From Papua

Sapphire Ck. (Papua) Development

Syndicate N.L.

WHAT is believed to be a new lode has been located by Sapphire Creek (Papua) Develop ment Syndicate N.L., Papua, on the Sapphire King lease in thick bush at 500 ft. north of No. 1 adit, and 414 ft. N.N.W. from the old workings.

The local director reports that costeening has proved the lode to strike north and south. Cos teening has shown the lode width at the outcrop to be 28ft. An adit, 20ft below the costeen is in 40ft. and through the lode 27ft., without reaching the hanging wall. Assays taken from the cross cut at 4ft., Bft., and 12ft. give it 16 dwt., 8 dwt.. and 1 oz. values respectively. Driving has been proceeding at the rate of 10ft. a day. Labour has been concentrated on the new find.

Mandated Alluvials N.L.

Mandated Alluvials N.L. states that Messrs.

T. R. Victor (engineer) and F. M. Murdoch (metallurgist) have completed their examination of the company’s property Port Moresby, Papua, and have presented their reports. They concur in an estimate of a minimum tonnage of 13,500 tons of oxidised ore. assaying as mined with dilution, 13 dwt. gold, 25 dwt. silver, and 1.25 per cent copper. At least a further 3000 tons can be considered as probable oxidised ore, and while there is a definite limitation to the possi bilities of oxidised ore, this may not be reached till some 20,000 tons have been mined.

Thei'e are also at numerous points exposures of sulphides underlying the oxidised ore, averag ing 3dwt. gold and 4 per cent copper. The present state of development does not permit of any estimate of the total tonnage of sulphides, but they are solid bodies of ore, and have every

appearance of going down. The depth to which they may persist will be governed by the down ward extent of the felsite in which the ore bodies occur.

The ore is not amenable to economical treat ment as a gold ore, but is eminently suitable for smelting as a copper ore, with a resulting re covering of copper and silver values, together with all the gold. Taking gold at £AB/10/-, silver at A2/3 per oz., and copper at £ABO per ton, the values of these metals in the oxidised ore are respectively 110/6, 2/10, and 20/- per ton, a total of £6/13/4, while in the sulphide ore the value is 25/6 gold and copper 64/-, a total of £4/9/6 per ton. The average value of the ore mixture as sent to a smelter would be about £6/3/- per ton, and a recovery of £5/16/per ton would be expected.

Mining costs are estimated at 20/- per ton, and costs of smelting and realisation at 40/-, or 60/- per ton in all, which, deducted from the extractable value of £5/16/- per ton, would leave a profit of £2/16/- per ton. On the tonnage of 13,500 tons of oxidised ore actually blocked out, and a further 1500 tons of sulphide ore included in the smelting mixture, a total of 15,000 tons, this represents a profit of £42,000. This does not take into account any of the ore classed as probable.

The board intends to proceed immediately with the installation of a plant with a daily capacity of 50 tons.

The Sydney office of Mandated Alluvials N.L., Papua, has been transferred from 117 Pitt Street, Sydney, to Rickard House, 84 Pitt Street, Sydney.

Mr. A. Cheetham has been appointed secretary.

Cuthbert’S Misima Gold Mine Ltd.

Cuthbert’s Misima Gold Mine Ltd. has declared an interim dividend (No. 5) at the unchanged rate of 6d a share, payable on May 29. Books closed on May 21. The previous distribution was made on February 27. The distribution will re quire £7,500, and will make total distributions to shareholders £37,500.

In April the company’s mill on Misima Island, Eastern Papua, treated 2,066 tons of ore for a yield valued at £3,869, with gold at £8 an oz.

The ore milled in the month was lower grade than usual, but assays of material already treated in May are reported to be up to the usual grade.

Production figures for the last three months are compared hereunder:

Feb. Mar. Apr.

Milled, tons 1,960 1,800 2,066 Bullion, oz. 2,905 2,747 Gold, fine oz 609 540 Silver, fine oz 2,208 2,114 — •“Estimated value £5,007 £4,430 £3.869 * Gold at £8 an ounce.