Geopacific Resources Releases Quarterly Report

by PNG Business News - July 31, 2022

Photo credit: Geopacific Resources

Geopacific Resources Limited is pleased to provide an update on its activities and cashflow for the quarter ended 30 June 2022.

Highlights 

  • Trading recommenced on the ASX on 31 May 2022 following the implementation of an intensive business transformation program in response to the previously identified material capital cost increases at the Woodlark Gold Project (‘Woodlark’ or ‘the Project’). 
  • The Company advanced a number of concurrent work programs to progress the Project and optimise its future development pathway including: 
  1. an ongoing drill campaign aimed at growing the existing Mineral Resource and Ore Reserve; 
  2. commencing studies to assess the implications of the potential Mineral Resource growth on the design and economics of a future project development; and  
  3. a Strategic Review to assess alternative options to maximise shareholder value, including potential corporate and asset-level transactions. 
  • Positive results were received from the ongoing drilling campaign at the Project, highlighting upside potential within the existing pit shells and the broader exploration potential across the Mining Lease. 
  • Assays were received from: 
  1. 25 grade control holes, including several significant high-grade intercepts (all within 60 metres of surface); and  
  2. 46 resource extension holes from Kulumadau, Kulumadau East (new zone) and Busai which reinforced the potential for pit extension. 
  • Geopacific remains committed to engagement with the local communities on Woodlark Island and activity on the village relocation works and other important community initiatives continued. 
  • The Company held $20.6m of cash at 30 June 2022, no debt and $21m materials cost of Project long lead equipment assets, which are potentially available for sale.
Post Quarter End 
  • The process of board renewal was completed, with Ian Murray and Colin Gilligan resigning as directors and Mike Brook, Richard Clayton and Hansjoerg Plaggemars appointed as directors on 7 July 2022. 
  • Encouraging results returned from drilling at Talpos and Watou, including the identification of a new mineralised zone at Talpos.
Chief Executive Officer, Tim Richards commented “Along with completing the intensive commercial and corporate program to achieve reinstatement of ASX trading by 31 May 2022, we continued to progress our exploration and project review work streams. Our focus remains on maximising the value of the Project. The grade control drilling campaign has increased our understanding of the geology that exists within the existing pit shells. The broader resource extension drilling campaign continues to identify encouraging prospective targets outside the current pits, such as Talpos and Kulumadau East, which demonstrate the exploration potential that exists on Woodlark Island. With a second drill rig now mobilised to site, exploration activity will continue to provide valuable knowledge for our studies aimed at re-assessing the Project design and seeking to identify and capitalise on targeted economies of scale.”
 
Full press release can be found HERE


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