Day Dawn Mine

Reduction of Staff

A surprise was caused in mining circles in Sydney early in June when a report was received from New Guinea that the Day Dawn mine at Edie Creek had closed down, and that the staff had been dismissed.

Subsequent inquiry showed that the mine had not closed down, but that mining operations had virtually ceased, and all but three or four of the European staff of about 17 had been dispensed with.

It was announced that it was hoped to operate the cyanide treatment plant at an early date. A very large quantity of ore was treatment.

The company believes that there is rich ore at a deeper level, but considerably more capital is needed to prove values and exploit same. It is understood that efforts are being made to raise this capital, and it was reported that an appeal was made to the Administration.

The Day Dawn mine was regarded, two of three years ago, as one of the richest on the New Guinea field, and its shares were at a high premium. Altogether, gold to the value of over £150,000 was taken out of Day Dawn, and about 60 per cent, of the capital originally subscribed was returned in the shape of dividends. A number of people, however, who bought shares at high prices are now heavy losers, because the shares, which now have a nominal value of 5/-, are quoted at about 1/1. They fell from 1/10 within a few days.