Louisiade Gold

Failure of Sudest Search

THE enterprise of Louisiade Gold N.L., formed to work mining leases on the island of Sudest, Eastern Papua, has proved a complete “washout,”

The company was formed in 1935, and was backed by Messrs. Wilkinson and Anderson, a conservative firm of Sydney sharebrokers, and by some of their friends. A sum of £4,870 was subscribed, and a party was sent to Sudest. High hopes were held by some members of the company because Sudest in the 80’s was a very rich alluvial goldfield.

The company’s expedition achieved nothing of importance, and reports reached Sydney that the company was not being well served in certain directions.

Accordingly, in August last, Mr. M. E.

Bedford, mining engineer, was sent to Sudest to report.

His report, dated October 10, made as a result of extensive investigation, was clear-cut and uncompromising. He said that there are three classes of country in Sudest—the flat tops of grassy ridges where gold has settled down into the clay surface as the lighter material has been washed away; the wash at the top of the steep, narrow gullies, draining the ridges to the streams; and loose w r ash in the bed of the streams.

Mr. Bedford said definitely that the pick of the rich deposits had been found by the original European miners in Sudest in the 80’s; by Mrs. Elizabeth Mahony and other European interests, who ‘ later worked the poorer areas and reworked

many of the old places; and by the natives of Sudest, who have prospected and recovered gold continuously during the last 50 years.

He concluded: “There is no doubt that the field has been very rich and has produced a great quantity of gold in the past. At the present time, there are ex tensive areas of low-grade ground, both on the ridges and on the slopes of the creeks, but gold contents are too low to be payable.

“To search for rich patches would not be suitable for a company, although a prospector would probably .make a living.

“The original party appears to have over-estimated the average value of the ground, being probably misled by the oc casional patches of payable material.

There is no prospect of the field being worked at a profit.”

The statement of accounts shows that a few hundred pounds remain of the orig inal £4,870, and there is machinery for sale worth over £lOO.

When the shareholders met in Sydney on November 9 the directors recommended that the Company go into voluntary liqui dation, Shareholders rejected this advice, however, insisting that there had been in competency, if not rascality, on the part of certain of the Company’s servants, and that they would prefer a further investiga tion before a resolution to wind up was carried. The directors thereupon resigned and a new beard was appointed to take certain action.

Mr. Harry E. Mowbray, who is engaged in a merchandise business in Suva, arriv ed in Melbourne with his wife in October to spend a short holiday.