From New Guinea

New Morobe Gold, N.L.

Dr. J. R. Athcherley, representative of New Morobe Gold N.L., who recently returned to Mel bourne, has reported to the directors on the pro gress made by the expedition and the interests secured on behalf of the company. Dr. Atcherley reports as follows:—Ornapinka and Yonka Dredgmg Properties: These areas are hydraulic sluicing propositions that can be worked conjointly at a

low cost, and comprise a series of river flats and terraces. The average values are 2/7 a cubic yard, based on gold at £4 an oz. Messrs. Spence and Smith- mining engineers, of Wau, New Guinea have check pitted the areas and have reported values of from 1/4 to 4/2 a cubic yard at the old price of gold. They are now emanating the total yardage available. Wewak: The gold-dredging area of 1000 acres at Wewak, at the junction of the Selling and Nordum rivers, on the north coastal region of New Guinea, which is held under a twelve months’ free working option, is being bored, and first results should be to hand at an early date.

Upper Watut: A free option has been obtained over a large area on the Upper Watut, embracing 13 miles of the river by 15 chains wide. Mr. J. M.

Spence, who has inspected the area on behalf of the company, has posted his preliminary report.

Lower Watut: Dr. Atcherley’s staff pegged approximately 2000 acres of ground, comprising a deep bucket dredging area, which, in the opinion of Messrs. Spence and Smith, is worthy of being tested for gold values. Kela: Approximately two miles of auriferous country has been pegged on the line of reef and adjacent flats. A recent land slide disclosed a large gold-bearing formation After a preliminary test was made and values determined the available portion of the ridge and adjacent flats were pegged. A portion of this area had already been pegged by another company, and the average assay of six samples taken from the adjoining property by Messrs. Spence and Smith gave a result which indicates that the company's property is of considerable value. Dr. Atcherley reports there are many hundreds of thousands of tons partially exposed, which can be worked economically by means of an open cut into the hill.

This gold-bearing formation, as exposed, is approximately 600 feet high, one mile and a half long, and 500 feet wide. Mr. Beecham, the company’s engineer, is tunnelling and costeening the area to discover the extent of the gold-bearing formation.

Mr. J. M. Spence, of Messrs. Spence and Smith,

has been instructed to inspect and report on the property on behalf of the company.

Equatorial Gold Syndicate.

Mr. J. W. McComas, chairman of directors of Equatorial Gold Exploration (New Guinea and Britain) Syndicate N.L., who has returned from New Guinea, reports that he visited the com-

pany’s .areas on the Ramu with Mr. J. M. Spence, who made numerous tests. From these results Mr.

Spence considers the property is a valuable one; that over an area of 3½ miles of the leases the values are so satisfactory that a plan to work this portion should be proceeded with as soon as possible, and in the meantime testing of the bal ance of the area be undertaken by boring on ac count of the depth of wash. Mr. McComas has arranged for Mr. Spence and Mr. Smith to give a full report and advise as to the future of the property. Mr. McComas also investigated the sul phur deposit on Lolobau Island, off New Britain, and reported that the sulphur he was able to in spect on the surface was of excellent quality.

Upper 3Epik Gold Syndicate.

To confer with the directors of Upper Sepik Gold Syndicate N.L., regarding the development of a lode formation at Bainings, New Britain, Mr. H.

Williams, the mining engineer, recently made a hurried trip from New Guinea. This lode, the management reports, is of large dimensions, and dish samples prove gold over a large area. The samples justify the carrying out of the development work recommended. While this development work is being carried out an alluvial proposition over which the company has an option will be tested.

An option on 3000 acres of alluvial ground in the Salamaua district, New Guinea, has been secured on reasonable terms. The ground is reputed to carry values averaging 6/- a yard. It will be tested immediately after No. 1 alluvial proposition on the Upper Watut River is tested.

Platinum Guinea Gold

Directors of Platinum Guinea Gold N.L. regret, in their half-yearly report, that the original object of the company —to investigate New Guinea areas

—failed, but a dredging property in Victoria, which they hope will prove payable, is under con sideration. Half of the company’s capital has been invested in Gold Mines of Fiji N.L., representing 20 shares.

Sandy Creek Gold Sluicing

In a circular to shareholders of Sandy Creek Gold Sluicing Ltd. on June 25, Mr. H. Grey (secre tary) reported that the directors have approved of a hydraulic sluicing scheme (to be known as No. 1 Scheme) which is primarily intended for treating gold bearing gravels on a portion of the bed of Sandy Creek. A water race to fit in with this and probable future proposals has been surveyed and the work of construction is well on the way.

This race bringing water from a position much higher up Sandy Creek to a suitable position above the hydraulic sluicing, and elevating plant for No. 1 Scheme will skirt the hillsides for a considerable distance and will be a kind of costeen traversing from the outset and for the major portion of its length the solid country rock and towards the end a small portion of the alluvial deposits of the Midlothian Breccia Deposits. The construction of this race will, therefore, afford an opportunity to examine for their gold values, reefs which occur in this portion of the country, and the small por tion of the alluvial deposits. An area adjoining Poverty Creek has been chosen for close examina tion and test in the immediate future as the Directors are of the opinion that good values and extensive deposits will be proved there. This por tion of the property may prove to be a valuable and fairly extensive dredging area. It is expected that No. 1 Scheme will be in operation before the end of the present calendar year. Gold recovery will be carried on in the meantime by box sluicing.

Messrs. H. B. Jamieson, H. G. Hyde and J. W.

Hinks, the company’s directors who recently re turned from an inspection of the property in New Guinea are impressed with the potential value of the areas.

Day Dawn (N.G.) Ltd.

To provide funds to continue development opera tions at the Day Dawn mine, commence cyaniding operations and discharge certain liabilities, the directors of Day Dawn (New Guinea) Ltd., New Guinea, have decided to make available to share holders an issue of £8000 10 per cent, debentures, secured by a charge over the assets, to be issued in denominations of £5 each, or multiples thereof, and redeemable in July, 1939, or earlier, at the option of the directors. The company was formed in November, 1929, and has since paid £29,006 in dividends. It is estimated there are available for treatment by cyaniding 36,000 tons of tailings of an assay value of 4 dwt. of gold and 12 oz. of silver a ton. A cyanide plant has been erected at a cost of over £15,000. It is believed the tail ings will return a net profit of 20/ a ton, and a net profit of at least £1000 a month is expected when cyanide operations are started and the plant is properly run in. Liabilities are set down at £6000, of which £3000 is payable at present.

Enterprise Of N. Guinea

The management of Enterprise of New Guinea N.L. received the following radio message early In July:— Forwarded to Melbourne Mint bullion 48¼ oz., being production to June 22. This is from approximately 600 yards, equivalent to 8/9 a cubic yard. Bullion value estimated at £5/10/ an oz.

Serious delay being experienced by influenza epidemic. Machinery arrived at Salamaua. Being transported to Surprise Creek leases.

Upper Watut Gold Alluvials

Upper Watut Gold Alluvials Co. has commenced construction of the water race, a vital part of the hydro-electric scheme, which-is being installed, to develop 1800 h.p. about the centre of its properties on the Upper Watut River. About 400 natives are employed on this work under the supervision of 12 white men. The saw mill is at work cutting timber for staff houses and other structures, and tenders are to be invited for the power plant. It is expected that the scheme of treatment will now be in operation inside 12 months. The source of water supply is Big Slate Creek, a tributary of the Watut River, and observations of the flow on this creek show the minimum flow as 150 cusecs.

There is a large catchment area. The scheme provides for the diversion of about 80 cusecs from the creek about three miles upstream from the power station. The water is to be conveyed to the power station through a concrete lined race, Armco iron fluming on elevated trestles, and four tunnels.

The fall of the race is three feet a mile. The tunnels are to be lined with reinforced concrete pipes, to be manufactured on the site, and a gully is to be traversed by a steel pipe. Safety escape weirs are to be constructed at entrances to tunnels to allow automatically the safe escape of water in the event of a blockage along the race.

The water will be delivered to a steel surge tank

at an elevation of 270 feet above the power station, and conveyed there in a steel pipe 36 inches in diameter. Power will be generated by alternating current generators direct coupled to Pelton wheels governed by automatic oil governors and will be transmitted at 3000 volts, on a transmission line carried on steel poles, to gravel pumps and pres sure pumps direct coupled to motors mounted on pontoons. These pumps will elevate the auriferous material through pipes to the treatment boxes and tables. Approximately 1,000,000 cubic yards a year will be treated.

The Upper Watut property contains about 20,000,000 cubic yards of wash of an average esti mated value of 3/7 a cubic yard, based on gold at £8 an ounce. The cost of treatment has been estimated as not to exceed 1/3 a cubic yard.

New Guinea Goldfields Ltd,

The monthly returns of production and estimated profits of New Guinea Goldfields Ltd. are as follows: —

The new tailings plant began operations at the end of April. Construction work on the Edie Creek mill is proceeding.

Development: Total 288 ft., of which the Edie No. 1 vein, No. 2 level, west drive, was advanced 108 ft. in ore, average width being 35 inches, and assay .34oz. gold and 11.6oz. silver.

Diamond drilling: Karuka vein, borehole No. 2 completed. The vein was cut at vertical depth of 245 ft. True width of vein being 6ft. sin., assaying .36oz. gold and 8.5oz. silver. Drill being set up at a new site to drill No. 3 borehole, and is calcu lated to cut the Karuka vein at vertical depth of 500 ft.

Day Dawn South (N.G.) N.L.

The directors of the Day Dawn South (New Guinea) N.L., in their annual report, state that, though development work shows a fair quantity of rich ore in the upper levels, the values at depth have been disappointing. Good values, however, were met with from 50 to 65 feet on the lowest level, 340 ft. on the No. 1 vein east crosscut, which assayed 10dwt. The last 5ft. assayed 17dwt. over a width of 42in. Messrs. J. Ward Williams and D. Smith, mining engineers, estimate that there is about 4500 tons of payable ore which will average gold and 100oz. silver per ton. Mr. N. H.

Fisher, Government geologist, reported recently that he would recommend further exploration, but he was of opinion that the installation of a plant was not warranted until considerably more ore was developed. He estimated that the payable ore developed was only 3200 tons, averaging consider ably more than 1oz. fine gold per ton, and 100oz. silver. At the date of the balance-sheet, December 31, actual cash expended was £12,182, including plant £831 and development £6906. Preliminary expenses were £2445. Vendors’ consideration was £10,000 in fully-paid shares and £2000 cash. Since balancing date, £2647 has been received in calls and present cash balance is £1324. Working ex penses are about £250 per month, the report adds, so there is sufficient cash to carry on at the present rate of development for another five months.

Malinar (N.G.) Gold Ltd.

Mr. M. Chambers, representative in New Guinea of Malinar (New Guinea) Gold Ltd., reports having pegged and applied for an area of about one mile in length by 500 feet wide, consisting of a large ironstone and quartz formation disclosed by a recent landslide near Kela The ridges in which the formation occurs are 600 feet m height and the lode has been picked up on both sides of the hill . Mr. Chambers estimates that a considerable body of ore is available, and preliminary tests consistently gave satisfactory values The ore does not disclose visible gold but about half a cwt. of stone was sent to Melbourne and various assays and check assays mane oy Mr. C. W.

Nash gave an average value of 12 dwt. 14 gr. a ton. Assays made by Messrs. Spence and Smith, mining engineers of Wau, New Guinea, taken from various places in the hillside where the landslide took place, gave an average value of 7 dwt. 6 gr. a ton. In addition to this property, Mr. Chambers has pegged and applied for two dredging areas of approximately 500 acres each on the flats in the same locality. These areas, the management reports, can be worked at a low cost, as there is an ample supply of water from a nearby waterfall, and they are easily accessible to the sea coast.

Plant and machinery can be delivered by road to the field, thus saving heavy cost of air transport.

Preliminary pitting disclosed values of 2/6 a yard with gold at 85/ an oz. Mr. J. M. Spence has been engaged to estimate the average depth and total yardage available. The water rights of the only waterfall in the district have been secured by the company, and the fall is capable of generat-

ing sufficient electric power to provide for the company’s operations, and would also enable the company to generate power for sale to other interests. The consideration of cheap power and no freight will, therefore, place the company in a position to work the areas economically.

Watut Dredging N.L.

An unsatisfactory report has been received by the directors of Watut Dredging N.L. on the pro perty over which an option is held, and it has been decided to abandon the option. A share holders’ meeting will be called shortly to decide the future policy. Mr. H. S. Archdall, legal manager, advised the Stock Exchange of Mel bourne in July that from a preliminary statement of the company’s financial position, he estimates that the funds in hand are equivalent to approxi mately £9 for each £10 share.

Bulolo Gold Dredging Ltd.

Production of the four dredges of the Bulolo Gold Dredging Ltd. for June, compared with that of the previous two periods' as follows: —

Alluvial — April May June Fine gold, oz 1,308 1,525 1,561 Fine silver, oz 1,013 1,208 1,180 Mill (Golden Ridge), tons 4,094 3,717 3,541 Fine gold, oz 1,525 1,455 1,331 Fine silver, oz 803 776 885 Estimated profit— March April May Alluvial £8,194 £6,871 £8,012 Mill 10,044 8,090 7,214

April May June Nos. 1, 2, 3 and 4 dredges— Cubic yards 892,000 890,000 930,000 Bullion, oz 15,357 15,059 13,021 Gold, fine, oz. ... 10,540 10,377 9,061

Value—

Aust. currency .. *£93,542 *£92,096 t£79,28o Per cubic yard .. /25.17 724.83 Working profit ... £65,257 £63,882 £52,045 * At £A8/17/6 per fine ounce, t At £8/15/ per fine ounce.

During June No. 2 dredge worked nine days practically without revenue, preparing pond for deep digging dredge now being designed and in this period dredged 69,000 cubic yards of tailings.