From New Guinea

Gum River Development

Gum River Development N.L. reports that a large part of the company’s funds is represented by survey fees held by the Government of New Guinea. Having abandoned its lease applications the company is entitled to a refund of these fees, and it is expected that the refund will be avail able before the beginning of November. The chair man of directors, Mr. A. G. R. Williams, has been investigating at his own expense an alluvial sluicing property situated near Omeo, Victoria, which is now being worked by a small syndicate. He will have this examined and if satisfied will submit the proposition to the share holders for consideration.

Sunshine Gold Development Ltd

Sunshine Gold Development Ltd.’s plant, which has been in continuous operation since July 31, is working efficiently. The overburden has been removed, the paddock opened out, and the elevator is down to 35 feet. It is expected that a clean-up of the paddock to a depth of 30 feet will take place at the end of September. The average depth of ground now being sluiced is 50 feet.

Bulolo Gold Dredging Ltd.

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

June.

July.

Aug.

Cubic yards .. 1,002,000 986,700 978,000 Bullion, oz 15,682 19,812 17,740 Gold, fine oz. . 11,065 13,904 12,484

Value-

Aust. currency* .. £96,818 £121,660 £109,235 Per cubic yard .. /23.19 /29.S9 /26.8 Working profit .. £65,380 £84,621 £75,748 *At A £8/15/ per fine ounce.

Irowat Gold Alluvials N.L.

The legal manager of Irowat Gold. Alluvials N.L. has received advice from the company’s mine manager in New Guinea that since the date of the last report (August) 29,507 cubic yards have been treated for a return of 2400 z. of gold. No. 1 elevator began operations on creek flat ground on August 29. It is expected that two further elevators will be installed during September.

New Company To Take Over

Enterprise Of N. Guinea

Enterprise of New Guinea Gold and Petroleum N.L. has been formed with a capital of £150,000 divided into 30,000 shares of £5 each to acquire the undertaking of Enterprise of New Guinea N.L.

It is understood that shareholders in Enterprise of New Guinea N.L. will be issued about 20,000 shares paid to £1 each, on a one for one basis in the new company, leaving an unpaid liability of £4 on each share.

The company has been formed to prospect for oil in New Guinea and Papua on leases applied for by Enterprise of New Guinea N.L. These leases are believed to cover an area of more than 10,000 square miles. It is understood that further areas have been granted. When these applications are granted active prospecting for oil will be carried out.

A large British oil company, it is understood, has been prospecting for oil in New Guinea and Papua for almost nine years, and has spent be tween £300,000 and £400,000. This company be lieves that petroliferous formations exist in the country. Gold production and prospecting on the leases of Enterprise of New Guinea will still be carried on.

Application has been made for the registration of the new company. Messrs. E. Ward, D. Reid.

J. Reid, J. S. G. Wright, and S. E. Watkin appear on the application form as shareholders of the company, and Mr. A. Leo Kaines, of 317 Collins Street, Melbourne, is legal manager.

As far back as September, 1935, the general manager of Enterprise of New Guinea N.L. (Mr.

Harold Taylour) suggested that the capital of the company should be increased with the object of extending its activities to petroleum search, and further mining and general development in New Guinea.

Reporting on the progress of operations for the period August 5 to August 24, Mr. H. Taylour, general manager of Enterprise of New Guinea N.L., advised that in the Surprise Creek area, box and ground sluicing proceeded on day shift

on dredging or sluicing claims Nos. 276 and 540.

Nozzle sluicing on three shifts was started on claim No. 540. In the Edie Creek area prospecting within the boundaries applied for as an exclusive prospecting area has proved the continuation of the Edie mine main lode channel for about 200 yards. A superficial blanketing of boulder tuff masks the underlying mudstone and porphyry in which the known lodes occur, consequently under ground prospecting may have to be resorted to in order to trace the continuation of the lode channel. A few fine colours of gold can be panned in most of the streams so far examined in the area now being prospected.

Bulolo Gold Deposits Ltd.

Bulolo Gold Deposits Ltd. received advice from the manager at Wau, New Guinea, early in Sep tember, that 13,000 cubic yards of wash were treated during 445 working hours for a recovery of 207 oz. of gold.

The directors report that the company has taken an option on satisfactory terms over a large potential dredging area at Graytown, Victoria.

Arrangements will be made at an early date to carry out preliminary testing operations.

New Guinea Goldfields Ltd.

The monthly return of production and estimated profits of New Guinea Goldfields, Ltd., are as follows:

Upper Watut Gold Alluvials N.L.

In April shareholders of Upper Watut Gold Alluvials N.L. sanctioned an increase in the nominal capital to £300,000 by the creation of 400,000 new shares of 5/- each. These shares were offered to Bulolo Gold Dredging Ltd. at par, the

agreement between the companies providing that the Canadian concern would further test the property on the Morobe field, New Guinea, prior to making the first payment on September 3.

Provision was also made in the event of the option being exercised, that Bulolo should act as managers for 10 years, the remuneration for which was to be £lOOO per annum, in addition to out-of-pocket expenditure, and supply, if neces sary, such of its surplus electrical power as required by the Upper Watut company, including 5 per cent, amortisation. The Bulolo company was

Month ended Tune 14. July 14. Auer. 14.

Edie Creek Mill— Tons 3,566 3,448 4,089 Fine gold, oz 1,269 1,161 1,417 Fine silver, oz 3,581 3,037 — Alluvial— May June July Fine gold, oz 1,088 1,141 1,166 Fine silver, oz Golden Ridges Mill—.. 826 863 837 Fine gold, oz 1,344 1,599 1,617 Fine silver, oz 847 1,039 1,258 April. May.

June.

Operating profit— Alluvial £5,478 £4,600 £4,214 Golden Ridges, mill 5,999 3,782 6,130 Edie Creek mill .. 3,731 3,704 2,275

also to have a seat on the board of directors.

Doubts as to whether the option would b® exercised by Bulolo were expressed in the market towards the end of August, and shares of Upper Watut became weaker.

The management of Upper Watut Gold Alluvials N.L. officially announced on August 26 that Bulolo Gold Dredging Ltd. had relinquished its option over the unissued shares.

During the period of the option the company’s constructional programme had been continued, and ground sluicing commenced. The programme, as outlined in the prospectus, would be proceeded with, and would not be affected as a result of the Bulolo company’s decision.

Sandy Ck. Gold Sluicing Ltd.

At the first annual meeting of the Sandy Creek Gold Sluicing, Ltd., held on August 21, the chairman (Mr. H. B. Jamieson) said that the sluicing plant on Sandy Creek was expected to commence working last October, but delays were experienced, owing to trouble with the plant. It was not until January that the plant was operat ing under reasonably satisfactory conditions.

Scarcity of water, he continued, had been the main cause for the monthly output being lower than expected. Less frequent movings of the pipe line would be required from now on, as the creek flats being worked into were more extensive.

“The value of gold per cubic yard,” Mr. Jamie son said, “which has so far been recovered in Sandy Creek has been fairly satisfactory, but not up to expectations. In the operations to date, patches have been found containing very rich values, other areas have been found which by themselves would hardly pay to put through, and still others which were passed by owing to values being unpayable. On the present basis of opera tions, it is estimated that there should be work for the present plant on Sandy Creek, on the area below the intake of the present race, for from three to four years. In addition to this area, there is a further substantial area on Sandy Creek above the intake of the present race, which the board considers should prove of value.

Mr. Jamieson added that it was hoped that negotiations with Bulolo Gold Dredging, Ltd., would result in the most suitable scheme for working the Poverty Creek area.

The manager in New Guinea reported on Sep tember 2 as follows:

Developments (N.G.) N.L,

, r - /?'• A \ engineer to Developments (New Guinea) N.L., reports having inspected the Uunantma dredging area, New Guinea, under offer to the company. He is unfavourably impressed and recommends abandoning the area. He also having secured options over other leases. (See Papuan reports for reference to new option secured in Papua).

June.

July. *Aug.

Cubic yards 11,675 11,650 8,175 Gold, oz 202 275 101 Average, cub. yard 2/7 1/10 ‘Plant was in operation for half of month only, in constructing balance of time being taken up new penstock and moving pipes, elevator and boxes to new position.