Pacific Mining Notes
pp. 66-67 · Read in the full issue
Guinea Dredging N.L.
In a circular setting out the position of Guinea Dredging N.L., the management advises that the early object was to take up a certain area of ground in New Guinea recommended by Mr. A.
E. Dredge, who was in charge of the expeditionary syndicate. Unfortunately, on Mr. Dredge’s arrival he found the ground had already been pegged. An option was obtained over the area, but after inspection did not justify the directors in going on with it. As Mr. Dredge broke down in health, Mr. H. Tudor was appointed to take charge. Mr.
Tudor, at a nominal cost, had credited the com pany with any gold won during his prospecting operations, thus being able to inspect various properties, which unfortunately were not of any material value. Mr. Tudor was now inspecting a property which showed a fair prospect of success.
Meanwhile the directors, to safeguard the interests of shareholders, had obtained two other options, one in West Australia, and the other in New Zealand.
N.G. Platinum Leases
Encouraging assays having been obtained from samples sent from the field in New Guinea by the prospectors of Platinum Guinea Gold N.L., the directors commissioned Mr. H. F. Pearson, for merly assistant warden at Wau, New Guinea, to report fully on the prospects. In view of his report and the negative results obtained from Sydney and Melbourne assayers of the samples obtained by him, the directors have decided it is inadvisable to spend any more money on the field, and have given the leader of the expedition, Mr. A. K.
Smith, instructions to surrender the leases, apply for the refund of the rents paid to the Mines Department, and to realise on any assets of the company in New Guinea. Mr. Pearson’s report states that although platinum exists on the field, the company’s prospectors had failed to locate the parent system from which the platinum was shed, and this was essential to the successful commercial operations by any company.
Bulolo Drege Production
Production of the four dredges of the Bulolo Gold Dredging, Ltd., for January, compares with that of the previous two periods as follows:
Misima Central Leases Report
Having inspected four leases at Misima Island, Papua, under option to Misima Central Gold N.L., Mr. A. A. Hargrave, consulting engineer and metallurgist, has submitted a report to the direc tors. Regarding the ore deposits on the Misima Central leases 129 and 130, Mr. Hargrave strongly recommends a vigorous policy of development. The lodes, he states, are massive, and well defined for miles. The width has to be proved, but in No. 9 tunnel, 70 feet below the cap, 8 feet of width is exposed by a crosscut which is still in the lode, and has not reached the footwall, while in the other places samples were taken from widths up to 18 feet. Mr. Hargrave is of opinion that a secondary enrichment zone is likely to be discover ed about or below the creek levels. Assay values from samples taken from adits averaged 4 dwt. 7 gr. gold and 3 dwt. 17 gr. silver. Mr. Hargrave expresses the opinion that at least one lode runs right through the leases, and probably two, also that it will maintain its average width, as de veloped by the other mining companies. As the workable backs above creek level run up to over 275 feet, and the average is under 180 feet, the company should be able to develop about 333,000 tons of ore of an average value, on the present price of gold, of 37/6 a ton, even if the above assay values only are maintained, although he considers the average will be nearer 7 or 8 dwt.
Based on an output of 5000 tons a month, which would be sufficient to treat the whole of the material from one lode in six years, the cost, after allowing for overhead expenses at the mine, amor tisation and depreciation of plant, buildings, etc., should not exceed 17/- a ton. These figures would show a mine profit of about £50,000 per annum, even if the values did not rise above 4 dwt. 7 gr., as shown by sampling.
Regarding the Ginisea leases, Mr. Hargrave states little development work has been done.
The adits have exposed two lodeis, one a massive black lode, carrying manganese, and the other a red one, junctioning with the black lode where development has taken place. Assay values were: Black lode, 3 dwt. 2 gr. gold; red lode, average 3 dwt. 9 gr. gold; at junction of the two lodes, average 5 dwt. 1 gr. gold. Silver, 1 dwt. 7 gr., 6 dwt. 1 gr., and 6 dwt. 12 gr., respectively. Mr.
Hargrave considers this property also to be well worth further development.
New Papuan Gold Co.
With a nominal capital of £20,000 in 4,000 shares of £5 each, Lakekamu Goldfields (Papua) Develop ment N.L. has been formed in Melbourne to de velop sluicing areas in Papua. Directors are Sir Robert Knox. Mr. G. C. Klug, and Brig.-General E. A. Wisdom (former Administrator of New Guinea) A public issue of 3,000 shares has been subscribed, and 1,000 shares are held in reserve.
The legal manager is Mr. E. R. Hodge (Knox, Schlapp and Co.), 360 Collins Street Melbourne The vendor of the property is Tiven Gold Dredging Co. Ltd., which has granted for £5 a seven months’ working option from January 14, 1935, with the right of extension for three months on payment of £100 a month. Any amount paid in extension of the option will be applied to the pur chase price if the options are exercised. Pur chase consideration is £2,750 in cash and in fully paid shares in a company with a nominal capital of £75,000 and a working capital of not less than £40,000. The areas comprise five dredg ing claims known as the Twisty areas, on the Lakekamu goldfields, and are believed to contain 5,000,000 to 10,000,000 yards of payable wash, in 1932-33 a small sluicing plant on the high flats obtained values of from 1/6 to 3/- a yard, based on gold at 85/- an ounce. A few scout bores indi cate values, with gold at par, ranging from 10d, to 5/10 a yard, bottom from 10ft. to 21ft. All-in cost of sluicing is estimated at 5d to 7d. a yard.
Arrangements are being made by the company to test other alluvial areas from which prospectors have obtained gold but which have not been tested thoroughly.
Nov.
Dec.
Jan.
Nos. 1, 2, and 4 dredges— Cubic yards .. 835,800 881,400 913,000 Bullion, oz 15,557 14,919 16,222 Gold, fine, oz. 10,742 10,986 11,199
Value-
Aust. currency* £91,307 £93,381 £95,191 Per cub. yd. /26.21 /2S.42 /25.02 Working profit £64,132 £66,104 £67,821 * At £A8/10/- per fine ounce.
Day Dawn South (N.G.)
Directors of Day Dawn South (New Guinea) N.L., in a circular to shareholders, state that no payable ore has been proven since their circular dated October 31 last, but developmental work is continuing with a view to locating better values, and recent development in the lower tunnel is more promising than any for some months past.
The directors are satisfied that the present value of the ore developed is in the vicinity of £60,000, and that it appears sound for the company to plan for the earliest recovery of the values so far proved. In the very near future, it is hoped, a decision will be made to purchase a crushing plant. The investigations so far made suggest that the most suitable plant will be a direct cyaniding process. The testing of the ore for treatment purposes shows that practically no diffi culties in recovery should be encountered.
Sandy Ck. Gold Sluicing
To acquire from Sheba Options N.L. certain min ing properties held by them in New Guinea, and to develop these and any other mining areas which may be acquired, Sandy Creek Gold Sluicing Ltd. was registered in Canberra at the beginning cf February. The new company’s capital is £100,000 in 800,000 shares of 2/6 each. Subscribers are Messrs. T. A. Billerwell, iS. H. Carroll, S. W.
Griffith, H. G. Hyde, H. B. Jamieson, J. M. Ryan, and F. J. Selleck.
Samarai Gold Development Co.
Samarai Gold Development Co., Ltd., with an authorised capital of £50,000 in 200,000 shares of 5/each, has been added to the list of mining company shares quoted on the Sydney Stock Exchange. The subscribed capital is 4000 shares fully- paid (de livered to vendors), and 71 491 shares subscribed by the public and fully paid. To cover options, 54,537 shares are in reserve, and 69,972 are re served by the company.
Preliminary Testing For Equatorial
Gold (N.G.), Co.
Equatorial Gold Exploration (New Guinea and New Britain) Syndicate N.L., has entered into a contract to enable an exhaustive examination of the company’s areas on the Ramu, New Guinea, to be made immediately, with a view to obtain ing complete data for determining the best method for future operations. The contractor controls ample native labour, which will allow the work to be carried out with the utmost expedi tion He commenced operations on February 1, and will sink a minimum of 50 pits a week.
Sunshine Gold Development
Shareholders on the register of Sunshine Gold Development at February 8 were offered 72,000 new 10/- shares at a premium of 5/- each, six for ten. When fully paid, the issue will bring in £54,000, including £18,000 of share premiums, making paid capital £96,000. The new money is wanted to pay for sluicing equipment (estimated cost £37,000) to work the company’s Consoli dated claims on the Watut, New Guinea, and to meet the final payment (£5000) to the vendor.
The remaining £12,000 will be available for testing the company’s other options.
Proved ground on the Consolidated area totals 2,129,000 c.y., estimated to be worth £401,890 in Australian currency with gold at £8/10/- an ounce.
Costs are put at 7d a yard (£62,095), and royalty at 5 per cent, on gross value is £20,094, leaving a surplus of £319,701. The plant is expected to treat 25,000 c.y. a month, thus giving the measured area a life of approximately seven years. The £319,701 is sufficient to return the whole of the £114,000 of capital and premium money, and show an average of over 30 per cent per annum on capital alone. There is another 100 acres, recently pegged, which will be tested after sluicing begins.
The other options referred to are 3000 acres of dredging ground on the Ono River, another 2130 acres on Fish Creek and the Undaunted claim, 10 acres. What these areas may be worth remains to be proved.—Sydney Bulletin.
Upper Watut Alluvials Co.
Leases covering the river bed, flats, and terraces of the Upper Watut River, New Guinea, will be operated by Upper Watut Gold Alluvials N.L., which has been formed in Melbourne with a nomi nal capital of £200,000 in 800,000 shares of 5/- each.
Six hundred thousand shares have been subscribed for at 2/- a share of which shareholders of Mount Lawson Prospecting and Options Syndicate N.L. had the right to apply for 187,500. The Mt. Law son company also received 200,000 shares, fully paid, and £8625, being the amount spent in testing and developing the properties. A further £26,200 is payable to complete the purchase of the leases.
Five leases over which options have been obtained average 15 chains in width, and several miles in length. The depth averages five yards, and it is estimated there is 16,000,000 cubic yards of ground available for treatment. Testing has been carried out by Mr. J. M. Spence. An area representing 2,000,000 cubic yards was tested by pitting, the average value being 3/7.3 a cubic yard. The river bed has not been tested, but Mr. Spence expresses the opinion that it will be much richer than the flats. It is proposed to instal sluicing units and to increase the number as soon as possible, giving a total annual capacity of 920,000 cubic yards, it is calculated that the cost of working will not exceed 1/- a cubic yard. Although the surplus of 2/7.3 a cubic yard is considered conservative, the estimate of profits makes further provision for unforeseen contingencies by increasing the estimate of costs to 1/3 a cubic yard, and decreasing the values to 3/- a cubic yard. Based on these figures and on the treatment of 920,000 cubic yards, the operating profit is set down at £80,500 per annum. It is calculated that at present there is enough material for 17 years operations on this basis, assuming that the whole area is of average value equal to the portions tested. The directors are Messrs. D. J. McClelland, F. T. Leahy and C. Mackay. Mr. A. E. Llewellyn, 430 Little Collins Street, Melbourne, is the legal manager.
B.S.L Gold Mining Prospects
High hopes regarding the future of gold mining in the Solomon Islands were expressed by Mr. B.
Courtney, a director of Treasure Island Exploration Co. Ltd., who passed through Townsville, Queensland, en route to B.S.I. by the Malaita at the end of January. Mr. Courtney said investigations were to be carried out by a party of scienlists. They would examine the area known as the Golden Basin, where alluvial gold of very high value had been obtained. The gold was assayed in Sydney, and found to be 98 per cent. pure.
Two Light Drills For Lakekamu
The legal manager of Lakekamu Goldfields ad vises that two special light-power drilling plants were despatched to Papua from Brisbane by the Macdhui on February 2. One white driller, with experience of Papua, together with native labour, camp equipment, and supplies, has already left for the field and preparation work is in progress. The drilling superintendent, Mr. F. J. Greene, left for Papua by the Montoro on February 20. Drilling operations will commence immediately,
Bulolo Gold Deposits Ltd.
The mine manager of Bulolo Gold Deposits Ltd. reported in January that the last clean up yielded 79oz. gold from 238 sluicing hours. Work at the mine was delayed 22 days owing to damage caused by floods. He expects that another clean up will be made shortly.
New Misima Gold Mines Ltd.
The managing director of New Misima Gold Mines Ltd. (Mr. F. W. Cuthbert) reported on January 1 that for December 1153 tons of ore were put through the mill, yielding 865 tons of sand and 288 of slime for gold bullion of approxi mate value in Australian currency of £3041/16/5.
Advantage had been taken of the Christmas holi days to overhaul the battery and machinery and effect repairs which were impossible the battery was working. Crushing operations were suspended for five days only. A new bucket belt for sand and slime elevator has been installed; and one new dwelling house has beeu erected for white labour. The new Leyland six wheel lorry has now been completed with a suitable body, and put to work on the road. It will carry a much bigger load than the old truck, and appears to be very suitable for local conditions. Mine work has been carried on as usual. Main levels have been ex tended 54ft.; crosscuts 18ft.; rises 52ft. Repairs to main levels; 53ft.