Geopacific Resources (ASX:GPR) has received another tick of approval as it continues to bring the historic Woodlark gold project back to life over in Papua New Guinea. The site of a global gold rush back in the 1890s, the remote Woodlark Island mine was a major producer for several years before then being shut down when the Japanese invaded the area during the Second World War.
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In recent years, the remote location and the impact of COVID-19 have stalled Geopacific’s plans to develop the 1.6 million ounce asset, but now, with renewed support from the Papua New Guinea government, it’s firmly back on track.
The latest positive milestone is an approval by the Papua New Guinea Conservation and Environment Protection Authority (CEPA) of amendments to Geopacific’s environment permit EP-L3 based on an updated project plan ahead of the completion of a definitive feasibility study (DFS).
Geopacific’s CEO, James Fox, said the positive decision is based on the results of the assessment, which proposes an increase to the project throughput rate to 3.5M tonnes per annum, and other infrastructure improvements.
“This decision provides important project certainty ahead of our DFS release and reflects the PNG government’s confidence in Woodlark as a responsible, long-term gold development,” Mr Fox told shareholders today.
The company will now apply to the PNG Mineral Resources Authority to amend existing leases for mining to reflect the approved environmental permit.
The imminent release of the DFS will incorporate opportunities identified to optimise and de-risk key areas, including mining, processing, tailings, and infrastructure, with key field programs and technical inputs completed and final integration underway.
As well as permitting success, Geopacific has also made strong progress with its plans to expand the resource at Woodlark. During the last quarter, the company completed ~14,000 metres of drilling. It landed numerous high-grade near-surface gold intercepts at the Wayai Creek target, including 17m at 5.29 g/t from 36m.
At the Kamwak prospect, drilling intersected strong alteration, brecciation, and sulphide mineralisation, supporting an interpretation of an emerging mineralised system adjacent to the 711Koz Kulumadau gold deposit.
GPR is up +2.08% to 4.9¢ early on Tuesday morning.
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