Geopacific makes new gold discovery in PNG
Geopacific Resources has highlighted the blue sky potential of the significant gold field surrounding its Woodlark project in PNG with the discovery of an exquisitely placed, new gold zone, just 100 metres north of an existing deposit.
In a report this week to the ASX, Geopacific said recent drilling had confirmed the discovery of a shallow new gold zone known as Boscalo, adjacent to the Kulumadau East deposit.
Impressive new assays from Boscalo include a 12 metre intersection grading 7.45 g/t gold which included 6m @ 13.41 grams per tonne from just 76m down-hole. Other good results are 20m @ 1.77 g/t and 7m @ 5.25 g/t.
Geopacific recently acquired a controlling stake in the Woodlark project after a previous operator had sunk $150 million into the project and secured environmental and mining approvals before running out of cash.
As part of their strategy for control, Geopacific took over the previous operator of the project and may now have access to significant tax deductions when they finally get the project into production.
The company has now completed more than 28,000 metres of its own drilling at Woodlark to validate and upgrade previous results to JORC 2012 standards.
Boscalo was first identified by several broad and high-grade intercepts in June with the best hole going 18m @ 8.99 g/t gold. At that time it was interpreted as an extension of the Kulumadau East deposit, which is within a pit shell proposed by the previous operator in 2012.
Follow up drill testing has shown that Boscalo is actually a significant new gold zone, currently delineated over a 200-metre strike length and remains open. In addition to the main zone, a parallel zone of mineralisation between Boscalo and Kulumadau East has also been identified.
The proximity of Boscalo and the parallel zone to the Kulumadau East deposit suggests there is potential to include the newly discovered gold zones into future pit designs.
Geopacific has drilled 45 holes to date at Boscalo, with assay results still pending for 22 holes. The majority of holes have been drilled to a relatively shallow depth of 120 metres with some holes reaching 140 metres. Drilling continues at Boscalo and the parallel zone to fully delineate the mineralised zones in these areas.
Managing Director, Ron Heeks, said: “It’s always encouraging to make a new discovery and it shows the fantastic opportunity we have to elevate our regional exploration program, by leveraging the discoveries made in the past and uncovering new zones of gold mineralisation currently hidden beneath the limestone veneer. We already know the gold is there, it’s a matter of studying the data to establish which areas present the most attractive targets for our ongoing exploration program”.
Woodlark Island lends itself well to mining. It is a relatively flat lying island and has a local population that can be called on to provide manpower for a mine.
A more skilled work force could also be imported quickly and easily from the Northern Territory or Queensland.
Woodlark also has its own port that could be upgraded to handle a mining operation and there are no security issues on the island that consists of mostly Pentecostal christians.
Investors will no doubt be focused on the release of updated resource and reserve estimates scheduled for the first quarter of the new year.
Geopacific’s plan has always been to provide certainty and confidence in the resource and their methodical and patient drill program is doing just that whilst at the same time unearthing new deposits.
Geopacific Resources (GPR)
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