I found Mr. Morton (the vendor of the claim to the Nangcarrong Hill Gold Mining Company) hard at work crushing up quartz with a hammer preparatory to washing it, and two men were at work in the shaft. As I drove up shouts of “look out” were heard from the Company's shaft, and a blast off immediately after. I took advantage of this, and, descending the shaft, picked out from among the pieces blown out by the shot, the specimens numbered 3, 4 and 5. You will see they are very taking specimens, and each show gold to the naked eye [sic].

The reef in the bottom of the shaft was at least four feet wide, and it has carried gold all the way down, so anyone can estimate the large quantity of quartz available by getting the cubic contents of 10ft x 4ft x 400 yards. The piece of quartz numbered 1, was lying on the surface. I was walking along on the company's claim, and noticing this piece of quartz told the man with me to break it, which he did. You will observe that gold exists not only in the break, but also on the surface part exposed.

My specimens consist of three kinds, No. 1 from the surface, No. 2 from 3 feet down, and Nos. 3, 4 and 5 from the bottom of the shaft 11 feet deep. There can be no doubt about the last, for, as I said before, I saw the shot fired and took the stone myself from the bottom of the shaft, from which time it has not been out of my possession. In the first and second instances I selected the stone, and it was broken in my presence. I visited other shafts and cuttings, but saw none so rich in gold to the naked eye as the company's shaft. There were thousands of tons of good looking quartz lying on the surface of the various claims, and if the reef goes downwards as satisfactorily as hitherto, and the stone bears gold as freely there is a great future before the field.

The question of water will be amongst the first requiring the careful consideration of the directors. This may be obtained in one of two ways. 1st. Either by sinking on the plain as near to the field as possible and carting the stone to it for crushing, or secondly by creating a tramway from the goldfields to the Nangcarrong Pools, a distance of about three miles, where batteries would have to be set up. This latter plan recommends itself to me, but the expense must be considered, and the consent of Mr Burges obtained for the use of the Nangcarrong Pools which are his private property.