The following report of Gay's party, which has been prospecting under the Government regulations the country between Warrenheip and Buninyong, has been forwarded to us for publication. It will be seen that an aggregate depth of 393 feet in various shafts has been sunk by the party, and gold got in two instances, but not in paying quantities. Operations are still going on:-

Dividing Range,
Between Warrenheip and Buninyong,
10th October, 1860.

To the Hon. the Chairman of the Prospecting Board, Melbourne.

Sir-- I do myself the honor of submitting for your information my report for the month of September. On the 4th we came on the ground: from that time to the 10th we put our tents up, got our provisions under cover, got our tools in efficient order, and took a general view of the locality, in order to choose the most favourable places to commence operations. In order that the Board and the public may the better know the scene of our operations, I may here state this dividing range first appears prominent rather south-east of the Brown Hill diggings. and bears near south towards Buninyong mount, being for the most part capped with quartz--some places in large irregular blocks, some in large and small gravel, and others in large round smooth boulders, or imbedded in decomposed slate, trap rock, &c., interspersed here and there with metamorphic rock, the whole having the appearance of having at some remote period been subjected to an extreme heat.

There are numerous gullies intersecting this great range at nearly right angles, and running off for miles to the east and west, three of which open out into wide flats, with that peculiar iron-like gravel and basaltic rock protruding here and there through the surface that so unmistakably argues the existence of what is generally termed "rock leads".

I first divided our party into two's, in order to try four different places at once, and if one pair came to water or any other natural difficulty, to place as many at their disposal as might be required to overcome it,. Since the10th ultimo to 10th instant we have sunk, within the compass of three miles, in various gullies and hills, 29 shafts and holes, varying in depth from 2 to 45 feet and measuring in the aggregate 393 feet, through every variety of strata, from the soft sandy clay to the ? hard rock, and all these varieties distinguish the most prolific portions of older gold fields, and in only two instances have we obtained the "color" but not payable; and yet the appearance of this part of the country.--that is, the surface indications--look as favourable to the eye of any experienced miner as our pile-producing spots in the most palmy days of gold digging.

We have two or three places to try yet, which will occupy us till the middle of next week, when, if we discover nothing, we intend to remove further to the south east, where, if we make a discovery of any importance, I shall send you immediate information.