From New Guinea

Gum River Development

Directors of Gum River Development N.L. re port that Mr. J. B. Du Faur, mining engineer, has recommended the abandonment of the com pany’s lease application at Gum River, in New Guinea, scout boring having disclosed poor values.

They have adopted his recommendation. Mr. Du Faur has also examined large alluvial areas 100 miles inland from Madang and has found them to be worthless. The company has been offered several gold-mining properties in Australia, but the directors wish shareholders to decide the future of the company at the forthcoming meet ing. They suggested three alternatives—winding up, with distribution of assets remaining; keep ing the company active by developing any ap proved properties under offer; becoming a holding company. In the half-year ended February 28 the company spent £1,614, which was transferred to mine prospecting account. At the date of bal ance the company had £2,820 in cash and £837 due from a refund of survey fees. Outside liabilities amounted to £lOO, owing to one creditor. Paid capital was £11,200.

N.G. Goldfields Ltd.

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

Sandy Creek Gold Sluicing Ltd.

The mine manager of Sandy Creek Gold Sluic ing Ltd reports that for the period from March 9 to March 28 the plant treated 4,150 cubic yards for *37oz. of gold, equal to the value of 4/11J4 a cubic yard. He also reports that opera tions were completely held up for about two days

owing to the occurrence of a severe flood, and that the sluicing plant had, in addition, to remove 1,090 cubic yards flood deposit.

As a result of a number of assays, it has been proved that the mineral in the sands on the company’s property is carrying gold values. No estimate can yet be formed as to their extent, but steps are now being taken with a view to recovery and treatment.

Upper Sepik Gold Syndicate

vr ir \\r c. tt c M .r- W Steedman legal manager of Upper Sepik Gold Syndicate N.L., advises that a free option has been acquired over what is considered to be a valuable property in New Guinea, in one of the most favoured positions, and on advantageous terms. The property has been separately and favourably reported on by three well-known engineers and is situated upon the Upper Watut River, about two miles from the Irowat concessions.

Morobe Gold Developments Ltd.

Morobe Gold Developments Limited was registered in Sydney on March 31 with a nominal capital of £5,000 shares of £1 each. Objects are

to acquire mines and mineral properties in New Guinea and to work and explore same, etc. First directors: Andrew J. Smeaton, Charles Graham, and Rudolph A. Kudnig. te-ddacc-c /m c \ cviumcATr

Golden Terraces (N.G.) Syndicate

At the fi rs t annual meeting of Golden Terraces ( New Guinea) Syndicate N.L., held recently the chairman of directors (Mr. R. T. Trembath) in formed shareholders that the company was formed to acquire options over dredging and sluicing leases H at Lower Edie C reek, New Guinea. A favourable report was subsequently obtained from Mr j. M . Spence. With a view to the flotation f J compan / to exercise the options the directors a ed £ lr ' T . R . Victor to make a report when he B w s as visiti the fie ld. Mr. Victor stated the conditions * the leases were exceedingly rough, there bein / many hu bou i der s. and it was impossible * to im ' rove on present methods of working, except with heavy expenditure. The terraces were limited and scattered and in his opinion the areas definitely were not suitable for a company. The funds had become exhausted, and the company was unable to continue the payments to hold the options. It was possible that with

Alluvial— Dec.

Jan.

Feb.

Fine gold, oz. 917 923 1,331 Fine silver, oz. 666 691 942 Golden Ridges Mill— Fine gold, oz. 1,175 1,292 1,363 Fine silver, oz. 723 886 829 Edie Creek Mill— Ore, Feb. 14 Mar. 14 tons 3,715 3,107 Fine gold, i oz. 938 1,095 Fine silver, oz. 2,715 Estimated profit— Nov.

Dec.

Jan.

Alluvial £5,073 £4,344 £3,852 Mill £7,607 £3,169 £3,937

heavy payments an extension could- have been obtained. Before the expiration of the options an effort was made to dispose of them in Mel bourne and Sydney, but without success. A small credit balance is in hand, and it was decided to keep the company in existence in an effort to obtain a similar property. Should a property be obtained the directors were authorised to make a call of £1 a share. Meanwhile no directors’ fees or manager’s salary will be paid.

Enterprise Of New Guinea N.L.

Mr. H. Taylour, general manager of Enterprise of New Guinea, in a report for the period ended March 13, advises that in the Surprise Creek area timbering of the unstable portions of the main water race has been in progress. Saw milling to provide timber for the hydraulicing scheme was commenced during the period. Pre liminary work in connection with sluicing on dredging or sluicing claim No. 276 was also com menced. In the Oriabanda area heavy rains, floods and breaking-in of new native labour have delayed sluicing operations on dredging or sluicing claim No. 542. On dredging or sluicing claim No. 310 substantial native labour housing has been provided and native food gardens planted. A diversion wall has been constructed across the main creek, and sluicing will shortly commence.

Prospecting on the exclusive prospecting area is also under way.

On its Oriabanda claims (western slope of Kaindi), the Enterprise Company recovered during March, 21oz. lldwt. from 468 cubic yards. For the same period 3oz. 13dwt. were recovered from 150 cubic yards at Lulu Creek, Watut area.

Further delay occurred in timber milling for Iroa Creek. Watut water race. It is hoped to resume shortly.

The following radiogram was received in Mel bourne from Mr. H. Taylour on April 16: “Enor mous floods terrific violence suddenly swept Oria banda claims (western slope Kaindi), much dam age done. Gold production stopped. One native drowned, other employees narrowly escaped. Sur prise Creek area —Iroa Creek—Watut scheme

approaching completion.”

Upper Watut Gold Alluvials N.L.

Confirmation that important American interests may acquire a share holding in Upper Watut Gold Alluvials N.L. Morobe goldfield, New Guinea, was received by the Stock Exchange of Melbourne on April 7, The management stated that the directors, recognising the importance of obtaining the most progressive and best possible management for the company, had commenced conversation some time ago with the directors of Placer Develop ment Ltd., in order that co-operation in manage ment of this company or Bulolo Gold Dredging Ltd. should be obtained. Negotiations had recently proceeded further to discover whether a financial interest in Upper Watut Gold Alluvials N.L. could be obtained by either Placer Development Ltd. or Bulolo Gold Dredging Ltd. As full particulars were not yet to hand, the directors had hoped it would not be necessary to refer to the matter until the return of Mr. C. Mackay, chairman of directors, from America, but considered it advisable that a statement should be made.

Following several inspections of the property, including the power scheme, by the management of Bulolo Gold Dredging Ltd., the directors of Bulolo had agreed that subject to arrangements being made with shareholders whereby an option be given entitling the company to subscribe to a large share interest, it would, at its own ex pense, commence testing the property of Upper Watut Alluvials for values and that, providing results were satisfactory, the option would be exercised and a management contract signed. De tails would be made known about April 24, and a meeting of shareholders to ratify the proposals would be held at the end of the month. The directors considered the proposals would be of great benefit to shareholders.

Irowat Gold Alluvials N.L.

Latest advices from New Guinea suggest that Irowat Gold Alluvial’s sluicing operations may begin in May. Construction work is proceeding according to schedule. Reports from the field state that diversions of the weir on Iroa Creek and all concrete work in connection with the

intake and regulatory gates have been completed.

Approximately one-third of the race line proper has been excavated. Trestle work for fluming has been completed, and other subsidiary works such as drops and safety weirs, well advanced. Pipes, monitors, and accessories have been shipped to New Guinea, and Ripples’ gold-saving appliances were despatched by the last ship.

Bulolo Gold Dredging Ltd.

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

Jan. Feb. Mar.

Cubic yards 899,250 902,100 955,800 Bullion, oz 13,225 13,623 16.005 Gold, fine oz 9,094 9,432 11,203

Value—

Aust. currency*. £79,572 £82,530 £98,026 Per cubic yard . 21.23d. 21.96d. 24.61d.

Working profit . . . £56,035 £56.367| £70,253 * At £A8/15/- per fine ounce.