Geopacific Resources finds significant porphyry copper-gold targets in PNG

Geopacific has unlocked a new phase of district-scale exploration with 14 new porphyry target environments at its Woodlark project.

Geopacific has hit some standout targets at Woodlark. Pic via Getty Images

• Geopacific Resources’ identification of significant copper-gold porphyry potential opens new phase of district-scale exploration at the Woodlark gold project in PNG

• 14 porphyry copper-gold target environments will be assessed as part of fieldwork to be completed over the next six months

• Planned 30,000m drill campaign to commence during the quarter with a DFS to be completed by the end of calendar year

Special Report: Geopacific Resources has unlocked a new phase of district-scale exploration at its Woodlark gold project in Papua New Guinea, with an independent expert review identifying 14 porphyry copper-gold target environments.

Three of the targets found by Dr Bruce Rohrlach, a leading independent porphyry specialist, are considered high priority and have the potential to significantly add to the mineral endowment of the broader district. They also offer the potential operational benefits of being close to existing epithermal (shallow) deposits, Kulumadau, Busai, and Woodlark King.

Geopacific Resources’ (ASX:GPR) program aims to define additional epithermal gold resources and will now include fieldwork focusing on further investigation of the deeper porphyry opportunity at the 1.67Moz project.

A strategic step-up in Geopacific’s exploration efforts, the 30,000 metre reverse circulation and diamond drill program will start in late May and be completed over the next six months.

The company is also working towards the release of the Definitive Feasibility Study (DFS) for its 100 per cent owned flagship project by the end of the year.

Woodlark Island is in a region of Papua New Guinea rich in significant copper-gold porphyry deposits. Among these are the Tier 1 epithermal-porphyry copper-gold deposit pair at the Wafi-Golpu project held by global giant Newmont and Harmony Gold Mining, as well as Newmont’s Lihir mine which has estimated reserves of 45Moz.

Digging deeper

Geopacific CEO James Fox said: “The positive review of deeper copper-gold porphyry potential near our core epithermal gold deposits is a major development for the Woodlark Gold Project.

“Our understanding of the mineralising system on Woodlark Island has been enhanced, hence significantly broadening our exploration horizon.

“The identification of multiple porphyry targets provides additional upside for copper-gold discoveries while supporting the continued expansion of our epithermal gold resources.”

“Historic drilling at Woodlark is considered shallow with a mean depth of 125 metres, with little exploration drilling at depth, or outside of the key epithermal gold deposits.

“The epithermal deposits continue to provide exciting growth opportunities. However, this new work highlights the significant porphyry potential on our Woodlark tenement package and delivers a clear framework to pursue it systematically.

“The company remains well-funded with the flexibility to advance any prospective target areas.”

Regional map showing location of significant porphyry and epithermal deposits in PNG. Pic: GPR

Strong growth potential

Geopacific successfully completed a $40 million entitlement offer in January, making it well funded for its extensive exploration program and project development work.

Last year’s scoping study used a gold price of only A$2900 (it’s currently A$5256) and forecast a pre-tax NPV of A$625 million.

Fox said he was keen to assess the impact of the materially higher gold price and ensure the engineering design appropriately considered throughput flexibility to maximise the project’s returns.

Infrastructure and key licences are already in place to support the project’s near-term development and this would involve a low strip ratio given the shallow nature of the existing deposit.

Any new resources and technical improvements revealed by the current program will be fed into the DFS now being finalised.

GPR will also restart front-end engineering and design and documentation for the PNG project.

This article was developed in collaboration with Geopacific Resources, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

Originally published as Geopacific Resources finds significant porphyry copper-gold targets in PNG