203

0.—3

About 75 acres of this land has since been applied for in one olaim by Appleton and party, who propose to form a company to bring water in and work the ground by hydraulic sluicing, but this will be an expensive matter. As regards dredging, that part of the river above Clyde and below the Half-way House has with one exception proved a failure. The Monte Christo dredge is still working, but her returns are only moderate. During the year, owing to the many fluctuations in the level of the river, this dredge worked only twenty weeks, averaging 36 oz. per week. Further down the river from this claim to the Vincent Company's claim, a distance of about five miles, is not now being worked, the companies which held the ground having gone into liquidation. 1 have reason to believe, however, that some of the river will soon be worked again. Around Alexandra dredging has been exceptionally prosperous, as a reference to the statement attached of companies working will show. The dredges in this sub-district alone have paid during the year 1902 the sum of £50,997 in dividends, and this does not include the profits of some private companies which I am led to believe are very satisfactory. Four dredges are at work again in the Manuherikia River with moderate success. The amount of drift travelling in this river always tends to silt the paddock, and greatly increases the difficulties of working. The one exception is the Olrig, which has paid back 35 per cent, of her capital in dividends. There is a large area of splendid dredging-ground in this valley which would pay about 12 oz. or 15 oz. per week, and if worked on the O'Brien patent system would be certainly payable, but the scarcity of water is the chief drawback to this system being attempted. The dredges in the gorge below Alexandra have met with fair success during the year, and many have been altered to cope with the different conditions found in gorge dredging. The result should be a very successful year to follow. One difficulty, though by no means insuperable, appears in dredging this portion of the river, and that is coaling. The present system is costly, as the coal has to be carted to a certain point, sledged to the river, and then boated down to the dredges. Lately, however, the various companies interested have joined in discussing the construction of a road along the river-bank. The Earnscleugh No. 3 dredge has commenced operations during the past twelve months. This dredge is worked by electricity, which is conveyed to the dredge from the Fraser Gorge, four miles distant. Antimony Mine. —Messrs. Blair and Stewart obtained a license to prospect for antimony over some 40 acres opposite Alexandra, and after opening a shaft they sent to England about 40 tons of ore, which realised £4 10s. per ton. The ore when assayed in Dunedin yielded 50 per cent, of antimony, but ore from the same parcel gave only 31 per cent, in England ; and it also assayed gold to the value of Bs. 6d. per ton. The party after expending over £600 had to cease operations owing to lack of funds, but it is believed that with capital the mine could be opened up and made to pay. Bald Hill Flat. Quartz-mining is being still carried on at the Excelsior and White's reefs on the Old-man Range, apparently paying satisfactorily. Sluicing is being vigorously prosecuted at Bald Hill Flat, and the Last Chance Company has reached thg dividend-paying stage. A claim worthy of note is that of Dowdall and party, who are sluicing the freehold on which the Bald Hill Flat dredge was working some time previously, and although the dredge could not pay, the sluicing operations have been very successful. Roxburgh. Referring to the attached statement of dredges working in this sub-district, it will be seen that out of the sixteen working only four have paid dividends. But compared with last year the result must be considered favourable, for all the dredges have averaged well in their returns. At Miller's Flat dredging has been very prosperous, and most of the companies and parties at work there have paid large dividends. At Ettrick also the Ettrick Company is meeting with good success. Alluvial. —The Roxburgh Amalgamated Company at Roxburgh East still heads the list as a successful sluicing claim, and during the year paid £2,250 in dividends. The Ladysmith Company is also working, and obtaining good returns. The number of smaller claims shows no sign of decreasing, and most of them I believe are paying well. I append a return showing the quantity of gold produced by sixty-two dredges during the year ended the 31st December, 1902, an approximate amount of capital involved, the average return per working-week, and the amount of dividends paid. It will be seen that thirty, or nearly half the number engaged, returned to the shareholders £107,506 6s.