Geopacific Resources Ltd. has released the definitive feasibility study, or DFS, for its Woodlark Gold Project in Papua New Guinea, outlining a long-life open-pit gold development with projected post-tax net present value of A$1.3 billion at a gold price of A$5,500 per ounce.
The Australia-listed company said the DFS confirmed Woodlark as a technically and economically viable project capable of generating strong cash flow and rapid capital payback.
The Woodlark project, located on Woodlark Island in Milne Bay Province, is wholly owned by Geopacific subsidiary Woodlark Mining Ltd. and is covered by Mining Lease 508.
According to the DFS, the project is forecast to produce an average of 100,200 ounces of gold annually over an 11-year processing life, with peak annual production of 116,900 ounces in year four.
The study outlines a production target of 35.6 million tonnes grading 1.07 grams per tonne gold for 1.23 million ounces of contained gold, underpinned by a JORC-compliant ore reserve of 34.3 million tonnes at 1.09 g/t gold for 1.2 million ounces.
Geopacific said the project would use conventional open-pit mining methods across the Busai, Kulumadau and Woodlark King deposits, with ore processed through a 3.5 million tonnes-per-annum conventional carbon-in-leach processing plant.
The DFS estimated pre-production capital expenditure at A$534.6 million, including contingency allowances and mining pre-strip costs, while total project funding requirements were estimated at around A$650 million.
The company said the project was expected to generate post-tax net cash flow of A$2.52 billion and achieve payback approximately 18 months after first production.
Managing director Hamish Bohannan said the DFS marked a major milestone for the company.
“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,” Bohannan said.
The company said measured and indicated mineral resources account for 96 percent of material planned to be mined over the life of the operation, with the first three years of production almost entirely supported by measured and indicated resources.
Geopacific also said the project already held key approvals and permits, including an approved environmental permit valid until March 2034 and executed landowner agreements.
However, the company noted further amendments would still be required to extend mine construction timelines beyond October 2027 and to extend Mining Lease 508 beyond its current expiry date in July 2034.
The DFS assumes those approvals and extensions will be obtained.
Geopacific said it would now advance discussions with financing partners and continue front-end engineering and permitting activities ahead of a targeted final investment decision by late 2026. Construction is targeted to begin in late 2026, with first gold targeted for November 2028.
