From New Guinea

Morobe Alluvials N.L.

Mr. C. Budden, general manager of Morobe Alluvials N.L., New Guinea, conferred in Mel bourne in June with the directors regarding future operations, and the equipment of the company’s property at Wau. The directors decided to adopt Mr. Sudden’s recommendations to instal additional up-to-date plant, for which the Company has ample funds in hand. Mr. Budden will return immediately to New Guinea to supervise the in stallation of the plant. When it is completed, the monthly output will be considerably increased.

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

Upper Watut Gold Alluvials N.L.

Following protracted negotiations, Upper Watut Gold Alluvials N.L., has acquired an option of purchase over the Mainka lease, adjoining the company’s present area. This information is con tained in the director’s half-yearly report, issued on June 16. It is understood that tributors on the area have signed their respective agreements and a cabled acceptance has been received from the owner in Germany. The new ground contains over 5 million yards downstream from the present area. Values are expected to be around 2/6 a yard. Work in the last 12 months by tributors on selected sections is said to have produced about 4/- a yard. Although no plans for working have yet been announced, it is possible that this will be by drag-line shovel and scow washing plants, which are operating extensively in America at costs lower than sluicing and in some cases practically comparable with bucket dredging costs.

The possibility of additional ground was hinted at when the company announced earlier this year its association with Bulolo Gold Dredging Ltd.

In the event of Bulolo exercising its option with Upper Watut, the new ground will be included.

The first amount of £4OOO in payment for shares in terms of its option agreement is payable by Bulolo on September 3, unless in the meantime it decides not to exercise its option.

The Company’s hydro-electric scheme will pro vide 1860 horse power. Civil and hydraulic work on the electric power scheme is practically com plete, and the main pressure pipe line from the surge tank (at the end of the water race) to the power station is in hand. Generating plant has arrived. Steel pontoons and gravel pumps have been shipped.

To February 29, £66,267 had been spent on mine development and construction account. Cash in hand »and fixed deposits were £14,442. Sundry creditors were £8986.

Directors report that commencement of sluicing operations will be to scheduled time. It is under stood that the rate of progress of plant erection will depend on the suitability of flying conditions for aerial transport of the heavy machinery. The gear will be erected and ready to produce in August.

New Guinea Goldfields Ltd.

Scout drilling by New Guinea Goldfields, Limited, of the alluvials in the Wau area indicates the presence within the Company’s leases of ancient auriferous gravels, possibly of river formation, underlying the more recent alluvial deposits.

Where encountered, the depths and results (per cubic yard in Australian currency) have been as follows; Hole No. K 9; Depth 85ft.-88ft., value 38/1; at 88ft. -159 ft., 4/3; at 159ft.-188ft., 2/10. Hole Jl9 : 200ft.-210ft., 46/4; at 210ft.-245ft., 18/6. Hole Kl: 87ft.-94ft., 45/9. Hole H 18: 86ft.-94ft., 8/1; at 94ft.-97ft., 24/3; at 97ft.-102ft., 3/1. Hole MLI4: 114ft.-124ft.. 19/4. Hole JKI4: 145ft.-175ft., 4/8; at 175ft.-177ft., 26/3; at 177ft.-205ft., 17/1; at 205 ft . 8/1.

The overlying alluvial contains but small values, the values from the surface in each hole average as follows: —Hole No. K 9; Total depth, 188 ft., average per cub. yd., /19. Hole Jl9: 245 ft., /62.

Hole Kl; 160 ft., /25. Hole H 18; 102 ft., /21. Hole MI. 14; 200 ft., /17. Hole JKI4; 235 ft., /44. In view of these results, a programme of drilling at regular intervals has been commenced, in order to de-limit the area of these gravels.

The Company’s monthly returns of production and estimated profits are as follows: —

Irowat Gold Alluvials N.L

From the New Guinea area of Irowat Gold Alluvials, N.L., a cabled report was received on July 1 stating that a clean-up of two workings is proceeding. Officials estimate that 20,000 cubic yards lie treated, plus 3500 cubic yards in tail race, No. 1 working. No. 2 main pipe column has been completed, and No. 3 steel boxes have been set up. The No. 4 boxes have also been completed. It is stated that the yardage treated has been affected by the opening up of_ initial paddocks, which factor will disappear. This, and the Installation of elevators, will enable the estimated yardage to be treated in future opera tions.

March.

April.

May.

Edie Creek Mill— Tons ... t3,425 J3,000 *3,566 Fine gold, oz. .. 1,153 1,172 1,269 Fine silver, oz. .. 3,818 3,249 3,581 Alluvial— Fine gold, oz. .. 1,227 1,111 1,088 Fine silver, oz. .. 953 838 826 Golden Ridges Mill- Fine gold, oz. .. 1,426 1,489 1,244 Fine silver, oz. .. 791 828 847 Feb.

Mar.

Apl.

Alluvial ... £6,045 £6,127 £5,478 Golden Ridges Mill 4,995 6,605 5,999 Edie Creek Mill .. ... — 1,867 3,731 fFrom March 14 to April 14. tFrom April 14 to May 14. *From May 14 to June 14.

Mining Trust Ltd.

A schedule of its shares and interests in other companies shows that the Mining Trust Ltd., of London, held at December 31 last, 843,147 fully paid shares of 5/- each in New Guinea Goldfields, Limited, this being 18.8 per cent, of the issued capital. The holding was originally 1,838,147 shares, *>ut in 1934 the Company offered its shareholders 1,000,000 shares at 5/3 each.

Bulolo Gold Deposits Ltd.

The manager of Bulolo Gold Deposits Limited in New Guinea reported on July 3 that a clean-up of the property resulted in the recovery of 179 ounces of gold for approximately five and a half week’s work.

Sandy Creek Gold Sluicing Ltd.

The mine manager of Sandy Creek Gold Sluicing Limited, New Guinea, reports that during June. 202 ounces of gold were recovered from 11,675 cubic yards of material treated, giving an average value of approximately 2/7 a cubic yard.

The following table shows the comparison be tween April, May, and June productions:

Upper Sepik Gold Syndicate N.L.

In a progress report by letter, dated June 24 to Upper Sepik Gold Syndicate N.L., Mr. J. M.

Spence, mining engineer, advises that five pits have been put down on the area in New Guinea, to a depth of 15ft., for values of 7d. a cubic yard. Ten pits, incomplete, ranging from 7 feet 4 inches to 19 feet and not bottomed, averaged 1/9 a cubic yard. Mr. Spence states the first few pits were patchy, but the pits at present in progress show the wash, excluding overburden which averages 6 feet, without having bottomed, as going 1/- to nearly 8/- a cubic yard, based on the present price of gold.

Shareholders at the annual meeting of the Company on July 3 passed a resolution to ex clude members of the Press while a discussion took place on a confidential report by the auditor, prepared for the directors at their request. The meeting was told that Messrs. Spence and Smith are testing portions of an area of 325 acres on the Watut River.

Enterprise Of New Guinea N.L.

Accounts of Enterprise of New Guinea N.L., New Guinea, for the 12 months ended October 31 last, disclose a loss of £6528. At the close of the year there was a surplus of current assets over liabilities of £12,280. The greater portion of activities, the directors report, have been con centrated on building the water race from Iroa Creek to the site of the Surprise Creek workings, a distance of over three miles, to enable sluicing on a large scale to be carried on at that area.

Unavoidable delays have occurred, but production is expected to commence shortly, when good re turns are confidently expected by the directors.

The saw-milling plant installed at Surprise Creek has sawn the native timber for the construction of the water race. Prospecting by hand sluicing has been carried out almost continuously on the Oriabanda area, and while it has not been on an extensive basis, it has proved to be of a highly payable nature. Work on this area has suffered by disastrous floods from time to time, with re sultant washing away of sluicing and other gear.

Systematic prospecting has been carried on, and a topographical survey is in progress. It is hoped some valuable formations will be discovered.

The Warden’s Court has recommended that an area at Oriabanda, containing about 12 Yi square miles, be granted, but no official intimation has been received of its being gazetted. The petroleum ordinance for the Papuan area became operative in April last, but the New Guinea one is not yet in operation, though it is expected to become so shortly. The position is being carefully watched, and the interests of the Company safeguarded.

From April 8, 1935 to March 31 last, 3342 cubic yards of wash was treated at Oriabanda for a recovery of 183 oz. 11 dwt. of unrefined retorted gold. A sluicing plant at Surprise Creek removed since August 14 last 4250 cubic yards of over burden and 985 cubic yards of wash for a recovery of 54J oz, of unrefined retorted gold. Production from tributing recently commenced on the Lula Creek claim, returned 3 oz. 13 dwt. of unrefined gold to March 31 from 150 cubic yards of wash.

Mr. H. Taylour (general manager) reports as follows for the period May 14 to May 30:—Surprise Creek area: Timber getting, saw milling, prepa ration of timber, and distribution of same for flume construction continued. Of the seven flumes required on main water race two were completed, and work on another three commenced. Clearing and excavating for pressure pipe line started.

Well advanced. Minor accidents and malarial fever delayed work somewhat. In Oriabanda area.

flood damage was repaired, and box sluicing resumed in a small way. Creek diversion wall and channel been constructed. This will permit about one quarter mile of main creek to be worked.

Prospecting continued. For May 9 oz. 11 dwt. of retorted gold produced from 569 cubic yards treated.

The report from May 31 to June 23 stated:— Five flumes completed. Work well in hand on remaining two. Lines of pipes bolted into posi tion, sand traps constructed, and sluice gates erected on intake section of race. Unstable por tions of race lined with timber. Further progress made on outlet end of race. Saw mill worked two shifts during latter portion period. Box sluicing commenced on Company’s property near junction of Surprise Creek with Watut River. In the Oriabanda area, alluvial mining and prospect ing been under way during earlier part of period.

Latterly, labour force has been transferred to more urgent work elsewhere. On gold mining leases at Edie Creek, surface prospecting been in progress.

Developments (N.G.) N.L.

A written communication received from the engineers by the management of Developments

(New Guinea) N.L., confirms their report by cablegram that to date, pits and bores on the dredging area ui New Guinea down to 20 feet averaged 1/3 a yard, with gold at £4/5/- an oz.

They state that they bottomed on mud rock, adding, “as the local rock outcrops are practically all limestone, there is a big possibility that we are on a false bottom.” This development is considered by the directors to be important, and boring instructions have been given to attempt to drill through the mud rock.

Mr. F. A. Roberg, has been engaged as engineer by the Company and has arrived in New Guinea, to take charge of testing and de velopment operations on the Company’s Dunan tina River property. Mr. Roberg has had extensive dredging experience in the East. The property is about 260 miles from Wau, and is reached by aeroplane. Four white men and a number of natives are already on the property.

Bulolo Gold Dredging Ltd.

Details of the new issue of 60,000 shares of S dollars (Canadian) each in Bulolo Gold Dredging, Ltd., of New Guinea, at a premium of 15 dollars, show that the amount of 20 dollars per share is payable in two instalments of 10 dollars each,

April.

May.

June.

Cubic Yards 4850 7350 11,675 Gold, oz 139 162 202 Average, cub. yd 4/3^ 3/3*4 2/7

based upon 20 dollars equalling The issue is in the proportion of one new share for every 16 shares held at June 10. The directors will sell shares representing fractions at or about the market price, p.nd the surplus of about 20 dollars per share realised will be distributed among shareholders entitled pro rata to holdings.

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

Mr. L. E. Ford, a resident of 12 years’ standing in the Cook Islands, left at the end of May for London, accompanied by his wife. Mr. Ford was formerly in the employ of A. B. Donald and Co., from which firm he resigned in 1931 to take up the position of secretary and accountant to the Rarotonga Fruit Company. It is understood that he will undertake work of a literary nature in connection with a new magazine shortly to appear in Eng land. Both Mr. and Mrs. Ford are at tempting their hands at novels with an Islands background.

Value-

April May June Cubic yards 974,800 1,051,500 1,002,000 Bullion, oz. 17,398 15,815 15,682 Gold, fine, oz. . 12,265 11,196 11,065

Value—

Aust. currency* .. £107.318 £97,965 £96,818 Per cubic yard .

Z26.42 Z22.36 /23.19 Working profit . ... £72,931 £66,79754 £65,380 "At £ A8/15/per fine ounce.