Geopacific Resources has secured control of the Woodlark Gold Project in Papua New Guinea after obtaining 83% of Kula Gold. At this level Geopacific’s effective economic entitlement to Woodlark, including its JV interest, is 85% increasing up to 96%.
Geopacific’s resource and reserve estimates for the project are now entering the final stages and the company is beginning to unlock the upside potential.
Geopacific inherited over $150 million in historic spend on Woodlark, which included a wealth of drilling data from over 275,000 metres of drilling, much of it undertaken by Kula.
The Geopacific team has undertaken a rigorous process of review, validation and re-interpretation of geological data substantially increasing confidence in existing resources. This work has included 23,182 metres of new resource drilling at the Busai and Kulumadau deposits.
Two drill rigs are completing a series of holes designed to fulfil compliance requirements to meet JORC 2012 standards prior to updating resource calculations.
Economic studies designed to deliver a cost model for the calculation of reserve estimates are progressing with encouraging results.
The advanced stage of work on Woodlark enables Geopacific to continue drilling while economics studies are under way. Resource and reserve estimates are scheduled for release in Q1 of 2018.
Woodlark Island is surrounded by world-class gold mines.
Two mines neighbouring Woodlark and also located on islands, are Newcrest’s Lihir at 66 million ounces of gold in resources and St Barbara’s Simberi at 6 million ounces.
Woodlark’s existing deposits, historic and recent drilling successes, historic gold mining pedigree and numerous encouraging exploration targets provide a high level of confidence in its prospectivity. A process to start assessing the regional potential of the island has begun.
Geopacific’s managing director Ron Heeks said, “Woodlark’s bright future is coming into focus. We now control the project.
“We are pleased with how the resource and reserve estimates are shaping-up, reaffirming our confidence in Woodlark’s commercial potential. Now that we have this work in hand and have a greater understanding of the project, we are better equipped to intelligently unlock its true upside potential.”