Geopacific Resources has mobilised its geological team ahead of schedule to begin work on the Woodlark Gold Project in Papua New Guinea. The team arrived on Woodlark Island this week and is making preparations for the development drillout with three drill rigs scheduled to arrive shortly.
Geopacific’s task is to deliver a 1.2 million ounce gold resource by spending a maximum of $8 million, which will see it earn 51% of Woodlark.
This will be achieved through a development plan combining a selective development drillout; optimising metallurgy and process plant design; and rebasing both CAPEX and OPEX costs.
The development drillout is focused on the Busai and Kulumadau deposits, specifically around converting a portion of the 800,000 ounces of inferred mineralisation into measured and indicated categories.
Geopacific does not need to find any new mineralisation to achieve the reserve target and will therefore only be focused on development drilling within the current resource area. The larger mineral endowment will be tested after the immediate development goal has been achieved.
The company’s managing director Ron Heeks said, “We’ve been gearing up to begin development work at Woodlark. The team is now on the ground and getting everything prepared ahead of the arrival of the rigs.
“The executive team is heading to Woodlark next week to support the drilling program and meet government ministers on the island.”
Geopacific’s aim is to maximise the development potential of Woodlark in the shortest possible timeframe by delivering an economic reserve which is of sufficient scale to be attractive to mine development financiers.
The current resource is 45.1 million tonnes @ 1.5 g/t gold for 2.12 million ounces, including 26.7 million tonnes for 1.32 million ounces of measured and indicated and 800,000 ounces in inferred.