FIJI MINING.

Auckland Star, Volume LXVI, Issue 224, 21 September 1935, Page 14

FIJI MINING.

DOUBLE SURPRISE. ALCHA CENTRAL AND NASIVI. GOVERNMENT'S DISCLAIMER. (From Our Own Correspondent.) SUVA, September 10. Mining in Fiji has assumed a new feature within the past month. Some local firms have gone into the share business, and people have gone to extremes in buying and selling. Two rather important incidents have occurred. The first one refers to the Aloha Central field, whose directors have released a report stating that their solicitors here hold that Mr. P. Costello had entered into an agreement with Mr. E. G. Theodore in 1933 for an option over Ivoroere Block, which is alleged to give Air. Theodore the right to follow into and mine upon .Aloha Central, 30acre block, the Cardigan lode or any extension. Mr. Crompton, K.C., had cited this agreement to Mr. Costello, and lie gave the opinion that Mr. Costello was bound by the terms of his agreement with Mr. Theodore, and that this fact should have been disclosed by Mr. Costello at the time ho entered into an agreement with Aloha Central in April last. The whole of the facts are being placed before the Mining Board.

When interviewed here Mr. Costello said that in December, 1033, ho signed an agreement with Mr. Theodore giving him tho right to work tho Cardigan lode should it enter tho 30-acro block nt a depth. In July, 1934, a new mining ordinance-came into force, clause 31 of which reads: "All mining leaseholds shall bo bounded by vertical planes from the surface boundary lines drawn downwards to an unlimited depth from the surface.

"I was under the impression," Mr. Costello proceeded, "that this clause would not allow an adjoining company to work below our area. It is not yet known at what depth, or even whether at any depth, will tho Cardigan lode enter the 30-acro block. At one time it was thought it might do so at 000 ft. Since then the lode has straightened considerably, and it depends upon the angle at which it dips as to whether or not it will enter our property. All the lodes now known on Aloha Central, of which there arc indications of six, will in no way be affected by the entrance of the Cardigan lode." Mr. C'osfello interviewed Mr. Theodore on the subject, and both parties have gone to Australia. Mr. Costello said Mr. Theodore suggested that the two companies should have a conference. Government Proclamation. The second surprise was even more pronounced when the Fiji Government issued the following notice in the Royal Gazette on Friday: — "There has come to the notice of the Government a statement published in the Press regarding alleged activities within the colony on the part of a company styled Nasivi (Fiji) Syndicate, N.L. Tho statement mentions a newly discovered goldiicld at Raki Raki, and it contains the following passage: 'The Hold has been inspected by the Mining Board of Fiji, and it is expected that it will shortly be proclaimed a gold area and that the company will be granted prospecting licenses over a largo portion of it. A tentative reservation has been granted to the company covering about 7000 acres. A director, Mr. G. M. Hume, visited the field at the end of July and on his return to Australia advised tho board to form a larger company to take over the whole of the syndicate's interests. Shareholders will reccivc a fully paid share interest in the new company and have an exclusive right to apply in a basis to be determined for the whole of the contributing issue. Tho share market reacted immediately to this new development and in midAugust the £5 shares (paid £2) were quoted on Melbourne exchange at £42.'

"The Government considers it to be expedient to make the following comments: (a) The Mining Board has not visited any area in the neighbourhood of Raki Raki; (b) on the information at present before it the Government does not propose to proclaim a gold mining area in the Raki Raki district; (c) the Government has hitherto been unable to see its way to grant any prospecting licenses in the Raki Raki district; (d) the Nasivi (Fiji) Syndicate, N.L., has received no tentative reservation or other concession from the Government." A summarised report of the Government Gazette announcement, as cabled to the Press Association, was published in the "Auckland Star" on September 7.