Islands Gold-Minging

Notes

Day Dawn (N.G.) Operations.

Day Dawn (New Guinea) Ltd. reports on opera tions for the six months ended February 28 that 9201 tons ore was crushed for 5283oz. bullion, realising £22,910. This does not indicate the true value of the ore, as considerable dilution has been caused. The cyanide plant has arrived at the mine and the installation is in progress. There are approximately 30,000 tons of tailings assaying 4dwt gold and 8 oz silver awaiting treatment by cyan ide process. The bottom level over the length of drive of 90 feet (width approximately 4 feet) aver ages over loz gold fine. The manager reports that the lode in this level gives every appearance of going to a good depth, as the body of ore is very strong and solid, carrying very definite walls.

Arrangements are being made to develop the Florrie, Manganise, and Merri lodes. These lodes are large bodies of low-grade ore, which it is ex pected will be proved payable with the addition of the cyanide plant. The result of March crush ing was 1600 tons for 9600 z bullion, valued at £4505.

Guinea Gold New Leases

Guinea Gold N.L., has received advice from its representative in New Guinea that four claims have been pegged for the company, consisting of 2000 acres on the Lakekamu River, Mandated Ter ritory. Surface values so far sampled give a re gular return of 4/ - per cubic yard, increasing in value at depth.

Important Misima Float.

The directors of Misima Gold Reefs (New Guinea) N.L., have granted a 12-months’ option to purchase the company’s six gold mining leases, comprising approximately 112 acres, on Misima Island. Papua, to Oroyille Dredging Co., Ltd., a powerful London mining group, on satisfactory terms. The group includes one of the strongest mining-financing companies in London, with an international reputation.

It is intended to carry out extensive develop mental work on the leases, and on results con firming the developments already carried out by the Misima Gold Reefs Company, the new com pany will form a strong working company in London to instal modern plant and work the large gold-bearing lodes on the areas on an extensive scale. These lodes adjoin and are a continuation of those on the New Misima Gold Mines Ltd., which has paid regular monthly dividends.

If the option is exercised £4,000 cash will be paid and 10 per cent, in fully paid shares of £1 each of the nominal capital of the company form ed to work the leases. The company is to have a minimum capital of £100,000. Mr. J. A. Miller will receive £1,500 from the new company. The Misima company assumes that if the London company is formed it will have a nominal capital of £500,000. This would give each share in the Misima company 55 shares paid to £1 each, and a proprotion of the £4,000 cash. Major Stuart Love has been appointed to supervise operations on Misima Island.

Mr. W. Langlands Jack is chairman of direc tors of Misima Gold Reefs and Messrs. W. Blewett and W. McGregor directors. Mr. W. L. Burling ton is prominently associated with the enterprise and its extension.

New Development Co.

A holding company to be known as British New Guinea Gold N.L., has been formed in Melbourne, to promote the prospecting and development of several areas in New Guinea and Papua.

Capital is £5000 in £5 shares, 700 offered for public subscription, 150 fully paids allotted to Mr.

Charles Lexius Burlington and others, 50 fully paids allotted to the promoters, and 100 held in reserve. The issue of shares was over-sub scribed.

The promoters have secured a free option to bore and test an area of 2000 acres of dredgable river flats pegged by the late Bernard McGrath on the Karumantina River, one hour’s flying time from the Bulolo field.

It is recommmended that an area on the island of Misima be given attention.

Operations in the territories of Papua and New Guinea will be managed for and on behalf of British New Guinea Gold, by Mr. Charles Lexius - Burlington and Mr. Charles E. Hamilton.

Bulolo Dredges’ Production

Production of the Nos. 1, 2 and 3 dredges of the Bubolo Gold Dredging, Ltd., in New Guinea, for May compares with that of the previous periods as follows:

Another Placer Co.

Placer Developments, Ltd., the big Canadian company which has large rich holdings in New Guinea, has just exercised an option in connection with the Pato placer mines in Colombia, South America. A subsidiary company has been formed called Pato Consolidated Gold Dredging Ltd., with a capital of 2,000,000 dollars. The Placer Co. will have technical control and the management of the business. The capital of Placer Ltd. will now be increased in order to pass 2,500 fully paid shares over to the newly-formed Pato Gold Dredging Co.

Enterprise Of New Guinea

Enterprise of New Guinea, N.L., reports that the company’s representative in New Guinea has pegged out claims aggregating 4300 acres in an area quite apart from the areas originally located.

In view of the expenditure incurred, and in ac quiring one-fifth interest in the Edie Creek Gold Mining Co., N.L., the directors have decided to call up the balance of the capital.

Hydraulic ground pegged out as dredging claims by this Company now aggregated 770 acres, includ ing an extra quantity at Iroa Creek, Roaring Creek and Nauti Creek. The applications total 4300 acres.

Gold Mines Of Papua

At the statutory meeting of Gold Mines of Papua Ltd., at Canberra, at the end of May, the chair man (Mr. E. H. Pratten) said the object was to extensively prospect and sample two main lines of lode, one —the Umuna, on Misima Island, and the other, Kulumadan, on Woodlark Island.

Simultaneously with the prospecting of these two lodes, it was the intention of the board to arrange for the cyaniding of approximately 130,000 tons of slimes and sands from the old Kulumadan lode.

The slimes, which were sampled by Mr. A. J.

Peterson, were valued at from 3 to 4 dwt., while the sands were valued at one dwt. and better. It was hoped the profits from the treatment of these sands and slimes would provide sufficient capital to prospect and sample both the Umuna and Kulu madan lodes. A preliminary report made by Mr.

Peterson, on behalf of New Guinea Alluvials Ltd., indicated that at Misima there was a continuous ore body of some 2700 feet in length. On Wood lark Island, recent workings had exposed a rich shoot of ore, on the northern end of the old Kulu madan mine, which Mr. Peterson believed to be on the Kulumadan line of lode. In addition to the

original leases taken over from the vendors, appli cations had been made for an additional 43 acres adjoining the company’s Misima leases. Mr. L.

Gibbons, who had been appointed general manager, left for Papua in June,

Enterprise Of New Guinea

Share values of Enterprise of New Guinea N.L. received a setback on the Stock Exchange of Melbourne in May, following the receipt of a re port, dated April 29, from the representative in New Guinea. The appreciation in prices of these shares of recent weeks, in the absence of an an nouncement, had been a feature of the dealing m the gold-mining section. There are 2250 shares in th e company of which 1250 are contributing and are paid to £5. The recent peak price was £55, and early in May there was a slump of £22, to closing at £32.

The representative advised that he had been informed that the next session of the Legislative Council at Rabau may not be held until Sep tember. This would cause delay m securing areas

Nos. 1, 2 and 3 dredges— March April May Cubic yards 648,600 612,700 707,000 Bullion, oz 10,811 9,803 11,249 Gold, fine oz 7,274 6,605 7,548

Value—

Aust. currency* .. £61,829 £56,142 £64,158 Per cubic yard ... /22.87 /22.00 /21.78 Working profit £41,777 £36,380 £43,996 * At £A8/10/ per fine ounce.

under the proposed amended mining ordinance. In the meantime, the company’s prospecting party was occupied in another area, where encouraging re sults were being obtained. The representative added that the company’s interests in Edie Creek Gold Mining Co. (to be registered in Melbourne as a no liability company) was of considerable value, in view of the quantity of high-grade ore developed, which was conservatively estimated at 40,000 tons.

According to an announcement made in March, Enterprise of New Guinea has a fifth interest in the Edie Creek company, whose holding of 73 acres adjoins the main developed lode system of New Guinea Goldfields Ltd.