A NEW ELDORADO.

Auckland Star, Volume LVII, Issue 112, 13 May 1926, Page 9

A NEW ELDORADO.

A PANAMA GOLD PROVISION FLOATED. TWO NEW ZEALANDERS PROMOTED LONDON, April 9. The "Daily News" Has been featuring a story of a new Eldorado which it describes as containing riches untouched for centuries. These riches are to be found in Panama, and this week a company is being floated of two million pounds capital, of which £500,000 was underwritten for this new company, the Panama Corporation. The shares will be publicly subscribed for at the begining of next week. The corporation is the outcome of an inquiry into the mineral wealth of the Republic of Panama, set on foot in 1924 by a private syndicate, which numbered among its members Sir Henry Bell, Sir Richard Barnett, Sir Alfred Mond, and Mr. S. B. Joel. The fruit of this inquiry was a highly encouraging expert report of the mineral wealth—in gold, silver, zinc and copper—of various areas of both Northern and Southern Panama. These areas, covering approximately 4500 square miles, have since become the subject of special concessions by the Government of Panama to Mr. D. E. Alves, who is to be chairman of the new corporation.

The concessions, which involve no monetary consideration, provide that after a period of ten years for exploration purposes all areas selected by the concessionaries shall coontinue in their absolute ownership in perpetuity, the concessionaires being under the obligation to construct roads and bridges where necessary, and to pay a royalty of 2 per cent on any gold exported. The concessions are being transferred to the corporation, which will not, however, itself conduct the mining operations, but will arrange for the formation of companies to operate individual mines when the exploration work has proceeded to that stage.

The find in the Panama was made by an expedition sent out two years ago under Mr. J. C. Calderwood, a skilled mining engineer, who is believed to be a New Zealander. Another New Zealander, Mr. Eliot Alves, the "prominent British financier," who is the present holder of the concessions for working the new Eldorado, adniits that "the enterprise must still he thought entirely speculative."

The story as told hy the "Daily News" is that it entailed two years' work for Mr. Calderwood and his assistants. "Surface gold was found at the workings of the old Indian mir.es- —or which was tested and found to contain gold to the extent of 45 ounces to the ton.

"This the miners of bygone days, knowing nothing of modern cyanide processes, had had to discard. "There Mr. Calderwood found it lying untouched at the mouth of workings where it had lain for centuries.

"He also found relics of wooden stamper batteries which must have been used by the natives to crush the rock. "Besides surface gold,. Mr. Calderwood found on the surface silver ore—one test realised 91 ounces to the ton —and many rocks rich in tin and zinc.

"Don't imagine that because it is near the 6ea coast Panama is easily crossed," said a colleague of his. "In parts it is barely accessible. Roads are few and there are few bridges in the whole land. Frequently Mr. Calderwood was held up by heavy drenching rains and rivers in full flood.

"To give you just one idea of the country. A silver field was located and specimens were taken. They turned out to be very rich in silver, and Mr. Calderwood was keen to make further tests. It took Mm months to locate the exact find again.". Yesterday the "Times" published a cable from its Balboa correspondent, which coldly says, with regard to Mr. Calderwood's concession, that "locally the importance of the discovery is believed to have been exaggerated." It is hardly to be wondered at that some comment on the new gold rush even before the "Times" published the cable should be made. One such says it is difficult not to feel a little sceptical about these tales of Eldorado, even when sponsored by such shrewd business men as the promoters. It is said that concessions have been obtained which will make thi mining easier, but it will be strange if the United States, who have already won such a reputation as collectors of gold, do not display a proprietary interest in the transactions. In any case, the possession or large quantities of gold has even been a problematical gain. For gold in abundance means gold depreciated in value. Panama is not far from the site of Sir Walter Raleigh's ill-starred gold adventures. We only hope that the same irretrievable disaster will not attend the more-hard-headed promoters of this enterprise. Another example says: 'It is proposed to raise a capital of two million pounds to work it. The real Eldorado is not in Panama, but in London<"