Geopacific Resources Ltd (ASX:GPR) has begun exploration drilling at its core Woodlark Gold Project in Papua New Guinea, intended to explore the size and depth of the deposit more thoroughly and potentially upgrade the 1.6-million-ounce resource.
QED Exploration Drilling has been contracted to complete the exploration project, the first phase involving a combination of more than 20,000 metres of grade control and near pit extension drilling to be completed by the end of 2021. It represents the first RC drilling campaign undertaken at Woodlark since 2018.
Initial drilling will be focused at and around the Kulumadau pit to further delineate and refine the resource prior to first ore mining.
"Enhanced grade control"
“The commencement of an extensive drilling campaign will provide enhanced grade control for the initial mining plans for the high margin Woodlark Gold Project,” Geopacific Resources CEO Tim Richards said.
“There remains significant exploration potential at the project and the exploration drilling will focus primarily on defining near pit potential as well as defining other targets in our mining licence area in due course.
“The ability to add further ore reserves will significantly enhance the metrics of this already high returning gold project. I look forward to updating the market on our exploration and development activities in coming periods.”
Read: Geopacific Resources moves confidently first gold pour at Woodlark Project in 2022
Share price higher
News of the resource exploration and potential upgrade pushed GPR shares higher, with a gain of 3.45% to $0.30 a share with a market cap of approximately A$150.58 million before the opening today.
GPR is a gold-copper development company with a portfolio of assets in the Asia-Pacific region. The company’s main focus is developing its Woodlark Project.
Next phase explores three new pits
After grade control drilling completes, Geopacific anticipates a further 40,000 metres of exploratory drilling to be budgeted on a phased basis through to Q4 2022.
New near pit opportunities have been made available following the relocation of all community households in the immediate proximity of the mine.
The three planned pits are open at depth and laterally with current pit shells constrained by data rather than economics. An extensive drilling campaign has the potential to add additional in-pit ounces, reduce strip ratio and increase the ‘life of mine’ production.
Visible gold at surface
GPR plans to continue its exploration efforts into the long term. Exploration of the broader Mining Lease potential is scheduled to commence once existing pit limits have been fully defined. There are numerous high-grade prospective targets within the Mine Lease with visible gold at surface.
Construction and development activities will also continue at the project, with engineering and construction contractor GR Engineering Services already mobilised to site with contract finalisation anticipated shortly. Long lead time equipment has been ordered.