The lease carries a sparse supply of timber, but will justify the installation of a steam plant of such dimensions as that already under construction. As time wears on, however, an alternative power must have consideration.

The contour of the country does not lend itself to the construction of earthwork headraces, &c., being too rocky; service water, will therefore have to be carried in a pipe service.

I am forwarding a sketch plan showing the two streams and their confluence under the name of the Juga. Pits as shown have been sunk and a sampling done. The samples (Mr. Robinson informs me) were taken by a native headman, and run very erratically from 17 lbs. to nil per cubic yard. Robinson says that some of the holes at that time had been flooded, and is of opinion that all the bottom wash in some instances was not included in the samples taken.

At the present time all the pits are more or less flooded and silted, but I will re-sample the whole of these and advise results at the earliest possible moment.

The two dams shown in the sketch have been carried away by floods. Higher up the river at “A,” a much better site exists, which will give more pressure and command more ground. I propose to place one here as soon as I can.

The tracts shown on the drawing will give some idea of the direction in which the other leases lie.

Viewed in conjunction with the plans, the directors will have a more concise idea of their relative positions.

Nafuta or Sub-Juga.—Of the exclusive area held here some 1,850 acres have been embodied in the mining lease just issued. It embraces what appears to be the pick of the Nafuta flats and encloses a maximum of alluvial drift with a minimum of rock, and at the same time adheres to the water-course. The Nafuta gorge terminates quite abruptly, and opens in an expansive plain lying some 400 feet below. The lease commences at the foot of the gorge, and runs along the river in a north-easterly direction. Its width embraces the deepest of the flats, though there is still some ground at the south-west corner of the exclusive area that warrants attention. I should say from a cursory examination that the amount of workable ground is in excess of that of the other leases, though no attempt can be made to quote tonnage until many more pits have been sunk. It is from this area that most of our present tin is being won. The tin contains much impurity, such as iron, and the natives find a difficulty in separating it by calabashing.

The average depth, judging by the present trial pits, is 12 feet. The wash is clear and medium sized, and the overburden is ideal material for removal where viewed in the old paddocks.