Solomons Gold “Boom” Bursts

Jumble of Melbourne Flotations—Engineers at Guadacanal

DURING May, a party of gold-mine experts and engineers arrived in the Solomons to inspect areas on Guadalcanal—this being the outcome of a “gold boom” in Melbourne, based on an intricate series of gold company flotations.

We would not say yet that the “boom” smells of wild cats. But speculators should be careful. (This was written on June 6. Since then —well, see below.) Companies in this picture, feverishly issuing scrip, and exchanging each other’s scrip, include: Australian Gold Develop ment Solomon Gold Mines, Gold Mines of Australia, Yellow Boy Gold Development, Valikorta Gold Ridge, Break of Day and Charlton South.

In 1932, large alluvial areas in Guadal canal known as Kavagombi, were in spected by Mr. A. P. Penman, and he reported favorably. In 1933, Guadalcanal, Ltd. was formed, to develop the area. Re sults at depth were disappointing and the area was abandoned.

Recently, Yellow Boy Gold Development acquired options over alluvial areas from Guadalcanal Dredging and Sluicing Co. (Victoria), Ltd., (not connected with Guadalcanal, Ltd., of Sydney), and over lode areas from “a syndicate of Solomons business men”.

Yellow Boy offered the options over Kavagombi alluvials to Gold Mines of Australia, Ltd., and arrangements were made their inspection by Mr. A. J.

McGeorge (who has gone to the Solomons for Break of Day Syndicate). But all that was dropped when the unfavorable 1933 report on Kavagombi was disclosed.

But the more important of Yellow Boy’s lode areas on Valikorta Ridge became the basis of Valikorta Ridge, N.L., and are be ing investigated by Mr. Victor; and Yellow

Boy also is interested in Solomon Gold Mines, N.L.

The latter acquired from someone 300 acres of lode on Valikorta Ridge, and sent Mr. T. R. Victor to investigate.

Australian Gold Development has shares in Solomon G.M., and Valikorta Ridge, N.L.

So far as can be understood from a mass of confused reports in the Mel bourne press, Solomon Gold Mines, N.L., has sent Mr. Victor to report on lode areas on Valikorta Ridge; Valikorta Ridge, N.L., (a Yellow Boy flotation) has sent Mr. Victor to report on an adjoining lode area on Valikorta, and Mr. W.

Frame to report still other lode areas; Break of Day Syndicate has sent Mr. A.

J. McGeorge and Charlton South, N.L., has sent “its representative” to report on things not disclosed.

Meanwhile, the speculating public is not happy. A.G.D. shares, by June 6, had fallen from £B/10/- to £4/15/-; Break of Day from £5/-/- to £l/5/-; Solomon Gold Mines, from £26 to £10; Valikorta, from £9 to £2; Yellow Boy, from £35 to £lB.

Crash!

ON June 9, Mr. Victor radioed from the Solomon Islands to Solomon Gold Mines, N.L., and Valikorta Gold Ridge, N.L., roundly condemning both areas examined, and advising the aband onment of the options. The rest is told in this cutting from Melbourne “Her ald’s” share quotations:—

May To-day peak. 1 p.m.

Solomon £26 £1/10/- Valikorta £9 22/6 Yellow Boy £35 £15 £8/10/- £4 Break of Day £5 25/- Charlton South .. .. 42/6 10/-