No. 41

I have the honor to inform you that some rich Gold fields
have recently been discovered on the Cootenais River in this
Colony. I enclose copy of a Report just made to me on the
subject but beg leave to say that I am not prepared to guarantee
it as absolutely free from exaggeration.

2. It will be seen from Colonel Hawkins' report on the
Boundary Survey, transmitted in the Duke of Newcastle's despatch
No. 130 of the 15th of June 1864, that the access to the
Cootenais River is very difficult from the Fraser. The successive
chains of Mountains which intervene run nearly North and South,
and the distance is about 500 miles. The only trail at present in
use is that crossing the Cascade Mountains at Hope and passing by
Osoyoos Lake and Fort Shepherd. Already several pack trains have
gone through that way. The diggings however are easy of approach
from Washington Territory, and the whole of the emigration has
come from thence, it will therefore be my duty, shortly, I believe,
to establish a Custom House on the Boundary Line and appoint a
Gold Commissioner at the diggings.

3. I am happy to say that Mr Birch, the Colonial Secretary,
has gone to the Cootenais Country, and that correct information
will soon be in my possession.

4. A portion of the Loan we are about to receive from England
could scarcely be more profitably invested than in opening the
communication with our new diggings.