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222,329-7 cubic yards. Gold: No. 1 Division, 680-15 oz.; No. 2 Division, 1,04174 oz.: total, 1,72189 oz. Value per cubic yard: No. 1 Division, 3-332 gr., 6'66d. ;) No. 2 Division, 4 021 gr., B'o4d : mean value, 3-7175 gr., 7'435d. It affords me much pleasure to record that no accident' either to men or plant, has occurred, and to attribute our immunity to the mine-managers' constant and careful vigilance. Mr. John Uren, whose attention to his duties throughout the year has been unremitting, is especially entitled to commendation for his management during my absence on sick-leave." Kiito and Party's Hydraulic Sluicing and Elevating Claim, Munro's Gully.— -Work has been continued on the usual lines throughout the year. The cement-face is brought down by blasts of roburite. It is then broken up by hand and sent through the elevator, whence it is discharged down the sluicebbxes. Nine men are employed. Tuapeka Sluicing Company, Munro's Gully— This plant is operating on the shallow gullies and terraces bordering the Tuapeka Creek. The gold-bearing wash is found on the rock bottom, overlain by a heavy deposit of clay, in some places 20 ft. in depth. P. P. Thomas and Party's Claim, Munro's Gully. —Sluicing operations are being continued on the terraces bordering Munro's Creek. These have been partially worked in former days by driving and blocking out. Vertical pressure, 100 ft.; height of terraces, 25 ft. I instructed Mr. Thomas to give the back face moTe batter for the safety of the workmen. John Roach and Party, Tuapeka Flat.— The claims for compensation by freeholders along the line of race have been satisfactorily adjusted by arbitration. During the year the water-race from Gabriel's Gully was cut in, as many as seventeen men having been employed while the work was in progress. It is now proposed to proceed to lay down the necessary pipe-line and sluicing plant and proceed to ground-sluice the terrace portion of the claim. These terraces were profitably worked by handlabour in the early days. So much attention has been devoted to the possibility of working these terraces profitably that it is now proposed to bring in a water-race from the Little Beaumont River. This work was started many years ago, but abandoned for financial reasons. Tamaiti Gold-mining Company, Tuapeka Flat (A. N. Wakefield, Manager).—This company has been formed by the amalgamation of the interests held by Hogg and party and by Wakefield and party, as indicated in last year's Mines Report. The ground to be worked comprises terrace ground adjacent to the Tuapeka River and extending for a distance of about seventeen miles in length. This ground was partially mined in early years from shafts and drives, but was too wet for continued handlabour. The working capital of the company is £2,250, and with this amount it is proposed to throw a crib weir across the bed of the Tuapeka River to dam the water back to a height of 30 ft. and also to instal a turbine to provide power for a high-lift centrifugal pump. It is estimated that sufficient power will be obtained to elevate five Government heads of water to a vertical height of 150 ft. The water will then be used for hydraulic sluicing in the ordinary way. Thomas McLeod and Party, Tuapeka Mouth. —At one time Tuapeka Mouth supported a fairly large mining population, employed along the Tuapeka River and adjoining terraces. When fall was lost for ground-sluicing the ground was abandoned, and has lain idle for many years. It is now proposed to follow the example of the Tamaiti Company and instal a similar plant to enable work to be resumed on these terraces. In the issue of the 16th December, 1905, the New Zealand Government Mines Record has an interesting article dealing with the successful application in Oregon and Alaska of this method of applying water-power to enable placer-beds 400 ft. above the stream-level to be worked. Dredging. —The greatest number of dredges ever at work in this district was five, and of this number only two are now in operation, the Gabriel dredge having closed down permanently. The ground operated on by the dredges in this district consisted principally of shallow ground previously worked by hand-labour, hence the dredges were enabled to rapidly exhaust large areas. Waipori. William Brown and Party's Sluicing Claim, Bungtown Flat.— This hydraulic sluicing and elevating plant was operating on ground previously turned over by Europeans and Chinese. To make the venture payable a plant of large capacity was consequently needed. Unfortunately, the plant was small and the pressure obtainable was low, so that the venture proved unremunerative. Operations have ceased, and the plant has been sold for removal to Happy Valley, Wetherstone's. Golden Padlock Hydraulic Elevating Claim, Mitchell's Flat (J. Gare and party), (Area, of claim, 4 acres).—Sluicing operations were suspended at the time of my visit, while a tail-race was being brought up to enable work to be carried on to a deeper level. In the meantime some ground-sluicing was being done on the Waipori side of the hill. Four men generally at work. Reef Creek Hydraulic Sluicing and Elevating Claim, Mitchell's Flat (F. Knight, Owner).—This claim was let on tribute to Eaton Bros., but work having been discontinued, chiefly owing to the unreliability of the water-supply, portion of the plant has been removed to Nor'-west Creek to be used there in connection with the excavation of Messrs. Knight Bros.' reservoir. Farrell's Deep Lead Hydraulic Sluicing and Elevating Claim (R. J. Cotton, Lessee). —This claim and water-right having been leased to Richard J. Cotton, operations are being continued on Lammerlaw Creek and adjoining shallow terrace-ground. Several large paddocks have been taken out to an average depth of 12 ft. The material is easily turned over, and operations have been carried on with a fair measure of success. The plant and claim is in good working-order. Seven men are generally employed. Lammerlaw Creek Hydraulic Gold-mining Company (W. E. Caldwell, Manager; W. and F. Knight, Owners). —Sluicing operations in the claim on Lammerlaw Creek have been steadily conducted throughout the greater part of the year, but towards the end of the year there was a temporary cessation of work. The plant was transferred to Nor'-west Creek to be used there in connection with the excava-