From New Guinea

Upper Sepik Gold Syndicate

Shareholders of Upper Sepik Gold Syndicate N.L., New Guinea, at an extraordinary meeting held in Melbourne on February 7, sanctioned an increase in the capital from £lO,OOO to £20,000 by raising the nominal value of each of the 2000 shares from £5 to £lO. Authority was given the directors to make calls not exceeding £1 a month.

The chairman of directors (Mr. E. F. S. England) informed shareholders that Messrs. Spence and Smith, of Wau, were occupied testing the pro perty of 400 acres (Lease No. 361). The direc tors had not yet received any detailed report, but a radiogram to hand on February 6 was of an encouraging nature. Some of the tests completed had given values up to 7/- a yard. The present intention of the directors was to make only one call. Replying to a shareholder, Mr. England said there were 1925 issued shares, of which 1425 were issued for cash and 75 were in reserve. An amount was due to the vendor on November 15 last,- and funds being insufficient the directors issued 125 shares at £5 a share, the market price being £4/10/- a share. The fee of Messrs. Spence and Smith was £325 a month, with a final pay ment on receipt of the certificate. The vendor was receiving £l5O a month, and these payments would be deducted from the cash consideration of £20,000 payable on the exercise of the option.

This amount would be payable should a new company be formed, which would also allot 5000 shares. The option expired on February 15, but was subject to a renewal for six months. The firm offer of £2OOO made by Bulolo Dredging Ltd. for 17 of the 400 acres could be finalised imme diately the title was received. Mr. England added that other properties were under offer to the company.

Edie Ck. Gold Mining Co.

In view of the recent shipping dispute and, the extended Christmas vacation, the directors of Edie Creek Gold Mining Co. N.L., New Guinea, extend ed the date on which applications for shares m Edie Developments N.L. would close until February 10. The directors pointed out that unless enough support was forthcoming to enable the registration of the new company to proceed, there would be no alternative but to close down and dispose of the assets of the Edie Creek mine. The general mana ger (Mr. H. Taylour) has reported that with suffi cient capital the property should develop into a consistent gold producer.

On February 13, the directors reported that as applications received for shares had been insuffi cient to enable the new company to proceed to

registration, they had decided that the existence of Edie Creek Gold Mining Company, No Liability, shall be determined and wound up.

Bulolo Gold Deposits Ltd.

A profit of £lOB4 was earned by Bulolo Gold Deposits Ltd. for the year ended June 30, 1935.

This includes £6OO received from Placer Develop ment on account of the sale of an option. Sluicing was carried on continuously on a small scale dur ing the year, working one shift daily. Gold re covered amounted to 1037 oz 17 dwt, realising £5415 gross, which is equal to £5/4/5.6 per ounce.

Since the date of the balance sheet a further 411 oz of gold has been won, and Placer Develop ment has exercised an option over 210 acres for a purchase price of £ll,OOO cash. Bulolo Deposits retains the whole of the terrace ground, and, after abandoning an option held over 100 acres, holds an area of approximately 319 acres, together with very valuable water rights. It is intended to work the terraces on a much larger scale, working three shifts on two faces. It is estimated this will necessitate a capital outlay of approximately

£2OOO, excluding the cost of any additional native labour that may be required. A contract was recently let for the construction of the unfinished portion of the water-race to the junction of the Koranga Creek and Bulolo River. This work should be completed not later than the end of February, and enable the company to open up a new area where much better values are known to exist than the site of present operations. The company is now out of debt, and has its property unencumbered. It has received £l5OO of :he £lO,OOO from Placer Development Ltd., and the balance will be paid as soon as the transfer of the lease is approved by the Administrator.

Sunshine Gold Development Ltd.

Installation of the hydraulic sluicing and elevat ing plant of Sunshine Gold Development Ltd., New Guinea, on the consolidated claims, is nearing com pletion. Cabled advices from the general manager indicate that sluicing will commence early next month. The managing director will be present at the commencement of productive operations.

Bulolo Gold Dredging Ltd.

The only serious opposition to the recent “bear” raid on the Melbourne Stock Exchange came from Bulolo Gold Dredging Limited, whose shares rose to nearly £9. Private advices from the field sug gest that the dredges are now working on better ground, and that the yields during the next few months may show improvement over recent ones.

It is interesting to note that the London market has not so far fully reflected the rise at this end.

The Company’s report of production of the four dredges for January compares with that of the previous two periods as follows;

Sandy Creek Gold Sluicing Ltd.

Mr. R. J. Winters, consulting geologist, re cently returned to Sydney after paying a visit to the property of Sandy Creek Gold Sluicing Ltd., New Guinea. His tests of the property confirm his original advice as to the presence in this section of a large and valuable area suitable for the com pany’s hydraulic sluicing operations. Of the pits put down, nine showed an average value of 3/9 a cubic yard and five others had to be abandoned owing to heavy water. Further testing operations are to be carried out. Mr. Winters, in his report dealing with Sandy Creek, deals with the final stages of getting No. 1 sluicing plant into opera tion and with probable gold values in Sandy Creek and the terraces adjoining below where No. 1 plant has commenced operations. He states that quite apart from a substantial yardage in the creek at this position worth about 5/5 a cubic yard, there are also several terraces. He estimates one to contain 8400 cubic yards and to be worth £1 a cubic yard, and the other to contain 4000 cubic yards, worth £2/4/4 a cubic yard. Testing, prin cipally by shaft sinking, on an area between the junction of the Misery and Poverty Creeks, for a distance of 2,200 feet, is stated to have been satis factory.

The mine manager reported that in cleaning up on January 31, 14oz. 3dwt. of gold were recovered, in addition to the lOloz. already reported, thus making a total of 115 oz. 3dwt. He further ad vised that the material treated for this recovery was a total of 4290 cubic yards. During the whole of January 6465 cubic yards were treated for 188 oz. 16dwt. 12gr., the average value being 4/4i a cubic yard.

Enterprise Of New Guinea N.L.

Considerable progress was made by Enterprise of New Guinea N.L., New Guinea, with the hydraulic sluicing scheme for the equipment of its Surprise Creek mining tenements during the period December 7 to January 2. The management te ports that gold production has been temporarily suspended, and the field staff has concentrated on water-race construction at Surprise Creek, also on testing several areas held by the company.

Early in February the following radiogram was received from the general manager (Mr. Harold Taylour), Wau, New Guinea:—“Have pegged out and applied for new area under the amended mining ordinance (extended prospecting licence) between Watut River and Kaindi lease.”

The company reported on February 7 that 170 yards had been treated in the Oriabanda area for Bioz. of gold.

Golden Deeps N.L.

In announcing a call of 3d. a share early in February, the directors of Golden Deeps N.L., New Guinea, advise that highly encouraging results have been obtained from samples of ore brought to Sydney by the mine manager. A parcel of 1 cwt. assayed loz. 6dwt fine gold, and silver loz. 7dwt. a ton. A second parcel of 251 b. assayed 2oz. 9dwt. fine gold, and silver 2oz. 6dwt. a ton.

The samples were taken over a width of from 6 to 8 feet from the new development in the open cut. The manager reports that on the surface in what is known as the open-cut, which is fol lowing the gold-carrying cleavage up the moun tain, work is being carried on. Indications pointed to a width of 6ft., carrying good gold contents.

To carry out the extension of the open-cut and the main tunnel to the point at which he esti mates the lode should be intersected, it would be necessary to make available a further £2,000.

The directors advised on February 9 that Mr.

Carroll (manager), with the necessary staff, etc., will leave for New Guinea during February, and vigorous development of the reef showing in the open cut will be continued without delay.

The directors consider that the prospects of the mine fully justify the opening up of the area.

Nov.

Dec.

Jan.

Cubic yards , 811,000 615,000 899,250 Bullion, oz 14,087 9,632 13,225 Gold, fine, oz. . . . 9,723 6,774 9,094

Value—

Aust. currency* . £85,076 £59,272 £79,572 Per cub. yard . /25.17 /23.16 / 21.2 3 Working profit . . . £63,166 £42,892 £56,035 * At £A8/15/per fine ounce.