PNG Gold Corporation has received correspondence from the Papua New Guinea Mineral Resources Authority indicating that applications filed by the company seeking renewal of exploration licences for the Sehulea and Normanby prospects on Normanby Island in PNG’s east have been refused.

In a statement PNG Gold said that this action on the part of the authority had come as a complete surprise to the company as it had previously renewed the licences without any issues.

“Indeed, the company completed a work program in November 2015 and earlier this year its representative met with various parties in Papua New Guinea who indicated no issues with the licence renewal process.

“The company has instructed its in-country legal counsel to contact the authority to discuss the matter,” according to the statement.

EL 1091 for the Normanby property covers 68sqkm and includes the company’s flagship prospect, Imwauna, the neighbouring prospect of Kelas, and the untested prospects of Wahola, Dimwadimwala, Ebessowa, Mwatebu, Knob and Salupa Awa.

The Sehulea property, 10km east of the Normanby property, covers approximately 30.5sqkm in two separate blocks. Both properties were acquired by PNG Gold under the Normanby property transaction with New Guinea Gold.