A dispute between Gold Anomaly and New Guinea Gold (NGG) regarding an interest in the Crater Mountain project has been resolved. Gold Anomaly has now acquired a further 10% share in the gold project, in exchange for 31.25 million shares, taking its stake to 90%.
In November 2010 Gold Anomaly signed an agreement with NGG for the acquisition of its 10% interest. Since then, a dispute over the status of the agreement has delayed the transfer of the interest. The Papua New Guinea Mines Minister is now considering the deal for approval.
The Crater Mountain project takes in three exploration licences in the PNG Highlands, about 50km southwest of Goroka which is the regional centre for the Eastern Highlands province. It is a joint venture between Gold Anomaly and London-based company Triple Plate Junction.
Crater Mountain has been actively explored for more than 30 years for epithermal gold mineralization. These past efforts defined four main prospects: Nevera, Nimi, Awanita and Masi. Despite efforts from the company and the PNG Government, the Nevera soil anomaly continues to be mined by artisanal miners who have reportedly recovered 250kg of gold in shallow underground workings during the past five years.
Assay results announced last month from the latest two drill holes at the project extended the zone of copper-gold mineralization at the Nevera prospect. Highlights include 2 metres @ 3.89 grams/tonne gold from 594 metres and 2 metres @ 30.8 grams/tonne gold (essentially 1 ounce per tonne) from 898 metres.
Two new targets for drill testing have since been identified in the northwest quadrant of the area and at depth below the artisanal mining area where high grade high sulphidation quartz-pyrite-gold mineralization is extending.
Preparations are under way to recommence drilling and target both the porphyry copper-gold mineralization with an initial +1,000 metre hole, and high grade gold in the roots of the artisanal mining system with two shorter holes.