131 it shows that the bedrock in the channel may slope towards Hightmile lake, for the bottom of the shaft—and it may at one time have been deeper—is practically at the same level as the bedrock in the hydraulic pit. In any case the grade of the channel is so low that the hydraulic pit cannot be extended much farther without losing the bedrock, except along the sides of the channel. There is some gold, however, in the gravels along the east side of the channel. Mr. Rees states that the gold is very unevenly dis- tributed and is most abundant on bedrock and where the bedrock is hard and uneven. In order to overcome the difficulty of disposing of the tailings it was proposed at one time to drive a tunnel for about 2,600 feet up the creek to the junction of the cross-channel, but the scheme was abandoned as being too costly and not justified considering the small supply of water available for hydraulicking, although the ground that was tested showed values of over a dollar a yard in places. The extent of the ground, however, and the average value are not known. The creek has a fall of 165 feet in a distance of 4,500 feet in the narrow part, downstream from the cross- channel. The amount of water available for hydraulicking, as estimated from the drainage area and from the precipitation, is, on the average, about 100 inches for forty full days in the year. Using a No. 2 monitor under a head of 100 feet the maximum amount of ground which could be moved yearly would be about 7,200 yards, assuming good facilities for disposal of the tailings. The narrow, canyon-like part of the stream valley, like many other rock channels in the area which are youthful as compared with the wider channels of low gradient, such as the cross-channel, contained very little gold. A shaft about mid-length of the canyon was sunk 27 feet to bedrock through rock talus and boulders, a drive of about 300 feet upstream was made, and the bottom of the channel was mined out in other places, but no pay-streak was found. The canyon contained very little gold, apparently because the only possible source was the small thickness of rocks cut through and these were not gold-bearing. On the other hand the older channels above the canyon represent stream courses of much greater age which may have contained concentrations of heavy minerals such as gold derived from the wearing away of a great thickness of bedrock. In the bedrock gravels in the old channel at the hydraulic pit there are numerous concretions of iron pyrites showing radiating structure from a central nucleus. Some of them contain minute veins of quartz which show that the concretions were formed in the bedrock and not in the gravels. They were released from the bedrock by weathering and from part of the con- centrates in the stream gravels. Most of the ancient concentrates in the stream bed, however, were removed by glacial erosion, for the gravels in the channel are practically all glacial gravels, so that the pay-streak is not continuous, and the gold that remains is unevenly distributed. It is possible, however, that a rich pay-streak occurs in places in the cross- channel which appears to extend in the direction of the Thistle hydraulic pit at Eightmile lake. If it extends to the pit, of which, however, there is no very definite evidence, the thickness of the drift-filling of the valley on the present summit between the two hydraulic pits must be at least 150 feet. The Spruce claim, owned and operated by Mr. Mugfit, is located on a short westward-flowing stream that joins Downey Pass creek about half a