GOLD MINING.

Lake Wakatip Mail, Issue 4327, 17 August 1937, Page 5

GOLD MINING.

NEW VENTURE AT MOONLIGHT,

! OPTION TO BE EXERCISED. The option acquired by two Australian companies over a Large alluvial area at Moonlight is to be exercised. The two concerns, Morobe Alluvials and New Morobe AlLuviaLs, will float a company with a nominal capital of £125,000 in 250,000 shares of 10s, and a prospectus will be issued shortly (says the Evening Star, Dunedin). On acquiring the option two mining engineers, Messrs E. T. Anderson and F. A. J. Carter, were despatched to the property. Following the presentation of their report the directors decided to exercise the option. The engineers reported that a very conservative estimate of the yardage available indicated that the companies had at least 45,000,000 i cubic yards of ground which could be treated profitably. { The area is confined to a valley ' through which the Moonlight river 1 flows. The water supply for sluicing i is said to be abundant. The overburden ’ varies from 100 ft to 180 ft in height, and consists of loose gravel of a light nature, free of clay. Owing to the deposit being a terrace and situated high above the present river channel, it is claimed that it will be possible to sluice away the whole of the over-burden by gravitation, which should result in low costsi. To. complete the water not less than £45,000 should be necessary. The new company proposes to install three' hydraulic sluicing units, and will treat at least 1,000,000 cubic yards of ground a year. The Moonlight river flows through the leases, and the water supply is reported to be abundant. It is expected that treatment costs will be low. On a capital of £125,000 net profit is estimated at £34,430 a year. These figures are based on the treatment of 108,860 cubic yards of material a month, averaging 2£gr gold a ton, at a working cost of 2d a cubic yard, and less New Zealand gold tax of 71 per cent. The life of the property on this bases would be approximately 42 year’s, with a total net profit of about £1,500,000. Should the option be exercised a new company with a nominal capital of £125,000 will be formed, and will acquire the assets of the Morobe Alluvials and New Morobe companies, which together include about £13,5000 cash. Morobe Alluvials has a threefourths interest, and New Morobe a quarter interest in the venture. Shareholders in Morobe Alluvials will be allotted one IQs contributing share in the new company, paid to 5s for each share held; and holders of New New Morobe shares will receive 20 contributing shares, paid to 5s each, for each share held.