Placer and Bulolo

Annual Reports Issued Satisfactory Progress

GENERAL satisfactory progress is

reported by Placer Develop-

ment Ltd. and its subsidiary, Bulolo Gold Dredging—both of which companies operate on the New Guinea goldfields—in their annual reports, issued from Vancouver on September 15.

Placer directors state that though testing was still uncompleted, the critical parts of the Bulowat area in New Guinea had been drilled and the results to date indicated that a volume of gravel somewhat in excess of 40,000,000 cubic yards, with, a recoverable gold content of roughly 30 cents per cubic yard, would be proved. Generally the ground was easier dredging than the Bulolo area, which should be reflected in the working costs.

The option on the Bulwa No. 1 and Bulwa No. 2 claims was exercised and a payment of £2,000 made last November, and an agreement was concluded whereby payment of the balance of the purchase price, amounting to £15,000, was deferred, subject to payment of 7 per cent, interest, until three months after dredging is commenced on the Bulwa claims. The drilling of the area will take some months to complete.

The equipment of the property on the One of the dredge hulls of Bulolo Gold Dredging Ltd., now nearing completion on the New Guinea goldfields. The hull was built in Sydney, dismantled for shipment to Lae, New Guinea, and transported from there to the field by planes. It is expected that the dredge will be in operation in March. At the right of the picture is the main camp at Bulolo. The aerodrome is situated between the camp and the dredge site.

Bulolo Gold Dredging Ltd., in which Placer holds a substantial share interest, is proceeding according to programme. The Burnside area, comprising four dredging claims, as yet untested, is estimated to have about 5,000,000 cubic yards, which will probably contain dredging values. Arnold’s leases, also adjoining the Bulolo area, were acquired during the vear for a consideration of £2,500 in cash and 1,000 shares In Bulolo Gold Dredging Ltd. From investigations it is believed that the equipment charge will be slight and the operations should be highly profitable. The Placer West area, acquired by pegging, covers an extensive area of possible dredging ground, and testing is being arranged for.

Statement Of Accounts

The accounts cover the year ended April 20 and show a loss of 46,637 dollars, which added to 155,845 dollars brought forward, makes a total debit balance of 202 532 dollars.

Properties previously written off in the sum of 104,966 dollars, have been capitalised, and are shown as property special account in the balance sheet. There is then a debit balance of 97,566 dollars to he carried forward. Paid up capital ’s 400.000 dollars, the unissued balance of 20,000 shares of five dollars each being under option at 15 dollars per share, expiring June 9, 1933. Premium received on share issues is 88,000 dollars. External liabilities are 380,826 dollars due under the agreement with the Bulolo Co. 96 000 dollars due to Guinea Gold. N.L., and associated companies, 72,000 dollars due under the Bulwa options, and 3,574 dollars due under current accounts.

Of the assets investment in Bulolo Gold Dredging is shown at 61,971 dollars. The agreement with that company having been ratified by the Government since the accounts closed, the profit derived from the sale will be shown in the next balance sheet. The balance of the consideration to be received by Placer Development is 224,173 dollars cash, and 224,000 fully paid Bulolo shares of five dollars each of which 70,000 shares will be transferred to Guinea Gold, NT. Other assets are chiefly properties 426,566 dollars, deferred charges 249.893 dollars, prospecting and development 73,785 dollars, and liquid assets 67,552. Preliminary expenses stand at 20,000 dollars.

Dredging To Commence In March

The directors of Bulolo state that progress with the equipment of the property has been satisfactory, and provided no serious setbacks are experienced, it appears that the financial arrangements as originally made will suffice to bring the company into production, and the dredging will begin about March next. In the design and manufacture of dredges the most modern practice and the best of materials and workmanship have been used to ensure, as far as possible, steady operation.

Paid-up capital is 1,883,053 dollars. Outside liabilities as at May 31 are 102,601 dollars.

Fixed assets are shown at 1,122,004 dollars, mining leases and water rights at 393,844 dollars, deferred charges at 143,249 dollars, stocks and stores at 77,246 dollars, cash at 224,223 dollars, and sundry debtors at 25,054 dollars. ... === Major Clive Joske, M.C., a partner in the firm of Brown and Joske, merchants, of Suva, and A.D.C. to the Governor of Fiji, has been awarded the decoration of Chevalier of the Legion of Honour. ... ===