probably copper, or something
pp. 27-28 · Read in the full issue
All that glitters isn't gold—it's probably copper, or something
By Ken Mcgregor
What has happened to Misima Island’s big gold reserves?
Has an atom bomb been dropped on the big and rugged Papuan island? Or has the gold merely sunk deeper into the earth’s core? When can Pacific Island Mines Ltd. shareholders ex pect a dividend? And why were the shareholders not given a preference to shares in a new company formed by a partner of PI Mines to evaluate Misima copper prospects?
These were a few of the pointed estions asked by shareholders at a ely annual general meeting of PI ines, held at Sydney’s plush snzies Hotel, on April 10.
The company’s new chairman, Iding and confident Mr. I. G. [Her, cleverly parried all questions a 20-minute answering session lich followed the reading of reports. >wever it was obvious that many PI Mines smaller shareholders :re perplexed by the numerous anges in the company’s activities nounced this year.
More news concerning the com ny has come to light this year than its previous 10 years of fruitless Id prospecting in Misima Island, d in a matter of weeks PI Mines s been transformed from a gold ospector to a copper prospector, in arch of another Panguna low-grade pper bonanza. (Conzinc Riotinto s located 230 million tons of low ade copper ore around Panguna, mgainville.) This was a bit much for many areholders, and they sold out. As
a result, early in April, the com pany’s 25-cent shares dropped more than 25 per cent. —from 60 cents to 42 cents.
An indication of territorians’ past faith in PI Mines is that at one time nearly 200 people were registered on the NG register as shareholders. To day there are less than 15.
The startling news that exploration
for gold had been “suspended for the time being” came in March.
Over SAI million, including nearly 5A400,000 of PI Mines shareholders’ funds had been spent since 1958 in attempt after attempt to unearth en couraging signs of high-grade ore on Misima.
The deep adit sunk by Cultus Ex ploration Ltd. of Canada failed to find the same rich ore bodies located by the shallower PI Mines adit, indi cating that the ore body terminated a lot sooner than was previously thought.
In the words of Mr. Fuller “the emphasis at Misima is now on copper”, and Cultus will spend the remainder of its committed SCI
Does Misima Island, one of Papua's bigger offshore islands, con tain huge reserves of copper-bearing ore?
A trip to the island is still quite a detour from Port Moresby, though an air service by light plane has greatly speeded up travel.
Cultus Explorations Ltd. of Canada spent a lot more money than it originally antici pated to sink a deep adit on Misima Island. Left, shows plant above the adit, and right, workers clear rubble inside the adit. Both the earlier PI Mines adit and the Cultus adit will be kept open now the emphasis has changed from gold to copper.
million checking out nearby “copper prospects”.
At the April 10 meeting Mr. Fuller said in reply to questions that Cultus had been “sincerely optimistic” in forecasts about gold profits that could be taken from Misima.
He said he hadn’t “the faintest idea” when shareholders of PI Mines would receive a dividend.
No atom bomb had dropped on Misima he told one exasperated shareholder. The fact was, he said, that the rich gold lodes had not ex tended as far as had been “previously indicated”.
He said directors were satisfied that the 40 per cent. PI Mines would have in Oceanic Minerals when Cultus had fulfilled its obligations would give shareholders a satisfactory interest in future developments without having preference in shares in a new com pany, Cultus Pacific NL.
Developments leading up to the lively meeting were: • The sudden resignation of Mr, G. W. Noe, foundation chairman for 10 years, a couple of weeks before the end of the gold search was an nounced, (Mr, Noe’s departure leaves none of the original board). • The revelation that the company suffered a $44,000 book loss after three Malayan partners withdrew from an associate company, Austral Exploration Pty. Ltd. • An announcement that with another prospector, Planet Gold Ltd., the company will examine a gold prospect near Mt. Mosquito, Queens land. PI Mines’ 40 per cent, non operating interest will cost at least $20,000. • The formation of a new com pany, Cultus Pacific NL, to be listed on Australian stock exchanges, which will continue the Cultus parent com pany’s prospecting on PI Mines’ lease on Misima Island.
Cultus of Canada has taken up just over half the shares, and more than a quarter have gone to four Australian mining companies and just under a quarter to clients of Sydney share-brokers, Patrick and Company. (PI Mines has not bought, or even offered, one share.) In July, 1965, Mr, Noe said pro duction of the Misima goldmine would start in “18 months or so after February, 1966”.
In its annual report for the 12 months to October 31, 1965, PI Mines said that Cultus had received advice from its consulting engineer that proven ore reserves in the Umuna lode had a gross value of $C9,300,000 and that ore could be mined and milled to recover a profit of more than SCS million (about SA4 million).