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dams owned by the party, in which it is intended to store night-water for use in the daytime. The party owns a very good water-race and water-right, but as their own race will not supply a sufficient quantity of water for working the claim it is intended to use a considerable quantity of water from the Waimea Race. A new claim has also been opened up near Fox's by Burroughs and party, and they intend to use water from the Waimea Race for a jet-pump and for sluicing purposes. The Waimea Hydraulic Sluicing Company was not a financial success although the plant and machinery was all that could be desired. The hydraulic elevator used by the company did its work in a very satisfactory manner, the piping and plant was thoroughly up to date, and the management was exceedingly good and efficient, but the yield of gold from the material put through was thoroughly disappointing. The company was entirely misled respecting the prospects and the area of ground suitable for elevating. The prospects were much misrepresented, and a very large portion of the ground that was said to be solid was found to be worked ground, out of which all the available gold had been washed many years before. The pressure of water available for the hydraulic nozzle and elevator was about 250 ft. of head, with an allowance of 30 ft. of head for friction of water in pipes, bends, and valves, which would give an effective or hydraulic head of 220 ft. The quantity of water used for sluicing-nozzle and elevator was about twelve sluice-heads, of which about four and a half heads were used through the sluicing nozzle to break down the material and carry it to the elevator, and seven and a half heads were used through the nozzle of the elevator. The average quantity of material raised to a height of 35 ft. was about 25 cubic yards per hour. The company intends making a further trial of their claim, by sluicing the gravels of the high terrace above the flat, but as there is plenty of fall to a good tailing site on the flat the hydraulic elevator will not be used, but ordinary hydraulic sluicing will be adopted. The following tabulated statement shows the receipts and cost of the maintenance of the Waimea Race for the year ended the 31st March, 1903, together with the approximate quantity and value of gold obtained by parties using water from the race : —

Branch Bace to Callaghan's and Middle Branch of Waimea Creek. The total sales of water from this race for the year ended the 31st March, 1903, amounted to £492 lis. Id., and the expenditure for gauging, maintenance, and repairs for the same period was £351 14s. 7d., showing a credit balance of £140 16s. 6d. on the transactions for the year. The average number of miners supplied with water for sluicing from the race during the year was 13-5, and the approximate quantity of gold obtained by them was 1,225 oz., having a value of £4,777 10s. The sales of water were £288 18s. 7d. greater than during the preceding year, and the approximate quantity of gold obtained was greater by 715 oz., having a value of £2,788 10s. The average number of miners using water for sluicing from the race increased from 8 to 13-5, comparing 1901-2 with 1902-3. The expenditure for gauging, maintenance, and repairs during the year was greater by £206 Is. sd. than during the preceding year, and the dam in the middle branch of the Waimea Creek has been enlarged so as to store more water, and all the races and branch races have been kept and are now in a thorough state of repair. The increased expenditure on gauging, maintenance, and repairs is accounted for by the items just referred to, by the increased demand for water, and the cost of laying on water to the several parties opening up their claims, but steps have been taken to reduce this expenditure in the future by a rearrangement of the men employed on the races. The whole of the miners sluicing during the year with water from this race were Europeans, while during the previous year a large proportion of those using the water from the race were Chinamen who have now left the district. In Callaghan's little or no prospecting has been done during the year, although there are large areas of ground in the locality well worth prospecting. A large area of ground has been taken up by Honey and party, and surveys have been made for the purpose of ascertaining the best method of testing and working the ground. The party intends using water from the race, but no definite scheme of working has yet been decided on.

Month. Sales of Water. Cash received Outstanding Number A M£?. X fo?Sales of Excenditure Mone y s at the of Value of Gold w *Jl expenditure. End of each M obtained. Wat6r - M ° ntb ' P'°y ea - obtained. 1902. £ s. d. 100 16 3 69 9 4 78 9 2 89 1 10 72 4 4 72 14 9 67 1 5 79 7 8 49 9 11 £ s. d. 98 14 0 62 19 7 85 15 8 80 16 6 79 4 0 78 8 8 61 12 4 82 8 4 57 5 5 £ s. d. 57 16 10 78 9 2 59 4 2 86 4 9 69 11 8 66 7 5 68 11 8 58 15 2 71 16 8 £ s. d. 40 15 4 46 2 2 48 13 8 46 19 6 41 18 6 39 18 6 39 0 11 36 2 2 28 14 2 Oz. 303 207 234 267 216 216 201 237 150 £ s. d. 1,181 14 0 807 6 0 912 12 0 1,041 6 0 842 8 0 842 8 0 783 18 0 924 6 0 585 0 0 ipril day une .. .. ruly Lugust September )ctober November December 32 21) 26 80 31 81 30 28 26 1903. 42 2 6 54 13 9 39 6 3 53 14 7 39 2 11 37 3 9 66 6 8 52 8 8 52 2 11 28 0 5 32 4 9 33 12 3 29 27 28 126 162 117 491 8 0 631 16 0 456 6 0 r anuary February tf arch Totals 814 17 2 817 5 9 787 16 7 28-91 (average) 2,436 9,500 8 0