Difficulties of Small
p. 26 · Read in the full issue
Gold Cos.
In Papua-New Guinea
Sandy Creek and Enterprise Report
Losses
REPORTS from two New Guinea goldmining companies indicate the crushing difficulties of rehabilita tion, high labour and material costs that have confronted the smaller companies in Papua-New Guinea since the end of the war. After these balance-sheets were made up, however, gold (because of the devaluation of sterling and the Austra lian £ against the dollar), increased from approximately £10 Australian per ounce to £15 Australian. This should boost all gold-mining companies’ profits in the Ter ritory in the current year—if the rot has not gone too far.
Sandy Creek Gold Sluicing
Sandy Creek Gold Sluicing Ltd.,
which operates in the Morobe gold field, New Guinea, has again met considerable ill fortune. The result of it is that for the year ending March 31, 1949, a loss of £4,455 was sustained. In the pre vious year the company showed a profit of £988.
During the period under review 1,192 ounces of gold were recovered from the company’s properties which realised £10,266 or 2/4 per cubic yard. Cost of working averaged 2/9 per cubic yard.
The Sandy Creek property yielded poor results at the latter end of the financial year and torrential rain in February, 1949, broke the race supplying water to the workings. As repairs would have been costly it was decided to abandon opera tions on this property. Revaluation of this property necessitated the writing off of £60,000. t .
The Watut property could not be worked satisfactorily as pre-war water pipes then in use, would not stand the head of water necessary to work the richest, but very deep, ground. Operations had to be confined to ground sluicing of terrace deposits. ... . , Although floods had contributed to losses of the Company early in 1949, drought conditions later took toll. In a report issued in mid-November, on pro
gress made after the close of the financial year, it was stated that from July to Sep tember the water supply to the Watut property was so inadequate that it was de cided to suspend all operations and renew the steel pipes that form the pressure column from the race to the workings:.
Work was resumed during October and for that month 48 ounces of gold were recovered from 3,816 cubic yards of gravel treated.
Enterprise of NG Also Takes Loss
ENTERPRISE of New Guinea Gold and Petroleum Development NL for the year ending August 31, reports a de ficit of £5,744. Loss for 1947-48 was £3,391.