What the diggers are doing

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Part of The American Chamber of Commerce Journal

Title: What the diggers are doing
Language: English
Source: The American Chamber of Commerce Journal Volume XVIII (Issue No. 6) June 1938
Year: 1938
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Fulltext: June, 1938 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 21 What the Diggers Are Doing MINING BOOM CONTINUES: We are in the midst of a mining boom of no mean proportions, figured on a straight mining production basis. Whether or not the current stock market prices reflect this fact accur ately, or are still too high, is beside the point. We are speaking now of production. May operations of 27 gold pro ducers resulted in another all-time high. Excluding Mindanao Mother Lode, Tambis, and Ambassador, total output was P5,325,217.22, only P4,000.00 under the all-time high of April. The three companies men tioned were unreported as we went to press, but their production figures were sure to boost the total well over the P5,400,000.00 mark. Total output of gold for the year to date is now well over P25.000,000.00, around P5,000,000.00 more than the same time a year ago. As the year wears on, and new producers keep coming in, gold production fig ures for the Philippines will reach very respectable vgures indeed, as compared with other important pro ducing areas, although, of course, total production is now so high that there will not be any great percentage of increase. ATOK AND BIG WEDGE: That high grade ore owned by Big Wedge and extracted by Atok continues to pay and pay and pay. Both of these companies declared dividends this month of 10% each from their re spective share of the gravy. A study of their balance sheets shows that the dividends will still leave both com panies in a strong financial position, even discounting the fact that a part, at least, of Big Wedge’s assets are in jeopardy as a result of litigation. Atok is deliberately conserving its capital, we hear, with a view to possi ble investment in other properties. PAN-PHILIPPINES: Has dis continued work on its Paracale pro ject, for the time being. All of its energies are now concentrated on Treasure Island, and the Nayak prop erty of Quartz Hill. Payments on the option on the Paracale property are being kept up, however, and it is far from abandoned. Our operatives inform us that Pan Philippines is heavily interested in Quartz Hill, which, in turn, has the operat ing contract on the Nayak claims, JOUR NAL readers will recall reading a short time ago that it is hoped the Nayak pro perties will support a mill larger than the 25-ton unit originally contemplated. Be (Please turn to page 29) IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION T1IE AMERICAN CHAMBER OE COMMERCE JOURNAL June, 1938 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 29 is also used for the points of gold pens. Price is P200.00 per ounce. Ruthenium is so-called from the “Ruthcnians”—a little Russian people as coming from Russia, the metal having been found in the Ural mountains. A rare element of the light platinum group, found associated with platinum ores, and isolated as a hard, brittle, steel-gray metal which is very in fusible. Price is P80.00 per ounce, and, as in the case with the other rare metals, there is but little of it in the world. Two sets of samples, containing these rare metals, in addition to gold and platinum, were sent to England and U. S. A., in or der to obtain an offer and to find out what quantity is required, Mr. Hemady stated. What the Diggers. . . (Continued from page 21) this as it may, Pan-Philippines is making a definite success of Treasure Island. All of the staff houses, power house, and mill building are completed, and the 100-ton initial unit has arrived and is being shipped to the property. Ore is high grade, averaging close to the Big Wedge ore and in places even exceeding it, and it is expected that production will commence on or before September 1st. HAUSSERMANNAnnouncement was recently made that Benguet and Balatoc will increase their production capacity enormously in the near future. We un derstand that preparations have gone for ward toward this end for a year or more. We wish to remind our readers, however, that any conclusion that the management of Benguet is doing this with 1946 in mind is gratuitous, even in view of the fact that Benguet and Balatoc are both greatly con cerned over the possible outcome of the famous Balatoc patent suit, now in the Supreme Court for decision. The Attorney General emphasized in his argument before the court in that case that, should the court hold for Balatoc, it “would mean turning over the mining industry of the Philippines to foreigners’’. Admitted ly, Filipinos are not as important in mining here as they might be, but it is unfortu nate that the Attorney General chose to re gard Americans as foreigners. For this, and other reasons, it is important to the entire industry that the court render an early decision. Should Balatoc lose, there will be nothing for them to do but to ap peal to the United States Supreme Court. However, if a decision is not rendered be fore November 15th next, there is some doubt, we are told, as to whether they can appeal at all, under the wording of the statutes. SANTA ROSA; The flotation unit of 200 tons has been placed in operation on the property of the Santa Rosa Mining Company, in Mambulao. Operations to date have been largely of an experimental nature, on a reduced scale, although pro duction for May was over P100,000.00. Tests on representative ore indicate that a recovery of 97% of the gold values can be effected by selective flotation, producing a shipping copper concentrate and a low grade pyrite concentrate. The pyrite con centrate will be re-ground to minus 325 mesh, and cyanided, together with the flo tation tailings. Construction of the cya nide section of the mill is expected to be completed by July 1. Santa Rosa’s claims are being operated under a management contract with the Union Management Company. MARSMAN; San Mauricio and United Paracale hung up new high monthly pro duction figures during May, although the other three Marsman-managed producers turned in figures lower than for April. Total output of the five Marsman gold operations was Pl ,353,232.54 from 56,95S tons of ore treated and 336,520 cubic yards of gravel dredged. This total is the second-best monthly figure for the Marsman group. Meanwhile, United Paracale stockholders approved the action of their directors in arranging for termination of the existing financial arrangement with Marsman and Company, managers. The directors were authorized to take necessary steps to in crease the capital stock of the company from Pl,000,000.00 to Pl,300,000.00, and to permit Marsman nominees to subscribe to 1,941,176 shares at par value. This ar No matter what type and size of tractor you need INTERNATIONAL HARVESTER Builds It It is Important That you get the right kind of service on your machine/ during its entire life. As distributor in the Philippines, we are equipped to give instant service to any International Harvester machine that may need it. Our service facilities keep pace with our customer’s requirements, ready for any emergency at any time. A large stock or repair parts is always on hand. And every International mechanic in our employ has been trained to give expert service on factory-standard methods—'not only the best service for your tractor but the most economical as well. INTERNATIONAL HARVESTER COMPANY OF PHILIPPINES MANILA ILOILO . BACOLOD . CEBU . DAVAO . LEGASPI . BAGUIO CAGAYAN, MIS. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 30 THE AMERICAN CHAMBER OF COMMERCE JOURNAL June, 1938 rangement will supersede the present one, by which Marsman and Company has been receiving a substantial management fee and other perquisites. ROYAL GEKKO MINING SYNDI CATE: This investment syndicate held a special meeting a few days ago at the Univ ersity Club, to discuss a “new type of enterprise”. The membership is very small, being composed of a fc.v well to-do Manila businessmen. Organized in the early days of the boom, its units have gone against the trend, and advanced consistent ly in price. Original memberships were P100.00, and nominal quotations give sellers as demanding P150.00. As a matter of fact, however, no units are available at tliis figure. SORIANO: The Soriano group of three mines turned in an all-time high monthly production figure during May. Total gold output was ove.- the million-peso mark for the second time, running to Pl,032,330.21. Masbate Consolidated and /. X. L. both beat their previous reco'rds, while Antamok gained substantially over April. NIELSON: Thiago Consolidated and Paracale Gumaus reported their first pro duction last month. Tinago started its history with P21,000.00 produced from S50 tons of ore treated during May, while Para cale Gumaus recovered P20,089.38 from 2,160 tons. with the East Mindanao Mining Company, whereby up to 12 tons daily of Mapaso’s ore will be milled at the East Mindanao plant. The ore is high-grade, running around P100.00 per ton. Under the arrange ment, Mapaso will receive 90% of the gold, and 85% of the silver extraction, less P8.00 to P8.50 per ton for treatment. In addition, it is estimated that it will cost Mapaso around P7.00 per ton to ship the ore to the East Mindanao mill. The purpose of this arrangement, from the point of view of Mapaso, is to obtain enough income to pay for all operating ex penses during the development stage of the mine, pending completion of plans to erect a mill on the Mapaso property. Felipe buencamino, Jr., managing director, an nounced that development work has been very satisfactory this year, and stated that geologists and engineers estimate ore re serves at around Pl,700,000.00. SURIGAO CONSOLIDATED: A strik ing increase in the value of the mill heads was reported by this company for May. During that month, P68,607.00 was extract ed from 2,080 tons of ore milled, and the tonnage was for an average extraction of P33.00, as compared, with P19.50 per ton for April. How Things. . . (Continued from page 22) The following groups of stocks are con sidered as offering “near term attraction” in the sense that these industries not only will make relatively good earnings show ings this year, but will also share fully in cyclical recovery. Holdings of selected stocks in these groups should, therefore, be retained in full under present conditions, and recommended issues should be utilized for switching from less desirable stocks. Chemicals Containers Oil Mail Order and General Chains Variety Chains Stocks in the following groups are still vulnerable to intermediate downswings in stock prices. In the aggregate, however, this second classification includes industrial groups for which the expectation of better than average cyclical expansion in earnings appear warranted. At levels nearer the lows of the recent broad trading range or at a time when reversal of depression trends appeal's closer at hand, selected stocks in these groups would likewise merit Aircraft Mfg. Autos and Trucks Auto Parts Auto Tires and Electrical Equipment Industrial Machinery Non-Ferrous Metals Office Equipment Paper and Paper Products Refractories Steel and Iron Main Office: 343 T. Pinpin Tel. No. 2-39-36 KUENZLE & STREIFF, INC. MANILA CEBU ILOILO ZAMBOANGA Branch Office: 11-48 Isaac Peral Tel. No. 2-17-62 Tel. 2-32-51= i Carmelo & Bauerm ann, Inc. I---------- Lithograph ers P r i n t e r s Bookbi nders Box Makers 2057 Azcarraga, Manila. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL