After closing a private placement which raised more than $38 million, PNG Gold Corporation is looking to implement and rapidly advance the business plan for the Imwauna Gold Project on Normanby Island, Milne Bay Province. Management’s intention is to rapidly advance the project to a production decision by the second quarter of 2012.
PNG Gold has begun making arrangements to increase the number of drills on site from two to five by year end. In addition, there are numerous drill core samples awaiting assay results. It is the company's intention to provide an update on recent drilling by the fourth quarter of this year.
The company’s first priority is to put out an initial NI 43-101-compliant resource on the property by the second quarter of 2012. The decision to ramp up to five drills should greatly enhance the speed of delineation of potential for resources at Imwauna. Activity will include testing of the extensions along strike and at depth. The property has not yet been drilled beyond a depth of 150 metres.
The company has received several proposals from a variety of firms in regards to the underground development work to be completed on the project. The company will be selecting a contractor from one of those currently short-listed and work will begin once permitting is achieved and the scope of work defined.
The company has also received bids to start construction of a mine construction/operations camp. It is now concluding the selection process and aims to commence construction as soon as possible. As a priority, work will start in this area, and in other site related construction upgrades, such as roads.
Additionally, work is continuing on the pre-feasibility study (PFS) being managed by Lycopodium Minerals in Brisbane, Australia. The company has also retained independent mining and metallurgical consultants to assist it in this regard. The target date for completion of the PFS remains May 2012.
PNG Gold Corporation is the new name of International Silver Ridge Resources after completion of its business combination with NMC Mining Corp. PNG Gold holds a 50% interest in the Imwauna and Sehulea properties on Normanby Island and an option to acquire the remaining 50%.