From New Guinea

New Morobe Gold N.L.

Formed to merge the interest of two com panies operating on similar lines in New Guinea— New Territory N.L. and Morobe (New Guinea) Gold Options N.L.—New Morobe Gold N.L. has inspected and rejected many areas ip New Guinea.

Mr. T. R. Victor reported on an option over a property at Kela, taken jointly with Malinar (New Guinea) Gold Ltd. This was abandoned as being unsuitable for a company. An option at Wau over a sluicing lease was exercised, and the option transferred to Morobe Alluvials N.L. for 10,000 fully paid shares of 10/- each. Since September, 1935, other options have been taken and pro perties inspected. Until the ban imposed over certain areas in New Guinea was lifted the com pany had withdrawn from that territory, and, while reducing all outgoings to a minimum, the directors are endeavouring to secure a suitable pro perty in Australia or New Zealand. The debit balance of development and prospecting account for the period May 17, 1935, to May 31 last was £5435. The surplus of current assets at the close of the period was £2460, excluding 10,000 shares, fully paid to 10/-, in Morobe Alluvials N.L.

Day Dawn South (N.G.) N.L.

The directors of Day Dawn South (New Guinea) N.L. report having entered into a tribute agree ment to lease the company’s mine for two years.

As consideration. Day Dawn is to receive a per centage of the gross value of gold recovered.

Enterprise Of N. Guinea Gold And

Petroleum Development N.L.

Treating 6400 cubic yards of ground for Octo ber, Enterprise of New Guinea Gold and Petro leum Development N.L. recovered 660 z 9dwt of retorted gold, having an approximate fineness of

344 parts of gold per 1000. Due to race repairs, the nozzles worked during half the month only.

The wash treated was heavy.

Mr. H. Taylour, general manager, reported as follows for the period October 28 to November 14: Repairs to main water race in Surprise Creek area, resulting from extensive landslide, were completed on October 28. Sluicing on three shifts resumed following day. Sawmill operated during period.

Cut quantity of timber for future requirements.

In Edie Creek area, prospecting confined to cos teaning large auriferous formation, extent and value of which is not yet known. On Edie mine, Edie Ck. drainage adit referred to in last months report commenced. Timbered for 25ft. from portab. Repair work started m No. IW. drive on mam lode. Trucking road excavated from drive portal to proposed new plant site Steel rails arnved at mine. ® e used throughout principal workings. Erection of assay office and European quarters commenced. Additional areas on mine deared of timber and scrub to permit of new buildings being erected.

On December 4, Mr, Taylour reported that production for November from the Surprise Creek area was 570 z. 12dwt. bullion.

Gum River Development N.L.

Shareholders of Gum River Development N.L. passed a resolution at an extraordinary meeting in November placing the company in voluntary liquidation. It was announced that the vendors had agreed to surrender one-half of their vendor shares. Directors announced that they would declare an interim dividend of 9d a share. It is expected that the total return to shareholders will be approximately 1/-.

Bulolo Gold Dredging Ltd.

An estimate of prospective profits and dredging life o{ Bulolo Go j d Dredging Ltd. was given by Mr c A Banks, managing director, who presided at the annual meet ing of the company at Van ctmver in November. Mr. Banks said that as the additional dredges came into production the oper ating profit should gradually increase to between 4>5 00,000 and 5,000,000 dollars (Canadian) an nually. Dredging would continue for 17 or 18 years . Based on known gravel reserves, several dredges would close down in about nine years, but some additional yardage might be developed in the meantime.

Production for the company’s four dredges in

New Guinea for November compared with that of the previous two periods as follows: —

Sunshine Gold Development Ltd.

Early in December the New Guinea manager of Sunshine Gold Development Limited advised the Sydney office that the clean-up for Novem ber yielded 500 ounces of gold. This compares with 371 ounces for the previous month.

Sunshine G.D. Ltd., began production in August, and the results are not reflected in the accounts as at July 31. The directors report that opera tions on the Consolidated claims for the four months to November 30 produced 13510 z. gold, worth £B7Bl. They point out that opening-out operations for a large sluicing scheme involved considerable unproductive work, but recoveries to date had been profitable, and yields had shown a progressive increase. Delays in reaching pro duction, which were due to causes beyond the control of the management, necessitated more capital, the issue of the remaining 8000 shares making the total 200,000 shares of 10/- each.

The directors add that “they expect at no distant date to be able to commence paying dividends.”

An addition of 30 acres of ground has increased the total area to 252 acres. Testing of the re maining areas will be proceeded with, but mean time the company has over 2,000,000 cubic yards of proved ground which should provide about seven years’ work for the present plant. The option

over the Sunshine claims has been abandoned. The Undaunted claim has been let on tribute, and should shortly be in production.

Field expenditure for the 13 months ended July 31 was £18,625, and administrative expenses of £2827 made a total of £21,452. This is trans ferred by apportioning £20,316 to mine account (making a total expenditure on the Consolidated claims £35,134) and £1136 to prospecting account (raising it to £10,490). Liquid items include cash £3804, debtors £231, prepayments £1269, and creditors £9083. Formation expenses appear at £l3lB.

Upper Watut Gold Alluvials N.L.

Details of yardage represented by the last two ground sluicing clean-ups of Upper Watut Gold Alluvials N.L. were announced on December 10.

The company recently reported yields of 120 ounces and 80 ounces. It is now reported that the yardage treated was 14,869 yards for the 200 oz. On the basis of gold at £8 an ounce, this represents an average of about 2/2 a yard, or about 1/10 a yard if the gold is worth £7 an ounce. The ground sluicing is not part of Upper Watut’s principal scheme. No. 1 pontoon in the main plant commenced work early in December.

Sandy Ck. Gold Sluicing Ltd.

The yields from August last for Sandy Creek Gold Sluicing Limited have been as follows:

Morobe Alluvials, N.L.

Reviewing operations of Morobe Alluvials N.L., New Guinea, the directors in their annual report, state that the company was formed in September last year to acquire and work a sluicing property at Wau, and is paying its way. As production has not fulfilled early anticipations, and the re port of Mr. T. R. Victor on the property was not entirely satisfactory, they decided to seek another property. Properties in Queensland, New South Wales, and New Zealand were investigated, but did not warrant further expenditure. The mine manager (Mr. F. A. J. Carter) reports that the total yardage handled to August 31 was 33,136 cubic yards, the gold production amounting to 679i0z. The loss on working account from August 22, 1935, to August 31 last was £lBB5.

The surplus of current assets at the close of the period was £8266.

New Guinea Goldfields Ltd.

Monthly returns and estimated profits of New Guinea Goldfields Limited are compared in the subjoined table: Alluvial—

Oil Search Limited

Directors of Oil Search Ltd. have decided to offer at par 372,847 5/- shares to shareholders, in the propoition one for three held. Subscribers will receive negotiable option certificates entitling them, at any time up to and within 21 days after announcement by Australian State or Federal Governments of the first commercial oil or gas well drilled by the company or any of its subsi diaries, to apply at par for one new share in Oil Search Ltd. for every two subscribed in the forthcoming issue. The directors give, as a reason for the issue, the grant to the company of exclu sive prospecting permits over 25,000 square miles in New Guinea.

Irowat Gold Alluvials N.L.

Irowat Gold Alluvials N.L. reports having won 990 z. from 12,006 yards during November. With gold at £8 an oz, this represents about 1/4 a yard, or 1/2 a yard with gold worth £7 an oz. During October the company treated 28,500 cubic yards of ground for a yield, of 2140 z. Production from 30,670 cubic yards in September was 2490 z.

Bulolo Gold Deposits Ltd.

Bulolo Gold Deposits Ltd. reports having pur chased the New Guinea assets of Morobe Alluvials, N.L. The purchase price is £3500 cash, and includes the vendor’s mining lease at Wau, together

Sept. Oct. Nov.

Cubic Yard . . 981,300 962,200 956,200 Bullion, oz ... 17,052 18,172 17,724 Gold, fine, oz . 11,794 12,606 12,318 Values— Aust. currency* £103,1971 £110,3021 Per cubic yard /25.2 /27.5 /27.0 Working profit £73,998 £76,265 £75,880 *At A£8/15/- per fine ounce.

Aug.

Sept.

Oct.

Nov.

Cubic yards . . 8175 11,707 9121 9870 Gold, oz 101 310 281 288 Value 1/10 3/11 2 4/7J 4/4|

Aug.

Sept.

Oct.

Fine gold, oz ... 1147 1068 1313 Fine silver, oz . .

Golden Ridges Mill— 776 711 901 Fine gold, oz ... 1681 1534 1633 Fine oz, silver . . . 1249 1143 1355 Edie Creek Mill— Sep. 14 Oct. 14. *Nov. 14 Ore, tons 4662 3765 2739 Fine gold, oz ... 1232 1023 793 Estimated profit— July.

Aug.

Sept.

Alluvial £3803 £3375 £2794 Golden Ridges mill £7266 £7972 £6469 Edie Creek mill. . £2287 £4344 £2071 * Mill closed ten day s for repairs to timbering main hoisting shaft.

with plant, buildings, water rights, and indentured native labour. This property has been worked by the vendor for the past 14 months on a small scale, and 44,995 cubic yards treated returned 1005 oz. gold, equal to approximately 27d. per cubic yard. It is intended to work the area on a large scale in conjunction with the company’s exist ing areas. As the company’s water race runs through the property purchased, the directors con sider that work can be carried out on a large scale at low cost. The company’s manager esti mates that the profitable working life of the area is at least six years, and that the values recovered by the vendor fairly represent the average values over the area. Work on the property has com menced. In addition, two faces are being worked on the company’s existing property at the Koranga- Bulolo junction, and the next clean-up is expected before the end of December.