NEW GUINEA GOLD DREDGING.

Evening Post, Volume CXIII, Issue 31, 6 February 1932, Page 14

NEW GUINEA GOLD DREDGING.

An agreement has been concluded for the sale by Placer Development, Ltd Vancouver, to Bulolo Gold Dredging, Ltd., Sydney, of the Bulowat and. Burnside areas 'situated, immediately down stream from the Bulolo Company's dredging property, New' Guinea, Placer Development ■ Ltd., having drilled somewhat over 80 per cent, of the Bulowat and Burnside Areas estimates that 50 million cubic yards of gravel of an average recoverable gold content of approximately 32 gold cents per cubic yard can be dredged therefrom. It is believed that the untested ground will contain up to a further 10 million cubic yards of payable ground. Dredging costs including gold royalty aro estimated at about 12 cents per cubic yard. Bulolo Gold Dredging, Ltd. will complete the testing of the above areas and at once proceed to install thereon two electrically driven dredges each of ten cubic feet bucket capacity. The entire purchase consideration is payable to Placer Development, Ltd., in fully paid shares of Bulolo Gold Dredging, Ltd. Of the above consideration 75,000 shares will be allotted two months after the. first of the said dredges commences operating and a further 75,000 two months after the second, commences operating. After ■ dredging has proceeded for two years on the new areas a further allotment of shares to Placer Development, Ltd., in completion oE the purchase is contemplated. The number of further shares, if any, to be allotted will be dependent on the results obtained by Bulolo Gold Dredging, Ltd., from the drjlling of the untested portion of the Bulowat Burnside Area, and will also be governed by the actual gold recoveries and working costs on the original Bulolo Area and also on the Bulowat Bumside Areas now being acquired.

The sale agreement also provides for Bulolo Gold Dredging, Ltd., granting Placer Development, Ltd., the right to recover gold from an area of about ten acres located outside the Bulolo Dredging Area, and Placer Development, Ltd., is transferring to Bulolo Gold. Dredging, Ltd., two dredging claims to the west of the Bulolo Company's original holdings.