From New Guinea

Sunshine Gold Development Ltd.

SUNSHINE Gold Development Ltd., reports that the sluicing, plant is now operating smoothly over three shifts. No. 1 elevator is in continuous operation. No. 2 will be used to continue opera tions when No. 1 is stopped periodically for cleaning up and adjustments. No. 3 elevator, now being constructed, will be brought into commis sion on the removal of No. 1 to a new site, ensuring continuity of sluicing operations. Sluic ing operations have revealed an extension of the auriferous gravel wash towards the foothills. This necessitated a change in the plan of operations, and the paddock has been extended fui’ther south than contemplated. The previously repoi’ted yard age has been thereby increased. An additional 32 acres of gi’ound of aurifei’ous content suitable for hydraulic sluicing and elevating has been acquiied in exchange for the mining rights over

a small area of Sunshine property suitable for dredging. The exchange consolidates! the principal working areas and extends the total to about 300 acres. Negotiations will be completed shortly for the acquisition of 400 acres of gold claims im mediately adjoining the Goldfoil No. 3 area.

The great depth of wash necessitates the main tenance of a slope on the sides of the paddock.

Consequently, in the course of one month a large yardage of wash and overburden will be sluiced with a comparatively small portion of bottom wash. In the succeeding period the proportion of bottom will predominate. Returns may be expec ted to vary, the directors state, but the average will be reflected over a period. The gold output will be published each month, and details of yardage treated and values recovered will be reported quarterly. Results from August, 1936, to January 15, 1937, were: Hours worked (sluicing), 2767 ; cubic yards treated, 89,072 ; yield, 21910 z. : revenue, £14,317. The period covers a large amount of preliminary work of a non-recurring nature.

The company reports that the clean-up for April yielded 4870 z. of gold.

Bulolo Gold Deposits Ltd.

A large new area acquired by Bulolo Gold Deposits Ltd., adjacent to the company’s Morobe property, is estimated to contain *L\ million cubic yards of alluvial with average values of 1/3 a cubic yard. The property will be worked from the company’s present water-race, and the manager states that 20,000 cubic yards a month can be treated at a cost of 4d a cubic yard. Sluicing will be commenced on the area about the end of July.

Because of late delivery from the makers in New Zealand, the installation of the elevating plant on the Morobe property has been delayed.

It is anticipated that operations on the larger scale will be reached by the beginning of July.

Sluicing operations are meanwhile being con tinued on this area and on the Bulolo terraces.

Production during recent months has been:

Enterprise Of New Guinea

Because results on the Oriabanda area of En terprise of New Guinea Gold and Petroleum Development N.L, have proved disappointing, work on the area has been suspended. Early work on the original Oriabanda area was greatly affected by floods, but it was hoped that some valuable formations would b© discovered. At Edie Creek, good progress is being maintained with construction of the pilot plant and with under ground development. Details of progress are as follows: No. 1 W. drive main lode advanced in ore to 522 ft. from portal, S. xcut at 500 ft. com menced and advanced 15ft, Assays No. 1 W. drive over widths from 6in. to 4ft., gave values ranging from 3 dwts. 5 grs. gold to 15 dwts. 5 grs., and from 16 dwts. silver to 4oz. 12 dwt.

On May 5 the company reported:—Production of unrefined retorted alluvial gold from all sources for month ending April 30 was 670 z. 1 dwt. from 6,700 cubic yards treated, consisting of 2,700 c. yds. wash dirt and 4,000 c, yds. overburden.

The company made a call of 10/- a share on May 12.

Upper Watut Gold Alluvials

A clean-up from No. 1 pontoon of Upper Watut Gold Alluvials N.L., New Guinea, gave a yield of 1230 z. of gold from 13,477 cubic yards, the result of 484 hours’ working. For the week ended May 8, No. 2 pontoon worked 130 hours. The elevator worked continuously during the week ended May 8.

Bulolo And Placer Companies

Bulolo Gold Dredging Ltd. and Placer Develop ment Ltd. have declared interim dividends at increased rates. The Bulolo Co. has announced a dividend of 1 dollar 50 cents and the Placer Co. a dividend of 60 cents, Canadian currency.

Both dividends, which are payable from all offices of the companies, plus exchange, on June 10, are 10 cents more than the previous dis tributions. Transfer books in each case closed on May 19. Distributions made to non-residents of Canada are subject to a deduction of 5 per cent for Canadian absentee tax.

At the annual meeting of Placer Development

held in Vancouver in November, the managing director (Mr. C. A. Banks) said that an increase in the payments of the Bulolo Co. might be expected as that company’s earnings should in crease substantially when further dredges were installed.

It is expected that construction of the first of three more new dredges, which the company is installing will be completed before the end of the year.

Production for the Bulolo Co’s four dredges for April, compares with that of the previous two periods as follows:

N.G. Goldfields Ltd.

A report issued on April 27 by the Mining Trust Ltd., consulting engineers to New Guinea Goldfields Ltd., advises that the grade of ore developed in the Upper Ridges area, which 5 s estimated at 6.5 dwt., is not payable under pres ent conditions, and the mill is now only treating ore from the Golden Ridges, with a consequent reduction in tonnage and output. It is hoped, states the report, that if the construction of a road from the coast to Wau is sanctioned by the Government, there will be a considerable reduc tion in the working costs, which will then make available ore which at present cannot be profit ably treated.

The last three yields are compared in the following table:

Sandy Ck. Gold Sluicing Ltd.

Sandy Creek Gold Sluicing Ltd. has arranged to purchase a sluicing area of approximately 26 acres situated in Sandy Creek, contiguous to the company’s main dredging claim, and comprising the whole of that portion of Sandy Creek between

the company’s present southern boundary and the Bulolo River. The acquisition of this area

Apr.4- Jan. Feb. Mar. May 6 Wash, cub. yd 37.000 24,200 — — Cold. oz. 120 86 — — Bulolo— Cub. yd — — 18,000 12,000 Gold, oz — — — 84 60 Morobe — Cub. yd — — 3,800 •— Cold, oz — — 71 75* * Partial clean up.

Feb. Mar. Apr.

Cubic yard 885,000 918,000 977.000 Bullion, oz 18,358 17,806 12,101 Gold, fine oz 12,726 12,384 8,390

Value—

Aust. currency* ... £111,852* £108,360 £73,4214 Per cubic yard /30.2 /28.3 /18.0 Working profit £77,651} £77.542 £53,086 * At £A8/15/- per fine ounce.

Alluvial—

Jan.

Feb.

Mar.

Fine gold, oz 714 900 850 Fine silver, oz 535 644 532

Lolden Ridges Mill

Fine gold, oz 1,643 1,127 819 Fine silver, oz 1,176 821 747

Edie Creek Mill—

Fine gold, oz 1,435 1,552 795 Silver, oz 3,067 2,972 1,591

Estimated Profit

Edie Creek Mill „„ £4,333 £4,982 *£1,038 Alluvial £2,732 £4,107 £3,293 Golden Ridges Mill ... £8,562 £4,438 £1.690 * Oj>erating loss, due to mill being shut down for 14 days for shaft timbering.

will enable much greater use to be made of No. 1 plant and the water race now serving it.

The No. 2 plant has been delivered to the property, and is expected to be in operation by the end of May.

The company’s last four yields have been:

Jan. Feb. Mar. Apr.

Yards 7345 9420 9934 8611 Gold, oz 139 219 262 160 Value, cub. yd 2/10 3/53 3/11J 2/9*