debit balance of £109 12s. 4d. on the year's transactions. The average number of miners supplied with water for sluicing from the race was 2875, and the approximate quantity of gold obtained by them was 2,150 oz., the value of which was £8,385. The sales of water are £169 ss. 10d. greater than during the preceding year, and the quantity of gold obtained was 433 oz. more, having a value of £1,688 14s. The number of miners employed in sluicing with water from the race was about two less than during the preceding year. The expenditure on maintenance and repairs during the year was £44 12s. 4d. greater than during the preceding year, but that is more than compensated for by the increase of £169 ss. 10d. in sales of water. Water was plent'fcl during the year. The miners had very few stoppages; they have been perfectly satisfied in i jspect to the supply. There is still a great extent of ground unworked in the district, which, although poor, will all be sluiced, as the miners of the place are satisfied to work ground that was not considere.d payable some years ago. The earnings of the miners using water from the race must have been much better during the past year than formerly, and all of them seem satisfied with the results of their washings. At the request of the Waimea Hydraulic Sluicing Company (Limited) considerable repairs were effected on the race during the year for the purpose of increasing its carrying-capacity, and the race is now not only carrying a much larger quantity of water, but is throughout in a good state of repair. The Waimea Hydraulic Sluicing Company has made a start to work the ground held by it; but, like in all new undertakings, unforeseen difficulties have considerably retarded the progress of the company. The plant placed on the ground by the company is a good one, and is. thoroughly up to date. The cost must have exceeded-£3,000. Should the operations of the company fail to be a financial success it will be no fault of the plant, as everything in connection with it works in a most satisfactory manner. The following tabulated statement shows the receipts and cost of maintenance of the Waimea Race for the year ended the 31st March, 1902, together with the approximate quantity and value of gold obtained by parties using water from the race : —

155

Month. Sales of Water. Cash received for Sales of Water. Expenditure. Outstanding Number Moneys at the of End of each Men emMonth, ployed. Approximate Quantity of Gold obtained Value of Gold obtained. 1901. £ s. d. 52 5 5 71 18 9 60 3 4 54 19 2 62 15 0 49 17 6 58 14 7 56 13 4 28 4 3 £ s. a. 54 0 9 70 9 3 59 19 6 54 19 9 62 4 0 49 13 4 58 17 6 44 6 9 39 5 7 £ s. d. 73 7 4 61 6 0 54 9 2 69 14 2 55 19 2 67 11 8 S2 1 8 69 19 2 68 14 10 £ s. d. 23 10 5 23 10 6 23 11 10 23 11 10 23 13 0 23 13 0 23 3 0 32 10 10 23 0 6 Oz. 156 216 180 165 189 150 177 171 87 £ 8. d. 608 8 0 842 8 0 702 0 0 643 10 0 737 2 0 585 0 0 690 6 0 666 18 0 339 6 0 Lpril Hay "une Fuly August September )ctober .. November December 29 23 26 27 30 28. 36 27 80 1902. 47 15 10 91 10 10 94 8 3 43 15 10 84 2 1 89 10 4 64 4 2 85 1 6 86 9 9 25 15 6 33 9 3 37 19 11 24 29 86 144 230 285 561 12 0 897 0 0 1,111 10 0 'anuary February ilarch Totals 729 6 3 731 10 8 838 18 7 28-75 (average) 2,150 8,385 0 0