From New Guinea

Bulolo Gold Dredging Ltd.

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

Upper Watut Alluvials, N.L.

A geological survey of the Upper Watut area, in. the Morobe district, New Guinea, was recently completed by Mr. N. H. Fisher, Government gelo gist. The report is of interest to shareholders of Upper Watut Alluvials, N.L. Mr. Fisher states the properties of the company are well placed, as they are fed not only by the Upper Watut River, but by the three tributaries, namely, Roaring Creek, Surprise Creek, and Iroa Creek. Below the properties held by the company is the granite bar at the mouth of the gorge, which has been re sponsible for holding back the gold and gravels which form the flats and terraces on the property.

Despite the holding back of these gravels and gold, the gold which has gone downstream to the area

below the junction of the Bulolo River has been, in greater quantities that that distributed to the Lower Watut River by the Bulolo River. The

July. Aug - . Sept.

Cubic yards 968,000 961,000 931,000 Bullion, oz 15,647 17,009 16,259 Gold, fine, oz 10,847 11,837 11,292

Value—

Aust. currency.. *£94,911 *£103,573 *£98,805 Per cub. yd /23.S3 /2S.86 /2S.49 Working profit ... £66,893 £ 77,227 £72,695 * At £A8/15/- per fine ounce.

fineness of the gold in the Upper Watut basin covered by the company’s properties is given as 830 fine. In the prospectus the fineness of gold was taken as 800 fine. Mention of the values to be found in the creek bed and terraces of the Iroa Creek is made. The Iroa Creek covers the property of the recently formed company—lrowat Gold Alluvials, N.L. The report states the conglomerate beds of the Upper Watut basin contain an appre ciable quantity of fine gold, and that the whole series shows signs of tranquil conditions of deposi tion.

Since the formation of the Watut Co. an area known as Day’s has been acquired. This property, in the opinion of the directors, adequately replaces the Mainka area, the option over which was not exercised owing to the existence of long-term tributers’ agreements.

Constructional plant has arrived on the Co.'s area at Upper Watut, and it is anticipated the civil engineering and hydraulic will be completed in January. ( The Co. has accepted the tender of Siemens (Aust.), Pty. Ltd., for the supply of English elec tric water turbines, automotors and switchboard for £6362. The gear is for the erection of a hydro electric power plant. The conditions require de livery at Lae, New Guinea, inside six months, the manufacturers to send their own engineers to supervise the erection. Current will be generated at a voltage of 3000, and the available head of water is 270 feet. The water will be diverted from Big Slate Creek at a point approximately 3 y 2 miles

from the surge tank, which stands 270 feet above the power station.

Oriomo Explorations, Ltd.

Directors of Oriomo Explorations Limited report that at Bulolo, New Guinea, good progress is being made in boring the 145 acres Consolidated claims.

Results are so far up to expectation. The bores already completed on the river and terraces give results rising from 17 to over 19 grains a cubic yard, in depths ranging from 39 to 43 feet. Mr.

G. A. More left for the area by the Macdhui on September 12. He was accompanied by Mr. M.

Milstein, geophysical surveyor. Mr. Milstein, by a series of magnetometric traverses will determine the trend of the old river beds on the pastoral areas. These will indicate the position and depth of bores, and nature of plant necessary to prove values. This should materially lessen the cost and time of testing these extensive areas.

Koranga Gold Sluicing Ltd.

Operations of Koranga Gold Sluicing Ltd., were interfered with by landslides during the year ended June 30 last, but production for the year from the company’s own leases was 22300 z. bullion, which realised £10,437. In addition there was produced from the New Guinea Goldfields Co.’s leases, cn which it had a tribute, 6110 z., which realised £1735. Net profit for the year was £3917. Three dividends, each of 6d a share, were paid, and two bonuses each of 1/6 a share, making a total dis tribution of 4/6 a share, or 22y 2 per cent. Through the application of a mining ordinance which gives a lessee working in the bed of a stream a prior right to the water supply as against a lessee who diverts the water from the bed of a stream, the company was compelled to construct a new race from the Little Wau Creek, which cost £2325.

This work has now been completed. A general inspection of native labour was carried out during the year by the Administration, and the official expressed gratification at the contented labourers, their excellent housing, and the care extended by this company to them.

Upper Sepik Gold Syndicate N.L.

A report has been received by the management of Upper Sepik Gold Syndicate N.L. from Mr.

H. Williams on the property six miles from Wau, New Guinea, in hilly country. The gold-bearing position, he advises, was old river beds. There ap peared to be three different beds, and the chief one was being tested. It would contain approxi mately 6,000,000 cubic yards, the values ranging from 8/- to £2 a yard. He had put down 56 holes, ranging in depth from 12 to 18 feet. The over burden would average 2 feet, but was chiefly wash from the surface. The gold was coarse, and of good quality, being chiefly in the wash from 5 feet from the surface to the bedrock. All tests were being done by boxing. The wash was easily treated. Very little clay or pug were present, and large stones were few. The main old river bed running alongside a well-watered creek made it an ideal sluicing proposition. Water could be brought from the creeks at the head of the property at no great expense. Mr. Williams suggests the formation of a company, and to leave further testing of the property until production takes place in three weeks. A company, Mr. Williams adds, would be producing quickly after flotation, as the property is so situated that it would only be a matter of putting in pipes, pumps and nozzle.

There would be no water races to cut to treat the first 4,000,000 to 5,000,000 yards.

Madang Alluvials N.L.

Madang Alluvials N.L. has been formed in Victoria with a capital of £ISOO, in £1 shares, to acquire the whole of the interest of the Madang Gold Syndicate N.L. in areas being tested by Gum River Development N.L. The areas comprise four dredging leases, having a total area of about 2000 acres, situated on the Gum River, in the Madang district, New Guinea. The purchase agreement be tween Madang Alluvials and the Madang Syndi cate provides for the payment by Madang Alluvials of £IOOO within one month of registration, and also that the Madang Syndicate is to subscribe for 1000 shares. Of the total shares in the new com pany 150 shares are to be allotted as fully paid to Mr. T. Schilling, of Madang, for services rendered, and 1050 shares are being subscribed at £1 each on application, while 300 shares are to be held in reserve.

Gold Prospecting And Development

(New Guinea), N.L.

Mr. K. W. Steedman, legal manager in Mel bourne, of Gold Prospecting and Development (New Guinea) N.L. advises that, on the recommendation of the engineer, a six months’ working option has been take on the reward lease, on the pro claimed goldfield of Tugi Tugi, on the island of Tatau, Tabar Island group. New Guinea. Tatau is approximately 80 miles south-east of Kavieng,

and rises to 1000 feet above sea level. The area is about 800 feet above sea level, and comprises a large lode formation of soft, easily worked, material. The lode runs the length of the lease, and gold has been proved over a width of 50 feet and a length of 100 feet along the formation.

Prospecting has been hampered owing to heavy undergrowth. From a costeen 35 feet long by 10 feet wide and 10 feet deep, the original pros pectors recovered lOOoz. of gold by sluicing the lode material through sluice boxes. Two hundred oz. of gold was recovered in a short space of time, although primitive methods of extraction were used.

Tailings, for a distance of half a mile downstream were dollied by the engineer, and all showed fine gold, as did the residues thrown out of the boxes.

In the opinion of the syndicate’s engineer, mining operations will show a profit of £2/10/- a ton.

The directors intend proceeding with a vigorous developmental policy, comprising shaft sinking, cross-cutting and adit driving, to prove the dimen sions of the find.

Developments (New Guinea) N.L.

Having inspected No. 1 area on the Upper Watut, New Guinea, under option to Developments (New Guinea) N.L., Messrs. Spence and Smith, engineers, of Wau, recommend testing the property. The lease consists of a series of flats up to 15 chains wide, containing a large area of wash. Arrange ments are being made for systematic testing, as recommended by the engineers.

Golden Terraces (N.G.) Syndicate

A report has been received from Mr. T. R.

Victor, mining engineer, in which he states that he has inspected all the areas at Edie Creek under option to Golden Terraces (New Guinea) Syndi cate N.L., and that he finds that conditions are exceedingly rough. There are many huge boulders,, and it is impossible to improve on present methods of working, except with heavy expenditure. The terraces are limited and scattered, and, in his opinion, the areas definitely are not suitable for a company.

Golden Deeps, N.L.

The secretary of Golden Deeps N.L. reports that under instructions from the directors, Mr. T. R.

Victor, mining engineer, of Melbourne, visited the field and the following radio has been received from him: “Have inspected deeps, recommend opening out at 67 feet main level immediately, some good values.” In view of this encouraging report by Mr. Victor, the directors have instructed the mine manager to proceed with the work.

Equatorial Gold Exploration

Syndicate

Accounts of Equatorial Gold Exploration (New Guinea and New Britain) Syndicate N.L. for the year ended July 16, show a loss of £3536 Cash in hand at the end of the term amounted to £587, while sundry debtors owed £l5O. Prospectors’ ex penses were £1756, and lease rents were £520, while expenses of management amounted to £1035.

Creditors were owed £64. A circular accompanying the balance sheet reviews the company’s opera tions in New Guinea. An option over dredging claims on the Upper Ramu River is now held.

Mr. J- M. Spence, mining engineer, of Wau, states that the lower areas require testing by boring, and that to make substantive report on the upper areas he would require to have them pitted under his own supervision. On September 16 he cabled that he had commenced operations, and would be pitting for about 10 weeks. An extension of the option had been granted until December 31, without any further payment to the owners of the area.

Irowat Gold Alluvials N.L.

To acquire from Mt. Lawson Prospecting and Option Syndicate N.L. leases at the junction of the Iroa Creek and Upper Watut River, New Guinea, comprising an area of 434 acres, Irowat Gold Alluvials N.L. has been formed. Capital is £lOO,OOO, in 800,000 shares of 2/6 each, of which 587,750 have been subscribed for and 212,250 are to be issued as fully paid, of which 156,250 will be allotted to shareholders in the Mt. Lawson Syndicate and 56,000 to the holders of the leases.

Shareholders in Mt. Lawson had the right to apply for 187,500 of the contributing shares, and the Syndicate will also receive a cash considera tion of £14,000. The Syndicate will pay the original vendors £10,500, in addition to the fully paid shares. The prospectus states that the cubic yardage will, from present information, be ap proximately 4,500,000, with the possibility of side pegging increasing this amount. Testing has been carried out by Messrs. Spence and Smith, of Wau, and embraces a substantial portion of the area. This has given an average value to date of between 3/- and 4/- a cubic yard. The wash is favourably situated for ground sluicing. The creek bed will be treated by hydraulic elevators.

Apart from a race, other capital expenditure will be confined to plant, which is simple and com paratively inexpensive. There will be five sluic

ing units, and in estimating revenue it has been assumed that four units out of the five will be in constant operation. Mr. D. J. McClelland, engineer, and Messrs. Spence and Smith are of opinion that costs will not exceed 9d. a yard, and may be lighter, but calculations have been based on 1/- a yard. The recoverable value a cubic yard at a conservative estimate, with gold at £8 an oz., is 3/-, and the cost 1/-, leaving a net profit of 2/- a yard. Based on 600,000 cubic yards at 2/- would provide £60,000, which is equivalent to 1/6 a share per annum.

Morobe Alluvials N.L.

Operations of Morobe Alluvials N.L., New Guinea, were held up owing to delay in getting transfers of leases and titles completed, and dif ficulty in organising fresh labour. A partial clean up, however, resulted in 220 z. of gold from about 500 yards of material.

New Guinea Goldfields Ltd.

Monthly returns of production and estimated profits of New Guinea Goldfields Ltd, are as follows:

New Morobe Gold N.L.

Having inspected the Kela lode, near Salamaua,.

New Guinea, held under option by New Morobe Gold N.L. from Malinar (New Guinea) Gold Ltd., Mr, T. R. Victor, mining engineer to Australian.

Gold Development N.L., advises the abandonment of the option. The directors will adopt the recommendation. Known as the Kela Ridges, the area is a mile in length and 500 feet wide, con sisting of a large ironstone and quartz formation disclosed by a landslide. The ridges in which the formation occurs are 600 feet in height, and preliminary tests were reported to have given satisfactory values. The ore does not disclose visible gold, but assays and check assays gave an average value of 12dwt. Mgr. a ton. The area was pegged by Mr. M. Chambers, the Malinar Co.’s New Guinea representative. The representative of New Morobe in New Guinea early in September reported that he had traced the reef for 150 feet in length by 6 feet wide, adding that it was carrying high values. New Morobe also owns an area of about 960 acres, close to the Sunshine aerodrome, in New Guinea.

The area is reported to consist of low flats, some of them three miles in width, with the Watut River as the centre of the leases. Messrs. Spence and Smith, of Wau, the company’s engineers, having expressed the opinion that they consider the leases sufficiently attractive to warrant boring and testing, boring will be undertaken. As the wash is likely to be deep a power drill will be used. Share values of New Morobe and Malinar Gold weakened on the Stock Exchange following the recommendation of Mr. Victor.

Enterprise Of New Guinea N.L.

A message was recently received by the Mel bourne office of Enterprise of New Guinea N.L. from the company’s general manager in New Guinea (Mr. Harold Taylour) suggesting that the capital of the company should be increased with a view to extending its activities to petroleum search and further mining and general develop ments in New Guinea. The directors held a meeting to discuss the proposal, and the ques tion is under consideration. They state that while the company has ample capital for present mining operations, it will be necessary to raise additional funds if a comprehensive oil search is to be undertaken. During September and October reports were current that Dutch interests who have been seeking the eastern extension of their proved oilfield, sank a bore close to the boundary of the Enterprise Co. with favourable results.

Mr. Taylour reports that while prospecting re cently on one of the properties held by the com pany in New Guinea an adit which has been commenced revealed an oxidised lode 3ft. wide.

Free gold is showing in every sample washed, and the formation presents favourable indications.

Production on the Surprise Creek lease, from September 18 to 28, was 20oz. of bullion from 430 cubic yards, showing a return; of 6/- a cubic yard, taking bullion at £6/10/- an oz. This work is being carried on with a pilot plant to obtain an estimate of the values, prior to the in stallation of a large sluicing plant. A further area has been pegged at Surprise Creek, adjacent to the present holding. Costeening on the Ona banda area has disclosed some auriferous forma tions of an encouraging nature, but further work must be done to ascertain values.

Alluvial — July August Sept.

Fine gold, oz 1,599 1,250 994 Fine silver, Mill (Golden oz Ridges), 1,251 927 718 Fine gold. oz 1,525 1,592 1,514 Fine silver, oz 1,095 1,065 983

Estimated profit— June July August Alluvial .. £9,000 £7,818 £6,449 Mill 5,989 7,449 9,587