Geopacific Resources (ASX: GPR) has revealed the results of a Scoping Study for its 100% owned Woodlark Gold Project on Woodlark Island in Papua New Guinea.
The study forecasts strong financial returns, including significant free cashflow and rapid payback over an approximate 12-year Life of Mine (LOM).
“This study builds on the recent Mineral Resource and infrastructure improvements at the project, and provides increased confidence that Woodlark is capable of generating strong financial returns for its stakeholders over a long-life operation,” Geopacific CEO, James Fox, said.
"These findings are underpinned by extensive technical and financial information, and are based on conservative estimates, including the assumed gold price of $2,900/oz.
“Additionally, Woodlark offers substantial upside exposure to the gold price and ongoing resource inventory growth. We look forward to further advancing the Project with technical and environmental studies to support Infrastructure and Project throughput optimisation and de-risking initiatives, and drill planning to progress high-priority exploration targets with potential to augment the project underway”.
The Study has significantly benefited from the 2018 Project Definitive Feasibility Study (DFS)5, the subsequent 2020 Project Execution Update, additional project derisking and optimisation activity generated by the 2023 Work Programme , and the positive impact of a 17% increase in reported grade at the Kulumadau deposit as part of the 2023 Woodlark Mineral Resource Update.
The Study captures significant economic and construction design improvements made since the Execution Update and confirms that the project continues to be technically robust and capable of generating significant free cash flows.
Several improvements are delivered across key metrics when compared to previous studies, including project payback, net present value (NPV) and internal rate of return (IRR). Further leverage to the strong gold price exists via future exploration potential upside.
Many elements of the project are further advanced than would usually be the case at the time of a scoping level study, due to the significant body of technical work previously completed.
The Project was previously ‘shovel- ready’, with approvals and funding in place, and had commenced development activities. The project development was suspended in February 2022 due to ongoing delays in the project schedule, the consequent implications on capital cost increases and issues around funding. Numerous technical reports have been referred to and inform the Study. These have been completed by appropriately qualified and recognised specialist technical consultants and subject matter experts.