It means that the Monarch exploration tenement has been granted to Papua for a five-year period.
The area is located in a region that’s relatively rich in gold mining – it is some 10 kilometres from the Charter Towers area which has yielded some 6mln ounces and 8.5 kilometres from the Mt Leyshon Gold Mine, which has produced 4mln ounces.
Papua highlighted that, within the Monarch area, there are more than 25 historical mine workings that are prospective for gold and silver, including one area (referred to as Mabel Jane) which, according to records, produced 298 ounces of gold from 220 tonnes of material. That would equate to a significant average grade of 45.73 grams per tonne gold.
David Price, Papua Mining chief executive, said: “Monarch hosts high-grade gold targets which appear similar to Double Event and Lower Lighthouse Prospects within the Lighthouse tenement.
“Papua will advance these prospects rapidly with an initial rock and soil sampling program, followed by RC drilling to test the veins at shallow depths.
“The Monarch veins haven't been drill-tested, so opportunity exists to discover a narrow, high grade, near-surface gold resource."