Pacific Islands

Mining Notes

Papua

Cuthbert’S Misima Goldmine Ltd.

PRODUCTION from the property of Cuthbert’s Misima Goldmine Ltd., Misima Island, Eas tern Papua, compare as follows:

Misima Gold Reefs (N.G.) N.L.

Shareholders of Misima Gold Reefs (New Guinea) N.L. were disappointed at a meeting in Melbourne bn October 29 when the chairman of directors (Mr. W. Blewett) announced that no further information had been received regarding the exercising by Oroville Dredging Ltd. of its option over the company’s leases at Misima Island, Papua. He said that Misima Reefs Ltd., with a nominal capital of £lOO,OOO in £1 shares, had been registered in Sydney, and it was expected that at the first meeting of directors, at least 20,000 shares would be allotted to Misima Gold Reefs (New Guinea) N.L. in consideration for the leases. Because of injuries received in a motor car accident, Mr. T. Owen, attorney to Oroville

Dredging Ltd., proceedings had been delayed, and Melbourne directors had received no news. It was decided to call an extraordinary meeting to wind up the company voluntarily and to authorise the directors to sell sufficient shares that revert to the company to liquidate the liabilities, amounting to £l2B.

Gold Mines Of Papua

On the basis of proved and possible ore reserves of 250,000 tons, and exclusive of a further 150.000 tons, mainly of sulphide ore, which may accrue from exploration on the company’s pro perties on Misima Island, Eastern Papua, the current 8/6 market for Gold Mines of Papua shows a return of 26.6 per cent, per annum after allowing for returns of capital (says the Sydney

‘‘ Daily Telegraph”).

The reserves are estimated at 46/- a ton, with gold at £stg.6/18/-, while costs are not expected to exceed 22/- a ton.

The basis of the profit valuation is;— 250.000 tons at 46/- 575,000 Costs at 22/- 275,000 Surplus 360,000 Less — 240,000 shares at Market 102,000 198,000 Less — Surplus liabilities 8,000 Net surplus 190,000 The capacity of the plant is to be 3000 tons per month, and if the ore can be fed to the mill in this quantity it w»uld take seven years to treat the estimated 250,000 tons.

Thus the net surplus of £190,000 is equal to £27,143, or 26.6 per cent, on the current market price of capital after allowing for return of capital at that price. The company, of course, will not consider amortisation at the current price, but a buyer is obliged to do so.

If exploration proves the existence of further reserves, profits will improve, provided estimates are realised. The company’s annual report indi cates that conditions are favourable for develop ment of the additional reserves.

Developments (N.G.) N.L.

Mr. F. A. Roberg, engineer to Developments (New Guinea) N.L., has advised that the com pany’s lease in Papua of 160 acres north, and ad joining the property of Mandated Alluvials N.L. and the lease of 160 acres under option south, and adjoining Mandated Alluvials, have been granted by the Mines Department. Native mining labour arrived on the property at the end of October, and an assistant to Mr. Roberg left Sydney for Port Moresby by the last boat. Mr. Roberg reports having inspected more country, and he considers the prospects favourable. On Sexton’s area, No. 135, consteens have opened up an oxidised lode, 30 feet wide, carrying gold by chemical tests. An assay is being made of the costeens, 200 feet below the top of the range.

Sapphire Creek (Papua) Development

Syndicate N.L.

Sapphire Creek (Papua) Development Syndicate N.L., with a nominal capital of £lO,OOO in 5000 shares of £2 each, has been formed in Melbourne, with the object of developing three leases, totalling 118 acres, adjacent to the Mandated Alluvials pro perties, about 17 miles from Port Moresby, Papua.

Mr. E. P. Hitchcock, New Guinea mining pro spector, and formerly closely connected wiHi the Mt. Lawson Sydnicate, has taken up the leases, which are reported to contain lode formation simi lar to that contained in the Mandated Alluvial leases.

Prospecting and development work en the pro perties is now being carried out by Mr. W. Cash, who has reported that development was most en couraging, and that in costeening, a body of ore had been located, the width of which had not been determined.

Shares in the company were payable £1 on application. There were no vendors’ or pro moters’ shares.

The legal manager of the syndicate, pro tern, is Mr. K. W. Steedman, 440 Little Collins-street, Melbourne. Provisional directors are Messrs.

E. P. Hitchcock, R. E. Tracey and R. M. Boyd.

New Guinea Alluvials Ltd.

Directors of New Guinea Alluvials, Ltd., have recommended that the company go into voluntary liquidation. They anticipate that shareholders will receive four shares of 5/- each fiilly paid, and four shares of 5/- each paid to 6d in Gold Mines of Papua, Ltd., for every five shares of 5/- each held in the company. At present the company holds 8,000 fully paid shares in Gold Mines of Papua, and will take up the further new issue now being offered, for which sufficient funds are avail able. With a surplus of £1227 on a sale of 4300 shares in Gold Mines of Papua, against expendi ture of £74 7, the debit balance was reduced from £1578 to £lO9B for the year ended March 31. At

Aug.

Sept.

Oct.

Treated, tons 1753 1875 1908 Bullion, oz 2272 1967 2202 Gold, fine oz 528 572 571 Silver, fine oz 1671 1330 1563 Estimated value — (Gold at £A8 per oz.) £4306 £4624 £4642 Value per ton 49/1 49/4 48/8

that date the holding of Gold Mines of Papua shares is shown at £12,925, and associated com panies owed £lOl9. Capital is £15,000

Mandated Alluvials N.L.

Full sampling has been completed by Mandated Alluvials N.L., Papua, at intervals of 22 feet in the various workings at the south-east end of the property, 16 miles outside Pt. Moresby. The management reports that the workings occur as two groups based upon Nos. 6 and 7 adits. The sampling of No. 6 territory has proved that the reef varies in width from 31 feet to 12 feet, and values 9 dwt. through 13 to 15 dwt., the higher values being in the wider portion of the reef.

In No 7 territory there is still a little work to be done, but sampling has established an average width of 10 feet for a value of 1 oz., decreasing south to 3 feet 2 inches at 11 dwt. This sampling covers a length of 600 feet. Every 100 feet on the dip should give 30,000 tons of ore. North of the No. 7 prospecting for the rim rock has reached a distance of 500 feet, and all that will be done here will be to go sufficiently into the hill to obtain a full section of the reef for sampling. This takes no account of the mass exposed in the Moresby King. Other development work in pro gress is driving north-west along the western rim. This has exposed for a total of 132 feet an average of 3i feet of sulphides averaging: 10 dwt. a ton. This work will be prosecuted vigorously.

The boring plant is on the ground.