From Fiji

Pacific Islands Mining Reports

Aloha Central G.M., N.L.

THE legal manager of Aloha Central Gold Mine, N.L., received a cable in March to the effect that the Canadian group, whose mining engineer, Mr. Cunningham Dunlop, examined the property, with a view to the group taking an interest in the company, has decided not to proceed further with the proposition. A meeting of shareholders was then called to consider the future policy of the company. In the meantime, the native labour on the mine was paid off, and operations generally suspended.

The meeting was held in Melbourne on April 9, but lack of sufficient interest by shareholders made it necessary for the special meeting to be adjourned until April 30, as the required number was not present. Before adjourning the meeting the chairman (Mr. A. T. Day) mentioned that the company’s affairs had reached a critical stage.

“The issue is quite clearcut,’’ he said. “It is sim ply a matter of the shareholders, after considera tion of the reports of our experts, Dr. Loftus Hills and Mr. A. G. Campbell, deciding whether they consider the prospects warrant them subscribing the capital necessary for developing our property, or whether they will abandon the venture forth with. You will have noted that Dr. Loftus Hills states that it is comparatively rare, under present day conditions, that a prospecting company is able to show at the end of nine months’ work a proved ore reserve of ten times the value of the capital expended. These ore reserves, he says, are a valuable nucleus from which to allow developments to evolve, and that it would be a very serious mis take to neglect the opportunity.

“Mr. Campbell sums up his report by saying that, in view of the ore that is available and the prospects of the mine, he considers the investment of further capital to install a treatment plant and gain revenue while development proceeds is jus tified, but the probable profit is small and there fore it is not for him to decide whether the pro position will be sufficiently attractive to share holders to enable the company to be reconstructed.

“The company’s option from Mr. Pat Costello over the 30-acre block which we have been pros pecting expired on March 31 last, but Mr. Cos tello has granted an extension. If the option is exercised, a cash payment has to be made to Mr.

Costello of £1,500, of which £l,OOO is to be de voted to subscribing at par for that value of shares in a new limited liability company to be formed.

The financial position of the company is that we have in hand about £l,OOO in cash, but our liabilities are estimated at approximately the same amount, so that, if the shareholders decide that the company is to be wound up, we have just about enough to enable us to pay our debts.

“Actual cash received by the company from shareholders was £12,650, of which £6OO was paid to Mr. Costello as a deposit on the option. Plant landed at Suva cost £2,607, and actual expenditure on the property for wages, stores, rations, etc., amounted, with exchange and Fiji agency fees to approximately £6,582. Those two items amounted to £9,189, out of the £12,050 available. The bal ance was absorbed in travelling expenses and cables, both of which items were necessarily heavy, and fees paid to the company’s technical experts, etc. The management charges for the 12 months amounted to only £385/5/, of which directors re ceived £7B/15/.

“Results are not sufficiently conclusive for the directors to feel that they can take the responsi bility of making a definite recommendation.”

Aloha Central Gold Mine, N.L., was formed in April of last year. Nominal capital is £25,000, in 5,000 shares of £5 each. Subscribed capital is £18,750, and of the 3,750 shares 500 were issued other than for cash.

Guadalcanal, Limited

During 1935 Guadalcanal, Ltd., which is incor porated in Fiji, investigated at no expense to the company several Fijian properties which did not warrant further development. The directors have decided that as the present expenses are neg ligible it is advisable to maintain the company in the expectation that some satisfactory business will eventually be submitted. No further calls will be made unless the prospects definitely warrant further field expenditure. Expenditure for the year was £4l, which, with £lOO written-off plant, raises the debit balance to £5,752. This amount in the balance-sheet is deducted from paid-up capital of £6,000, leaving the capital at £247. Cash at £243 is shown.

Kasi Development, Ltd.

Kasi Development, Ltd., a subsidiary of Mt.

Kasi Mines, Ltd., which was formed to undertake prospecting and developmental work as distinct from actual mining operations, adopted a policy of examining all surface indications during 1935.

Four lode formations were opened by costeens, two of which are extensions of the Mt. Kasi lode, which continue north and south through the leases.

The most interesting formation is to the south east and discloses a lode 60ft. wide assaying from 2 to 20 dwt. The latter lode is situated 400 ft. be low Mt. Kasi, and is in the sulphide zone.

The directors are satisfied with the size of the lodes showing and are now concentrating on aver aging (with the assistance of a diamond drill) the values in the south-east whilst continuing with the adit in the north-west and the further open ing up of the Mitchell lode.

The work done on the field has disclosed lode formations with possibilities to the company.

Expenditure on prospecting and development during the year totalled £2,032. At December 31 last the company had cash of £8,204 in hand, against which creditors were owed £1,125.

Wai-Savura Development Syndicate

Mount Morgan Developments Ltd. has exer cised its option over the property in Fiji of Wai- Savura Development Syndicate Ltd., according to a message received from Mr. C. S. Wilson, chair man of directors of the latter company, by the Stock Exchange of Melbourne on April 7. Wai- Savura Development Syndicate Ltd. was regis tered in Sydney in November last, with a nom inal capital of £1,500, in 150 shares of £lO each.

Under an agreement the consideration for the purchase of the rights was 67 fully paid shares, whilst further rights of 30 shares, at par, were conferred on members. The balance of 53 shares were underwritten at par. At the annual meet ing in Sydney on April 6, Mr. Wilson, who re cently visited Fiji, said a tunnel had been driven 40 feet towards where high values were found on the surface. Mount Morgan Developments Ltd., which had spent £3,000 on development work, had applied for a slight variation of the agreement and this had been approved by the board. The com pany had 70 to 100 natives employed on extensive development work and the arrangement was that this work should be completed prior to the forma tion of a company.

Mount Kasi Mines, Ltd.

Mount Kasi Mines, Ltd., a Fiji company, con trolled in Sydney, began production last July, and for the five months from August 1 to December 31, shows a loss of £3,311. The accounts are ex pressed in Fijian currency. The amount received from gold sales was £9,876, and operating* costs (5,337 tons treated) were £11,138. Net expendi ture on development and administration account for the seven months to July 31, after including July gold sales of £3,490, increased the debit bal ance to £16,986 from £12,552. During the six months to December 31, the plant treated 6,373 tons,, having a head value of and a tail value of 2130 z, showing an extraction of about 90.3 per cent.

The directors write that capital expenditure was higher than estimated, owing largely to increased cost of transport to the field and erection costs higher than anticipated. While operating costs are high at present, steps have been taken to re duce them substantially. With additions to plant and better organisation of transport and supplies,

they state, the mill should have more continuous working, increased tonnages, and lower working costs. Potential tonnages of ore reserves have in creased greatly, though indications are that the additional tonnage will be of slightly lower aver age value. From surface prospecting and develop ment by Kasi Development, Ltd., a subsidiary company, the lode formation apparently lives through both territories a distance of a mile and a quarter.

Emperor Mines, Ltd.

For the period ended March 21, Emperor Mines Ltd., Tavua, Fiji, crushed 1,610 tons of ore, of a head value of \V/ 2 dwt. a ton, for a yield of 1,008 oz. of gold. Output is increasing, and the grade of the stone is maintained. Production figures for the past three periods are compared in the follow ing table:— Jan. 25 Feb. 22 Mar. 21 Ore (dry weight), tons ... 1230 1470 • 1610 Fine gold, oz 764 916 1008 Recovery, dwt 12.4 12.4 1i2.5

East Reefs Consolidated N.L.

Advice from the legal manager of East Reefs Consolidated N.L. states that the opinion of the directors that they considered the development re ported last month to be of major importance has been justified by the receipt of a cable from the mine manager, Mr. C. F. Eeles, that the full face of stone met with in the underlay shaft assays 7dwt. gold a ton. No 3 tunnel is now in very hard ground at 41tt. and No. 4 tunnel in 155 ft.

Loloma West N.L.

Application has been made for the registration of Loloma West N.L., with a nominal capital of £30,000, in 3,000 shares of £lO each. The place of intended operations is Tavua, Fiji. The directors are Messrs. E. Ward, H. E. Thonneman, D. Reid and C. F. Mitchell. Loloma West Ltd., which is already operating in Fiji, is interested.

Mineral Developments (Fiji) Ltd.

A new area is being tested by Mineral Develop ments (Fiji) Ltd. south of Mt. Kasi, Fiji, on the main Mt. Kasi shear. The manager reports that two gold-bearing lodes showing good prospects have been exposed by costeens. Two tunnels have been commenced with a view to cutting the lede in settled country, which will give the true width of the lode. The areas pegged are reported to be the most promising lease acquired by the com pany since starting operations in Fiji.

Loloma (Fiji) Gold Mines N.L.

Directors of Loloma (Fiji) Gold Mines N.L. re port that resulting from investigations into the treatment of the company’s ore they have decided to accept the method of treatment by roasting and cyanidation as recommended by Mr. A. E. Paton, of Kalgoorlie, W.A., whereby it is expected that an extraction of up to 95 per cent, of gold content can be obtained. Plans and specifications for the necessary plant to treat a minimum tonnage of 500 tons weekly will now be prepared.

Vees United N.L.

Having abandoned the property at Morgans, W.A., and rejected an option over an area in the Lautoka district, Fiji, Vees United N.L. later ac cepted options over two areas in the Sigatoka district, Fiji. The ’ first, known as Ward’s pro perty, consists of approximately 480 acres, and the second, known as Pirie’s property, is of 500 acres.

Prospecting on these properties is in progress.. At December 31 last the company had a surplus of liquid assets of £9,794.

Fiji Mining Corporation N.L.

Shareholders of Fiji Mining Corporation N.L., at an extraordinary meeting in March increased the capital of the company from £11,250 to £60,000 by raising the amount of each of 2,250 shares existing from £5 to £lO, and by issuing 3,750 new shares of £lO each.

The chairman (Mr. C. H. Tucker) told share holders that the directors considered the prospect ing results justified continuing work on the pro perty, which at present was hampered by lack of funds. The company had to May 1 to exercise the option, and it was necessary to do further develop ment work before a company could be floated.

From the No. 1 shaft a lode 22ft. wide, of an average value of a ton, had been proved at the 50ft. level. From the No. 2 shaft a lode 24ft. wide of an average value of over 13dwt. had been proved at the 50ft. level, and from the No. 3 shaft a lode 36ft. wide, of an average value of over 14dwt., at the 45ft. level had also been proved. These values did not take into account the high values in the shaft. This mine was the only one in Fiji showing free gold in sulphide ore, added the chairman.

Gold Search (Fiji) Ltd.

The first general meeting of shareholders of Gold Search (Fiji) Ltd. was held in Suva on March 9.

The Chairman (Capt. C. G. Fenton) said that the Company was the first of its kind formed in Fiji, and there had been a ready response for shares. Out of a total issue of 50,000 shares offered more than 30,000 had been applied for.

The balance will be held in reserve. Since the beginning of the year the Company has inspected four properties, two of which appeared to be worthy of vigorous prospecting. Option agree ments have been entered into with vendors of two areas —one was adversely reported on and the other was being tested. This is P.L. 294, adjoin ing the north-east corner of the Emperor at Tavua. The option is free for 12 months; £3,000 if it is of use to the Company, plus a 10 per cent, interest in any Company formed. Consider able prospecting has been done on this area and samplings disclosed a formation giving assays up to loz. a ton.

Directors appointed for the ensuing year were Messrs. C. G. Fenton. Alport Barker D. B.

Costello, R. L. Munro and A. W. Lewis. Mr. A.

E. Pearce was elected auditor.