Bulolo Gold
p. 38 · Read in the full issue
Placer Co. Secures Widubosh
Property
AN option has been taken by Placer Development Ltd. over a large area on New Guinea goldfields, known as the Widubosh, adjoining the Bulo wat property, below the junction of the Watut and Bulolo Rivers. Prospecting of this new area is to commence at an
early date.
Two New Dredges for
Additional Area
AN agreement has been concluded lor the sale by Placer Development Ltd. to Bulolo Gold Dredging Ltd. of the Bulowat and Burn side areas, situated immediately down stream from the Bulolo Company’s dredging pro perty on the Bulolo River, New Guinea.
Placer Development Ltd., having extensively drilled somewhat over eighty per cent, of the Bulowat and Burnside areas, estimates that fifty million cubic yards of gravel of an aver age recoverable gold content of approximately thirty-two gold cents per cubic yard can be dredged therefrom. It is believed that the untested ground will contain up to a further ten million cubic yards of payable ground.
Dredging costs, including gold royalty, are estimated at about twelve cents per cubic yard.
Bulolo Gold Dredging Ltd. will complete the testing of the areas and at once proceed to instal two electrically driven dredges, each of ten cubic feet bucket capacity.
The entire purchase consideration is pay able to Placer Development Ltd. in fully-paid shares of Bulolo Gold Dredging Ltd. Of the above consideration, 75,000 shares will be allotted two months after the first of the dredges commences operating, and a further 75,000 two months after the second commences operating.
After dredging has proceeded for two years on the new areas, a further allotment of shares to Placer Development Ltd. in com pletion of the purchase is contemplated. The number of further shares, if any, to be allot ted will be dependent on the results obtained by Bulolo Gold Dredging Ltd. from the drill ing of the untested portion of the Bulowat Burnside area, and will also be governed by the actual gold recoveries and working costs on the original Bulolo area, and also on the Bulowat Burnside areas now being acquired.
The sale agreement also provides for Bu lolo Gold Dredging Ltd granting Placer De velopment Ltd. the right to recover gold from an area of about ten acres, located outside the Bulolo dredging area and adioining the Arnold leases, owned bv Placer Development Ltd. In consideration of this, Placer Develop ment Ltd. is transferring to Bulolo Gold Dredging Ltd. two dredging claims, compris ing the Placer West area, located to the west of the Bulolo Company’s original holdings.