What Bulolo Co. Has Done.

Fine Record of Achievement In New Guinea.

AN outline of the immense amount of work carried out by Bulolo Gold

Dredging, Ltd., was given by the

chairman of directors, Mr. Chas. A.

Banks, at the annual meeting of shareholders in Vancouver on October 31. The company’s year ended on May 31.

The chairman's report on the pro gress on the field follows:

Air Transportation.

Air freighting from the port of Lae to Bulolo has proceeded steadily, and to the end of August 3,400 short tons of machinery and supplies had been transported by our own aeroplanes and, roughly, a further 400 tons by Guinea Airways’ ’planes, making a total of approximately 3,800 short tons, or 7,000,000 lbs.. flown on to Bulolo aerodrome from the commencement of flying in March last year to the beginning of September, 1932.

That this transportation should have been accomplished without any serious accident, and without the loss of any freight, speaks much for the care with which the work has been handled.

The construction of two dredges on the Bulowat area, making, with the two on the original Bulolo area, four in all, calls for the air transportation of a further 3,000 tons or thereabouts, and, in addition, spare parts and general supplies have to be flown in.

Dredge Construction.

The erection of No. 2 dredge has been pro ceeding rapidly, and it commenced digging on the 25th instant. This second dredge is a duplicate of our first, and should handle an equally large yardage. During its construc tion, several small changes were made, to bring the gold-saving appliances in line with what was gradually worked out on No. 1 dredge after it commenced digging.

It was mentioned in the report of the direc tors that the buckets on the Bulowat dredges would be of somewhat larger capacity than those provided on the two dredges now in operation. I am now able to advise you that the buckets for dredges No. 3 and 4 have been increased in size by Mr. Griffin, so as to give a capacity of 12 cubic feet in place of 10 cubic feet, as originally figured. It is probable that each of these dredges will now dig in the neighbourhood of three million cubic yards of gravel per year, thus still further reducing working costs.

Progress on the construction of the road to the Bulowat area has come along very well, and while the Bulowat aerodrome is not yet sufficiently consolidated to allow of the landing of our large aeroplanes, I might say the smaller ’planes are already landing there.

Hydro Electric Power Plant.

The extension of the power plant building is well in hand. Two further turbo-generator sets have been manufactured in England, and by the] time they reach the field the founda tions will be ready. The power plant has con tinued to operate in an entirely satisfactory manner, and our cheap hydro-electric power is partly responsible for low working costs. While there is always a possibility of a stoppage of the plant, due to a wash out, the chances of a serious mishap are rapidly getting less as the earthwork of the headrace is consolidated.

Permanent Camp.

Since the date of the report, the construction of the permanent camp, which is located on a terrace overlooking Bulolo aerodrome, has been proceeding steadily. Living, conditions have greatly improved since we first commenced operation, so that now, with a cold storage plant to ensure a regular supply of fresh meat, and with large vegetable gardens, electric light, hospital, and so on, our employees are par ticularly well cared for.

Dredging Results.

From May 31 to October 9, we dredged 949,700 yards (or 7,250 yards per day), and realised approximately 278,470 gold dollars.

The profit per calendar month for this period averages about 50,000 gold dollars, or, for the

benefit of our Australian friends, nearly £20,000 (Australian) at the present rate of exchange.

The average recovery per yard, amounting to 29.8 cents (gold) is somewhat less than we might have expected, but this is partly due to the fact that the tailings loss—during the first few months of operation—was heavier than ex pected, and, since then, much of our dredging has been on the eastern edge of the properties, and has included some low value ground, which had to be dredged as we came to it or lost entirely.

The period reports, as published from time to time, have taken the bullion in at a valuation of 13.50 gold dollars per ounce, whereas, to date, it has realised 13.80 gold dollars per ounce.

Bulowat Absorption.

The acquisition of the Bulowat and Burn side properties greatly increases our yardage.

We can now count on a minimum of about 100,000,000 cubic yards in the combined Bulolo-Bulowat property, and, with low costs such as are now assured, it is probable that the further drilling now in progress will increase our yardage above that figure.

The arrangements whereby the Bulowat- Burnside area was acquired for shares, to be allotted after dredging commences on the Bulowat property, is satisfactory, as the al lotment of these shares should not interfere with the originally contemplated rate of dividend. The total cost of equipping the Bulowat properties should not exceed one and a quarter million dollars, and it is provable that this expenditure can be met from profits surplus to the originally contemplated dividend requirements.

The directors’ report and accounts for the year were approved and adopted. Mr. G. B. Duncan and Mr.

T. W. B. Loudon paid tributes to the vision and courage shown by the direc tors in deciding on the use of aero planes to solve the transport problem, and by the organising ability and energy displayed in bringing the property into production, not only within the estimated cost, but also within the time estimated.

The retiring directors, Mr. W. A.

Freeman and Mr. C. A. Banks, were re elected, and Messrs. Edwards, Morgan & Co., of Vancouver, and Messrs.

Smith, Johnson & Co., of Sydney, were re-elected auditors for the year ending May 31, 1933.