Crater Gold Mining is making good progress towards first gold production from the High Grade Zone (HGZ) project at its Crater Mountain project. The mining plant is being commissioned while rail and underground rail trucks are on site being installed ahead of mining.

The Application for a Mining Lease (MLA) with a Proposal for Development application was lodged with the Papua New Guinea Mineral Resources Authority (MRA) at the beginning of May. The HGZ is earmarked to commence production subject to the outcome of the mining lease application.

These applications were based on the results of mapping and sampling of an underground development drive and associated crosscuts excavated to explore the high grade gold mineralization at HGZ.

In support of the submissions to MRA, the company has completed and reported the results of 14 diamond drill holes at sufficiently close spacing to give confidence to geological and structural interpretation to enable modelling for a maiden resource and detailed mine planning.

It is the company’s intention to develop a small-scale but high-grade underground gold mining operation using hand held mining methods. Rail and underground rail trucks are on site to be installed ahead of mining.

Metallurgical processing will be by simple gravity concentration via crushing, milling with a wet hammer mill and concentration using a centrifugal concentrator. This plant has been acquired and is on site being installed and commissioned. The plant is of such a scale that in the initial phase it will be used for bulk sampling individual parcels of mineralized material currently stored on surface from the rock extracted during development of the drive and cross cuts.

The regulatory process for the MLA has progressed with ongoing consultations with the MRA while the necessary submissions have been made to the Department of Environment and Conservation for an Environmental Permit applicable to the proposed scale of mining.

A site visit by the Chief Mining Warden to consult with and inform the local communities and landowners was undertaken Friday, July 11. At the same time the MRA’s newly appointed Technical Assessment officer conducted a site visit and inspection.

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