Sunshine (N.G.) Gold Development, Ltd.

THE Sunshine (N.G.) Gold Develop ment, Ltd,, whose prospectus has been forwarded to us, is now being formed to develop leases on the Watut River, known as Sunshine Nos. 1, 2 and 3, at present held by Messrs. C. F.

Duchatel and M. Wilson. In addition, it will take over, if considered advis able, the right to an option held also by Messrs. Wilson and Duchatel over the “Gorge” claim and a further option to take over the “Goldfoil” claim.

This is a dredging proposition. The properties are held as dredging claims and, commencing at the junction with the Bulolo Gold Dredging Ltd.’s ground, extend down-stream along the Watut River for 3% miles.

The company is to be registered at Canberra, and will have a capital of £15,000, divided into 30,000 shares of 10/- each; 9,000 fully-paid-up shares being allotted to the vendors and 21,000 being offered for public subscription: payable at 2/6 on application, 2/6 on allotment, and the balance in calls. The directors are: Frederick W. Torrington, Alfred E. Brown, Frank George, John M. Ryan and Sydney H. Carroll.

The resident manager and consulting engineer to the company anticipates for the areas a highly profitable life ex tending over ten to fifteen years, as the probable yardage is over 5 million cubic yards, which in places in the Sunshine group of claims has a value of as high as 8/7 on the present price of gold, though, of course, it is not expected that such a high value will be maintained over such a large area. Sunshine No. 2 connects with the “Gorge” claim. It contains only small remnants of rich gravels; at its lower end it surrounds the “Buller” claim, to take in a flat of about 3 acres, through which a pay channel possibly runs. It is mainly in gorge country. Sunshine No. 3 is also in gorge country, but contains areas of several acres carrying surface values of 5/2, equal to 8/7 on the present price of gold, and worked in conjunction with the more important Sunshine No. 1, warrants prospecting by drill to deter mine yardage and values.

Of the several claims under considera tion, Sunshine No. 1 is the most im portant. It comprises 300 acres, of which 170 acres are continuous low flats, which are held up at the lower end by a narrow gorge. They are the first flats below the Bulolo Gold Dredg ing areas, capable of holding and con centrating gold carried through the

narrow area of Sunshine No. 2, and in view of the high values won both above and below them, may be regarded as specially valuable. Half-a-mile above, on the “Buller” claim, 2,500 cubic wards recently gave a return of 912 ounces, of which the value was £5,080, while below the flats on dredging claim No. 124 (held by other interests) 50 ounces have been won by boxing in 23 days, representing a value of 16/6 per cubic yard on the present price of gold. It is claimed that these rich concentrations indicate that a high value must have gone down into the flats. At the lower end of the flat a small gravel exposure gives a value of 23/- per cubic yard at present gold prices, while the beach at Lay Creek has values equal to 5/11.

Prospecting the lower flats by shafts is difficult as the ground water is close to the surface, so the pay channel can only be determined by drilling.

The “Goldfoil” claim was pegged to include the continuation of the pay channel emerging from the lower Bulwa areas of Bulolo Gold Dredging Ltd.

The “Gorge” claim has shown high values on either bank. From selected areas where boxing is being done by the owner (Mr. Dumb), values as high as 37/- per yard on present price of gold have been won.

The main interest in the “Gorge" claim is that the pay channel should be in the Watut River within the limits of the claim, and a water right is held to divert the river through a sharp bend and expose approximately 700 yards in length of its bed adjacent to "Goldfoil.” This diversion presents no difficulties.

The Sunshine aerodrome adjoins the Sunshine No. 1 lease and is suitable for the landing of “Junkers” ’planes carrying a ton. Water power for gen erating electricity is available and a water right allows Mr. Duchatel to divert 100 sluice heads of water from Snake River, which can be brought through good ditching country to a height of 100 feet to generate, if neces sary, 1,000 horse-power.

Drilling of the leases was commenced on March 6, the company having ap pointed Mr. O. Moen as drilling en gineer. Mr. Moen has had several years’ experience in mining in New Guinea with Placer Development. It is anticipated that valuations of the claims will be available at the end of this month. Mr. Duchatel has returned to New Guinea as resident manager.