Coco Grove dredging big fortune at Paracale

Media

Part of The American Chamber of Commerce Journal

Title
Coco Grove dredging big fortune at Paracale
Language
English
Source
The American Chamber of Commerce Journal Volume XVI (No. 1) January 1936
Year
1936
Rights
In Copyright - Educational Use Permitted
Fulltext
24 THE AMERICAN CHAMBER OF COMMERCE JOURNAL January, 1936 Coco Grove Dredging B More than PI 0,000,000 gross in ground yet to be surveyed: two [ The Coco Grove Placer Syndicate whose holdings are at Paracale, Camarines Norte, enjoying the operation of two dredges by Marsman interests, has a fortune in prospect from placer recoveries alone, while its lode claims are considered a distinct asset. What greater mining news than this, that really modern dredging of placer abandoned 14 years ago, is working out with great success? We say, none. The syn­ dicate has at its disposition 1,088 hectares of placer at Para­ cale, supplemented with lode claims, town lots, foreshore rights and other surface rights assuring unhindered operation. The placers comprise some virgin area, and other areas formerly dredged. These arc on the Malaguit and the Para­ cale rivers. The Paracalc yielded between P15,000,000 and P20,000,000 in gold during former dredging, that ceased 14 years ago. The lower and deeper portions were then left undrcdgcd because areas owned by many holders could not be purchased to make a single holding large enough to warrant installation of a dredge to reach the deep bedrock; the dredges then working were too small for this sort of thing. The syndicate’s holdings were acquired about 20 months ago when copra was low and the various owners were willing to sell; during 6 months of untiring effort, titles were got and all the surface rights covering the dredging area firmly secured. Meantime surveying had been undertaken, with drills, results being a minimum estimate of 35 cents gold per yard; but the drill experts say, at least 45 cents a yard. Results to date, Looking Over Lh Antamok Goldfields............... Baguio Gold........................... Balatoc..................................... Bcnguet Consolidated............ Benguet Exploration.............. Demonstration........................ Ipo Gold................................. Itogon....................................... I. X. L.................................... Masbate Consolidated........... Salacot..................................... Suyoc Consolidated................ United Paracale..................... Gold River.............................. January P 195,959 92,494 909,852 639,117 21,500 51,391 66,404 .195,706 33,716 51,702 62,555 February P 218,092 76,654 910,494 597,529 23,750 45,252 46,104 175,373 28,298 47,927 58,662 March P 243,463 75,363 1,053,834 614,555 28,478 72,800 44,807 185,117 37,132 50,962 63,523 April P 225,290 60,212 1,068,136 615,515 26,864 92,555 42,630 189,400 30,562 47,731 86,225 30,800 May P 236,383 69,985 1,060,594 676,833 20,400 96,639 38,997 205,982 33,864 75,879 91,957 June P 207,107 69,181 982,802 728,429 34,469 90,111 40,821 204,162 32,600 46,080 75,644 61,000 July P 271,797 74,1-57 1,125,761 826,697 23,063 79,585 43,746 209,174 27,857 65,808 77,448 102,628 P2,320,396 P2,228,135 P2,470,034 P2,515,920 P2,607,513 P2,572,406 P2,927,721 January, 1936 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 25 Big Fortune at Paracale u\r in sight with additional two dredges expertly staffed 14,328,000 cubic yards to yield gross P10,154,646 at today’s gold price of S35 per ounce. Considerable ground along the Paracale remains to be surveyed. The two dredges that J. H. Marsman rented from the Netherlands Harbour Works (renting saving a large outlay of capital) have dredged a channel from the sea to the Para­ cale in 15 weeks, a distance of 3,500 feet. Buffeting by storms has upped operating costs to about 8 cents gold per cubic yard, that dredging in the complete shelter now procured will materially reduce: engineers of the Netherlands Harbour Works estimate final costs during regular operation at 5 cents gold per yard. The dredges are the Hankow and the Rotterdam, each with an experienced crew and each equipped with gold-saving apparatus. There are not only experienced dredging crews, but ex­ perienced crews in the enginerooms, and two supervising mechanical engineers, and a civil engineer in charge of con-, struction. Daily surveys are made of past advances and* future routes; the floating pipeline equipment through which the dredges discharge up to distances of 1,500 to 2,000 feet is under constant supervision by experts. Thus staffed, and certain to draw continental attention to placer exploitation in the Philippines, each dredge has the capacity of 200,000 yards amonth; their ability to do this at Paracale has been proved, and therefore yearly handling of at least 3,500,000 yards is (Please turn to next page) fhe Year’s Work P2,529,260 P2,834,902 P2,911,353 P2,909,097 P3,198,310 P32,025,047 P23,491,839 August September October November December Total 1934 Total P 241,253 P 268,726 P 309,452 P 285,983 P 309,674 P3,013,177 Pl,295,436 Antamok Goldfields 63,673 914,223 72,130 68,634 76,375 80,990 879,848 927,056 Baguio Gold 1,027,426 1,121,049 1,146,062 1,232,596 2,552,833 9,405,363 Balatoc 804,266 848,213 756,103 695,484 836,921 8,639,667 7,943,427 Benguet Consolidated 16,300 19,660 82,266 17,732 27,635 23,969 283,820 188,014 Benguet Exploration 71,271 76,510 90,169 85,778 934,158 575,039 —•—• Demonstration 42,483 45,226 50,127 53,379 60,311 831,191 Ipo Gold 78,000 178,972 201,378 199,841 200,000 2,220,349 2,139,573 Itogon 41,653 53,957 41,192 44,961 42,975 448,767 — I. X. L. 79,138 81,326 98,420 87,208 95,771 827,952 761,779 Masbate Con. (Paniquc M) —•—• — ----- . 28,000 45,325 73,325 ----- - Sala cot 65,000 77,000 95,165 98,000 76,000 104,000 955,179 ----- - Suyoc Consolidated 112,000 80,000 75,591 80,000 587,219 —•—• United Paracale •----- ----- - — — — 30,800 — Gold River 26 THE AMERICAN CHAMBER OF COMMERCE JOURNAL January, 1936 assumed to be a conservative estimate. The following table results: 14,328,000 cubic yards containing.............. PIO,154,646 Extraction cost at 10 centavos a yard. . . 1,438,000 Profit........................................................... P 8,716,646 Or cost at 20 centavos (add 100%)................. 1,438,000 Reduced profit........................................... P 7,278,646 At the rate of 3,500,000 cubic yards a year, the operating time would be about 4 years to extract net either a maximum of P8,716,646 or a minimum of P7,278,646. There remains, however, untested ground and a deposit of tailings on the Paracale summing several million yards; and partial test of the tailings indicates 6,000,000 yards containing P2,500,000. Then there is left the Malaguit river draining a much more extensive shed than the Paracale and therefore having a larger placer potential, at least 30,000,000 yards. More than 2,000 borings were made in this area during- the former dredging, and further drilling has now been begun for the syndicate; the most promising areas will be thoroughly tested within 6 months. The former dredging averaged 17-1/2 cents gold recovery per yard, 30 cents gold at present valuation; though values arc lower than in the Paracale area, they arc still attractive when the efficiency of the dredges now in operation is taken into consideration. Actual gold recovery began in December and is expected to continue without interruption. The primary objective was to get the dredges to safety as soon as possible, and therefore the richest deposits have not been reached: the next 4 months’ operations will be in the poorer areas, yet a good working profit seems assured even here. In other words, all obstacles have been cleared and dredging at capacity has been begun on expected recovery in the two districts, Paracale and Mala­ guit, of gross P 17,500,000 at the present valuation of gold. As to the lode claims, they are 17 in number; in the heart of the Paracale mining district, they cover almost the entire Paracale valley. Former dredging cut one or two rich veins, and exceedingly rich samples from the softer portions of these veins are still exhibited at the science bureau. In time the new dredges will cut the same ground, and indications then obtained will show what ought to be done as to exploiting the lode deposits. It is extremely fortunate for the Philippines that the new dredges were obtained, and that these placers, competently surveyed, are being consistently worked. With such placer profits in sight, let the lode take care of itself. Among Marsman engineers who have worked on this project arc J. 0. Greenan and George W. Kerr. Men of the Mines J. O. Enberg, member of the mine consultation staff of Marsman and Company, expected back in Manila after an extended vacation in the United States, will probably be stationed in Baguio, officials of the company announce. F. G. Joaquin has resigned his position with Suyoc Con­ solidated, and is now general superintendent of the Makawiwile Mines in the Baguio district on the Benguet Explora­ tion road. Frank E. Berkenkotter, University of Washington graduate, recently joined the staff of Benguet Exploration, in charge of development work. G. H. Davis, mine shift boss at Baguio Gold for the past 2 years, planned to leave the Islands this month and return to the United States. George M. Icard, veteran mining man, left the Islands in December for California, where he has interests in Grass Valley. James L. Hall, formerly resident engineer in charge of opera­ tions at the Consolidated Mines property in Zambales for Benguet Consolidated has been appointed general super­ intendent of Ipo. He replaces W. G. Donaldson who resigned recently to become affiliated with Consolidated Mines. R. C. Eilinger of Baguio has joined Itogon’s staff. Ten members and one guest attended the January meeting of the Colorado School of Mines Alumni Association, Phil­ ippines branch, Wednesday, January 15, at the Pines hotel. The Coloradoans and their friends will hold a beach party at Long Beach, Bauang, in February, it was decided at this meeting, probably on Sunday, February 9. Those present at the meeting included J. O. Blades, of the Ingersoll-Rand Company, Manila; R. H. Wells, L. W. Lennox, W. T. Graham, E. C. Rice, C. W. Burgess, W. E. Heinrichs, E. C. Bitzer, H. B. Parfct, L. W. Buchanan, and R. Keeler. George A. Bell assumed his duties as mill superintendent at Demonstration Gold Mines on the first of the year. Mr. Bell has been assistant mill superintendent at Benguet Con­ solidated for some time, and was acting mill superintendent during the absence of J. M. Morris recently on vacation. He has had extensive experience in milling. He was educated at the University of Kansas, which he attended during the period 1914-17, studying for the degree of chemical and metal­ lurgical engineer. From 1920 to 1924 he was in Monterey, Mexico, for the American Metal Company. For eight years, from 1924 to 1932, he was in the employ of Phelps-Dodge, in Ajo, Arizona, in various capacities. He was chief chemist of the leaching plant, foreman of the leaching plant, and for four years was chief metallurgist. He came to the Islands in the spring of 1933 to join Benguet. GORDON W. MACKAY MEMBERS, MANILA STOCK EXCHANGE C. F. McCORMICK BAGUIO OFFICE CHAMBER OF COMMERCE BUILDING Mackay & McCormick SHARE BROKERS CABLE ADDRESS “CIMROC" TELEPHONE ' 2 PLAZA MORAGA P. O. BOX 2-15-57 2688 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL