The Sun.
London, England, 1855-03-22 00:00:00

" PORT PHILIP AND COLONIAL GOLD.

"The directors are in receipt of advices from the re-
sidebt director at Melbourne to the s:h of January, con-
taieieg the following :
" Mining.—On this subject I have as yet nothing
very definite to communicate. I have addressed a
letter to the chief commissioner regar ling it, ha being
je,t now, absent from town col the Gold-fields Com-
miAon. After a very careful consideration, I have
come to the conclusion tLat the best plan :t•o be
adopted is, to take possession of a part of the Wool-
shed Creek (in the Ovens district) and work it
in the best way we can, according to the imperfect rtie;
thud adopted by the diggers in that di trict, which alto-
gether differs from the sjstem atthe Western Gold Fields.
Owing to the absence of running streams at the latter, I
have in,tru.:ted Mr. Thompson to take possession -of as
large a portion of the creek as he can, and to commence
at once, unless he should differ in opinion from me and
can suggest some more feasible plan of operations.
There is no doubt that it is rich both in gold and tin.
The main deposit of tin oro yet discovered is upon the
Woolshed Creek.

"Gold Purchase.—This business I have closed,-as it
is impossible to compete ..vith the balks, aid, with the
exchange on London going down, it is haza,rdous t
make purchases at the gold fields.
"Assay-office.—The bitstiess of this office is improv-
ing.. Last month we melted 15,000 ounces for the.pub-
lie and a very large quantity for the banks. The public
are-begihning now to see that it is to their advantage to
ship as:sayed gold instearl of dust, and I am in hopes of
having the gold of another of the banks to welt. My
only fear is that the Government may be induced to
start their assay-office again.
" Accounts—These are not quite ready, but shall be
forwarded by the overland mail on the 23d inst.
" COLONIAL GOLD.

" The directors have advices from Now South Wales
to the 20th of December as follows
Lo.d.a Creek— There is no alteration in the produce

of the quartz, the lode having continued poor in ale, back
of the tire-fathom level south. Prep,rations were being

made to commence other slopes at 'the north end of the
inclines; and, as the quartz in this portion of the lode is
considered good, better returns are looked forward to.
The alluvial washing had been more productive. They
continued to work the alluvium at the back of the
ridge ; but, as it had latterly not given much encourage-
melit, trills were about being made on another part of
the claims. The supply of water still continues good at
Louisa Creek, although, with the exception of the com-
pany's dam, most other holes are dry. The season was
dryer than for several year.
"Taiuboroora—All the departments were in a state of
forwardness, and on the al rival from Sydney ofsome pieces
of the machinery fur the stamps, which were expected in
about a week,everything would be in readiness for starting
early in January ; but the effect of the drought had so
diminished the u,ual supplies of water that there was
scarcely sufficient for Ordinary purpoFees, and unless there
should be a fall of rain the commencement must be de-
layed. On the Royal vein an incline tramroad from the
creek on the course of the vein was being made, which
would be of considerable advantage in working ; towards
the creek the vein is found to be much larger and more
regular, the gold contained in 'it appears to be coarser
than that on the top of the hill. A splendid bunch of
rich gold quartz has been cut between the original work-
ings and the creek, and some men have been placed to
sink on it, in order that an idea of its extent may be
arrived at. The vein altogether looked exceedingly
well, being much more regular towards the creek, and in
the end of the inclined plane some good specimens of
gold had been found. The quantity
,of quartz at the
surface was estimated at above 400 tons.
" Burrandong.--A. dam has been built across the
Macquarrie, and it would not be long before an efficient
trial of the bar would be made. The dryness of the
season was in this locality of much advantage. A small
quantity of gold only had been obtained from the first
operations of washing, but better ground had been
reached, and the returns were improving. The quan-
tities obtained would be stated in the gold account to be
made up at the end of the month.

"Advie.ca Ir:we also arrived from Mr. Comer, up to
the 6th of January. He had received the communication
sent him in October last that the board would probably
determine to freak up the establishment and discon-
tinue operations in the colony of Victoria. Mr. Corner
had given the necessary direeVons for the discontinuance
of all operations which involved labour, aid, having dis-
ch:irged the men not under contract, he was waiting the
receipt of further instructions from England before tak-
ing steps for closing the company's affairs."