BDI Mining has completed an internal scoping study, using external consultants, to assess the viability of developing its 100%-owned Woodlark Island gold project in Papua New Guinea.

The study has demonstrated the feasibility of an 80,000 ounce per year open cut mining operation with an initial mine life of four to five years. Average cash costs have been estimated at $300/ounce, with an average open pit grade of 3 grams/tonne. Inclusive of all contingencies, it is estimated that capital costs would be in the region of $45 million.

More than 80% of the contained gold is free milling and there is free-digging ore at Kulumadau to a depth of 90 metres. Open pit strip ratios are favourable averaging 6:1.

The company is "highly confident that the initial five-year mine life will be extended through further exploration of several identified, but as yet untested, drill targets over many areas within the company's existing tenements on the island.

BDI Mining is currently evaluating the start of a full feasibility study as the next stage in the continued development of the project. Accordingly management is in discussion with a number of parties regarding the funding of the feasibility study and anticipates proceeding with the next phase of the project by the end of this year. www.bdiminingcorp.com

News sourced from International Mining Project News - www.im-mining.com