As the chief field of the gold dredging industry in Otago is the district traversed by the Molyneux River (called above Cromwell the Clutha) and its tributaries, a brief reference to the geology of that region and the origin of its alluvial gold will not be out of place. The prevailing rocks are metamorphic schists, chiefly mica and quartz schists, pr.obably of Silurian age. Though these rocks do not contain many payable quartz reefs, gold appears to be distributed in small quantities all through them,chiefly associated with the quartz lamime and lenses. The river drift, however, contains numerous pebbles of quartzite, quartzoze conglomerate, and fme-grained slate. Seeing that these rocks are hardly known to occur in situ within the watershedof the Molyneux River, though Devonian and carboniferous rocks of similar character occur to the north-east and south-west, it seems probable that the schists were at one time overlaid by carboniferous and Devonian rocks, and that these have been removed by denuding agencies. Be this as it may, it is certain that the schists themselves have been greatly eroded by the action both of water and of ice, and that the resulting drifts have themselves, in many cases, been sorted and re-assorted by the same agents.Consequently the drifts are very varied in character and often developed on a grand scale. In geological age they vary from Early Tertiary (though some may be older) to Recent.