Geopacific Resources (ASX:GPR) has increased the mineral resources at the Woodlark Gold Project in Papua New Guinea to 48.3 million tonnes @ 1.07 grams per tonne of gold for 1.67 million ounces of gold.
The cut-off grade of 0.4g/t gold is consistent with the assumed open pit mining method, and with the recently reported Woodlark Scoping Study, confirming the technical and financial merits of the project, which is forecast to generate strong operating margins and significant free cash flow over 12 years.
Geopacific Resources, which has a market capitalisation of $20 million, says the increase stems from compiling and interpreting historic drilling at two satellite gold deposits, Great Northern and Wayai Creek.
CEO James Fox says the latest increase in mineral resources shows the project is capable of generating strong financial returns for its stakeholders over a long-life operation.
“The addition of new gold resources at Great Northern and Wayai Creek, highlights the potential to enhance the overall project value at Woodlark,” Fox says.
“Various technical and environmental studies to support the project development are well underway, and planning for a new drill campaign is being progressed to target extensions to known, high-grade, near-surface mineralisation with substantial resource growth potential.
“We look forward to continuing to identify and progress opportunities to derisk and advance the project.”
Geopacific Resources adds that more drilling and technical work is required for inferred mineralisation to be considered as a potentially economic feed source for the project, or for any inclusion in future studies.
Beyond the Woodlark resource estimate, the company says substantial gold resource growth potential exists.
Near-surface priority growth targets areas continue to be assessed, including at the Little MacKenzie gold prospect, where a considerable surface mineralised footprint of up to 1km strike extent has been traced, and is supported by existing open drill intercepts.
Additional drilling is required at Little MacKenzie prior to any resources being estimated.
Field mapping will continue over areas that have favourable host lithology, complex magnetic responses, favourable structures, and anomalous geochemistry, each with the potential to host economic gold mineralisation.
Geopacific Resources aims to confirm existing data to support further testing through trenching and drilling. The company is planning for this program to begin later this year.
Geopacific Resources is a gold and copper developer focused on its portfolio of assets in the Asia-Pacific region.
Write to Aaliyah Rogan at Mining.com.au
Images: Geopacific Resources
