Pacific Islands Mining Notes

From Fiji

Review Of Fiji Gold Companies’

Activities

A COMPREHENSIVE review of what has been don e —and what is likely to be done in the future—by the main gold-seeking concerns in Fiji was issued on June 21 by Williams and Gosling Ltd., Stock and Sharebrokers, of Suva. The bulletin was as follows: Emperor Mines Ltd: Emperor or Loloma shares should be good buying for a rise before the end of the year. At the meeting of the Emperor Co. in November last it was stated that the mill was expected to begin crushing in September, 1937, and reports since indicate no change in that estimate. Mr. H. J. C. Connolly, geologist of Western Mining Corporation Ltd., reported in September last that ore reserves amounted to 720,000 tons, of which developed oxidised ore aggregated 620,000 tons and telluride ore 50,000 tons. Partly developed ore, consisting principally of telluride, was estimated at 50,000 tons. The value of the oxidised ore was estimated at 10 dwt. fine gold a ton and the value of the telluride ore as being probably higher. The estimate did not include any ore from the Regent lode. Plant is expected to handle 12,000 tons a month, giving a life, on that estimate, of five years.

Capital consists of 1,500,000 shares of 10/each, fully paid, and there are 350,000 shares under option at par to the vendor until March 15,

1938. It must be assumed that the option will be exercised, making capital 1,850.000 shares At (Mr m E C S Th Ve “ ber . the managing director lbe ° dore) said that the proved gold would work out at 35/8 a share but that estimate apparently did not allow for the exercL of t option over 350.000 shares. Allowing foV toe of Sl i 6 old f I 6 Sh^ r6S f ° r cash at 10/ -’ the amount 31/ i the mine at that time would represent h J' oof C ° sts w u ere expected to be materially 72f) noft 2 ?nn a^° n ’ hut ,’. taking that figure for 720,000 tons, they would work out at about 8/years 6 ’ eavmg 23 /“ a share profit over five Since then a good deal of development work has been done, the latest report stating that an internal shaft has reached a depth of 45ft. below No. 2 level, the average value for the full depth being 21 2 dwt. This indicates an important addi tion to probable ore reserves, and the average value is more than double the estimate average for the mine above the No. 2 level. Allowing for the probability that exploratory work may continue to increase the ore reserves, and for developments in other parts of the property— notably, the Regent lode—the shares should be an excellent risk at their present price of about 16/-.

Loloma (Fiji) Gold Mines N.L.: Issued capital of Loloma is 645,000 contributing shares of 5/-, paid to 1/6, and 180,000 shares fully paid at 5/ in all, 825,000 shares. A year ago the general manager’s estimate of ore reserves was 105,130 tons of an average value of practically 30 dwt., or 156,5290 z. fine gold. On the assumption that costs were as high as £2 a ton, and taking gold at £8 an ounce, to allow for incomplete recovery, a profit of £939,000 would result, equivalent to 22/9 a share, from ore reserves as at that date.

Since that report, however, there have been further important and extensive developments.

The No. 1 adit has been extended by nearly 350 ft. to 975 ft., with variable values, but on the whole giving a very considerable increase in prob able ore reserves. In addition, the main shaft has been sunk to 244 ft., and it is intended to crosscut at 224 ft. There has also been much development in other parts of the mine, which must have added considerably to the value of the property. For example, the main shaft passed through lode from 151 ft. to 165 ft., of an average assay value of 17Jdwt. over a width of 2ft. Sins.

A report for the four weeks to April 7 stated that a 'new make of stone in the No. 2 adit averaged 20dwt. over a width of 60ins. when driven on for 9ft. For the next 18ft. the lode was very disturbed, but then became more settled, the last 15ft. averaging 28dwt. over a width of 33ins.

When first struck, the lode showed tellurides and assayed 50dwt. The No. 14 shaft is being sunk some distance ahead of the No. 2 adit, in ore carrying values, and it would appear that the Loloma lode has a length of about 2,000 ft. as so far developed.

These are only a few examples of the important developments which have taken place in various parts of the mine. Taking into account the proved ore and the very great possibilities, we think the shares are cheap at about 19/6. Pro duction is expected to commence shortly, and the plant is designed to "treat a minimum of 50$ tons a week, which would give the mine a life of some four years, on the basis of known and probable ore as at July 31 last; but developments since that date and work still in hand should increase the life materially.

Koroere Gold N.L.: The following is the last report from this mine, June 12: West Cardigan Lode south shaft crosscut west at 32ft. cut <tft. flat make values 17dwt. per ton. North drive 42 to 65ft., average value 15 dwt. per ton crosscut east at 65ft., values 24 dwt. per ton over 21ft. face similar ore.

The accounts for the year ended January 31 show that there is £2,656 (Australian currency) in hand. In his report, the managing director (Mr. E. G. Theodore) suggested that the Co.’s properties be merged into one of the other mining

companies now operating and erecting milling plants on the field, and that the Emperor Co. could treat at its new plant the ore from both Cardigan and Koroere at a rate of, say, 200 tons per week, without disadvantage to its own pro gramme. All that would be needed for the Koroere plant is some additional mining equip ment for ore breaking, the making of about 120 chains of metalled roadway, and two or three motor vehicles to transport the ore.

After considering these suggestions the direc tors are of opinion that it will be better to continue the present developmental policy for a further 12 months with a view to obtaining further information in regard to the several ore bodies on the Co.’s properties. With this object in view it is intended to carry out further development work designed to indicate whether it would be better in the interests of the Co. to install its own mining and treatment plant, or to enter into negotiations for absorption by another company, as suggested by the managing director.

It is estimated that another call of 6d per share should, with the funds now in hand, be suffi cient to carry out this work.

Pacific Gold N.L.: The directors of Pacific Gold announce that they have abandoned the option at Wainivesi (Fiji), but will continue investi gatory work elsewhere.

Mineral Developments and Tavua Developments: No recent reports are available.

Mt. Kasi Mines Ltd.

Mount Kasi Mines Limited, Vanua Levu, Fiji, reported early in July that production, etc., over the past four months had been; Mar. 25 Apl. 22f May 20 June 17 Ore, tons ... 2,600 2,310 2,566 2.408 Gold, fine oz. 447 655 576 597 Value. £A ... 3,911 5,731 5.040 5.223 fMill closed for five days for Easter and for repairs.

Loloma (Fiji) Gold Mines N.L.

Loloma (Fiji) Gold Mines N.L., Tavua, Fiji, has issued the following progress report on opera tions for the five and a half weeks ended June 12: No. 2 Adit: S. drive off E. xcut at 210 ft. advanced 89ft., to 553 ft. From 464 to 510 ft., averaged 7.3 dwt. a ton over 46in. Remainder 5.9 dwt.“ a ton over 23in. No. 1 Adit: Further 109 ft. of stripping done, and permanent timber put in. Total, 563 ft. Construction Work: Timber work for conveyors practically completed. Fram ing and decking in rolls section also. Assembly of roaster mechanism well in hand. Completed steel work for classifier and superstructure for agitators. Riveting of thickeners in progifss.

Commenced assembly of filters. Completed foun dations for timber structures of filter section and frame work started. Gold solution tank in course of riveting. Calcine and amalgam furnaces com pleted. Main building erection well in hand.

Emperor Mines Ltd.

Developmental work of Empei’or Mines Ltd., Tavua, Fiji, continues to disclose profitable values and is proving additions to the ore reserves.

Occasional good telluride specimens have been revealed in the formation in extending a short crosscut at 1979 ft. east at the No. 2 (190 ft.) level.

Recent crushing have been: —

From New Guinea

Sunshine Gold Development Ltd.

THE return of Sunshine Gold Development Ltd., for June, shows a production of 186 oz. gold, the statement of hours worked and cubic, yards treated being now issued on a quarterly basis.

As sluicing operations were suspended from June 2 to June 8, owing to repairs to the water race, the production covers a working time of about three weeks, but it shows a profit, the company reports, over and above the full month’s expenses.

Shareholders have received a circular from the company stating that while the diversion of the Watut River is being awaited, it has been found necessary to work ground which is below the average value of the property. The diversion of the river has been in progress for some time and may take another two months. The Co.’s boring plan indicates that on completion of the diversion

the values available for sluicing will be above the average. The diversion is stated to be essential to the proper working of the property and is

being carried out without any heavy capital expenditure.

(Continued Overleaf)

Apr. 20 May 15 June 12 July 10 Tons, crushed ... 2356 2025 2236 2333 Head value, dwt. 8.9 10.0 9.8 9.4 Fine gold, oz. ... 960.5 933 951.3 953.7 Dwt. per ton ... 8.1 7.9 8.5 8.1

Enterprise Of New Guinea

A report issued by Enterprise of New Guinea jold and Petroleum Development N.L. on June's stated: Sluicing continued at Surprise Creek mine since Way 23, with three nozzles. Small yardage treated 4405 yards) due to large boulders met in wash, nost of which had to be drilled and blasted before hey could be disposed of. At Edie Creek mine, jyanidation plant nearing completion. In readi ness for installation of rock crusher. Expected o be delivered shortly. Dam to impound 480,000 itres of water nearing completion. Additional vater right granted as a safeguard against pos sible shortage of water for mining and general

purposes. Progress in drainage adit delayed owing to running ground having been met. Face ad vanced to 428 ft. from portal. No. 1 W. drive, main lode, advanced in ore to 631 ft. from portal.

At grass, 270 tons ore awaiting treatment.

Samples taken as No. 1 W. drive advanced, gave assays ranging from 4 dwt. 4.8 grs. to 10 dwt. 9.6 grs. gold and 3 oz, 4 dwt. 14.4 grs. to 14 oz. 9.6 grs. silver, a ton.

Sandy Creek Gold Sluicing Ltd.

The mine manager of Sandy Creek Gold Sluic ing Limited reported in July that a comparison of recent yields showed:

The June return does not include yield from No. 2 plant, which was not in full production until July because of initial troubles.

N.G. Goldfields Limited

At the end of June, New Guinea Goldfields Ltd. reported as follows;

Upper Watut Gold Alluvials N.L.

At a meeting of creditors of Upper Watut Gold Alluvials N.L. in Melbourne, at the end of June, Mr. A. E. Llewellyn, legal manager of the com pany, was appointed liquidator. Representing Guinea Airways Ltd., Mr, A. Phillips said that his clients wished for an independent liquidator.

There was no seconder to his nomination.

A statement of affairs presented at the meeting showed that expenditure amounting to £225,738 had been incurred in 2£ years. The deficiency over the period was £66,043. Details of expendi

ture were: Water race, hydro station, gravel pumps, elevator, £114,250; other developmental and sluicing operations, £55,210; lease purchase and preliminary expenses, £.46,060/6/5 ; amounts owing by debtors, etc., £10,217/9/5; total. £225,737/15/10. Cash receipts included; Applica tions and allotments, £60,000 ; calls, £90,000 ; gold (estimate), £9,695; deficiency (amount owing creditors), £66,042/15/10. The Co. has no assets outside New Guinea.

Bulolo Gold Deposits Ltd.

The last report from Bulolo Deposits Ltd compared recent productions as follows:

Bulolo Gold Dredging Ltd.

Production for the four dredges of the Bulolo Gold Dredging Ltd., for June, compares with that of the previous two periods as follows:

From Papua

Cuthbert’S Misima Goldmine Ltd.

ON July 6, the general manager of Cuthbert’s Misima Goldmine Ltd., Papua, stated: The new 10 head of stamps has been running satis factorily for seven days, one shift daily. This

Mar. Apr. May June Yards 9934 8611 8590 8124 Oold, oz 262 160 132 232 Value, cub. yd. ... 3/11$ 2/9$ 2/3$ 4/3$

Mar.

Apr.

May Edie Creek mill: Gold, oz. fine 795 1,801 1,435 Silver, oz. fine 1,591 4,228 3,145 Alluvial: Gold, oz. fine 850 702 854 Silver, oz. fine 532 513 603 Gold Ridges mill: Gold, oz. fine 819 758 581 Silver, oz. fine 747 860 587 Operating profit: Edie Creek t£1.038 £7,449 £4,127 Alluvial £3,293 £2,532 £3,373 Golden Ridges £1,690 £563 £592 |Loss due to mill ] having shut down for 14 days while the shaft was retimbered.

Mar.

April 4- May 6 June 7 July 7 Bulolo: Hours 525 Cub. yd. „ 18,000 12,000 14,000 15,000 Gold, oz. ... 84 60 50 . 24 Morobe: Hours 575 Cub. yd. ... 3,800 4,500 5,500 Gold, oz. ... 71 7Bt 60 110 ■{•Partial clean up.

tApril May June Cubic yards 977,000 901,000 780,000 Bullion, oz 12,101 11,261 13.876 Gold, fine, oz 8,390 7,746 9,627 Aust. currency* £73,4I2£ £67.777$ £84,236 Per cubic yard ... /18.0 /17.9 /25.9 Working profit £53,086 £53,865 £54,626 •At fA8/15/- per fine ounce. •{■Including 100,000 cubic yards tailings.

Reduced output in April and May was due to changing the courses of two dredges, which required the digging of a large volume of tailings and overburden.

battery will continue working one shift daily this week, by which time the remaining concrete vats are expected to be completed. It is then antici pated that sufficient labour will be released to truck additional ore from the mine and work a second shift on the mill.

Production statements since April compare as follows:

In addition to bullion produced in June, £265 worth of gold slags was shipped to Sydney and realised.

Mandated Alluvials N.L.

Arrangements for the construction and erection of Mandated Alluvials N.L. plant in Papua are now well in hand. The construction and working of the plant will be supervised by Mr. Robert Chant, formerly with the Mount Morgan Co., who is fully conversant with the type of ore produced at the company’s mine.

Aurum Dredging Development N.L.

The area of Aurum Dredging Development N.L. under test in Papua, could not give results that would warrant large scale operations, although certain isolated sections might be suitable for working by small parties. Shareholders were in formed to this effect by the chairman of directors (Mr. C, G. Lyon), at the annual meeting in Melbourne recently. He said the engineer had been instructed to withdraw from the area, and the option had been adandoned.

From New Caledonia

Chrome Alluvials Ltd.

THE consulting engineer of Chrome Alluvials 1 Ltd. (Mr. A. Mackintosh Reid) has arrived in New Caledonia and, with his assistant engin eer, is assembling plant and organising a labour force to install the first unit of working plant.

The tractor plant went forward with the engineer and orders have been placed for portion of the ore dredging plant. The registration of a local working company is in hand. A further 260 hectares have been taken up to consolidate the water supply. There is gooff chrome on this area according to reports, but the Co. has not examined it yet.

April May June Mill treated, tons 2,066 1,900 2.046 Bullion, oz. 2,085 2.433 2.269 Gold, fine oz . 473 570 612 Silver, fine oz. 1,529 1,768 1,570 Estimated value (f A8 oz) £3,869 £4,662 £4,983 Value, per ton 37/5 49/1 48/9