No. 123

The Mail Steamer being hourly expected, I have the honor
to communicate for your information the occurrences worthy of
note that have taken place since the date of my last general
report, contained in my Despatch of the 10th Instant, No 111.

2. Great excitement has been recently produced in Victoria
by the exhibition of a nugget of pure gold weighing 14 1/4
ounces, procured by the Agents of the Hudson's Bay Company
from the Indians of Queen Charlotte's Island.

3. There is a generally prevalent impression founded
on the discovery of Gold in that Island in the year 1851,
that it will yet become a productive gold field.

4. The gold collected at that period, with the exception
of some water borne pieces of small size, and a lump weighing
27 ounces found on the beach at the mouth of a fresh water
rivulet, was procured by blasting from a vein of white quartz
running parallel with the Coast, some of the masses of which
were so largely impregnated with gold as to yield a return
of 25 per Cent on the gross weight. The operation of blasting
was continued until all traces of gold disappeared and the
Miners, discouraged by the inclemency of the weather, the
numbers and dangerous character of the Indians, and the
difficulty of exploring a thickly wooded and extremely rugged
Country, did not prosecute the search further, though I am
of opinion that had they done so they would have met with
a successful issue.

5. I fancy that gold will be found in many other parts
of the Coast of British Columbia. Mr McNeil the Officer in charge of the Hudson's Bay Company's Establishment at Fort
Simpson, Latitude 54:25. N., in a letter just received from
him makes the following observation.

You mention that some Adventurers will visit this quarter
(Fort Simpson) in search of Gold, and in my opinion they will
find it, as it has been found even in this Harbour.

6. I have for some time past had in the Government employ
a respectable Scotchman named Downie, one of the most
successful Miners in California, and known all over that
State as Major Downie, the founder of the Town of Downieville.
He accompanied Mr McKay
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last summer in his overland journey from Harrison's River to Howe's Sound. He has since explored Jarvis' Inlet, where he spent the greater part of the winter, and lately made an excursion with Indians into Desolation Sound, which he has in part closely examined with reference to its mineral character. He thinks favorably of the Country and proposes crossing the mountains from the head of Jarvis' Inlet into the valley of Fraser's River, as soon as the snow disappears from the Mountain Passes. I herewith transmit his Report upon the subject of his explorations, together with an accompanying sketch of the Coast, which may probably afford some points of interest. Mr Downie has no fixed Salary, but I undertook to furnish him with Provisions and other means of travelling, provided he reported on the state of the Country for the information of the Government. He is not therefore expensive to the Colony, and may possibly, from his practical knowledge of mining, and enterprising turn of mind, make some valuable discovery, and will at least contribute much information respecting the mineral character of the Country.

7. The intelligence from Bridge River and the Upper
Fraser continues to be of the most favorable character.
There is now much activity at this place in shipping goods
for Fraser's River, and the Revenue derived from the Customs
duty begins to be felt. The collection for the last 30
days amounts to about £1300, and it is gradually increasing.

8. The last accounts from Fort Yale report a great depth
of snow, and much cold weather in the Mining District, in
consequence of which there has been no collection of Revenue
for Miners Licences.

9. Colonel Moody is now employed in laying out the
site of Queensborough, but the weather is exceedingly
unfavorable for such operations, and I fear that consequently
there will be no land for sale for some time to come, and
unfortunately the commencement of the Survey of the new Town
has entirely put a stop to any further sale of Land at
Langley. A large building has been erected there for the
accommodation of the Royal Engineers now daily expected in the
"Thames City".

10. I forward Victoria Gazette, of the dates as per margin.

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