Pacific Niugini has terminated the Garaina farm-in agreement with MGL Limited. Although MGL had expended a large portion of the $6 million requirement and advanced the project knowledge, they failed to meet the minimum requirements to earn any interest in the project.
Pacific Niugini retains a 100% interest and is in discussions with new parties regarding the project after receiving a number of approaches.
Work completed on the project to date has confirmed significant epithermal gold and copper-gold porphyry mineralization in a classical transfer fault break through the Owen-Stanley Ranges.
The board is considering options for the further development of Garaina, while focusing on the successful development and operation of the Nicolsons Mine near Halls Creek in Western Australia. This remains on track to start production in the third quarter of 2015.
Pacific Niugini operates through a wholly-owned PNG based company, Pacific Niugini Minerals (PNG) Ltd, which operates a solely Melanesian team of specialist geological staff with extensive PNG experience and is headed by geologist David Osikore who is also executive director of Pacific Niugini Limited.