From New Giunea

Upper Sepik Gold Syndicate N.L.

Upper Sepik Gold Syndicate N.L. has taken a free option for three months of 250 acres of river flats on the Upper Watut River, situated between Bulolo Gold Dredging Ltd. and Upper Watut Gold Alluvials N.L. The flats vary up to half a mile in width and comprise large yardage of gold bear ing wash.

Mr. J. M. Spence has inspected the property and recommends thorough testing by boring. Good gold values are being produced by the vendor. If the option is exercised total consideration to the vendor would be £lO,OOO.

Interest in forfeited share sales—usually limited —was stimulated on the Melbourne Stock Ex change on May 1 when 700 Upper Sepik shares forfeited for non-payment of the first call of £l, were taken by two buyers after keen bidding.

There are only 2,000 shares in the company.

Previous price for the shares was 25/-. On May 1, 400 ordinaries were bought at 25/6, and 300 vendor shares at 22/6 (call paid).

New Guinea Goldfields Ltd.

The monthly returns of production and esti mated profits of New Guinea Goldfields Ltd. are as follows:

Gum River Development N.L.

Shareholders of Gum River Development N.L;, at an extraordinary general meeting on May 8, were to have considered a resolution to voluntarily wind up the company. Insufficient proxies were received, however, and the meeting lapsed. Two shareholders will confer with the directors on the future of the company. Nominal capital is £25,000, in 125,000 shares of 4/- each, of which 56,000 are issued and are fully paid. It is esti mated that in the event of a winding up share holders would receive lOd a share.

The company was formed last year to test a property on Gum River, near Madang, New Guinea.

Mr. J. B. du Faur reported that the area was unpayable and recommended its abandonment.

Sunshine Gold Development Ltd.

The chairman of Sunshine Gold Development Ltd., Mr. F. W. Torrington, reports that heavy

tropical rains delayed commencement of produc tion. The race has held well, no serious damage occurred, and all temporary obstructions in the ditch have been removed. All construction work has been completed.

A cable from the general manager advises that during the testing of the inverted syphon the water passed through the syphon and for a distance of 60 yards beyond the outlet end, when two of the pipes burst at the welded joints. The defec tive pipes will have to be re-welded.

Upper Watut Gold Alluvials Ltd.

Shareholders of Upper Watut Gold Alluvials N.L., New Guinea, at an extraordinary meeting held on May 15 agreed to sanction an in crease in the nominal capital to £300,000 by the creation of 400,000 new shares of 5/- each.

In a circular to shareholders, before the meet ing, the chairman of directors (Mr. C. Mackay) pointed out that Bulolo Gold Dredging Ltd., with its exceptional knowledge of working condi tions in New Guinea, and its highly trained tech nical staff, is in a position to provide the manage ment of field operations necessary to obtain the best results for the company’s undertaking.

Bulolo Gold Dredging Ltd. had intimated its willingness to enter into an agreement to carry out this work, provided it be given the right to subscribe for 400,000 shares at par. The exer cise of this right was subject to confirmation of values, the testing of which would be undertaken by Bulolo Gold Dredging Ltd. at its own ex pense. In addition, the property would be tested at depth.

Certain additional advantages were more than likely to accrue if the proposed agreement was completed. That details of these be given at this juncture was not considered as being in the in terests of shareholders. Recent developments in alluvial mining had been instrumental in greatly reducing working costs and increasing outputs.

The new capital introduced would be applied primarily to the installation of the additional machinery required to provide for increased out put which, in the opinion of the directors, would reduce working costs materially below those esti mated in the prospectus. The adoption, of the directors’ proposal would not interfere with the immediate programme as set out in the prospectus.

The constructional work was well advanced and was not far from completion. Transfer books were closed from May 8 to May 15 to decide the list of shareholders.

Developments (New Guinea) N.L.

Systematic testing has been commenced by Developments (New Guinea) N.L. of the large dredging area secured by the company in New Guinea. The property is situated in “uncontrolled’’ territory on the Lower Dunantina River near the Purari River, New Guinea. Messrs. Spence and Smith, the company’s engineers, state in a pre liminary report that the area consists of 860 acres, mainly large flats, with high terraces up to 100 feet in height of wash.

The property is a dredging proposition, the wash being fine and small, the largest stone seen being only 10 inches in diameter. Values ob tained in a few preliminary pits were very en couraging, no bottom having been reached.

Mr. G. Annesley (American mining engineer) has also inspected the property, and considers it a dredging proposition, and that values of 1/a yard will be profitable. The company’s engineers estimate a minimum of 20 million yards in the main lease, with the possibility of additional areas.

Developments (N.G.) also has under offer other areas in the territory, details of which will be announced later.

Mr. A. R. Dodson, a director of the company, who has just returned from New Guinea, is opti mistic in regard to the dredging areas possibilities.

Advice was received on May 12 from the en gineers of the company that a new aerodrome site had been completed on the property. Drilling had been started on the south end of the lease. The first holes of 20 feet averaged 1/- a yard with gold at £4/5/- an oz. Drilling was proceeding on the north end. Three pits completed to an

Jan.

Feb.

Mar Alluvial— Fine gold, oz. . . 973 1331 1227 Fine silver, oz. . . 691 942 953 Golden Ridges Mill.

Fine gold, oz. . .

1292 1363 1426 Fine silver, oz. . . 886 829 791 Estimated 'profit— Dec.

Jan.

Feb.

Alluvial £4344 £3852 £6045 Golden Ridges Mill 3169 3937 4995 Edie Creek Mill— Tons — *3107 t3425 Fine gold, oz. . . . — 1095 1153 Fine silver, oz. . . 2715 3818 * From February 14 to March 14. t From March 14 to April 14.

average depth of 18 feet had given values of 1/3 a yard.

Enterprise Of New Guinea N.L.

Directors of Fnternrise of \W M 1

N have'invited ST/ t 2fe

for the purchase of 1778 shares in reserve. Tenders will be received in multiples of five shares.

The minimum price is £3/15/- a share. A deposit be allowed on Applications from shareholders will receive preference when prices directors consider it advisable to offer the reserve shares, to amply secure requirements winch may eventuate. nrise of NVw r W t 0 ha [ es ° f E <? ter a ? t " : £f a T Austrahan Stock g L attrib . u ed to the likelihood of the company becoming interested m the search for oil

in New Guinea. It is anticipated that an announce ment will shortly be made by the company that an ordinance has been granted to enable it to pros pect for oil. It is possible that the company will link up with another concern in this work. Opera tions at present are confined to gold mining.

Sandy Ck. Gold Sluicing Ltd.

The mine manager of Sandy Creek Gold Sluic ing Ltd., New Guinea, reported on May 6 that for April, 139 ounces of gold were recovered by sluicing operations. Approximately 4850 cubic yards of material were treated, average value being equal to about 4/3 per cubic yard.

Bulolo Gold Dredging Ltd.

Bulolo Gold Dredging Ltd. has decided to offer 60,000 shares of 5 Canadian dollars each to shareholders registered on June 10 at twenty dollars (Canadian) in the proportion of one for 16.

The purchase price is payable in two instalments of 10 dollars each on application and allotment.

Of each payment 2J dollars will represent capital and 7J dollars premium. Transfer books close from June 11 to June 18.

At the last annual general meeting of the company it was announced that the cost of con structing and installing two new dredges would be met by the -issue and sale of about 60,000 shares of the company in small blocks at around market price. However, in view of numerous re quests from shareholders, the directors decided to offer the shares to shareholders for subscription in proportion to their holdings.

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

Morobe Alluvials N.L.

The mine manager of Morobe Alluvials N.L. (Mr. Colin Budden) reports that the latest de velopment work, comprising boring, pitting, and opening up the face on the company’s property at Wau, New Guinea, has disclosed increased values. He recommends the installation of a plant, having a capacity of 100,000 cubic yards per annum, which would cost about £2500. Mr.

Budden estimates that there is at least eight years’ profitable work ahead.

The directors have the matter under considera tion, but are of opinion that a little more develop ment work should be done before making a deci sion. The company has a credit balance of about £BOOO in hand.

All gold yields reported by the company re cently have paid expenses and have been obtained by primitive boxing methods.

Guinea Gold N.L.

The directors of Guinea Gold N.L., of Adelaide, South Australia, report that negotiations with the taxation authorities for an amendment of taxa tion legislation to permit distribution of Bulolo shares to shareholders without attracting taxation has proved unsuccessful. The board, therefore, does not propose taking any immediate steps for distribution of any 'of the shares. The future policy of the board will be to set aside sufficient shares to answer present commitments of the com pany and to hold the balance of approximately 62,000 Bulolo shares as a composite fund and pass on to shareholders, as hitherto, dividends, less nominal administration expenses.

The board proposes that articles of association be amended to give effect to this, so that the company will not become financially committed to exploitation of further auriferous properties without having first obtained authority of shareholders to any such proposal.

Feb. Mar. April.

Cubic yards 902,100 955,800 974,800 Bullion, oz 13,623 16,005 17,398 Gold, fine oz 9,432 11,203 12,265

Value—

Aust. currency* £82,530 £98,026 £107,318 Per cubic yard . 21.96d. 24.61d. 26.42d.

Working profit . . £70,253 £72,931 * At £A8/15/- per fine ounce.