From New Guinea

Sunshine Gold Development N.L.

■THE general manager of Sunshine Gold ■ Development N.L. reports that during the three months ended August 31 he sluiced a large quantity of marginal ground lying out- S i de^ he selected areas. Although the values of this marginal ground are lower than the average of the adjoining portion of the select ed area, they are payable. It would not be practical to leave them now and return to them later.

The managing director, who visited the mine, reports that work is proceeding in accordance with the plan laid down, providing for the profitable working of the property for many years. Owing to the nature of the ground, fluctuations in the yield are to be expected, but the directors anticipate that a satisfactory dividend rate will be maintained. The plant is in excellent order and the race is standing up to requirements.

Production for the quarter ended August 31 compares with that of the previous quarter as follows:

Bulolo Gold Dredging Ltd.

The July output of Bulolo Gold Dredging Ltd., Morobe goldfield, New Guinea, compares with the two previous yields as follows;

Sandy Creek Gold Sluicing Ltd.

Sandy Creek Gold Sluicing Ltd., New Guinea, earned net profit of £5,689 for the 12 months ended April 30, after £3,969 was written off for depreciation, brokerage, preliminary ex penses and other items. The directors report that, with £7,165 brought in, £11,134 was avail able. They declared a final dividend of iy 2 d. a share, making 3d. a share for the year. These dividends require £7,750, and £3,384 remains to be carried forward.

During the year, 196,500 cubic yards of ma terial were treated for a recovery of 3,271 oz. of gold, which realised £24,057, an average value of 2/5a cubic yard. These figures are an increase in quantity of material treated, and gold recovered, but a decrease in the aver age value a cubic yard as against last year.

Values have shown an improvement since the close of the financial year, and for the three months to July 31 averaged 3/6 a cubic yard.

At the annual meeting of the Company in Sydney on September 2, shareholders ratified the directors’ action in making an investment of £l,OOO in an undertaking, which is pur chasing the New Guinea assets of Upper Watut Gold Alluvial (N.L.) (in liq.). The chairman (Mr. H. B. Jamieson), said that the life of the present property owned by Sandy Creek was from five to six years and might even extend to 10 years. Since the close of the year, the boai’d had arranged for the Bulolo Company, to return to Sandy Creek portion of the 20 acres In the Lower Poverty Creek area, sold to them in 1925. With the advent of No. 2 plant in August last year, costs were mater ially reduced, and now stood at about 1/2 a cubic yard. Prospects for the current year were encouraging.

August production compares with the three previous months as follows: —

June . ..

Cub. yd.

Hours.

Gold (oz.) .. 30,000 513 306.1 July . .. .. 20,600 515 249.5 August .. .. 30,000 589 278.5 Total ,. . . 80,600 1617 834.1 Previous qtr. .. 52,500 1451 1084.3

„ , May. June. July.

Cubic yards . . 1,248.000 1,184.000 1 232 000 Bullion, OZ. . . 22,461 18.265 19,667 Gold, fine, oz. .. 15,499 12,603 13,569 Value— Aust. currency* . £135,616 £110,276 £118 729 Value, per c. y. . /26.8 /22.3 /23 1 Working profit .. £100,038 £75,967 £77.875 * At £A8/15/ per fine ounce.

May. June. July. Aug.

Cubic yards . .. 20,119 15,949 16,088 18,497 Gold, OZ 466 292 531 538 Per c. yd. .. . 3/4 2/9 4/11 4/4 Working cost 1/4 1/3 Vi 1/5 1/2

New Guinea Goldfields Ltd.

The following progress report covering May to July has been issued by New Guinea Gold fields Ltd.:—

Enterprise Of New Guinea N.L,

The general manager of Enterprise of New Guinea Gold and Petroleum Development N.L. (Mr. Harold Taylour), reported at follows for the period, August 13 to August 25: Surprise Creek: —Sluicing and elevating as usual in low-grade bouldery wash. Edie Mine: —Prospecting drives put into five parallel veins cut in drainage adit, at present lowest level in mine. No. 1 parallel lode is sulphidic and has maintained width of 3ft. over 34ft. driven.

It appears to be a split off main lode. Assays over first 20ft. av. 3dwt. gold; one sample at 15ft. assayed 490 z. 6dwt. silver; from 20 to 34ft. lode split into two sections and shows definite increase in values; one 6in. sect, at 30ft. assaying 16dwt. gold; prospects most en couraging. Other parallel lodes have shown low values and will not be prospected further at present. Drainage adit. ext. to 981 ft. from portal, stopped. No. 3 level W. drive on main lode ext. to 116 ft., stopped; short xcuts at 801 ft., in strong lode formation; xcut at 800 100 ft. driven into foot and hanging wall coun try. No. 1 W. drive on main W. lode ext. to ft. shows Bft. lode with hanging wall lode not yet exposed. Air compressor landed at mine; other ana#chinery ,coming forward from Salamaua.

Engine-house and fitting-shop erected, also ad ditional European quarters. Main vehicle road extended on the mine. All works proceeding satisfactorily. European employees at present number 14, natives 163.

A further report on September 5 stated:— South crosscut off west drive at 800 ft., main lode shows 14 ft., very promising quartz; hang ing wall not yet reached; appearance of ore body in this level gives every encouragement; No. 3 level also opening up well. Production from all sources for month ended August 13 compared with June and July as follows:

Bulolo Gold Deposits Ltd.

The following yields have been reported by Bulolo Gold Deposits, New Guinea:—

May.

June.

July.

Edie Creek mill— Gold, oz., fine . .. 894 1,126 1,208 Silver, oz., fine . . .. 3,001 3,906 4,052 Alluvial—- Gold, oz., fine ,. .. 1,107 1,185 1,120 Silver, oz., fine . 785 838 797 Operating profit— Edie Creek . . £234* £ 1,588 £2,771 Alluvial .. 3,979 4,639 4,395 * Operating loss.

July 5.

Aug. 3.

Sept. 5.

Morobe Alluvials— Hours 575 550 600 Cubic yards .. . 10,000 5,000 7,500 Gold, oz 140 70 140 Morobe Deposits— Hours 480 470 525 Cubic yards 5,000 6,500 8,500 Gold, oz 40 45 45

June. July. Aug.

Wash dirt, yards .. 2,046 2,198 4,536 Overburden, yards ... 584 1,408 — Unrefined retorted alluvial gold, oz 34 y 4 44 y 4 23