Gold Anomaly has increased its stake in the flagship Crater Mountain Gold and Copper Project to 100%, acquiring the interests owned by Triple Plate Junction (8%) and Celtic Minerals (2%).
Gold Anomaly paid Aus$250,000 for the 10% stake, which is subject to approval of the Papua New Guinea Mines Minister.
The company’s chairman Greg Starr says the move to secure full ownership of Crater Mountain will facilitate ease of administering and managing the project, while also making it more attractive to potential joint venture partners.
Crater Mountain takes in three exploration licences in the PNG Highlands, about 50km southwest of Goroka, the regional centre for Eastern Highlands province. It hosts an inferred 790,000 ounces of gold and a further 100,000 ounces in a high-grade zone where small-scale mining could be undertaken.
The site 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.
“We recently announced our intention to use the proceeds of a fully underwritten $6.9 million rights issue to arrange the required regulatory approvals, develop an exploration adit and commence small scale production at the high grade zone,” said Greg Starr. “The cash flow generated from this zone will finance ongoing drilling and exploration at the project.”