Prospectsof N.G. Goldfields Ltd.

Steady Return From Golden Ridges and Alluvial

IN a report dated London, November 22, Mining Trust Ltd., consulting engi neers to New Guinea Goldfields Ltd., summarise N.G.G. Ltd.’s operations in the year ended September 30, 1935.

During the year, in the Edie Creek area, the following footage was driven: Drives and crosscuts, 2365 feet; shaft sinking, 148 feet; rises and winzes, 1035 feet.

On No. 2 level, Edie lode No. 1, 357 feet were driven on the vein, which gave an average assay of 15.5 dwt.; then the vein was cut oft by a fault, and the drive was stopped by water. Diamond drilling in this vicinity gave inconclusive results, owing to locally disturbed structural con ditions.

A crosscut driven south from No. 4 shaft, Edie lode No. 2, was carried 318 feet without finding the vein, which has been cut off by a fault between No. 4 and No. 5 levels. The downward exten sion of the vein is to be sought by diamond drilling.

Diamond drilling has proved the vein at depth below the adit level at Karuka— -115 inches wide, assaying 0.26 oz. at 97 feet, and 77 inches wide, assaying 0.36 oz. at 205 feet.

Good progress has been made with the erection of the Edie Creek mill.

Prospecting in the Edie area has not disclosed any new ore bodies.

The Golden Ridges mill recovered 22,075 oz. of fine gold, but the ore obtained by open-cut was exhausted. Ore is now be ing mined from the southern extension of the deposit. A large body of valuable ore was proved and worked at Upper Ridges, and ore is being taken thence to the mill by an aerial ropeway.

The co. obtained 8701 oz. of fine gold and 6775 oz. silver from alluvial workings, and tributers produced 6918 oz. of gold and 5156 oz. of silver.

The co. now is obtaining hydro-electric power for Golden Ridges and Edie Creek from Bulolo G.D. powerhouse.

The co.’s working profit is shown thus for the year:

In the previous year Golden Ridges yielded 25,790 oz. and a working profit of £151,272; while from alluvial the co. produced 9753 oz. and tributers 5049 oz. of gold, with a working profit of £65,631.

The total working profit for the year just ended is about the same as in the previ ous year; so that, if overhead has not varied, the shareholders may receive the same dividend (5 per cent, last year, but equal now to 20 per cent, on capital, which was written down in March by 75 per cent.).

The stock market does not seem to think so, however, for the shares (for merly £l, now 5/-) remain around 6/-, which is a low figure for anything carry ing 20 per cent.

The outlook for New Guinea Goldfields Ltd. appears to depend largely upon Edie Creek operations. A working profit of around £200,000 from Golden Ridges and alluvial working, combined, will give a return on the written-down capital; but a big annual profit from Edie Creek opera tions is necessary, if N.G.G. Ltd. is going to become a money-spinner comparable with Bulolo Gold Dredging Ltd. The latest report, in that respect, is not very encouraging. The vein in Edie lode No. 1 has been lost, and in lode No. 2 workings they were still seeking for it on Septem ber 30. There is good ore in Karuka and in the upper Edie levels, which will be ready for the Edie mill when it com mences operations early in 1936. It was estimated, at the beginning of 1935, that there were 156,000 tons of milling ore, averaging .501 oz. gold, available for the Edie mill, assuring it of supplies—and, presumably, a steady working profit— until 1940. That is quite satisfactory, so far as it goes, but the exploratory opera tions of 1935, on which depend milling operations three or four years hence, have been disappointing.

Mr. Jack Hepburn, cadet in the Dis trict Services Department of the New Guinea Administration, arrived in Sydney on furlough by the Macdhui on Novem ber 29.

Oz.

Value.

From Edie Creek ... . — — „ Golden Ridges .. . 22,075 £130,091 „ alluvial gold ... . 15,6191 ,, „ silver . 11,9311 76,830