From Papua

Borneo Options N.L.

THE directors of Borneo Options N.L. an nounce that having exercised the option over the manganese deposit at Kapa Kapa, Papua, they have received a signed contract for the purchase of 50,000 tons of manganese ore. Based on the present market price of manganese ore. the estimated net profit to the Company under its contract for the sale, is £1 per ton, after allowing the cost of mining the ore and all overhead expenses.

Negotiations are now being completed for the disposal of the total output from the deposits at a minimum price of £8 per ton. To enable the Company to begin operations, and to com ply with the terms of the contract for 50,000 tons, the directors are inviting applications from shareholders for the new issue of shares.

Cuthbert’S Misima Gold Mine Ltd.

Figures for the monthly clean-up on July 23 from the mine in Eastern Papua, owned by Cuthbert’s Misima Gold Mine Ltd., compare with the previous two months as follows:

The recently-issued annual report covering operations of Cuthbert’s Misima Gold Mine Ltd. to December, 1937, shows that the Company made a profit of £31,783, out of which four dividends were paid, equivalent to 20 per cent, of the nominal value of the - shares. Capital expenditure amounted to £16,532, representing balance cost of the new plant, additional buildings for white staff and native boys, hos pital, oil storage tanks, roads, etc. Total out put was 26,119 tons, compared with 21,707 for the previous 14 months. Average head assay of the ore was: gold 6dwts. 9grs. per ton, and silver 47dwts. p.t. The treatment plant work ed satisfactorily and without serious stoppage.

Mining costs were affected by higher cost of raw materials and higher trucking costs, owing to shortage of underground native labour.

Probable and positive ore reserves were cal culated to be over 600,000 tons. An additional 16 acres was taken up, making 205 acres of mining leases. Timber areas held totalled 2,880 acres.

Officers of the Company, at December, 1937, were:—Directors: Mr. Frank Hambridge (Chair man), Clif. G. Rutledge (Resident Managing Director in Papua and General Manager), H.

G. Carter, E. A. Laurence, Hon. Tom Nevltt, M.L.C., E. B. Wareham; Misima staff: James C. Quintrell (Mine Manager), Percy R. Os borne (Metallurgist), and Norman Draper (Sec retary and Accountant).

Papuan Apinaipi Petroleum Co. Ltd.

Papuan Apinaipi Petroleum Company Ltd. advised early in August that the casing has been set at 400 ft. at the Oiapu bore. Mr.

Launcelot Owen, the Company’s geologist, re ports that the bore is in mudstone dipping at 4 degrees, and that no trouble was being ex perienced.

Mr. Owen considers that the work done to date entirely confirms the deductions made on the surface evidence as to underground geolo gical conditions, and he states that the posi tion is entirely satisfactory. Cores have been secured, and have been sent to Canberra for examination and report.

Dr. Arthur Wade and Dr. K. Ward, mem bers of the Commonwealth Oil Advisory Com mittee, are proceeding to Port Moresby, Papua, on August 17 by the “Macdhui” to confer with Mr. Owen, on the Company’s operations.

Mandated Alluvials N.L.

Mandated Alluvials N.L. reports that the third shipment of matte, with an approximate

content of 2600 z. gold and 6 tons copper, has been sent to Chillagoe. Ore reserves having been accumulated, the smelter plant resumed the working of three shifts daily on July 26.

Yodda Goldfields Ltd.

The management of Yodda Goldfields Ltd., Papua, advised in early August that the yield from their property during July was 760 z. 5y 2 dwt.

Gold Mines Of Papua Ltd.

Gold Mines of Papua Ltd. proposes to in crease the capital of the Company from £135,- 000 to £162,000 by the creation of 108,000 shares of 5/- each. The new shares will be offered to shareholders in the proportion of one for every five shares held. The directors explain that the new capital is to provide for the expenditure incurred by delayed production and the adjustments found necessary to the plant since operations began.

The production report for July showed: —

The reported average battery head value for the months was approximately sdwt., tails 9 grains. The discrepancy between recovery and battery head values, which amounts to ap proximately 2dwt. per ton, has not yet been accounted for, and is still being investigated by Mr. D. F. Scott.

Misima Gold Reefs

Misima Gold Reefs, a Misima (Eastern Papua) property which Oroville Dredging Co. had an option on, is still “in the air”. The Company has relinquished all but one lease, and only a caretaker is left on it. It is ap parently still trying to decide the best way of attacking this solitary 25 acres.

The flagship, H.M.A.S, “Canberra” is ex pected to arrive in Rabaul on September 6, remaining until September 10.

May.

June.

July.

Crushed, tons .. 1,600 1,690 2,190 Gold .. £1,630 £1,775 £2,575

May. June. July.

Treated, tons 2,568 2,552 2 800 Bullion, oz 2,397 2,274 2,466 Gold, fine, oz 738 733 804 Silver, fine oz 1,537 1,445 1,570 Est. value (gold £8 oz.) £6,000 £5,950 £6,517 Value per ton 46/9 46/8 46/7