1874

:-(1.) The Bathurst gold-fields, comprising the workings at Cheshire’s Creek, the Winburndale and Clear Creeks, Mitchell’s Creek, Oberon and Campbell’s River, and Caloola.

In all these localities the alluvial on the banks and the drifts in the beds of the streams have long since been exhausted, and the workings are almost entirely confined to quartz reefs.

At Cheshire’s Creek and Wyagdon there are two quartz-crushing machines at work, but the yield from the reefs has not been uniformly remunerative, and although there are surface evidences of rich deposits, the mines have not been sufficiently worked to produce satisfactory results.

At Oberon, near the head of the Fish River, the diamond and river bed workings have been abandoned; but quartz reefs there and at Native Dog Creek have been discovered, which I am of opinion will yet be worked to advantage, from the measure of success which has already rewarded the miners.

There are two quartz-crushing machines at work in this field, and the average yield is reported to me as from two to three ounces to the ton.

At Mitchell’s Creek three machines are engaged in quartz crushing. The reefs in this gold-field are larger than in any other part of the Western district, and more accessible and easily worked, and the average yield during the past year from 2500 tons, crushed at three machines, was about half-an-ounce to the ton.

The Campbells River Gold-field is principally occupied by Chinese, who are engaged in working tho bed of the stream, the reefs there being idle for tho present.

At Back Creek and Caloola the auriferous deposits are of a very singular character, consisting of soft lodes of clay, slates, and auriferous earth. At the former place powerful machinery was erected by a company on the assumption that the “ made hills “ could be worked en masse, and the stuff passed through the batteries at a rapid rate, when a return of only a few pennyweights per ton would be only remunerative.

The result has not fulfilled these expectations, the gold not having been found to be equally distributed through the soil, but to exist in belts and “patches.”

Even should it eo found unprofitable to work with the present organi- zation of the company, enough has been obtained to show that the deposits of the nature referred to are extensive, and I am confident will yet be operated upon with success.

The Caloola deposits are of a similar nature, but better de- fined and richer as far as ascertained. The mines there are being gradually developed by local companies, and when the problem is solved of extracting the gold from this peculiar deposit in a manner suffciently expeditious, I anticipate, from the extent and depth of the auriferous lodes in the locality, a satisfactory and continu- ous return.

The total population of these gold-fields is about 600, and the gold transmitted by escort during the past year was 9448 oz. 5 dwts. 13 grs.

The river bed and alluvial workings are here as in all the older fields somewhat exhausted; and quartz reefs principally attract the attention of miners.

No less than ten quartz-crushing machines have been erected in this district; but none of them ore of great power, and but little employment has been lately obtained for them.

Both on the Turon River and at Wattle Flat a large area of quartz bearing country exists, and almost every available foot of it has been leased. But here, again, the money that should have been devoted, to the development of these mines has found its way into other hands, and all mining operations there, with few exceptions, are languishing from the want of capital.

There can be little doubt if the value of this district in a mining point of view, and, when the reefs are properly and systematically worked, I have no fears as to the result. A few companies are still continuing operations, notably that known as “ Moyle’s Surface Hill.

This hill has been the feeder of two of the richest creeks known in the early days of gold-mining-” the Big and Little Oakeys “-and is of igneous formation, seamed with auri- ferous and pyritous quartz veins.

These veins were worked to a depth of some 60 feet from the surface, and, after proving extraordinarily rich to that depth, apparently ran out. A

tunnel driven into the hill at a lower level has proved that these veins remake and lose nothing of their auriferous character, and have every appearance of reacting to an unlimited depth and uniting in a main reef. The result of the operations of this Company will, in all probability, give a renowed impetus to mining at Wattle Flat and in the Sofala district generally.

The reefs at Spring Creek and Nuggetty Hill, on the Turon River, in the neighbourhood of Sofala, are also worthy of notice, from their former yield and apparently permanent character.

Operations, I understand, are shortly to be resumed upon them. The population is about 3000, and the yield of gold 9073 oz. 11 dwts. 13grs.

In these localities, alluvial mining-except when carried on by Chinese in the beds of the rivers, and by a few Euro- pean sluicing companies has completely died out.

All the shown reefs, however, are held by leases for quartz mining, but a very small proportion of which, taken up during the mining excitement of previous years, are occupied or will be worked by the applicants.

The Hill End and Tambaroora district having been the centre of the formation of “bubble” companion, ostensibly to work its reefs, has suffered more than any other from the inevitable reaction which followed, and, with the exception of the principal claims at Hawkins Hill, Tambaroora, Chambers Creek, Hargraves, and a few others, which are still in work, a line of leased tracts extending from Maitland Bar, on the Meroo, with but few intervals, to Cham- bers Creek, tributary of the Macquarie River, a distances of about thirty miles, is practically abandoned.

This is traceable to the causes I have already mentioned, and not to the worthlessness of the reefs. It cannot be too frequently impressed upon tho public mind that quartz-mining is an industry requiring in nearly all cases time and ample capital for its development, and that even then there must be a proportion of failures among the most promising ventures, the results, however, in the event of success, being proportionately great.

There are but few discoveries’ for which it is prudent to pay large sums, as has hitherto been the case. An undeveloped mine, however promising in appearance, is of little value until opened out and the necessary machinery is provided, and for this the price which has been too often paid to the proprietor, should be reserved.

Had this rule been followed in past years the present collapse in mining speculations would not have occurred.

The original rich claims at Hawkins Hill are still being worked, but the yield for the last nine mouths has been diminishing. The reason is obvious. Tha very rich belt of veins from which such astonishing results were obtained has been worked out in some of the claims, and possibly not reached in others ; but there is no reason to suppose that a second zone of similar veins does not exist at a depth not yet reached, for no shaft has been sunk to a depth of 600 feet which would be thought but an inconsiderable distance in the sister colony of Victoria, where quartz-mining has reached a higher state of development than is possible here for some time to come.

By tho construction of a tram road from the mines on Hawkins Hill to a crushing battery at the foot, and the wire tramway to another machine at the summit, every facility is now afforded for the cheap and expeditions transport of stone to the bat- teries, which was formerly packed on horses, from the precipitous nature of the country between the claims and the machines.

This could be more expeditiously and cheaply performed by each company contributing ratably to the work, and it would be equally as effective, as a shaft in each claim for the required purpose.

It is in the continuance of successive series of gold bearing veins to a considerable depth that the ultimate success of these companies and the restoration of public confidence in them depends ; and the sooner, therefore, this problem is solved, the better it will be for the mining community, and for investors as a guide to future operations.

There are no less than twenty quartz-crushing ma- chines in the Tambaroora district; and with so large a plant on the ground, it is improbable that the present state of mining inactivity will continue for a lengthened period.

Tho population has for some months been decreasing rapidly ; but it must be recollected that a large portion of it was at all times unemployed in mining, and the discoveries at Bushman’s Lead, in the Lachlan district, and the new railway contracts, have drawn off a large proportion of the labouring classes from all the other gold-fields.

I confidently anticipate, however, a gradual recovery and the vigorous “resump- tion of mining in all parts of the Tambaroora district before the close of the present year.

Tho total population of the Tambaroora district is about 6000, and the gold transmitted by escort was 52,129 oz. 2 dwts. 4 grs. during the past year.

There are five machines at work or in course of erection in connection with these reefs. The principal gold-field, however, is that at Gulgong, which still retains its position as the most important in the colony, surpassing all others in the production of gold.

Although the main loads which were discovered in the years 1870 and 1871 have been partially worked out, as must be the case in all deposits of this nature, within a comparatively limited time, still the discovery of branch leads and shallow alluvial workings, over an extended area, taking tho town of Gulgong as the centre, has enabled the returns for the post year to approach to those of the palmiest days of this gold-field.

The lower portion of the old black lead, where the auriforous drift lies beneath a thick layer of basaltic rock, has been taken up by a company under lease, and powerful pumping machinery has been erected to dry the claims, which have hitherto been unworkable from excess of water by the ordinary appliances of the miners,

Other leads, which cannot be worked from a similar cause, will, with the success of this project, of which there appears no reasonable doubt, be occupied to advan- tage by the aid of machinery and capital.

The quartz reefs also, the feeders of the deep leads, are being worked with a perserverence which must in due time be rewarded by suc- cess, although no great results have as yet been obtained. There are two quartz-crushing machines available in the district. T

he population numbers about 8000, and 121,725 oz. 6 dwts. 7 grs. of gold were forwarded by escort during 1873.

The reefs in this district are extensive and fairly remunerativo, having been worked for many years. It is suffering, however, from the prevailing depression, and of the six crushing machines in the district but one can be said to be in full work.

I have still every confi- dence in the ultimate advancement of this gold-field, from the known character of the reef, upon which work will soon be resumed. The population does not exceed 600, and the yield of gold for the past year was 5398 oz. 12 dwts. 23 grs.

At Ophir some very rich discoveries of gold in quartz , near the surface, have been made within the last few months; but although this is the oldest gold-field in the colony, and the scene of the first discovery of our auriferous treasures, the reefs, as far as proved (for but little work has been done upon them) have been what is technically termed “ patchy “ by the miners, that is, very rich finds are made at intervals, but the bulk of the quartz is barren.

Here, again, I believe it is necessary that the reefs should be fol- lowed to a greater depth to ensure continuous success.

The rich alluvial bars, and the beds of the creek at Ophir have long since been worked out ; but it is the centre of a basaltic formation extending from the Turon River near Sofala, where diamonds, have lately been discovered, to Burrendong on the Macquarie River, to which sufficient attention has not been paid by mining capitalists, and which, to my mind, offers more remunerative and a less un- certain field for the employment of capital than quartz mining.

Wherever the basaltic layer overlying those hills has been pierced or tunnelled under, an alluvial drift more or less auriferous has invariably been discovered.

In the immediate vicinity of Ophir, some years since, the yield from one of these conical basaltic hills was highly re- munerative to a considerable body of miners for a lengthened period.

At “The Mullion,” some ten miles from Orange, on the Stony Creek Road, Mr. B. O. Holterman has erected powerful pumping machinery for the pur- pose of draining the water in an alluvial deep load sup- posed to exist in that neighbourhood, and which has long defied the efforts of the miners to work by tho ordinary appliances.

It is to be hoped that in due time this spirited enterprise will meet with the reward that it merits. At Cargo a deep alluvial lead has been followed with varied success, and reefs have been opened in the surrounding country, which for some years having been most perseveringly worked, are proving both permanent and valuable, the average yield being about an ounce to the ton. There are about five hun- dred persons on these fields engaged in mining and business pursuits. The returns of gold for the year wore 6081 oz. 6 dwts. 23 grs.

Those opened up many years since in the neighbourhood of Forbes are apparently exhausted, although the whole country lying between that place and the Billabong Gold-field is probably, from its geological character, permeated with similar loads, which remain un- discovered from the fact of the surface on the great Lachlan leads presenting no indication of or guide to the auriferous deposits beneath.

The deep leads at the Billabong Gold-field having been more lately developed and better defined, from the natural formation of the country than in the neighbourhood of Forbes, promise to be more lasting, and have supported a pçpulation varying from 2000 to 5000 for the last three years.

Many reefs have also been opened in this district and companies formed for working them, which have been more or less successful in their efforts.

A discovery of some importance, from the fact of its distance in a westerly direction from any other gold-field in the colony, was made in April last of an auriferous quartz reef at Lake Cudgel- lagong, on the Lower Lachlan, and although no great suc- cess has as yet crowned the eforts of the miners, sufficient has been found to stamp the character of the great basin of the Lachlan River as auriferous – 100 miles below the present gold-fields.

There seems to me to be every reason to anticipate that gold fields will ere long be discovered in this direction of a similar character to those now existing in the vicinity of Forbes, and that an untried auriferous country of vast extent will thus be opened, up to the enterprise and energy of our mining population.

For a description of the Lachlan gold-field I would refer to the very able and comprehensive report of Mr. Com- missioner Dalton, which, in conjunction with those of the other resident Commissioners on thoeseveral gold-fiolds in the Western district, I have attached as an appendix to this report. The population of these fields may be estimated at about 7000, and the escort returns for the year 1873 were 22,541 oz. 10 dwts. 16 grs.

These deposits are in the nature of decomposed rock of un- proved depth, and extend over a large area, yielding, so far as tested, an average return of 3 to 5 pennyweights per ton, and capable of being raised and crushed at an econo- mical and rapid rate, with the aid of the powerful machi- nery alluded to, and would thus seem to be of almost in- calculable value.

The deposit operated upon at the junction of the Belu- bula with Four-mile Creek by powerful batteries is of a nature similar to that at Caloola, and for the past two or three years results more or less remunerative have been obtained. A second company have also nearly completed their machinery for the purpose of working a similar deposit on the opposite side of Brown’s Creek from that occupied by the company first mentioned, and with the same pro- babilities of success. Population, about 500. Yield of gold, 6822 oz. 5 dwts. 2 grs.

(9.) The Trunkey Creek district comprises the Trunkey , Creek and Tuena gold-fields. The alluvial has in these fields been nearly abandoned, and of late years the atten- tion of the miners has been confined to the quartz reefs and auriferous lodes which abound in the district.

Many com- panies have been formed for the working of these mines, but the result has not as yet been very encouraging ; not, I think, from the poverty of the ground, but from the fatality which seems to attend the operations of nearly all companies formed in Sydney for these purposes.

In almost every instance the capital has been squandered in the erection of machinery before any payable or con- tinuous reefs have been struck, and, in consequence of the want of sufficient capital for the most important part of the work-the development of the mine-the un- dertaking has languished, and eventually collapsed.

Such appears to me to havo been the fate of most of the ven- tures at Trunkey Creek and Tuena ; but in one or two in- stances where practical miners have worked the reofs in an economical and judicious mannor, returns have been ob- tained which leave no doubt of the value of the reefs if properly treated.

Auriferous deposits of the character of those described at Brown’s Creek and Caloola are also found in this neighbourhood, and bid fair to produce results as satisfactory to those who are erecting the requisite machinery for their successful development.

There are five crushing machines at Trunkey Creek and six at Tuena, and with this amount of engine power on the ground, there is every facility for proving the reefs and an encouragement for the recommencement of work upon mining properties how temporarily abandoned.

The popu- lation of these districts may be estimated at about 2500, and the escort returns for the year amounted to 5389 oz. 12 dwts. 23 grs.

It does not appear to me that the admitted imperfections in the existing Gold-fields Act and Regulations have had much to do with the decline in mining interests, which has chiefly arisen from the extravagant expectations and reckless speculation of investors in mining shares, and the gross frauds which in so many instances have been perpetrated by promoters of companies and proprietors of auriferous and supposed auriferous properties, upon a too credulous public unacquainted with the conditions necessary to ensure success in, and of the at all times hazardous nature of mining ventures,

Any legislation that would check the formation of bubble companies, and compel in all cases a certain proportion of the nominal capital of public companies to be reserved for the actual working of the mine, would be a great protection to the bona fide investor, and retard the fraudulent operations of unprincipled promoters of mining schemes, or vendors of gold-mining properties.

As a bill is before Parliament for the regulation of min- ing, I refrain from any suggestions as to what is required for the establishment of a better system of judicial and departmental administration, but will confine my remarks to those improved departmental arrangements which can be carried out under the existing law and regulations, and which are every day becoming more necessary, from the magnitude of the interests involved as compared with pre- vious years.

I could also suggest many useful alterations in the existing regulations, but as some have already been declared “ ultra vires “ by the Supreme Court, it is evident that without fresh legislation it would be useless to attempt any reconstruction of them. In the matter ot the registration of claims, however, which has been found as at present carried out to be very imperfect, I would suggest some important alterations.

The existing regulations merely provide that a claim shall be registered and transfers thereof made at the “neareet registrar’s office,” a very uncertain definition, and one which has been productive of much confusion in the transfer and registration of claims and shares.

This can only be obviated by the subdivision of the gold-fields dis- trict into registration districts, which should be mapped out and proclaimed, returns from each such district being furnished to the head offices of the respective mining dis- tricts, and the registrations at each sab-office strictly con- fined to the sub-district.

The special instructions to register as to the mode of registration, in order that the claims or shares should be clearly identified, and the requisite im- provements for that purpose in the books and forms now in use, are mere matters of detail which I need not here enter upon.

The subdivision of the gold-fields into mining surveyors’ districts is also required to enable the survey of leases to be carried out with the requisite promptitude, and proper plans of all milling localities to be lodged in the commissioner’s office, as a reference in cases of disputed titles to auriferous lands.

These surveyors should also make all measurements within their districts, which would not only afford them the opportunity of constant employment, thus enabling the arrangement to be carried out in the most economical manner, but would prevent the confusion and complication already beginning to arise from the surveys being conducted in the same district by officers independent of each other, and each of whose instructions emanate from a different source.

Duplicates of all plans could then be transmitted to the Surveyor General by the mining surveyors, where their accuracy would be properly tested and that necessary supervision of the surveyors’ work in the field also enforced, which is wanting under the existing arrangements, and no survey of one class would then be found overlapping another of a different nature, as has already occurred in the Hill End district, and is almost unavoidable where mineral leases are measured by one surveyor and auriferous tracts by another.

The present regulations also, with reference to mineral leases within gold-fields, can only in this manner be properly enforced, and the selection of large tracts of auriferous country, under the pretence of searching for the baser metals, be effectually suppressed. lo. Much dissatisfaction has in many quarters been ox pressed, and in some instances justly so, at the delay which has taken place in the survey and preparation of looses of auriferous tracts. The delay in question has arisen from circumstances quite beyond my official control-viz., the unprecedented number of applications made in this dis- trict during tho past two years, and the absence of a suffi- cient survey and clerical staff for the work.

The want of a mining branch distinct from the Department of Lands, working harmoniously with the district office, and presided over by an officer having had the requisite practical experi- ence upon the gold-fields in this colony, has also been felt as an obstacle to many necessary reforms in the present de- partment arrangements. I therefore look upon the establishment of a distinct department or sub-department of Mines as the first stop towards an efficient and satisfactory administration of gold- field matters.

6. I have been enabled, however, during the past year to initiate and carry out many important improvements in the system of survey of auriferous lands in this district. Nearly three-fourths of the leases applied for are now charted in locality maps in this office, defining the position of these lands as connected with a fixed point, and enabling them at any time to be placed upon gold-fields maps of a sufficient scale to show them with distinctness and accu- racy, which, however, have not yet been compiled.

I am now engaged in obtaining from the licensed surveyors and preparing similar plans of the leases granted prior to the appointment of mining surveyors, and trust soon to have a definite description of every lease now current in the Western district.

What has already been done will be found to be a great assistance in the formation of any new organization in connection with gold-fields management.

7. The question of the compulsory employment of labour upon leased tracts is one which has always had its advo- cates on either side upon the gold-fields. On the one hand, the present depressed state of the mining interest is traced entirely to the absence of labour on leased tracts, while on I tho other it is asserted that capitalists will not invest in mining properties, liable to be forfeited because the num- . ber of men fixed by an arbitrary scale, and possibly em- ployed in unnecessary and unproductive labour is not con- stantly maintained upon them.

There is something to be said in favour of both arguments. The leasing of large tracts of auriferous lands without any conditions as to labour would lead to a dangerous monopoly, and’ practically lock up the gold-fields to the ordinary miner, who could neither attempt to work them himself nor obtain employment from the lessee.

At the same time, to force unproductive labour upon gold-mining leases, under pain of forfeiture, would lead to the withdrawal of capital from these ventures, without the aid of which the auriferous reefs and lodes, the permanent wealth of our gold-fields, will never be properly developed. T

he true course to adopt, in my opinion, is the medium between the appa- rently conflicting interests of the capitalist and the working miner. Such labour only should bo compulsory, after the ground has been surveyed and a valid title to it obtained, as is required to open out the mine-in no case less than two men for a lease of twenty-live acres and under, the subsequent employment of a larger number when tne mine is in full work being left to the enterprize of the lessees.

Full power for registration for any reasonable period, upon good cause being shown, should be veseod in the hands of the local officer, and the expenditure of large sums in machinery or improvements should always operate to stave off forfeiture, even should the conditions of the lease have not for a time been strictly fulfilled.

These views have invariably influenced my recommenda- tions in cases of application for the forfeiture of leased ground under the labour clauses of the regulations. Numerous complaints are heard from the miners with roference to, and applications made for leased tracts now lying idle, but in many in- stances upon which large sums of money have either been expended in profitless work, or have been paid to the for- tunate proprietors on their represeniations of the value of tho property, for the privilege of leasing which they have paid a few pounds only to the Government.

I certainly think there are two sides to this question, and that the unfortunate capitalist or contractor, having spent all that he can at present afford in developing his purchase, should he allowed a little breathing time to reorganise his resources, before his property is permitted to fall into the hands of those who, in the majority of instances, have no intention of working in a bona fide manner, but are simply desirous of repeating their former happy experiences with a fresh victim.

I am informed that some of the mining properties in the Hill End and Tambaroora district have passed into the hands of companies , “ floated “ in London. As nothing would be more desir- able, or lend more to the resuscitation of gold-mining operations on on extended scale in this colony than the presence of British capital, I sincerely trust that those companies have been formed on a basis that will ensure a fair prospect of success by the provision of ample funds for the development of their property, and that the flow of capital from the mother country for investment in mining ventures of all descriptions may thus be stimulated, and not arrested, by the unfavourable results of the initiatory pro- jects.

8. There were issued on the Western Gold-fields, for 1873, 14,263 miners’ rights, and 1016 business licenses, as against 18,642 of the former and 1311 of the latter for the previous year-that of the greatest mining excitement-being a diminution of 4379 and 295 respectively.

I may mention, however, that the number of miners’ rights issued here is reduced by an arrangement by which they can now be obtained at – the Treasury in Sydney. Nearly all the available land on the existing gold-fields has been applied for under lease, and I look upon the number of fresh applications during the past year, and those which are still being received every month, as an evidence of vitality in the mining interest which, in, the face of the apparent depression, is highly satisfactory.

I cannot disguise from myself, however, that many causes will operate during the current year to depopulato our gold- fields, which can only be counteracted by some important discovery in this colony, the most power- ful of which are the recent discoveries at -the Endeavour and Palmer Rivers, in Northern Queens- land, the letting of large railway contracts in the colony, the gold-fields population having been largely re- cruited in 1871 and 1872 from the workmen discharge- on the gradual completion of the then existing contracts ; and lastly, from the cessation of operations by so many ephe-_ meral gold-mining companies, and the absence of pur- chasers for a time of those propertios upon which now com- panies could be formed.

Tho majority of those who will leave, however, can probably be well spared for the pre- sent, and a healthier state of affairs will replace the late fever of excitement, when the colony suffered from what has not been unaptly termed the “ scrip mania,” which has been common to all the gold-bearing countries in the Australian group.

With the dearly-bought experience of the past, investors in mining ven- tures will be more cautious in their transactions ; and the formation of a Mining Department, with the statistical information which will then be available from the periodical reports of competent officers in each mining district, will disseminate a more accurate knowledge of the conditions of successful mining than is at present obtainable from the desultory and unreliable information whioh can only now be procured on this subject. The establishment of a School of Mines will also be use- ful in training mining managers, and thus promote a more efficient working of our cold mines, and tend to prevent an unnecessary waste of capital in ill-advised and improductive works.

A well-arranged Geological Museum, containing also working models of requisite machinery, and appliances for gold-mining on an extended scale, and the extraction of gold from pyrites and other foreign substances, with which it is so frequently combined, would also be an invaluable aid, in the diffusion of that scientific and practical knowledge which are jointly requisite for the ‘ successful development by the mining community of our mineral wealth.

9. In conclusion, I may venture to predict that a gradual improvement in the state of mining affairs will be percepti- ble during this year; and that when it is dearly shown by the successful operations of some of the private com- panies formed upon a proper basis-that of the employment of capital in working, and not in the purchase of the mines that gold-mining is a legitimate investment, under proper conditions, for the surplus capital of the country, a reaction in favour of this pursuit will take plaoe, which will be unattended with the disastrous results of the past year, WHITTINGDALE JOHNSON, Commissioner in Charge.

The alluvial workings in the creek and adjacent banks have in some instances been highly productivo,1 although I regret to say that on more mature development the sub-soil water and drift have presented difficulties which havo eventually baffled all tho endeavours of tho minors to subdue them; added to which, tho recent floods have ‘caused the greatest devastation to. the plant and under ground , workings, and consequently mining operations in some of the most valuable claims have been suspended.

I have overy confidence, however, that the known value of tho deposits in this ground will induce the claimholdcrs to renew their exortions and successfully overcquio these obstacles.

The quartz reefs at Adelong havo contributed in no small degreo to tho increased yield of that gold-field, and some of them continue to proiuce large quantities of payable stone. The claim well-known as “ SViliiums’s “ has proved a most valuable property, and has euablod its shareholders to receive some’highly remunerative returns for their labour and expenditure.

The “Enterprise” claim has also proved very rich, and notwithstanding the , expense and difficulty attending the working of it, yields considerable profits to ita proprietors. ,

The works in the tracts on the u crown of the old reef” are being prosecuted with muoh rigour, and favourable j results are anticipated. In fact, nearly all the reefs are ‘ taken up and fully occupied, and the energy here displayed I forms a pleasing contrast to the lethargy observable in , regard to similar workings elsewhere. –

The alluvial depo- , -id in proper hands would bo a vory paying propur ?,, 1 ut the prosent holders of claims thereon do not appoi’ 1 J m .ko much out of it. The absonco of a crushing mill is a gi if, ti r i whick, but I imagine if proper endeavours were in ule i a it deficiency might soon bo supplied.

At Grenfell mining matfors aro almost at stagnation point, and the reaction resulting from tho excitement is moro visible there than perhaps in any of the gold- fields in the Southern distant. This is the more to be deplored when any person acquainted with that district must bo convinced that nts auriferous resources are for from being exhausted.

Apart from tho evil influences of tho late mining panic, I cannot but think that the mines at Grenfell havo buen grossly mis- managed, or they would bo in a very different stato at the present time.

I feol confident that the reefs, that are now held in idleness, or abandoned, under proper conditions could still be worked to advantage. For tnstance, I know that a property like the “Grenfell Consols” would in Victoria be made to yieldajvhandsonie profits to its ownors ; whereas, the fact is, that nearly the vvholo of [tho gold pro- duced by tho claim has been swallowed up in oxpenses.

When Issy that until quite recently somo eeventy 01 eighty men wero at work on wages, and that contracts for the raising of stono had nover been thought of, further com- ment Is unnecessary. In alluvial mining at Grenfell thora H is nothing to note.

Tho Nanima gold-field has met the fate that I prognos- ticated, and may now bo considered abandoned and worth- less, as far as any mining interests are concerned, and I cannot say anything more favourable of (ho, gold-fields at Gundaroo. At Nerrinunera and Forebank tho quart/ reef« continue to occupy some .tttonnon, ‘ind, if worked on a proper system, hold out some litigo o) being turned’ to good account.

There is a largo i toul of country in thu neighbourhood abounding in gruie, r.r*fl, all moro or less gold-boaring, and which only minni? eíevploping to alford a favourable field for the invîliwnl of capital and the otfiuloymenc of a large number oi mitiuf. , ‘

Tho mining taiüti ir al Shoalhaven ixStrorig tho existence of a quartz reel m ih if locality, thal U yiuldjug good wages to some men who i lindene stone and extract the gold from it with applinnec of the moat primitivo character. The prospect? el the gold-fields in the Braidwood district havo not shown mi) improvement during the yoar; but, nevertheless, a good deal of quiet, steady work is being done in connection with tho claims there.

At Major’s Creek more especially the sluicing clnims have fairly maintained their yield, and that portion of the district promises to con- tinue of much importance for many years to come. The quartz reefs in that neighbourhood have not turned out as permanent and profitable as it was hoped they would. The decrease in the yiold of gold at ‘Araluen during the past year has boen very marked, and,loads to the conviction that the resources of that field are being gradually ex- hausted, i

This falling off may also, in some measure, bo attributed to the disheartening influences of the constantly occurring floodB which have so repeatedly spread desolation over the whole valley, by filling in cluims, burying engines and plants, and sweeping away costly works.

Nothing can say moro for the confidence in the richness and productiveness ‘ of this gold-field than the fact that thoso disasters should have been so persevcringly combated with for many years. At Mogo, in the Moruya district,- considerable anxiety has been evinced to secure auriferous tracts, and this has led to somo intricate complications in regard to the conflict- ing claims of applicants for auriferous leases and the lessees of lands for minerals otho* than gold.

In’the latter cases it transpired that in most instances such lands wero so taken ‘up ostensibly for other minorais, but in reality for gold mining. This is an abuse that is very provalont, and re- quires some stringent and effectual cheek, for it is produc- tive of very evil results, and has the effect of locking up and retarding the development of land that might otherwise be profitably and legitimately worked.

I may state that the applicants for tract« at Mogo are awaiting the issue of their leases prior to commencing work. The Nerrigundah (Gulph’ Crook) and Kiandra gold- fields have nndergono no chango since ‘ last notice, and a limited number of miners appoar to ibo making a comfort« 1 able liviag by their labours at those places. The revenue derived from all sources during tho year boa amounted to £8817 5s., being an increase on that for 1872 of £228â. This increase may bo accounted ‘ for by the fact that at the commencement of the ,yoar,a,large balanoo re- mained on hand from 1872, and ¡which properly belonged to that period. Of this revenue £2294 waa received from miners’ rights and business licenses, and £6523 5s. for rents and survey fees of leased tracts. Tho yield of gold has been 80,616 oz., against 90,180 fon 1872, therefore showing a decrease of 9664 oz. in the year. , Of this yiold 56,040 oz. was obtained from alluvial and river-bed workings, and 23,870 from quartz reefs.”

The gold from the quartz reef» was produced from 189 claitnB, and was extracted from 20,408 tons of stone, giving tho very high avorage of up- wards of 1 oz. 3 dwt. to the ton. The number of miners engaged was 4574, Uping a deoreaso of 819 on tho previous year. 3194 miners have boen employed’in alluvial and river workings, and 1380 on quartz reefs, and the average yield per man has boen nearly 174 0/”i or in money value at tho rate of about £G¡5 per annum each. Connected with alluvial and river-bed workings there aro ten steam-engines and forty-soven watorwhcols at work, and on the quartz reefs twenty-flvo steam-engines and water-wheels.

Tho aggregate horse-power of this ma- chinery is 607, and ita probable value £74,950. The number of registered companies is ton in alluvial and river workings and twenty-four on quar,tí íoofs, represent- ing paid-up capital to the amount ot £303,770. There aro 305 dams and reservoirs in UBO for mining pur- poses, valued at £12,141, and 750 races, conveying 1780 sluice heads of water. The aggregate length ot tho races 1315 miles, and thoir value is set down at £43,57?, The leased traots comprise 1150 aorcs of alluvial ground, 3308$ acres of quartz reefs, and 40,900 yards in the bodB of rivers und creeks.

As there is now before Parliament a measure which proposes to deal with the regulation of mining in all its branches, it would be improper for me to offer any opinion or make any suggestions on the subject. Doubtless that measure will deal with any defects that may exiet in the present system of management and administration. G. Ü’MAI.LKY CT.AIIKB, Commissioner-in-oharge.