Geopacific Resources Ltd (ASX:GPR) has made strong progress across its exploration and development operations at Woodlark Gold Project in Papua New Guinea, with strong upside potential identified.
To date, Geopacific has received results from the initial six holes in a grade control reverse circulation (RC) drill campaign on Woodlark Island with best results of:
- 080KUL159 with 29 metres at 7.6 g/t gold;
- 080KUL158 with 31 metres at 6.7 g/t;
- 080KUL172 with 50 metres at 4.6 g/t;
- 080KUL173 with 44 metres at 4.7 g/t; and
- 080KUL171 with 41 metres at 3.9 g/t.
On the development front, progress continues with the essential development work packages including the construction of the permanent camp, community relocation, engineering and the process plant ground preparation.
“Significant upside potential”
Geopacific CEO Tim Richards said: The initial grade control drill results are extremely pleasing and support our view that there remains significant upside potential at the project both within the existing pits and more broadly across the mining lease.
“With the impending arrival of the second drill rig, the drilling campaign will begin focusing on defining near pit potential concurrent with development activities.
“These early results highlight the possible upside that exists to add further mineral resources, and eventually ore reserves with the potential to significantly enhance the metrics of the project.
“I look forward to updating the market on our exploration and development activities in coming periods.”
Grade control drilling
Geopacific’s drilling campaign is being undertaken to refine ore zones in advance of mining and to provide certainty around early production.
While samples from a further 18 holes (1,200 samples) are at the laboratory in Lae, PNG, pending assay, the initial results compare favourably with the resource model which has an average grade of 1.04 g/t gold.
Notably, the drilling campaign remains active on-site with a 20,000-metre grade control and near pit extension drilling campaign underway and a second drill rig scheduled to begin drilling in early March quarter 2022.
Exploration drilling
Post completion of the grade control drilling, the RC drill rig will move into exploration drilling with an anticipated 40,000 metres of exploration drilling budgeted in 2022:
- Exploration drilling will be focused on the significant near pit exploration potential previously inaccessible due to the proximity of community;
- All three planned open pits at the Woodlark Gold Project are open at depth and laterally; and
- The current pit shells are constrained by data and not economics and an extensive drilling campaign has the potential to add additional in-pit ounces, reduce strip ratio and increase the life-of-mine production.
Development progress
Progress continues with essential development work at Woodlark with key updates including:
- Earthwork activities to prepare the CIL tanks foundations is progressing with the placement of geotextile and fill material;
- Geotechnical drilling has been completed for the wharf validating the revised location;
- Earthworks completed for the permanent camp, with flat-pack buildings scheduled for delivery to the island in early March quarter; and
- GR Engineering Services engineering of the process plant over 70% complete; and continued community relocation program with over 50% of buildings complete.
Wharf access road and Geotech drilling
Work program
Geopacific’s work program to review the project development schedule and cost estimate is continuing with key updates including:
- Consistent with the experiences being noted more broadly across the resources industry, cost increases continue to be observed for several key project-related activities;
- Additional internal resources with extensive project development experience have been secured to assist with the review of all development assumptions, work packages and cost drivers and a number of these individuals will then join the Project Execution Team;
- Tender documents are being released for the revised wharf solution and deep-sea tailings line to firm up these cost components; and
- The board plans to engage a third-party technical reviewer to assess management’s proposed revisions to the project execution plan and the resulting costs to complete.