Kainantu Resources Ltd (TSX-V:KRL) told investors it has made the post-closing payment of US$500,000 to Harmony Gold Exploration Ltd for the release from escrow of the tenement transfer documents for the Kili Teke gold-copper project in Papua New Guinea.
The company gained full ownership of the project in September and CEO Adam Clode said it will now undertake an optimisation study and establish an objective framework to complete a preliminary economic assessment over the next six months.
Following that, it plans to commission a broader economic study that will most likely involve in-fill drilling amongst other technical assessments.
“As a smaller company we are focused on evaluating an accelerated path to revenue and appropriate returns for a high-grade, moderate throughput open pit mining operation,” Clode said in a statement.
“This objective will be supported by near-site and regional exploration, building on existing work and targets identified as part of our analysis. The board and executive team of KRL are committed to adding value for its shareholders, the landowners, the government of Papa New Guinea and the country as a whole."
Kainantu, or KRL, is an Asia-Pacific-focused gold mining company that operates four promising gold-copper projects in Papua New Guinea: Kili Teke, KRL South, KRL North, and the May River Project.
The projects, situated in renowned mining regions, exhibit potential for high-grade epithermal and porphyry mineralization.
Kili Teke, in particular, is an advanced development project with an existing inferred mineral resource.
Contact the author at stephen.gunnion@proactiveinvestors.com