Porgera and Woodlark projects spark PNG gold mining revival
After several years trapped in the political and pandemic doldrums, Papua New Guinea is starting to regain its golden lustre.
Leading the way is the reinvigorated Porgera gold mine in the country’s rugged highlands and the Woodlark development on the remote Woodlark Island.
Major producer
The site of a global gold rush in the 1890s, Woodlark became a major producer for several years before being shut down when the Japanese invaded the area during World War II.
Several recent attempts have been made to re-establish mining on the island, only to be stymied by the cost of development and Covid.
It now appears the project is back on track with Geopacific Resources (ASX: GPR) ramping up exploration and development activities.
Woodlark received a major boost this week when Geopacific revealed that the historic resource now stands at 1.67 million ounces.
Improved MREs
The increase comes from improved mineral resource estimates (MREs) for two surface satellite gold deposits at Great Northern and Wayai Creek, with the former estimated to contain 37,000oz gold and Wayai Creek 66,000oz.
“This latest increase in mineral resources follows the recent scoping study that demonstrates the project is capable of generating strong financial returns for its stakeholders over a long-life operation,” Geopacific chief executive officer James Fox said.
“The addition of new gold resources at Great Northern and Wayai Creek highlights the potential to enhance the overall project value at Woodlark.”
Various technical and environmental studies to support the project development are well underway and planning for a new drill campaign is progressing to target extensions to known high-grade, near-surface mineralisation with substantial resource growth potential.
Porgera back on track
Despite the recent major landslide in the area, PNG is also ramping up its world-class Porgera gold mine.
Mine operator Barrick Gold says that, despite the operational challenges presented by the Mulitaka landslide, Porgera has met or exceeded its targets since the resumption of mining in December last year and gold production for the first half of the year is above guidance with all-in sustaining costs trending lower.
The giant Porgera mine resumed operations late in December 2023 after Barrick and the PNG government finally resolved ownership issues.
This included the signing of the Porgera Project Commencement Agreement, in which a new ownership structure was agreed upon.
Mr Bristow described the reopening of the mine as another victory for the company’s host-country partnership model, which had been very successful in Tanzania and had also been adopted for its new Reko Diq copper and gold project in Pakistan.