PNG mine developer Geopacific Resources Limited (ASX: GPR) has entered into a Bond Subscription Agreement with its major shareholder, Deutsche Balaton AG, which will provide $3.5 million of short-term, unsecured funding to the company to help progress the stalled Woodlark gold project.
Total funds received of $3.38 million will further advance the current Phase 1 Work Program which has been extended to capture the impact of the updated Kulumadau Mineral Resource1 and further refinements to key infrastructure placements. The overarching Phase 1 objective is to determine the optimal development pathway for the Woodlark Gold Project. Concurrently, the coard is working towards finalising the appointment of a new permanent Chief Executive Officer, following which, the company intends to undertake a capital raising to fund the next phase of its Work Program and repay this short-term funding.
The board and management of Geopacific appreciate the ongoing support from the Deutsche Balaton group. We are focussed on finalisation of the current Work Programme and continue to make advancements at the Woodlark Gold Project having recently delivered an updated, higher grade, Mineral Resource Estimate,” Interim CEO Matthew Smith said.
Geopacific recently launched the geological and exploration targeting component of the Phase 1 2023 Work Programme at Woodlark.
A key aspect of the Work Program has been an update of the Woodlark geological database to incorporate all drilling from the 2022 program and a substantial amount of legacy data from multiple phases of exploration activity at the Woodlark Gold Project since 1962.
Completion of this work has delivered a new, higher grade, Woodlark Project Mineral Resource Estimate. The 2023 Mineral Resource estimate is being integrated into the ongoing Work Program studies.
Key Highlights
2023 Mineral Resource Update:
- Incorporates a revised estimate for the Kulumadau Deposit delivering a 17% increase in resource grade.
- The 2023 Woodlark Global Mineral Resource is 45.56Mt at 1.07g/t Au for 1.56Moz of gold3.
- Underpinned by the inclusion of an additional 45 drillholes4 and extensive legacy geological data.
- Increased understanding of the distribution and continuity of higher-grade gold mineralisation across the Project, with an initial focus on Kulumadau.
Exploration Review:
- Exploration Targeting review completed, benefitting from the expanded geological database.
- Advanced targeting within and proximal to the current 1.56Moz Woodlark Mineral Resources.
- Further defined higher-grade targets that range from undrilled extensions of existing high-grade zones to under cover targets with compelling geological, geophysical and structural signatures.
2023 Work Program:
- This completes the geological component of the Work Program. The other workstreams in the Work Program are ongoing and will address optimal plant throughput and infrastructure locations.
