Australian-listed explorer Augustus Minerals Ltd. (ASX: AUG) is positioning itself for a potential foothold in one of Papua New Guinea’s most storied mineral prospects, after executing a binding share-purchase agreement to acquire ACM Contract Mining PNG Ltd (ACMPNG), holder of a third-in-line exploration-licence application for the Mt Kare Gold Project in Enga Province.
Under the agreement, Augustus will purchase ACMPNG for A$ 250,000 (US$ 163,000), funded from existing working capital. The PNG company’s application covers a site long considered among the most prospective gold-and-silver deposits in the Pacific, hosting a historical mineral resource of 43 million tonnes at 1.5 grams per tonne (g/t) gold for an estimated 2.1 million ounces of gold and 18 million ounces of silver.
Executive Chairman Brian Rodan described the acquisition as a “strategic and risk-weighted opportunity” that could unlock one of the region’s premier gold development assets. “Mt Kare’s proximity to the world-class Porgera Mine and its robust geological similarities make this a compelling long-term play for Augustus,” Rodan said.
The project lies roughly 15 kilometres southwest of Barrick (Niugini) Ltd’s Porgera Gold Mine, which has historically produced more than 500,000 ounces of gold annually.
Contested application process
While the licence application remains subject to approval by Papua New Guinea’s Mineral Resources Authority (MRA), Augustus is optimistic about its prospects. ACMPNG’s submission, lodged on 22 February 2016, follows earlier applications by Global Mining Group Ltd and Tribune Mt Kare Gold Ltd.
Under the Mining Act 1992, applications are reviewed in order of lodgement but are not automatically granted to the first-in-time applicant. Each application proceeds through landowner hearings, MAC (Mining Advisory Council) review, and a final ministerial recommendation, a process Augustus anticipates could take up to six months or longer.
In June 2025, the company confirmed that the first-in-line applicant, Global Mining Group, was removed from the register, making ACMPNG now the second-in-line applicant for the Mt Kare exploration licence (ELA 2446) [Augustus Minerals ASX Update, 25 June 2025].
Augustus also disclosed plans to object to prior applications or explore joint-venture negotiations with Tribune.
Legacy and potential
Discovered in 1987 by Conzinc Riotinto of Australia, the Mt Kare Project has undergone more than A$ 75 million (US$ 48.8 million) in historical exploration expenditure. The site’s data — based on 454 diamond drill holes totalling 73,639 metres — indicates a geological system comparable to Porgera, with the same host rocks, structural controls and mineralisation style.
Between 2011 and 2014, Indochine Mining Ltd undertook confirmatory drilling, metallurgical testwork, and a pre-feasibility study reported under JORC (2004). Augustus has stated that these historical findings have not been independently verified and will be reviewed under JORC (2012) once tenure is secured.
Low-cost entry, high-upside play
Augustus views the acquisition as a low-cost, high-leverage entry into a Tier-1 exploration corridor. The company believes ACMPNG and its affiliates have already spent more than A$ 2 million (US$ 1.3 million) pursuing the licence process since 2016.
“The balance between acquisition cost and exploration upside makes this a unique opportunity,” said Rodan, adding that the purchase provides a corporate vehicle to expand into other PNG mineral corridors.
If successful in obtaining tenure, Augustus plans to re-validate Mt Kare’s resource under JORC (2012), restart drilling within 90 days, and commence feasibility studies within 15 months.
In September 2025, the company also completed a A$ 1.675 million (US$ 1.09 million) capital raising to fund exploration at its Western Australian assets and support its Mt Kare strategy (Discovery Alert, Sept. 2025).
Background
Augustus Minerals currently holds 100 percent interests in two Western Australian projects — the Ti-Tree Project in the Gascoyne region and the Music Well Project north of Leonora — both prospective for gold, copper, lithium and rare earths.
With Mt Kare now on its radar, Augustus seeks to extend its exploration footprint beyond Australia, pursuing opportunities in one of the Pacific’s richest and most competitive gold belts.
