GOLD FEVER

Hokitika Guardian, 29 August 1929, Page 8

GOLD FEVER

NEW GUINEA’S LURE.

SYDNEY, August 15.

Though the gold mining industry in Australia has been dormant for many years, owing to the absence of any important strikers, gold has lost none of its lure lor the Australian speculator. The important discoveries that have been made in New Guinea during the last 12 months have attracted many prospectors to the territory, and nave resulted in the investment ol a large amount of Australian, British, and American capital. Mr Leslie Urquhart is tlie head of the largest group, in which millions of pounds are invested, and in which English investors hold a very large interest.

Placer Development Company, which acquired the New Guinea Gold Company’s leases at Bulolo, is another important group, and in this organisation American interests predominate. Tests of the area have given ever more encouraging results than were anticipated, and shares are regarded more in the nature of an investment than a speculation, though months must necessarily elapse before the properties can he effectively worked on a large scale. Smaller companies are 1 now being formed, particularly in Sydney, where the ra.e.of flotations was for a time almost one a day. And “go-get-ter’’ methods were riot necessary to dispose of the shares. Practically -in every instance the shares available to the public have been taken up within a few hours, and in the majority of cases they have been sought at a premium in the vestibule of the Stock Exchange, though they cannot be listed until the scrip has been issued and the articles of the conipany examined. Within the last week the following companies have been floated in Sydney:— ; Mount Lawson Extended, capital 30-irf, 000. Mount Lawson Blocks, capital £48,000. Oba River (Papua) Gold, N.L., £25,U00. Sloan’s New Guinea Gold, N.L. ■ Bay Dawn Blocks, N.L., £60,000. Aukurana New Guinea Gold, N.L., £30,000. North-East New Guinea Gold, £50,000. Orioma New Ltd.

North E'ast New Guinea Gold was formed only the other day, and within a few hours applications were received ror 207,000 shares, though only 140,000 were available for issue. The draft prospectus -stated that “a big gold strike had recently been located in North-East New- 1 .Guinea. The alluvial find is loz gold- £o the cubic yard, and tne reef, which.us about 30 miles distant, shows specimen gold.’’ Though Sydney capital is being cliiefly invested in these new flotations, interest is being displayed in the other States, and now many enquiries are coming from New Zealand. Whether the results will justify a. large number of companies coming into existance is a matter which only the future can tell. Certainly the prospects are very rosy, for already thousands of pounds worth of gold have been brought to Sydney by the New Guinea boats.' The gold is there, and, it is claimed, apparently with some justification, that the surface has only, been scratched. The large, companies are prepared to work on a much more extensive scale. Three aeroplanes are at present engaged in maintaining a service from the coast to the fields. Now a report is to hand from the Solomon Islands that the first trace of gold has .been discovered there. “There is a boy at x the door with a tin of dirt with some specs in it, and he wants a shilling for it,” said Mrs Newall to her husband lone Sunday morning. The hoy made history, for Mr Newall said that subsequent events showed that it was the first gold discovered at the Solomons. Mr Newall said that an essay of the tin. in Sydney had led to his pegging out 1500 acres in partnership with Captain J. R. Patrick, the Sydney ship owner, who defined the associated owners and reduced freight charges. It is proposed to form a syndicate so that the area can be thoroughly tested. It is pointed out that the discovery of gold would mean a great deal to the islands, as the low price of copra is causing depression.