Enterprises

"Wild Cats” And Gold-Seekers

Survey of New Guinea and Papuan Mining

Too Many Financial Adventurers Batten

On Rich And Promising Industry

About three years ago, a light, billowy cloud appeared on the northern horizon over Australia.

As the months rolled on, the cloud beame bigger and bigger, and gradually it broke into smaller and denser clouds.

Then a storm blew up, in all its fury. It fanned the clouds, and, just as they became tinted with a rich golden hue, as though from the setting sun, many of them burst.

And, with their bursting, many fortunes were lost.

In such picturesque language may be described Australia’s 1928- 1929 "flutter" in New Guinea gold. ———

Now Producing Gold In New Guinea:

Various alluvial enterprises—small groups engaged in placer mining and sluicing.

AT POINT OF PRODUCTION IN NEW GUINEA: Upper Watut Gold Co. (Sluicing).

Day Dawn (New Guinea) Ltd. (Crushing).

Preparing For Production In New

Guinea On Large Scale:

Bulolo Gold Dredging Co. (Dredging).

New Guinea Goldfields Ltd.

Actively Prospecting Leases, Etc., In

New Guinea, On Large Scale:

Placer Development Ltd.

New Guinea Developments.

Guinea Gold Golden Chief Extended.

Prospecting In New Guinea, Papua And

Solomon Islands;

Large number of small companies. ———

WITH the first news of gold strikes in New Guinea, in 1926-27, co panies were formed and gilded propectuses drawn up. When the fever was at its height, concerns with £20,000 capital were floated in less than 24 hours.

Most of these shows might be called “gilded gambles,” but the gilt soon was worn away. Professional operators revelled in their opportunities. Amateurs, hearing of prospects, and backed with bright visions of outcropping reefs only awaiting the arrival of their companies’ prospecting parties, ventured north—to suffer rude shocks and shattered dreams.

The company promoter was in his element.

Hard-worked and wearied prospectors arrived in Sydney from out beyond Salamoa. After trudging over rugged mountains they had found good areas and pegged out claims, and now they returned to Sydney to obtain monetary backing for working, their properties. Immediately they were snapped up by the wily promoter, ready to foist anything on the public. New Guinea gold was in favour, so why worry?

A cool 18,000 2/6 shares would go to the promoter for floating the company —he would take no cash, the benevolent fellow! But he naturally regarded it as his right to see that in the course of the company’s operations he would

have an opportunity to realise the value of his shares in good solid cash, or, if his lucky star was shining, twice or three times their value. He would attend to that. What was the Stock Exchange for? And so it went on . . .

Mat. Crowe’S Words Of

Wisdom.

Another phase now presents itself.

Among these miners were men from God knows where. Overnight they seemed to realise that they were born mining engineers, sent into the world to make some rich mineral discovery.

So off they trotted. By various means they tested the first area they thought looked suitable and returned to civilisation with glowing reports. They seemed to forget what Mat Crowe, one of the Old Brigade, had said: “Gold everywhere—but an awful lot of Papua mixed up with it!”

Wherever they got “colours” they “proved” values that were positively astounding.

When Shares Nose-Dived.

One case that will long be remembered by speculators in Sydney was the Mt. Lawson float.

In September, 1929, a Mr. Miller, of ficially the manager of Mt. Lawson (New Guinea) Gold Lands, returned to Australia, and in his first reports the gold on the company’s area was estimated at £22,324,850, contained in 33,396,000 cubic yards of alluvial wash.

“Gentlemen,” said Mr. Miller, “on the

face of the figures given above, you will no doubt realise the extraordinary value of the claims pegged by us. ... I congratulate you on being the “possessors of such remarkably valuable areas.”

An option was taken over the leases by Placer Development Ltd., which company despatched Oriomo Explorations Ltd. to report on the property. In December, a radio arrived from the expedition sent by Oriomo, stating baldly that it was not necessary to proceed any further with the examination as the property was considered to be of no value.

(Continued on Page 2) ———

This aerial photograph gives a good idea of the wild and gloomy country in which the goldfields are situated. The cleared space in the centre is Wau Aerodrome. Edie Creek is in the ranges, six miles away (slightly to the right of the cleared space which represents the aerodrome). This unattractive region is full of gold.

Not only Mt. Lawson shares, but the shares in the many small companies which had pegged the land for miles around Mt. Lawson, in anticipation of a boom, nose-dived. Shares which, earlier in the year, had commanded attention at well over 10/-, dropped down to 2d. Thousands and thousands of pounds were lost.

What has happened to Mr. Miller, through it all? He went with Oriomo Explorations to check up the values on behalf of the Mt. Lawson Company. He then returned to Sydney, where he received financial backing from a well known bookmaker for a further visit to Papua. But gold there was still hard to find. With two companions, he went inland from Yule Island and, after three months’ prospecting, Mr.

Miller again returned to Sydney. One wonders where he will turn his attentions next !

Scientific Testing Essential.

Mr. Miller, in a legal sense, has done nothing wrong. He gave shareholders in his companies “a run for their money.” Persons who buy this class of shares are gambling, just as if they gambled on a racecourse. But Mr. Miller’s is a typical case. When such companies are being floated there should be some way of compelling the men who are directing or leading the enterprise to produce proof of technical qualifications and mining experience.

The moral to be learnt from the Mt.

Lawson tragedy and others is the inadvisability of accepting statements which are not supported by the evidence of men with the necessary qualifications, who are able to determine the

payable value of gold-bearing territory.

Placer Development Ltd. and New Guinea Goldfields Ltd. provide examples of companies which have gone about things in the right manner. With qualified engineers they have tested or are testing areas in such a way as to leave no doubt. Shareholders in Placer, for instance, have been able to visualise that in their areas they have a commercial proposition where the product has been located with certainty before the commencement of major operations.

Even prior to the Mt. Lawson crash, some of the companies quickly formed on the wave of the boom were receiving disappointing support from shareholders. For the most, part, they were “no liability” companies, which means that holders of scrip may forfeit if they so desire. Calls to provide money for further work were left unpaid and the companies’ operations were so severely hampered that in some cases their field parties had to be withdrawn.

Then all hope hinged on Mt. Lawson -and when that bubble burst, hope fled.

Small Companies In

Difficulties.

Some of the small companies are now just able to keep on with development work, while others have gone under. A few of the companies originally floated to operate in New Guinea have transferred operations to New South Wales.

Of course, it must be realised that in some cases it is not the fault of the company that the calls are not being paid. The general depression is making itself felt in mining shares, as in all stocks at present. With money tight, financing of further work is difficult.

Work on the Morobe gold fields, outside of New Guinea Goldfields, Placer, Bulolo, Day Dawn, and two or three smaller companies and a few groups of alluvial miners and prospectors, is practically at a standstill.

Even the free-lance prospectors there have not the funds for further exploration. Many of them have had leases taken over by New Guinea Goldfields Ltd. at good prices. But the purchase price has been paid for in shares in the company. These shares, of the nominal value of £1, are quoted unofficially on the Sydney Stock Exchange at around 4/-. At this price, miners who wish to sell find their properties at a greatly reduced value and naturally are at the present time reluctant to dispose of their holdings.

The gold is there, in large quantities.

It is only a question of providing capital to carry on operations. Under present conditions the advantage lies with the big companies—there is little chance for individual enterprise—except of course in prospecting for new fields.

Companies And Their

Operations.

The following shows the positions of the various companies operating in the Mandated Territory and Papua: New Guinea Goldfields Ltd. Capital, £5,250,000; Registered Office, 67 York St., Sydney.

This company, which has purchased many New Guinea interests and is associated with powerful mining organisations elsewhere, is putting in solid developmental work on its various locations. Because the productive stage will not be reached for some considerable time, the shares are standing at a low level. It is expected in some quarters that the big London financial interests behind the organisation will sooner or later support the market.

Those who should be in a position to know speak of the shares as an excellent purchase to lock away at current rates. They are not officially listed on the Stock Exchange. They are quoted in the vicinity of 4/-. It should be made clear that this company is investigating and proving its ground—it has not yet got to the stage of adopting plans for big-scale operations, or order-

ing plant.

Placer Development Ltd. Capital, 500,000 dollars. Registered office. 612 Pacific Building, Hastings St., West Vancouver. B.C. Sydney Office, Wingello House, Angel Place, Sydney.

This company has continued to receive well justified attention on ’Change. It is quite in a class apart, with its large areas of proven ground.

Factors of strength have been the complete success attending the flotation of the Bulolo subsidiary and the encouraging results from the testing of the additional areas taken up by the parent concern. Placer shares, which are of 5 dollars value, are quoted at round 41/-. and would appear good buying. The latest official report, issued last month, states : Mr. P. R. Short, of San Francisco, and Mr.

L. V. Waterhouse, of Sydney, technical directors, have sailed for New Guinea, accompanied by Mr. T. D. Harris, general manager.

The drilling of the large new area known as Bulowat has proceeded uninterruptedly. Attention is to be given immediately to the question of the best method of equipping the leases known as Arnold’s, upstream from the Bulolo property. During the visit of Mr.

Short, which is expected to be an extended one, attention will be given to the following up of lode opportunities, as well as to the acquisition of new areas. The investigation of lode prospects has been decided on as a matter of general policy of the company in future operations.

Bulolo Gold Dredging Ltd. Capital,

4,000,000 dollars; Registered Office, 612

Pacific Buildings, Hastings St., West

Vancouver, B.C. Sydney Office, Win-

gello House, Angel Place, Sydney.

Bulolo Gold Dredging is a subsidiary

of Placer Development Ltd. The prospectus was issued in March of this year. Scrip has already been allotted.

The company reported in August that a 10-ton locomotive crane, caterpillar tractor, and various other equipment have been forwarded to Salamoa. An immediate start is to be made in providing transport facilities at Salamoa and Lae, and with this in view two steel barges, each of 50 tons deadweight capacity, are being constructed. The first of these is to be shipped in sections in the Montoro on August 30, and the second on the following trip. A contract for the construction of two dredge hulls with superstructure has also been let, and the first is to be delivered in December. Sawmilling equipment is also being forwarded by the next steamer.

The preparation of the aerodrome on the Bulolo for the large planes is proceeding, and these planes are expected to be delivered in Salamoa about the end of November. As regards construction generally, the company is at present up to its time schedule.

Day Dawn (New Guinea) Ltd. Operating in New Guiea. Capital, £25,000,

Registered Office, Cathcart House.

Castlereagh St,, Sydney, A crushing plant is on its way to the field. It is anticipated that crushing will commence in January or February, 1931.

New Guinea Developments N.L.

Authorised Capital, £40,000. Registered Office, 92b Pitt St., Sydney.

On September 1, the Directors reported : A working option of purchase of the company’s leases has been accepted by a mining house in New York. The terms of the options are : One month free, then six months, paying therefor £1,000 per month, which moneys are to be expended by the New Guinea Development Company in further development of the leases. If the option be exercised, then the the purchase price is £20,000 cash and a quarter interest to be represented by fully paid-up shares in the capital of a company to be formed having a minimum subscribed working capital of not less than £100,000.

The engineer of the New York mining house is reported to have arrived in New Guinea.

Mr. Ernest Bails, the company’s engineer, reports, under date August 3, developments on the company’s property continue satisfactory, especially the No. 1 Big Reef, which is still showing satisfactory ore across its width, and the drive along the No. 6 reef (Golden Hope) is exposing the continuance of the fine body of ore.

North-eastern New Guinea Goldfields N.L. Capital, £50,000. Registered Office, 42 Hunter St., Sydney.

This company obtained two leases on the Yuat River, a tributary of the Sepik. in the Mandated Territory. They represented dredging propositions, but as they were found to be too expensive for the company to work, it is reported that negotiations with another company are taking place. North East New Guinea N.L. anticipates taking over an area in New South Wales.

Oriomo Explorations Ltd. Capital, £12,000. Registered Office, 350 George St. Sydney.

Following the inspection of the Mount Lawson area, Papua, the expedition inspected other districts, and subsequently made its base camp at Mullins Harbour, in Eastern Papua.

From there an examination was made of the Nigo-Nigo Creek and the surrounding country to the foothills without revealing a trace of gold. Negative results were also obtained from the Wegruani River district. A further inspection covering some 250 square miles was made from the Sagari River, on which testing work and pit sinking were done. Although areas of detrital yielded values up to 3/- and 4/- per cubic yard, they were of limited depth and length. The opinion is expressed that no extensive or rich deposits exist in this section of the country.

Guinea Gold N.L. Capital, £50,000.

Registered Office, Brookman Buildings, Grenfell St., Adelaide.

At the close of last year’s operations the Directors had £8,773 to distribute, consisting of net profit of £998, and £7,775 brought forward. A dividend of 1/- per share absorbed £2,500, and a transfer of £1,000 was made to a reserve for bad debts, leaving £5,273 to be carried forward. At the close of the year there was a surplus of liquid assets of £6,103, and shares in other companies were valued at £103,905. Production of gold ceased during the period when the leases which were being worked were handed over under an option agreement to Ellyou Gold

Fields Development Corporation Ltd.,

the organisation which has since transferred its properties to New Guinea Gold Fields Ltd. Shareholders received nine shares in the new company for every five shares held. Properties were also to be transferred to Bulolo Gold Dredging Ltd. In due course at least

one fully paid 5-dollar share in Bulolo Gold Dredging Ltd. for every share held will be distributed, and in addition there is a deferred cash payment of £20,000, besides £30,000 cash consideration. During the year 10,000 shares, or one share in Guinea Airways Ltd. for every five shares held in the parent company, were distributed. Another property in New Guinea is to be examined shortly.

Sloane’s New Guinea N.L. Capital, £25,000. Registered Office, 92b Pitt St..

Sydney.

Leases have been secured in Eastern Papua.

Eastern New Guinea Gold Mining Co.

Ltd. Capital, £10,000. Registered Office. 56 Hunter St., Sydney.

The company has secured leases on the Gira River, Papua.

Upper Watut Gold Co., operating in New Guinea.

This company holds eight miles of leases on the Upper Watut, situated on the west side of Edie Mountain, and in addition ten miles of subsidiary streams. Two complete elevating plants with 10,000 feet of pipe line have been transported to the field by ’plane and landed direct on the company's aerodrome close to the main works. A race—six miles to Pat’s Creek—has been constructed. From the head of the pipe lines to the elevators there is a fall of 320 feet. The race is roofed in several places to minimise interruption of producing operations. Water is now running at full capacity. The company is a proprietary one and the shares are in only a few hands. It is understood that this company, which, receives very little publicity, has reached the production stage.

Golden Chief Extended Co. Capital, £25,000. Registered Office, Commercial Bank Building, Margaret St, Sydney.

Operating in New Guinea.

A report issued three months ago by Mr. Murray Scott, on the Golden Chief Extended Company’s leases at Wau.

New Guinea, states that his inspection of the seven leases held by the company proved that the area is extensively auriferous. Pitting in No. 1 lease disclosed a well-defined auriferous quartz lode, dipping at 40 degrees from vertical, extending 300 feet north-east, and averaging 3 oz. gold valued at £3 per oz. Work is proceeding on No. 3 lease. Alluvial in the old river bed in tersecting the property averages 4/- per cubic yard.

New Guinea Options, N.L. Operating in New Guinea, It was reported three months ago that lode material had been located in the southern end of lease No. 6, carrying a little free gold.

Akmana New Guinea Gold N.L. Capital, £30.000. Registered Office, 107 Pitt St., Sydney.

The company’s expedition has been withdrawn from New Guinea and an area taken up near Tumut, New South Wales.

Ara Creek, New Guinea, N.L. Authorised Capital. £30,000. Registered Office, 107 Pitt Street.

The company acquired from Papua Hydraulics Ltd. leases on the island of Misima, Eastern Papua. Last month it reported that all plant had been

transported to Ara Creek and the main items, such as trommel and generator, erected. The recently discovered new lode had been sampled and assayed over 23 feet, and found to contain 10 dwt. 8 grs. gold per ton.

Papuan Gold Syndicate Ltd, Capital £5,000, operating in Papua. Registered Office, 117 Pitt St., Sydney.

Mr. A. J. Lines, mining engineer, is at present in Papua, several days’ march from Port Moresby, investigating leases held by this Company.

Misima Prospecting Ltd.

This company has decided to wind up voluntarily. The liquidator is C.

A. Housison.

Kaindi Gold N.L. Capital, £20,000.

Operating in New Guinea. Registered Office, 422 Collins St., Melbourne.

The management announced at the end of last month that there has been some delay in completing certain formalities connected with one of the leases included in the property which has been sold to New Guinea Goldfields

Ltd. The directors have, therefore, agreed to accept for immediate allotment 55,000 shares of £1 each in New Guinea Goldfields Ltd. The remaining 5.000 shares will be allotted to Kaindi under the terms of the agreement on completion of the transfer of the one lease referred to.

New Guinea Gold Deposits N.L.

Authorised Capital, £20,000. Registered Office, Commercial Bank Buiding, Margaret Street, Sydney.

The directors have decided to close down all work in New Guinea owing to the depression, and have had to sell 3,000 of the shares held by the company in New Guinea Goldfields Ltd. to pay off labour and all liabilities. The company has agreed to take an option over three gold mining leases at Pambula, New South Wales.

Guinea Austral N.L. Registered Office in Melbourne.

The properties in New Guinea, which were examined on behalf of the company, were not taken over because it was reported the price asked was excessive. Other areas were examined during the year and were rejected. Guinea Austral has now formed Batavia River Gold N.L. to prospect an area at Cape York Peninsula, Queensland.

Mt. Sisa Fields (Papua) N.L.

Operating in Eastern Papua. Capital, £70,000. Registered Office, 42 Hunter St., Sydney.

Reference to this company is made elsewhere.

Mt. Kaindi Gold Ridges N.L. Capital, £50,000. Registered Office, 42 Hunter Street, Sydney.

This company has transferred operations from New Guinea to Mummel River, New South Wales.

Papuan Gold Areas. Capital,. £18,750.

Registered Office, Commercial Bank Building, Margaret St., Sydney.

Owing to the report of the mining engineer on leases applied for in Papua not being satisfactory, this company abandoned the leases and has obtained an option over an area at Pambula, New South Wales.

Day Dawn (West Extended) Ltd.

Capital, £10,000. Registered Office, 84 Pitt St., Sydney.

The company’s area in New Guinea, on investigation, did not come up to expectations and it has withdrawn from the field of operations. It is understood that the company intends to go into voluntary liquidation.

St. Aignan (New Guinea) Gold Lodes N.L. Capital, £20.000. Registered Office, 42 Hunter St.

This company has transferred operations to Lucknow, New South Wales.

Mt. Lawson Extended (New Guinea) N.L. Capital. £48,000. Registered Office, 42 Hunter Street.

Operations have been transferred to New South Wales.

Bismarck Range (New Guinea) Gold Exploration N.L. Capital, £12,500. Re gistered Office, 42 Hunter St., Sydney.

The company has transferred operations to Lucknow, New South Wales.

Oba River (Papua) Gold Co., N.L.

Capital, £25.000. Registered Office, Commercial Bank Buildings, Margaret St., Sydney.

Leases are held by the company on the Oba River, Central Papua, but at present no work is being done.

Solomon Islands Gold Mining Co.

N.L. Capital, £25,000. Registered Office, Commercial Bank Buildings, Margaret St., Sydney.

Fourteen claims are held by the company near Kieta, Solomon Islands.

Prospectors are carrying out development work. ... ===

Sluice boxes in operation in Edie Creek district.

This picture was taken on Mr. Darby’s claim. ———

Panning gold, on the Upper Watut, soon to be extensively developed as a sluicing proposition. ———