Coppermoly (ASX: COY) has begun field preparations in order to begin drilling for copper, gold, molybdenum and silver at the company’s Simuku Project in Papua New Guinea.
Simuku holds and Inferred Resource of 200 million tonnes copper at 0.36% containing 700,000 tonnes copper; 12,000 tonnes molybdenum; 12 tonnes gold and 391 tonnes silver.
Over 200 rock chip samples were taken at the Kulu Prospect within Simuku in November 2010 and had average grades of 0.11% copper ranging from 123 parts per million (ppm) to 6,890ppm.
The results from the samples are consistent with historical surface sampling and drilling results.
Exploration at the project is being managed and funded by Barrick Gold (NYSE: ABX) which allows Barrick to spend A$20 million to earn a 72% stake in three projects including Mt Nakru, Simuku and Talelumas over eight years.
Barrick subsidiary Barrick PNG Exploration spent A$9 million in 2010.
Coppermoly managing director, Peter Swiridiuk, said “We look forward to a continued exploration and drilling program this year which will continue to improve the value of the projects.”
The project is located on New Britain Island in Papua New Guinea within an hour’s drive by 4WD to existing infrastructure and a deep water port.
Simuku has a footprint of 47.84 square kilometres.