Geopacific releases DFS for $198m Woodlark project

Geopacific Resources has detailed a capital expenditure of $198.5 million for its Woodlark gold project, which is set to commence in early 2020.

The Claremont-based company, which has Milan Jerkovic serving as its non-executive chairman, released its definitive feasibility study for the project today, revealing a capital expenditure figure $18.5 million higher than its pre-feasibility study estimation from March.

The project is located on Woodlark Island, located 600 kilometres east of Papua New Guinea’s capital of Port Moresby.

Geopacific is targeting board approval in late 2019, with construction estimated to commence the following year.

The project is set to produce 967,000 ounces of gold over a 13-year production life, with a payback period of 2.2 years.

It will include a 2.4 million tonnes per annum processing plant.  

The study estimates revenue across the 13 years will be $1.6 billion, while the post-tax net present value of the project will total $197 million.

For the life of mine, the all-in sustaining costs are estimated to be $1,033 per ounce.

Geopacific managing director Ron Heeks said the project had the potential to provide significant organic growth.

“The Woodlark DFS has demonstrated a high margin, long life operation with an enviable exploration upside,” he said.

“Payback is fast, cash generation is high and exploration has the potential to provide significant organic growth.

“Woodlark is located in a proven mining investment jurisdiction and surrounded by numerous world class gold mines, including very similar, profitable gold operations on nearby islands.”  

Shares in Geopacific finished 7.7 per cent lower at 2.4 cents each today.