Siburan Resources (ASX: SBU) is expanding its presence into a highly mineralised region of the world containing world scale gold and copper mines, Papua New Guinea.
The company and joint venture partner RH Resources have applied for three exploration licences in the region, one of which returned impressive samples of up to 94.6 grams per tonne (g/t) and 56g/t gold from previous pan concentrate sampling.
Papua New Guinea is ranked as the eleventh largest gold producer in the world and is also a large copper producer.
The region hosts several multi-million ounce gold deposits including Barrick Gold Corporation’s (NYSE: ABX, TSE: ABX) Porgera and Newcrest Mining’s (ASX: NCM) Lihir, along with the OK Tedi copper mine.
Rossel Island Project
The first exploration licence is about 512 square kilometres and covers all of Rossel Island in the Milne Bay Province.
Previous pan concentrate sampling indicates widespread gold in drainages across the island. Impressive samples of up to 94.6 grams per tonne (g/t) and 56g/t gold were returned.
A single drainage channel on the central north coast returned several samples of above 15g/t gold, while a distinct copper anomaly over the eastern end of the island has been outlined with associated zinc.
Copper and zinc were the main pathfinder elements for gold mineralisation on the adjacent Misima and Sudest Islands, where epithermal gold and silver mineralisation was the dominant style.
The Misima mine, which is now closed, produced 3.7 million ounces of gold and 18 million ounces of silver over its 14 year life.
The Garaina Project, which covers 697 square kilometres, is located within the eastern Morobe Province.
The project area is believed to be prospective for a range of precious metals, including gold and platinum, and for base metals, copper, zinc and nickel.
In Garaina a compilation of public domain data indicates the presence of an extensive fault zone, which is expected to be a conduit for mineralisation within the project area.
Siburan expects the joint venture to be granted this licence in the latter half of this year.
The final exploration licence, known as the Rigo project, covers 1,355 square kilometres, 70 kilometres to the southeast of Port Moresby.
Previous exploration has outlined anomalous copper zones which are prospective for porphyry style copper deposits.
Siburan-RH Resources JV
Under the joint venture partnership, RH Resources holds the majority 70% stake while Siburan holds the remaining 30%.
RH Resources is associated with Malaysia's Rimbunan Hijau Group, one of Malaysia’s largest multi-industry companies.
It has established a successful presence in Papua New Guinea for 22 years. The group was established in 1975 and has an estimated annual turnover of more than US$1 billion, according to the Malaysia-China Business Council.
RH Resources is a major shareholder in Siburan with a 12.01% share after taking a placement of 10 million shares as part of a capital raising.