From New Guinea

Upper Sepik Gold Mining Syndicate

At a special meeting of Upper Sepik Gold Mining Syndicate N.L. recently, reports on the leases in New Guinea, in which the syndicate is interested, was placed before shareholders. Mr.

J. M. Spence, consulting engineer, of Messrs.

Spence and Smith, of Wau, advised that the property of 350 acres was on the east side of the Bulolo River. The wash exposed in pits, costeens and faces worked by the vendor, was of small nature and was much smaller than was general in the district. The depth of wash exposed in sections of the property was up to 30 feet deep, but taking the depth as exposed in pits and costeens over the tested areas, the average depth would be 12 feet. Practically one-third of the lower area of the property had been tested by pitting and costeening, and dish prospects taken by him in most cases gave excellent results. It would take several months to test thoroughly the whole of the areas, and from his brief visit he could take only casual dish tests, and as this method of computing values was most unreliable, he could not place an approximate value on the ground. In his opinion there as a large area of wash, but without further work it was practically impossible to form any estimate. In his opinion the property would make an ideal sluicing pro position. Working with two units it would be possible to put through boxes a big daily yardage.

The gold was of a coarse nature, and samples which he took from various points gave a value of 836 fine. He suggested the installation of a pumping plant on the Bulolo River, adjacent to the property. The property had every chance of a big future. The syndicate s engineer (Mr. H. Wil liams) submitted a lengthy report. He said the total result of tests showed that aproximately 3,000,000 yards would give 10/ a yard; 1,000,000 yards, 8/ a yard, and 2,000,000 yards, 5/ a yard.

He estimated there were 4,000,000 to 5,000,000 yards untested, which, according to dish results, should give values consistent with the ground tested. He suggested the flotation of a company of £70,000.

This would cover purchase considerations for six leases, the erection of two plants, each capable of putting through 1500 yards a day. Whilst prepa rations were being made to install plants, boxes could be put in where high values were obtained.

He had secured an option over three leases ad joining Nos. 1 and 2 leases. Taking the leases as a whole they would comprise 2000 acres. The purchase consideration would be £25,000 to £26,000.

Morobe Alluvials N.L.

Morobe Alluvials N.L., operating alluvial properties on the Little Wau Creek, New Guinea, reports that it has treated 1,670 cubic yards of ground for a return of 570 z. 14dwt. of gold. A partial clean-up of 500 yards early in October returned 220 z. of gold, or about 7/ a yard. The return from the treatment now reported is about 5/6 a yard, with gold at £8 an ounce.

Enterprise Of New Guinea

Reporting for the period October 31 to November 16, Mr. H. Taylour, general manager in New Guinea of Enterprise of New Guinea N.L., advises that mining and prospecting operations have been carried out in the Watut Valley. Mining has been confined to box sluicing at Oriabanda, and hydraulicing with a small pilot plant at Surprise Creek. During the period an oxidised formation associated with a quartz porphyry intrusion was cut. Dish prospects showed free gold over a width of 6 feet. Gold production and prospecting has been temporarily stopped to permit of all available labour being concentrated on a water-race con struction and installation of a larger sluicing plant at Surprise Creek.

Bulolo Gold Dredging Ltd.

A profit of 3,368,997 dollars (Canadian) on dredg ing operating account is shown by Bulolo Gold Dredging, Ltd. (New Guinea) for the year ended May 31, compared with 2,235,698 dollars for 1933- 34, and 1,335,000 dollars for 1932-33. The profit is equal to about £A842,250. Bullion was won to a value of 4,447,869 dollars, and working costs were 763,778 dollars. With 16,184 dollars sundry income, total profit is 3,385,181 dollars, and, adding 2,935,358 dollars brought forward, the credit balance is 6,320,539 dollars. Dividends Nos. 2 and 3 amount to 1,345,000 dollars. Other appropriations are 217,530 dollars to amortisation reserve, and 2,332,830 dollars for expansion and dredge construction, leaving 2,424,679 dollars carried forward. No. 4 dividend of 120 cents was paid after the accounts closed, and No. 5 dividend of 140 cents, for 1935-36 is payable this month.

With the fourth dredge operating as from August, 1934, production for the year shows a large

of gold is 289,884 fine ounces. The recovery of 6.236 gr fine gold per yard for the past year is equal to 27.28 pence per yd. with gold at £AB/15/ per ounce. Working costs, including overhead and royalty, but not amortisation, were 10.87 cents per yard. It is estimated that at May 31 the Bulolo- Bulowat area contained (apart from the deep gravels) 90 million cubic yards of an average re coverable value of 50 cents per yard (gold at 35 dollars per ounce) from which a working profit of 38 cents per yard, or about 34 million dollars, can be reasonably expected. The deeper gravels on the original Bulolo area are estimated to con tain, to the contemplated dredging depth, a total of 80 million yards of an average recoverable value of 32 cents per yard, with a profit of 20 cents per yard, or a total of 16 million dollars, thus making an estimated total profit of 50 million dollars.

Dredging on the Bulowat area has indicated that an important yardage will be dredged outside the previously contemplated dredging limits.

The further issue of 175,000 shares of 5 dollars ■each to Placer Development, increased the capital from 3,825,000 dollars to 4,700,000 dollars on the year. Reserves total 8,555,128 dollars. Sundry creditors are 50,692 dollars. Among the liquid assets are cash 914,638 dollars and bullion in transit 966,119 dollars. The amortisation fund of 517,530 dollars is at fixed deposit.

Production of the company’s four dredges for November, compares with that of the previous two periods, as follows:

Irowat Gold Alluvials N.L.

The chairman of directors of Irowat Gold Al luvials N.L., Mr. Colin Mac Kay, on his return

from New Guinea recently, said that he was pleased with his examination, and he was confident that the estimates given in the prospectuses of both companies would be achieved. He said that on a number of properties in New Guinea very primitive methods were employed, but even in these conditions profits were being earned

Work has been commenced on the Company’s three-mile race line by the contractor (Mr. J. Al len) and a team of 200 native labourers. The race line will be from Iroa Creek along < the ridge separ ating it from Surprise Creek. It is expected to be completed by March of next year. The construc tional engineer is Mr. R. M. Brain.

increase.

Year ended May 31. 1933. 1934. 1935.

Bullion, oz 98,443 134,827 185,665 Gold, fine, oz 65,355 89,737 127,901 Silver, oz 32,287 44,350 56,652 Cubic yards 4,551,800 6,674,300 9,920,700 Grs. fine gold per yard* 6.937 6.500 6.236 *Includes silver values converted into gold.

Since dredging began in 1932 the total production

Cubic yards Sept.

Oct.

Nov. .. 931,000 958.000 811,000 Bullion, oz 16,259 16,079 14,087 Gold, fine oz

Value—

11,292 11,186 9,723 Aust. currency* .. £98,805 £97,877 £85,076 Per cubic yard /2S.49 Z24.52 /25.17 Working profit *At £A8/1S/ per .. £72,695 fine ounce. £71.820 £63,166 No. 2 dredge was shut down on November 25 for approximately six weeks, during which the digging depth was increased 7ft. 6in. and gold-saving equipment was added. special

Watut Options N. L.

Shareholders in Watut Options N. L., New Guinea, at an extraordinary meeting in November, approved of the proposals to wind up the company.

Issued shares in the company number 300 of £5 each fully paid, and it is expected that the distribution to shareholders will be £2/14/- a share. Shareholders will also receive shares in Developments (New Guinea) N.L. held by the company in propertion of one share in the Developments company for every two shares held in the Watut company.

Shares left over are to be balloted for. Transfer books of the company closed November 23 for settling the list of shareholders entitled to participate in the distribution of assets. riIM p.vFD npvn nPMFWT TSI I

Gum River Development N.L.

Mr. J. B. du Faur, field superintendent in New Guinea of Gum River Development N.L. reported in mid-December by radiogram that further bores put down on the Gum River leases have disclosed unpayable values, and he recommends abandonment of the leases. Mr. du Faur also recommends an inspection of another dredging area in New Guinea.

The description of the area gives the probable yardage at over 40,000,000 yards, and values cf over 113 gr. of gold a cubic yard were obtained.

Mr. du Faur has been instructed to proceed forthwith and inspect the area on behalf of the company.

Edie Developments N.L.

Assets and liabilities of Edie Creek Gold Mining Co. N.L., New Guinea, are to be disposed of to a new company, to be registered as Edie Developments N.L. Nominal capital will be £60,000, in

120,000 shares of 10/ each, of which 100,000 contri buting will be offered for subscription at 1/- a share and 2,000 will be allotted to Edie Creek Gold Mining Co. N.L., which will discharge the liabilities of the existing company. For each £lO share now held, shareholders will receive 20 shares of 10/ each, fully paid, and have the right to apply for 100 contributing shares. Favourable reports on the property have been made by Messrs. H.

Taylour, general manager, and J. M. Spence, mining engineer. Mr Spence reports that the company has a valuable property, which justifies active development and equipment suitable for a production of at least 2000 tons a month. At present 60,000 tons of ore are developed, and as the main lode is Probably the strongest yet de veloped in New Guinea, prospects for future suc cessful operations are bright. The other known veins justify active development, and when opened up w ni considerably increase the ore reserves. For the period May 18, 1934, to May 31, 1935, the loss 0 Edie Creek Gold Mining Co. N.L. was £4019 Liquid assets at the close of the period amounted to £1079 and liabilities to £1363.

Bulolo Gold Deposits Ltd.

Tenders have been called by Bulolo Gold Deposits Limited for the construction of the unfinished portion of the water race to Bulolo River terraces (New Guinea), a distance of about one-quarter of a mde - The last clean-up of the company’s property resulted in a recovery of 100 ozs. of gold, reported the management on November 27.

Sunshine Gold Development Ltd.

Directors of Sunshine Gold Development Ltd..

New Guinea, report that the plant and material required to bring the Consolidated claims into* production have been transported by air to the property. Work necessary to complete the in stallation of the plant is being vigorously carried out with a view to production commencing as soon as possible. The drilling programme on the Sun shine claims is proceeding satisfactorily. Two of the power-drilling plants are in operation on this area. As the yardage disclosed on the Waria River option is not sufficiently attractive to warrant equipment by the company, operations have been discontinued on the recommendation of the general manager. This was a free option, and, beyond inspection, entailed no cost to the company.

Equatorial Gold Exploration N.L.

The Melbourne management of Equatorial Gold Exploitation (New Guinea and New Britain)- Syndicate N.L. has received a wireless message from Mr. J. M. Spence, mining engineer, stating that he has completed tests of the Ramu property of the company. From the aerodrome upstream 43 pits had been put down and 95 per cent, were bottomed. Tests showed a yardage of 1,750,000" cubic yards, valued at 5)4d a yard, based on gold at £4/5/ an ounce. Owing to the low values Mr.

Spence has recommended that the property be discarded.

Placer Development Ltd.

Under the terms of the sale of the Bulowat- Burnside leases to Bulolo Gold Dredging Ltd..

Placer Development Ltd. undertook to pay a commission of 10 per cent, on its net profit on the transaction. The Sydney office of the company states that this accounts for the item “commissions on property sales, 612,721 dollars” (Canadian) in the Placer Development balance-sheet as at April 30.

The sale of the Bulowat-Burnside area is shown at 6,094,598 dollars, and of the Placer Arnold lease at 171,225 dollars, a total of 6,265,823 dollars, against which are the cost of the properties at 130,626 dollars, and 21,946 dollars, respectively. The payment of the stipulated commission, as shown, represents the final adjustment of the transaction.

New Guinea Goldfields Ltd.

Monthly returns and estimated profits of New Guinea Goldfields Ltd., are compared in the sub joined table; —

Estimated profit— Alluvial £6,449 £4,499 £6,091 Mill £9,587 £8,540 £8,366 Total development at Edie Creek was 56ft. in country rock, of which Karuka main shaft was sunk lift, to 142 ft. Diamond drilling: Karuka vein, borehole No. 3 was advanced 103 ft. to 593 ft.

Sandy Creek Gold Sluicing Ltd.

Advice has been received by the management of Sandy Creek Gold Sluicing Ltd., New Guinea, that the plant is working under reduced pressure open ing up ground. The message is taken to indicate that whilst the plant is now working three shifts, as a temporary expedient, the pressure of water has been reduced to some extent as to overcome the present unsatisfactory condition of the joints in the pipe line. Fittings to make adjustments to these joints should reach the mine about the end of December. The company has accepted an offer made by Bulolo Gold Dredging Co. Ltd. for the purchase of its interest in a small area of leased lands comprising up to 20 acres of river flats near the junction of Poverty Creek with the Bulolo River. Whilst the area is suitable for dredging operations of the Bulolo company in con junction with adjoining areas, it would be of little value to the Sandy Creek company, as there is not a sufficient area to warrant the capital ex penditure necessary for the installation of a dredge.

The Bulolo company has agreed to transfer to the company without charge an area comprising a portion of Dennis Creek, between two of the com pany’s leases. This area is unsuitable for dredging but may prove a valuable acquisition for hydraulic sluicing.

Upper Watut Gold Alluvials N.L.

Production on Upper Watut Gold Alluvial’s pro perty in New Guinea is expected to commence in June next year. The board is satisfied that the estimates given in the prospectus will be fully attained. The constructional programme is well advanced, and in line with a time schedule arranged at the inception of the work. The development account shows a total expenditure of £10,855, while working expenses amounted to £3809. At balancing date paid capital was £130,897, and. cash in hand amounted to £8217.

Alluvial — Sept.

Oct.

Nov.

Fine gold, oz 994 1,132 959 Fine silver, oz 716 851 713 Mill- Fine gold, oz 1,514 1,612 1,709 Fine silver, oz. ... 983 1,025 1,056