88 500 feet below the tunnel and showed no gold. Bedrock outcrops in places on both sides of the draw and there is no doubt that the rock channel is the continuation of the channel in the old pit. It continues beneath the meadows at the head of the pit, to the upper part of Quartz gulch, and is apparently an old channel of Antler creek formed when the creek flowed at a much higher level and which has been deepened by headward erosion by a stream graded to the bottom of the present deep channel of Antler creek. There appears to be no channel of Grouse creek graded to the bottom of the Waverly channel, unless it be in the meadows near the head of Quartz gulch. The upper part of the bedrock channel beyond the head of the old pit has a very low gradient. Two borings made in 1923 in the meadow 800 feet beyond the head of the old pit showed a maximum depth of 79 feet to bedrock and the ground may be somewhat deeper on the southwest side. The level of the bedrock in the bottom of the old pit, at a point 1,200 feet from the line of bore-holes, is about 17 feet lower. The bedrock channel between the two points, therefore, has an average grade of only about 1-5 per cent, which is too low for hydraulicking. The ground beyond the head of the pit, however, may be proved to be of some value for dredging or by hydraulicking from Quartz gulch, as one of the bore- holes in the cross-section showed values of 10 or 11 centsa yard. This raised hopes that better values would be found on the west side of the channel, but the cross-section of holes was not completed. There is known to be some gold in the gravels in the bottom of the old pit, but whether in sufficient quantity to pay for mining is not known. There is a difference in elevation of about 125 feet below the lower end of the sluice boxes in the new pit and of the bedrock near the head of the old pit, a distance of nearly 3,600 feet. There is, therefore, an average grade of about 5 inches (to the 12-foot box), which is sufficient for hydraulicking. As mentioned above, however, there is said to be a 12-foot fall over a hard rock ridge near the lower end of the old pit and there may be abrupt rises at other places. Consequently, even if the lower part of the channel were thoroughly cleaned out, it is likely that the bedrock would be lost in places in extending the sluice boxes upstream. In 1922 drilling was done, on the recommendation of the present writer, in a channel leading from Grouse creek to the meadows at the head of Quartz gulch and behind the rock hill south of the road. Drilling at this place was recommended because it appeared to be the only place where the ground across the valley of Grouse creek on the flats had not been thoroughly tested in the search for the continuation of the rich channel on Heron ground above. A cross-section of six bore-holes was put down by C. W. Moore and a rock channel having a maximum depth of 30 feet was found, but there was no gold in it. About 12 feet of muck and timber (apparently an old beaver dam) was passed through at the top and boulder clay beneath. In 1923, after a temporary suspension of work at the mine, gold was discovered in the waste water draw on the south side of Carey’s draw, which lies between the main highway and the road leading to Waverly camp. The discovery was made by Dave Bever, caretaker at the mine, and several ounces of gold were recovered by ground-sluicing and by shovelling into