Geopacific’s robust Woodlark DFS confirms gold project as long-life open-pit development

• Feasibility study confirms Woodlark as a long-life, open-pit gold development.
• Forecast to generate strong free cash flow, rapid capital payback.
• Result underpinned by 1.2 million-ounce ore reserve.
• Engaging with financing partners and assessing the range of funding.

Geopacific Resources (ASX:GPR) has this week achieved a major milestone in its aim to bring the historic Woodlark gold project in Papua New Guinea into production with the release of a robust definitive feasibility study.

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The feasibility study has identified the project on remote Woodlark Island as an economically attractive, long-life open-pit gold development, forecast to generate strong free cash flow and rapid capital payback.

The PFS confirmed a pre-tax net present value of $1.78 billion at an A$5,500 per ounce gold price and a pre-tax IRR of 58.9%. Geopac’s managing director, Hamish Bohannan, explained that the results highlighted a rapid post-tax payback period of approximately 18-months from first production.

“The completion of the DFS marks a major milestone for the company and confirms Woodlark as a technically robust, long-life project capable of delivering strong margins and significant free cash flow,” he said.

Mr Bohannan added: “It comes at a time of increasing international interest in resource development and infrastructure investment in PNG, reflecting the country’s growing strategic importance as a destination for large-scale resource projects and a key supplier of precious metals to global markets.

“The Woodlark project is well-positioned to contribute to this development landscape while delivering long-term value for shareholders and stakeholders in PNG.

“Importantly, the project benefits from a high proportion of proved and probable reserves, established permitting and significant prior technical work, which provides a strong foundation as we advance towards development.”

The DFS is underpinned by a 1.2 million ounce gold ore reserve made up of 2.3 million tonnes (Mt) at 2.54 grams per tonne (g/t) at the proved level and 32.0 Mt at 0.98 g/t under the probable classification.

The 3.5 million tonnes per annum (Mtpa) conventional carbon-in-leach (CIL) processing plant is forecast to produce around 100,000 ounces of average annual gold production with an average gold recovery of 89.7%.

Geopacific is now turning its focus to financing and front-end engineering design (FEED) to position Woodlark for a final investment decision (FID) by late CY26.

GPR is steady at 4.8¢. Mkt cap $153.8M.

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