Papua New Guinea’s government has thrown its weight behind Geopacific Resources Ltd., granting the company more time to develop its flagship Woodlark Gold Project in Milne Bay Province.
Mining Minister Rainbo Paita has approved an extension to Condition 7 (ii) of Mining Lease 508, which hosts the project, pushing the deadline to complete construction and commissioning of the mine to 5 October 2027. The lease itself runs until July 2034.
For Geopacific, the decision offers breathing space and certainty as it works through financing, environmental approvals, and a major drilling campaign ahead of delivering a definitive feasibility study later this year.
“As PNG celebrates 50 years of independence, we acknowledge this significant national milestone and commend the Government and people of PNG,” said Geopacific Chief Executive James Fox.
“We also recognise the leadership of the Minister for Mining and the team at the Mineral Resources Authority in approving our application to extend ML508 C7(ii),” he added.
The company recently submitted an environmental permit amendment request and supporting assessment report to the Conservation and Environment Protection Authority, aimed at reflecting project improvements in the updated feasibility study.
Fox said the extension provides “the flexibility and certainty needed to align the timing of project construction with the DFS and our exploration success,” describing it as both an endorsement of Woodlark’s potential and a sign of government support for responsible mine development.
The Woodlark project, which contains an estimated 1.67 million ounces of gold, is seen as a potential new engine of economic activity for Papua New Guinea. With drilling delivering encouraging results and government backing firming up, Geopacific hopes the project can soon shift from planning into reality.
Earlier, Australian-listed gold producer St Barbara Ltd has become a substantial shareholder in Geopacific Resources Ltd after acquiring a 14.4% strategic interest, strengthening ties between two companies with deep connections to Papua New Guinea’s mining sector.
The deal, completed through a transaction with Patronus Resources Ltd, saw St Barbara acquire 458.6 million Geopacific shares in exchange for returning 158.1 million Patronus shares. As a result, St Barbara now holds a 14.4% stake in Geopacific, while Patronus retains an interest of around 41 million shares.
