Tolu Minerals Ltd (ASX:TOK) recently updated the market on progress at the Tolukuma Gold Project in Papua New Guinea (PNG), as the company continues exploration across the project area and works to refurbish the mine and infrastructure.
The company summarised its progress made during the June quarter, which featured:
- Continuation of the maiden diamond drill program at Taula.
- Commencement of Expert Geophysics Ltd Airborne Magneto Telluric survey over Tolu’s entire tenement package.
- Material progress on the camp and site refurbishment.
- Initial dewatering started using a syphoning technique.
- Ordering of gravity circuit process plant.
- Concluding key service contracts.
- Successful recruitment of key management and operational staff.
- Continued progress on roadway construction since it commenced in early December.
The Tolukuma Project
The Tolukuma Project — including the Tolukuma Gold Mine, one mining lease and several strategically important exploration licences (ELs) across the Tolukuma structural corridor — spans 1,090 square kilometres in the Goilala District of Central Province of PNG.
Tolu also owns the Ipi River Prospect, a 423 square kilometre area northwest of the Tolukuma ELs, highly prospective for various mineralisation types; and the Mt Penck tenement, a 204 square kilometre area with copper and gold targets within the productive Kulu Simi trend on New Britain Island.
When Tolu listed on the ASX on November 10, 2023, it raised A$17.3 million in its IPO. The IPO was a significant step in the exploration and development of Tolu's extensive exploration portfolio, leveraging the redevelopment, infrastructure and mineral resources of the Tolukuma mine.
The company secured a contract to complete the Tolukuma access road for A$4 million, with A$2.2 million payable in stock at the IPO price of A$0.50.
Tolu raised a further $8.8 million in April 2024 via a placement at $0.50 per share. The proceeds were used to accelerate exploration activities, specifically the airborne magneto telluric (MT) survey and follow-on drilling, and support exploration activities.
The company held $11.6 million in cash and cash equivalents at the June quarter end.
Operational strategy
Tolu’s operational strategy at Tolukuma is based on four key work streams:
- Operational restart of the Tolukuma Gold Mine, including site and equipment refurbishment to support exploration and future operations, conducting required implementation studies and costing and commissioning of bulk sampling through to first gold production
- Development and drilling to uplift and expand current inferred MRE resources within the immediate mine workings to support start-up. Tolu sees numerous short-term opportunities to expand the MRE within the very prospective Southern section of the mine.
- Exploration of the regional tenements, surrounding the Tolukuma mining lease, including the airborne magneto telluric survey; and
- An early works program consisting of the development of a 70-kilometre access road, hydropower station and site access roads.
Airborne magneto telluric survey
Tolu commenced the airborne MT geophysical survey in June to cover the Tolukuma mining lease and surrounding tenements, Ipi River exploration licence to the northwest of Tolukuma and the Mt Penck tenement area on New Britain Island.
The results will enhance the existing extensive database of technical information including airborne and ground geophysics, geochemistry, historical drilling results and geology.
New targets are expected to be interpreted that will require an ongoing field exploration program of geological mapping, sampling and drill testing following on from the completion of drilling at the Taula prospect. Airborne MT resistivity data will be modelled to help provide a more accurate guide to depth and location of drill targets.
The MT survey will greatly help in identifying a new generation of geophysical targets to complement historical work related to gold and copper-lead-zinc mineralisation for ground follow-up and drill testing. Airborne MT has already been used with good success at K92 in PNG.