Mining

Mining

PNG Business News - June 14, 2022

Adyton successfully completes Wapolu Wardens Hearing

Photo: Mining Warden Kopi Wapa addresses local Wapolo Landowners Adyton Resources Corporation is pleased to report that it has successfully completed a Wardens Hearing for the renewal of Exploration Licence EL 2549. The Hearing, which is a mandatory processstep in the renewal for all exploration licenses in PNG, was conducted by senior Mineral Resources Authority (MRA) Mining Warden Mr Kopi Wapa on May 31 2022 at Wapolu village on Fergusson Island with all principal landowners present. EL 2549 hosts the Wapolu prospect, which together with the nearby Gameta prospect, is a key element to Adyton’s current commercialization assessment of the Fergusson Island Projects. The Fergusson Island Projects have the stated gold resources tabled below. Managing Director Tim Crossley said, “in PNG the Wardens Hearing is an important, mandatory part of the regulatory process for renewing exploration licences and provides an opportunity for the impacted stakeholders to provide input into the renewal process. The Hearing confirmed strong support by land holders and other stakeholders for Adyton to continue its exploration activities. It was also a good opportunity for me to travel to the Island and meet our principal landowners and other key stakeholders. I am very encouraged by the support the company has to continue with its activities.”   Article courtesy of Adyton Resources

Mining

PNG Business News - June 13, 2022

Ok Tedi to Shift to High-Grade Ore Production

Photo credit: Ok Tedi Mining According to the company, Ok Tedi Mining Ltd (OTLM) will complete the shift from current lower grade ore to high grade ore sources, over the next 12 months. Musje Werror, managing director and chief executive officer of OTML, and Roger Higgins, board chairman, said they had hoped to see the transition by the fourth quarter of 2022, but the impact of the Coronavirus (Covid-19) on material movement in the mine over the last 15 months had pushed it back to 2023. Copper output was 21% lower than the previous year, owing to a 26% drop in the copper grade of ore processed, according to OTML. Gold output was down 25% from the previous year due to a 32% decline in gold grade and effects from the process plant fire and the Covid-19. Despite the decreased output, revenue remained within 6% of the previous year, according to the study. “This was primarily due to the copper price strengthening in 2021,” Werror said. “The gold price was largely unchanged. “Total operating costs in 2021 were K190 million or seven per cent higher than the previous year. “As a result, the 2021 profit after tax was K376 million, generating K331 million of free cash flow. “This enabled the company to pay a K450 million dividend, retain K251 million of cash reserves and have no debt at year end. “In addition, OTML contributed US$675 million (about K2.3 billion) in foreign reserves to the domestic market.” Meanwhile, OTML achieved headway following the development of umbrella firms representing the interests of mining villages, impacted people, and the province as part of the local and regional suppliers initiative to maximise value for PNG. “The intent is to develop companies with an operational capability and financial resilience that will exist beyond Ok Tedi,” Werror said. “We are also looking to support initiatives that broaden the industry base beyond mining.”   Reference: The National (6 June 2022). “Ok Tedi to transition to high-grade ore production”.

Mining

PNG Business News - June 13, 2022

Ok Tedi Mining Pays out K450mil in dividend for 2021

Photo credit: Ok Tedi Mining - Mr Musje Werror The Coronavirus (Covid-19) pandemic hit OK Tedi Mining Ltd (OTML) hard in 2021, creating production losses and incurring significant costs, according to the company. Despite this, according to OTML's annual report for 2021, the company remained profitable, debt-free, and paid a K450 million yearly dividend. According to Managing Director and Chief Executive Officer Musje Werror and Board Chairman Roger Higgins, the most significant challenge in 2021 was the impact of Covid-19 pandemic. “From the start of the pandemic our key priority has been to protect the health and wellbeing of our workforce, town residents and communities while minimising disruption to operations,” Werror said. “Production was impacted by ongoing labour shortages due to isolation and our strict quarantine control requirements. “The suspension had a direct impact on 2021 revenue, as well as additional labour costs associated with funding wages for people in isolation or quarantine. “This resulted in a direct costs associated with Covid-19 management protocols at K155 million.” The OTML board of directors adopted a revised strategic business plan in August, which includes a mine life extension from 2029 to 2032. “This extension was the culmination of several years of detailed strategic planning work and will see the company generate an additional K10 billion of revenue to the benefit of stakeholders,” Higgins said. “The extension of mine life, and delivery of value, is premised on the timely implementation of several strategic imperative projects costing approximately K1.779 billion over the next two years. “These include the removal of 20 million tonnes (Mt) of debris from the centre pit to access high-grade ore from 2023, the construction of a 400Mt engineered waste rock dump to enable a larger pit shell, and the potential option of in-pit waste rock disposal, and the major refurbishment and upgrade of aging processing facilities.”    Reference: The National (3 June 2022). “Ok Tedi paid out K450mil in dividend for 2021”.

Mining

PNG Business News - June 10, 2022

K92 Mining Announces Latest High-Grade Underground Drill Results At Kora And Judd

Photo credit: K92 Mining K92 Mining Inc. is pleased to announce results from the ongoing underground diamond drilling of the Kora and Judd deposits at the Kainantu gold mine in Papua New Guinea. The results for the latest 116 diamond drill holes completed from underground into the Kora and Judd deposits are summarized in Table 1 and Table 2 below. The results continue to demonstrate the high-grade and continuity of Kora and Judd, with intersections largely focused on increasing drill density up-dip, down-dip, to the north and to the south, particularly at Judd. From the drilling results, all drill holes at Kora intersected mineralization, with 10 intersections exceeding 20 g/t AuEq, 25 intersections exceeding 10 g/t AuEq and 51 intersections exceeding 5 g/t AuEq. At Judd, all drill holes intersected mineralization, with 5 intersections exceeding 20 g/t AuEq, 19 intersections exceeding 10 g/t AuEq and 43 intersections exceeding 5 g/t AuEq intersections. Kora Underground Drilling Results At Kora, the results are highlighted by holes KMDD0402 recording multiple intersections including 4.20 m at 33.85 g/t Au, 100 g/t Ag and 1.41% Cu (37.38 g/t AuEq, 2.63 m true width) from the K2 Vein and 8.50 m at 24.77 g/t Au, 10 g/t Ag and 0.90% Cu (26.34 g/t AuEq, 5.02 m true width) from the K1 Vein; KMDD0364 recording multiple intersections including 4.92 m at 18.15 g/t Au, 39 g/t Ag and 2.81% Cu (23.16 g/t AuEq, 2.74 m true width) from the K2 Vein and 4.27 m at 20.55 g/t Au, 8 g/t Ag and 0.76% Cu (21.87 g/t AuEq, 2.21 m true width) from the K1 Vein; KMDD0400 recording multiple intersections including 10.05 m at 22.07 g/t Au, 16 g/t Ag and 0.57% Cu (23.18 g/t AuEq, 5.90 m true width) from the K1 Vein, and; KMDD0438 recording multiple intersections including 7.37 m at 21.76 g/t Au, 11 g/t Ag and 0.78% Cu (23.17 g/t AuEq, 3.68 m true width) from the K1 Vein. These holes extended high-grade mineralization up-dip and along strike at both the K1 and K2 veins. Hole KMDD0364 was incorporated into the October 31, 2021 Kora Resource Estimate. Drilling to the south at Kora, continued to record and extend high-grade intersections, highlighted by hole KMDD0448 recording multiple intersections including 1.68 m at 9.78 g/t Au, 103 g/t Ag and 12.83% Cu (31.69 g/t AuEq, 0.74 m true width) from the K1 Vein and 2.15 m at 4.63 g/t Au, 47 g/t Ag and 3.42% Cu (10.71 g/t AuEq, 0.90 m true width) from the K2 Vein. On the K2 Vein, KMDD0348 recorded 8.70 m at 8.71 g/t Au, 176 g/t Ag and 8.94% Cu (25.28 g/t AuEq, 5.79 m true width); KMDD0426 recorded 3.00 m at 5.89 g/t Au, 180 g/t Ag and 5.93% Cu (17.67 g/t AuEq, 1.09 m true width), and; KMDD0430 0.85 m at 5.65 g/t Au, 101 g/t Ag and 5.36% Cu (15.53 g/t AuEq, 0.87 m true width). Hole KMDD0348 was incorporated into the October 31, 2021 Kora Resource Estimate. A significant amount of drilling to the north and northern portion of the deposit was completed as part of systematically executing our drill program and although the northern portion is generally lower grade, drilling delivered solid results. Highlights include: KMDD0470 recording multiple intersections including 7.10 m at 20.00 g/t Au, 4 g/t Ag and 0.08% Cu (20.18 g/t AuEq, 3.16 m true width) from the K1 Vein; KMDD0380 recording multiple intersections including 6.10 m at 29.32 g/t Au, 3 g/t Ag and 0.03% Cu (29.41 g/t AuEq, 3.49 m true width) from the K1 Vein, and; KMDD0396 recording multiple intersections including 6.71 m at 15.24 g/t Au, 6 g/t Ag and 0.07% Cu (15.43 g/t AuEq, 3.35 m true width) from the K1 Vein. The results continue to demonstrate the potential for higher-grade mineralization extending to the North, particularly at the K1 Vein. As the twin incline development advances towards the Kora Resource, there will be increased capability to target Kora Deeps and a potential northern strike extension to depth in the second half of 2022. Judd Underground Drilling Results At Judd, drilling continues to demonstrate high-grade and expansion potential with the known deposit open along strike in both directions, up-dip and down-dip. To date, four known veins have been recorded at Judd, with similar vein orientation and quartz-sulphide Au-Cu-Ag mineralization as Kora. The veins remain open at depth, to surface, and only a fraction of the over 2,500m strike length has been drilled. The results are highlighted by holes JDD0051 recording multiple intersections including 8.80 m at 59.52 g/t Au, 37 g/t Ag and 0.74% Cu (61.17 g/t AuEq, 8.80 m true width) from the J1 Vein; JDD0084 recording multiple intersections including 1.09 m at 30.50 g/t Au, 73 g/t Ag and 4.07% Cu (37.96 g/t AuEq, 0.91 m true width) from the J1 Hanging Wall, and; JDD0039 recording multiple intersections including 2.93 m at 19.76 g/t Au, 3 g/t Ag and 0.05% Cu (19.88 g/t AuEq, 1.26 m true width) from the J1 Vein. Hole JDD0039 was incorporated into the December 31, 2021 Maiden Judd Resource Estimate. Drilling up-dip of existing development encountered multiple high-grade intersections with highlights including: JDD0043 recording multiple intersections including 4.62 m at 19.57 g/t Au, 5 g/t Ag and 0.43% Cu (20.33 g/t AuEq, 2.86 m true width) from the J1 Vein; JDD0071 recording multiple intersections including 6.05 m at 12.68 g/t Au, 31 g/t Ag and 0.68% Cu (14.17 g/t AuEq, 5.20 m true width) from the J1 Vein; JDD0073 recording multiple intersections including 8.60 m at 11.57 g/t Au, 24 g/t Ag and 0.60% Cu (12.83 g/t AuEq, 6.23 m true width) from the J1 Vein, and; JDD0074 recording multiple intersections including 7.70 m at 17.97 g/t Au, 20 g/t Ag and 0.38% Cu (18.83 g/t AuEq, 5.17 m true width) from the J1 Vein. Hole JDD0043 was incorporated into the December 31, 2021 Maiden Judd Resource Estimate. Long sections of K1, K2 and J1 showing the location of the latest drill holes are provided in figures 1, 2 and 3, respectively. A long section showing Kora drilling to date is provided in figure 4. A long section showing Judd drilling to date is provided in figure 5. A core photograph of drill hole KMDD0402 is provided in figure 6 and a core photograph of drill hole JDD0051 is provided in figure 7. John Lewins, K92 Chief Executive Officer and Director, stated, “The latest underground drilling results at Kora and Judd continue to demonstrate high grades, solid thickness and continuity. The hit rate once again was very strong, with all holes intersecting mineralization, 15 intersections exceeding 20 g/t AuEq and 44 intersections exceeding 10 g/t AuEq, and featured multiple highlight intersections at both Kora and Judd, with JDD0051 recording multiple intersections including 8.80 m at 61.17 g/t AuEq on the J1 Vein and KMDD0402 recording multiple intersections including 4.20 m at 37.38 g/t AuEq on the K2 Vein and 8.50 m at 26.34 g/t AuEq on the K1 Vein. The drill results also highlighted that both Kora and Judd have significant expansion potential - open along strike in both directions and down dip, with Judd also open up-dip towards surface. From underground, we continue to focus on expanding the extents of Kora and Judd in multiple directions and note that with the advancement of the twin incline in the second half of the year we plan to commence exploration of Kora deeps and a potential northern extension to Kora. Drilling at Kora South and Judd South is a major focus and rapidly expanding. From underground, we have recently commenced our first step-out drill program at Judd and Kora South from our most southerly drill cuddy. On surface, Kora South and Judd South now have three drill rigs operating, from one at the beginning of the year, and a fourth drill rig is expected to arrive near term. Field mapping and sampling is also advancing at Kora South and Judd South towards the A1 Porphyry to support these programs. Lastly the results of the airborne advanced geophysics have identified multiple highly prospective epithermal and porphyry targets within our approximately 830 km 2 land package. It certainly is a very exciting time for exploration at Kainantu.”   Article courtesy of K92 Mining

Mining

PNG Business News - June 08, 2022

Misima DFS confirms potential for long-life, low-cost gold mine with 1.73Moz Reserve, $956m NPV

Photo credit: Kingston Resources - Figure 1: Misima Gold Project site layout Kingston Resources Limited  is pleased to advise that it has taken an important step towards bringing the Misima Gold Project into production with the completion of a positive Definitive Feasibility Study (DFS). The DFS confirms the potential for a large-scale, long-life, low-cost operation delivering gold production of 2.4Moz over 20 years at forecast life-of-mine (LOM) all-in sustaining costs (AISC) of A$1,217/oz. Leading independent consultants have been engaged on all key aspects of the project and DFS technical outcomes were very consistent with the PFS confirming the technically robust, low risk nature of the Project. Kingston plans to leverage off the strong production history at Misima and construct a new 6.1Mtpa CIL treatment facility and modern infrastructure on the footprint of the historic mine, establishing a new www.kingstonresources.com.au 2 standalone, long-life gold mining and processing operation underpinned by two major ore sources – a cutback of the existing Umuna open pit and an expansion of the existing small pit at Ewatinona in the Quartz Mountain area. The extensive mining and processing history, advantageous metallurgy, and simplicity of the process flowsheet all give Kingston a high degree of confidence in the technical and commercial viability of the Project. Reserve Upgrade  Kingston is also pleased to report an increase in the Misima Gold Project JORC Probable Ore Reserve to 76Mt @ 0.79 g/t for 1.73Moz, an increase of 28% above the prior Reserve. Kingston Resources Managing Director, Andrew Corbett said: “I am extremely pleased to be reporting such fantastic results from our Definitive Feasibility Study. Delivering such a high quality study alongside a 28% increase in Reserve is a decisive moment for the Misima Gold Project, Kingston shareholders, and all stakeholders, in particular the Misima community who have strongly supported our progress.  “The Kingston study and geological teams have done an outstanding job to complete such a comprehensive work program in a challenging operational environment. The foundations for a return to gold production at Misima are now firmly established and we look forward to continuing to advance Misima towards first production. “The DFS confirms a robust, large-scale, long-life, low cost operation delivering total production of 2.4Mozs at an extremely attractive average all-in sustaining cost of A$1,217/oz. While there have been significant and www.kingstonresources.com.au 3 broad-based impacts of cost inflation, the Project’s economic parameters are compelling, with pre-tax free cash-flow of A$2.7 billion, a pre-tax NPV of A$956 million and an IRR of 22%. “These are outstanding results that highlight Misima as one of the best undeveloped projects in the AsiaPacific region. I would like to thank the Kingston study team and all of the consultants who have worked together to deliver a strong body of work. Special thanks also to KSN Chair Mick Wilkes for leading the DFS steering committee, Mick’s depth of experience in developing large scale mines was invaluable in ensuring technically robust and high quality work was delivered throughout the study. “We now look forward to the next stage of advancing Misima. Discussions have commenced in relation to considering the strategic options for developing the Project that will demonstrably enhance shareholder returns. In the short term, we anticipate concluding the Environmental and Social Impact Assessment, with our Mining Lease and environmental approval applications to be lodged shortly thereafter.” The DFS referred to in this announcement is based upon a Production Target derived from the JORC Code 2012 Compliant Mineral Resource Estimate inclusive of the Probable Ore Reserve referred to in this announcement. The Company advises that the Probable Ore Reserve provides 64% of the total milled tonnage and 70% of the total contained gold metal, the Indicated Resource outside the Ore Reserve provides a further 5% of the total milled tonnage and 5% of the total contained gold metal. The remaining tonnage (31%) and contained ounces (25%) is comprised of Inferred Resources. There is a low level of geological confidence associated with Inferred Resources and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources or that the production targets reported in this announcement will be realised.   Full article and figures can be found HERE

Mining

PNG Business News - May 31, 2022

Drilling Success Continues to Highlight Upside Potential at Woodlark Project

Photo credit: Geopacific Resources - Figure 2: Mining Lease exploration target areas Geopacific Resources Limited is pleased to provide further updates on its successful grade control and resource extension drilling at the Woodlark Gold Project. Chief Executive Officer, Tim Richards commented “The grade control and resource extension drilling campaign continues to deliver positive results and demonstrates the upside potential that exists to expand the Mineral Resources at the Project. With results from over 50 holes received, the grade control drilling campaign has increased our understanding of the geology that exists within the pits providing additional data to be utilised in future mine planning models. The ongoing drilling campaign will target further near-pit exploration potential with a focus on the recent encouraging results from the previously undrilled Kulumadau East region. I look forward to updating the market in coming periods as we continue to receive further drilling results.” Woodlark Grade Control and Exploration drilling  The Company continues to receive positive results from its recently completed grade control campaign and the ongoing exploration drilling campaign at the Project (refer ASX releases of 4 March 2022 and 16 February 2022).  Results from the final 25 holes in the grade control drill campaign at Kulumadau have been received, highlighting the upside potential within the existing pit shells. The results include a series of near surface, high gram-metre intercepts (Figure 1) within the Kulumadau pit. All grade control hole assays have now been received. The grade control drilling has continued to define consistent intercepts within the existing pit shell at Kulumadau, particularly KULSTG001 a deeper hole (drilled primarily for metallurgical purposes) which reported high grade intercepts across the length of the hole to the depth of the current pit shell design. The grade control drilling campaign has provided a greater level of geological understanding of the mineralogy and grade dispersion within the existing pit shell. The campaign demonstrated the significant mineralogy that exists outside the existing pit shells (Figure 3), with extension drilling results to date from Kulumadau and Busai reinforcing the Company’s view of the potential for pit extension, with all three planned pits at the Project open along strike and at depth. A further 15 Busai resource extension holes are awaiting assay. A further 19 drill holes in the resource extension drilling campaign at Kulumadau were also received, with encouraging high-grade intercepts. The resource extension drilling during the quarter also highlighted the potential at Kulumadau East (Figure 4). The ongoing drilling campaign will continue to focus on Woodlark’s near-pit exploration potential within the existing Mining Lease (Figure 2). This work will ensure that any development of mining infrastructure on site will be appropriately sized for the potential mineral resource that exists within the Project.   View the press release and figures HERE

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Mining

PNG Business News - May 22, 2022

Enga Provincial Government lost K70 million due to Porgera Mine closure

Governor Sir Peter Ipatas claims that the Enga provincial administration has lost over K70 million since the closure of the Porgera gold mine two years ago. Sir Peter stated that during the mine's closure, all parties suffered losses, but that everyone must wait for the final agreement for the mine's reopening to be inked. He added that landowners and companies had been impacted, but that they will recover once the situation was resolved. Sir Peter explained that the reopening was taking longer because they needed to execute a deal that would benefit both the country and the landowners and residents of Enga. According to Sir Peter, the developer collected 95% of the advantages over the last 30 years, while only 5% remained in the country. “We have changed this around and now we will be receiving 51 per cent and the developer is to get 49 per cent. From that 51 per cent Enga will be receiving 15 per cent of the benefits,” he said. Sir Peter stated that such agreements would necessitate additional time and patience in order to adequately handle all mine-related issues. “Business houses have a reason to complain because of a loss of business but we have to access the process properly before taking further steps in allowing the mine to operate,” he said. “Currently, all of us are making a loss, including the provincial government.” Sir Peter stated that the mine's prior 2% royalty payment to the provincial government was utilised to pay for school fees for the previous 15 years. He noted that despite the provincial government losing K70 million because the mine remained closed, he urged landowners, Enga residents, and the rest of the country to be patient as they neared the end of the reopening process. He praised the government for striking a deal that will benefit the country more. “This Government has been working hard for our good,” he said.   Reference: Pacific Mining Watch (17 May 2022). “PNG's Enga Provincial Government lost K70 million due to Porgera Mine closure”.

Mining

PNG Business News - May 18, 2022

K92 Mining Releases Strong 2022 Q1 Financial Results - Record Cash Balance and Record Monthly Throughput

Photo credit: K92 Mining Inc. K92 Mining Inc. is pleased to announce financial results for the three months ended March 31, 2022. Safety Strong focus on safety with one of the best safety records in the Australasia region since commencement of operations. Proactive and focused management of COVID-19. K92 has continuously operated throughout the COVID-19 pandemic, has strong preventative and response plans, with pandemic resiliency strengthening through ongoing vaccination programs. Production Strong quarterly gold equivalent (“ AuEq ”) production of 28,188 oz or 24,152 oz gold, 1,524,827 lbs copper and 28,142 oz silver, representing a 49 % increase from Q1 2021 ( 1 ) . Cash costs of US$536/oz gold and all-in sustaining costs (“ AISC ”) of US$788/oz gold (2) . Quarterly tonnage of 99,611 tonnes treated, a 36% increase from Q1 2021. Record throughput was achieved in March averaging 1,219 tonnes per day (“ tpd ”), 11% above the Stage 2 Expansion target of 1,100 tpd, and 45% of days (14 days) exceeded 1,300 tpd. Gravity circuit produced 1,161 gold doré ounces, and, subsequent to March 31, 2022, the Bank of Papua New Guinea granted K92 a Gold Doré Export Mining License, enabling the sale of gold doré ounces. Production from gravity will now be ramped up. Financials Quarterly revenue of US$52.4 million, an increase of 78% from Q1 2021. Balance sheet significantly strengthened during Q1, with a record cash position of US$79.9 million as of March 31, 2022. Sales of 26,471 oz of gold, 1,247,967 lbs of copper and 24,899 oz of silver. Gold concentrate and doré inventory of 4,848 oz as of March 31, 2022, a quarterly decrease of 2,299 oz. Operating cash flow (before working capital adjustments) for the three months ended March 31, 2022 of US$22.7 million or US$0.10 per share, and earnings before interest, taxes, depreciation and amortization (“ EBITDA ”) of US$27.2 million or US$0.12 per share. Net income for the first quarter of US$14.1 million or US$0.06 per share. Growth The Stage 2A Expansion to 500,000 tonnes per annum (“ tpa ”) continued to progress during the quarter with works underway and the new filter press operational; the additional TC-1000 secondary crusher arrived on site in late Q1 and is planned to be installed in Q2, while the new flotation tanks are scheduled to arrive in the second half of 2022. Additional mining equipment arrived on site, including a new jumbo in late Q1 and new truck and loader in early Q2. The performance of the process plant to date, with 45% of days in March exceeding 1,300 tpd, continues to demonstrate the potential to approach Stage 2A Expansion run-rate ahead of the new flotation tanks being installed. Reported the updated Kora resource estimate and maiden Judd resource estimate. The updated Kora resource estimate reported a Measured and Indicated Resource of 2.1 million ounces at 9.20 g/t AuEq and Inferred Resource of 2.5 million ounces at 9.48 g/t AuEq. The maiden resource estimate for the Judd deposit reported a Measured and Indicated Resource of 0.13 million ounces at 11.00 g/t AuEq and Inferred Resource of 0.18 million ounces at 5.66 g/t AuEq. The resource estimates will form the basis for the upcoming economic studies (see February 23, 2022 press release). K92 announced high-grade and record thicknesses from maiden surface step-out drilling results at both Kora South and Judd South. The results include the discovery of a previously unknown vein, and the discovery of significant mineralized dilatant zones at both Kora South and Judd South. An airborne geophysics survey was also completed, defining extensive new targets (see February 16, 2022 press release). Exploration at Kora South and Judd South has increased to two drill rigs operating during Q1, and subsequent to quarter-end, a third drill rig commenced drilling. In 2022, up to 11 drill rigs are planned to be operating. Significant advance of the twin incline in Q1, 15% above budget, with incline #2 (6m x 6m) advanced to 1,010 metres and #3 (5m x 5m) advanced to 1,063 metres as of March 31, 2022. In the past three quarters, development exceeded budget by 10%.   John Lewins, K92 Chief Executive Officer and Director, stated, “ We are very pleased with the financial results during the first quarter. Financially, the Company has never been stronger, with a record cash balance of $79.9 million, increasing by $8.6 million during the quarter. All-in sustaining costs and cash costs were also very strong, at $788/oz and $536/oz, respectively, and we are pleased to see the continued compression of unit operating costs driven by economies of scale and overall increased efficiencies as COVID-19 restrictions are progressively eased. In terms of production growth, the process plant continues to exceed our expectations. In March 2022, the plant delivered a record average daily throughput for the month of 1,219 tpd and 45% of the days exceeded 1,300 tpd. This is well above the 1,100 tpd Stage 2 Expansion run-rate and shows the potential to approach the Stage 2A Expansion run-rate of 500,000 tpa or 1,370 tpd, ahead of the installation of the flotation cells. Work on the next phases of growth is also proceeding with an economic study underway for the Stage 3 Expansion and Stage 3A Expansion. Exploration also continues to deliver strong results on multiple fronts. I am pleased to report that the third drill rig is now operating at Kora South and Judd South, rapidly increasing the number of rigs from one rig earlier this year. Drilling at Judd South followed by Kora South with long underground holes is also planned to commence shortly. Lastly, I would like to highlight that the achievements in Q1 occurred during the COVID-19 Omicron wave in Papua New Guinea. Our control measures on site held up very well. I am extremely proud of our workforce and what they have achieved during the pandemic environment and I am pleased to report a significant relaxing of restrictions on site, including the removal of quarantining. This is already having a noticeable positive impact on operational efficiencies and costs. The support of the Governments of both Papua New Guinea and Australia throughout the pandemic has also been a major factor in our success. ”   Press release can be found HERE. Article courtesy of K92 Mining

Mining

PNG Business News - May 16, 2022

Porgera chamber of commerce wants Porgera mine to reopen

The multi-billion-kina Porgera gold mine in Enga, according to Porgera Chamber of Commerce and Industry head Nickson Pakea, must reopen shortly to promote economic activity and solve criminality in the district. “The law and order issues in the district is partially due to the shutdown of the mine and those with access to guns taking advantage to conduct illegal mining activities as well as stir up trouble. “Our anticipation to receive the good news from the prime minister tomorrow (today) has been stalled due to the tribal conflict,” he said. With the arrival of police and Papua New Guinea Defence Force soldiers to the region, he stated fighting had ceased. The closure of the Porgera mine, according to Pakea, contributed to the district's lawlessness. “People with guns from other districts and provinces are taking advantage of the mine shut down and them trespassing the mine for illegal mining. “Apart from this, they also lease it (guns) for tribal fights, causing more destruction properties and innocent lives. The Government must intervene and stop this once and for all, not just provide security. “We want the Government to declare gun amnesty or gun surrender and collect all the guns. “We want the mine to fire up soon. “The longer it remains idle, the opportunities will increase for chaos. We also call on residents to support the security personnel to eradicate lawlessness once and for all by providing vital information. “Fighting has stopped but schools are still closed in fear of retaliation. “The principal of Porgera Secondary School has said that classes will resume on Monday,” he added.   Reference: Luma, Dale. The National (11 May 2022). “Porgera chamber of commerce wants mine to reopen”.

Mining

PNG Business News - May 09, 2022

Panguna Reopening Inevitable

The reopening of the Panguna Mine has become inevitable following an agreement between the landowners and the Autonomous Bougainville Government to reopen the multibillion kina defunct mine. Following the meeting of the ABG and the Panguna Mine Landowner Clan Chiefs held at Tunuru Catholic Mission, Kieta District on Wednesday 04 May 2O22 and the signing of the Post Summit Resolution between the ABG and the landowners both parties have agreed to reopen the mine. The ABG and the Panguna landowners have also agreed that the government with the landowners will jointly establish a completely new local Bougainville entity to develop the mine, and not an existing entity that has had history with the Panguna Mine. The completely new local Bougainville entity once established, will be jointly owned by the Panguna Mine Landowners and ABG on behalf of the people of Bougainville. The five major clans; Mantaá, Basikang, Barapang, Bakoringku and Kurabang and their 22 sub clans have unanimously agreed to the undertaking in partnership with the Autonomous Bougainville Government. Bougainville President Ishmael Toroama who signed on behalf of the Autonomous Bougainville Government has congratulated the landowners on their courage to finally put aside their differences and work with the government. ‘’The Panguna Mine was the economic guarantee for Papua New Guinea’s independence in 1975, in the same manner the Panguna will be the economic guarantor for Bougainville’s Independence,’’ declared President Toroama. ‘’In 1988 when the Bougainville Revolutionary Army High Command decided to shut down the Panguna Mine, the Late Francis Ona incentivized the mine as the key to Bougainville’s independence,’’ President Toroama revealed.  ‘’Today as we stand on the threshold of creating a new future for Bougainville where we are finally on the path to independence I stand here to thank the landowners of Panguna in making a strong decision on the fate of the mine,’’ President Toroama said. President Toroama assured the landowners that the Autonomous Bougainville Government will work in partnership with the landowners in creating the locally owned entity to redevelop the mine. He said the government will not compromise the rights of the landowners but will work towards ensuring a benefit sharing agreement that benefits all of Bougainville.

Mining

PNG Business News - May 02, 2022

Mining Minister Holds Goodbye Ceremony

Photo credit: Post Courier Mineral Resources Authority and Department of Mineral Policy and Geohazard Management held a goodbye ceremony for Mining Minister Johnson Tuke. While the Minister for Mining, Johnson Tuke, prepares for the National General Elections in the coming days, the departments reporting directly to him said farewell to their Minister, who has served the sector for two mandates. In his introductory comments, DMPGM Executive Manager Geological Survey Division Nathan Mosusu praised Mr Tuke for his advice throughout the last two legislative sessions and wished him luck in the elections. He claims that this has given people and resource owners a stronger voice, allowing them to gain more from resource development. “We stand proud of your leadership and the achievements you have made,” he told Minister Tuke. DMPGM Secretary Harry Kore stated that the department had accomplished several things, one of which is the development of several policies, two of which the Minister assures are successful. One is the geothermal resources policy, and the other is the small scale alluvial mining policy, according to Mr Kore. When the Minister first arrived, he was adamant that we pass these measures. All alluvial mining and exports are restricted to Papua New Guinea according to the small scale mining regulation. He explained, "It's a reserved business." Mineral Resources Authority board chairman Benny Kimisive said there were quite a few things that needed fixing, and with the Minister’s leadership, they have delivered.   Reference: Post-Courier (22 April 2022). “Mining Minister Farewelled”. 

Mining

PNG Business News - May 02, 2022

Harmony’s Senior Executives Affirm Company’s Commitment to PNG

Photo: Harmony representatives present at meeting in Port Moresby with Prime Minister, Honourable James Marape MP (L-R) Mr. J. Van Heerden, Ms. B. Lekubo, Prime Minister, Honourable James Marape MP, Mrs. M van der Walt and Mr. K. Wali. Senior executives from Harmony’s offices in South Africa, toured company assets in PNG this week. They met with Prime Minister James Marape to emphasise the company’s continued commitment to invest and grow in PNG. Harmony’s Financial Director, Boipelo Lekubo, and Senior Group Executive: Enterprise Risk and Investor Relations, Marian van der Walt, spoke of Harmony’s investment in PNG since 2004 and the company’s pursuit of multiple opportunities in the Morobe Province, of which the Wafi-Golpu Project is one. “Harmony, through its subsidiary companies, owns the Hidden Valley Mine and 50% of the Wafi-Golpu Project, as well as extensive exploration interests in and around the Morobe Province,” Ms. Lekubo said. “Significant capital works associated with the Hidden Valley Mine life extension are presently underway, and Harmony continues to assess further investment opportunities in PNG”, Ms. Lekubo added. As of 31 December 2021, the Hidden Valley Mine had paid an aggregate PGK 179.4 million in royalties. However, as many industries are experiencing, “Our stakeholders increasingly wish to understand what Harmony is doing environmentally, socially and in terms of governance,” Ms. Lekubo said. “‘Responsible Stewardship’ is a key pillar underpinning Harmony’s operating philosophy, which is mining with purpose. The principles of sustainable development are embedded in our business. For example, we recognise, both in South Africa and PNG, that preferential procurement is a national imperative, and we are proud to be supporting PNG businesses, including landowner businesses. During the previous financial year, Harmony’s total procurement spend in PNG was PGK 517 million, including PGK 152 million spend with landowner companies.” “Investment in a country’s people is also key. More than 96% of the Hidden Valley Mine’s 1,600-person permanent workforce are Papua New Guineans, including 29% of senior management and 76% of superintendents. This is continuing to increase through our Superintendent and Leadership development programs. We also recently announced our 2022 scholarship recipients, awarding full scholarships to four Morobeans’ to pursue university studies in mining related fields.” “That 15% of our Hidden Valley Mine workforce is female, including over 24% of truck operators—many who have been recruited from our landowner communities—is also a source of pride.” Harmony is also committed to responding to climate change and has announced its plans to achieve Net Zero carbon emissions by 2045. Ms Lekubo explained, “This commitment will influence our energy choices and Harmony’s approach to developments going forward. “There is no doubt about the importance of the Hidden Valley Mine, and—in the future—the Wafi-Golpu Project, to Harmony. Ms. Lekubo said that The Hidden Valley Mine proved to be critical to the Harmony Group when all of Harmony’s South African mines were shut down due to Covid-19 restrictions. “Thank you to each of our stakeholders for ensuring that the mine remains responsible and viable through particularly challenging times. A special thanks also goes to the PNG Government for partnering with us in keeping Harmonites safe and healthy”. With respect to the Wafi-Golpu Project, Harmony has been encouraged by the recent progress of discussions with the PNG Government. “We look forward to concluding the permitting of the Wafi-Golpu project, enabling us to continue creating shared value for all our stakeholders in PNG”, Ms. Lekubo concluded.   Article courtesy of Harmony Gold

Mining

PNG Business News - April 25, 2022

Alluvial Gold Mining Export Revenue Increases

Photo credit: Papua New Guinea Mine Watch According to the MRA chief, earnings from alluvial gold mining exports increased to K640 million in 2021 from K300 million. Jerry Garry, the managing director of the Mineral Resources Authority, announced this in Port Moresby during the goodbye of Mining Minister Johnson Tuke. Mr Garry claimed the industry's death rate has dropped from 10 to 6 each year to 0 in 2017 since Mining Minister Johnson Tuke assumed office. “In 2019, the highest total mineral export revenue was K16.4bn from the mining sector from K11.2bn previously.” “The mining sector is really compatible with LNG who came on stream in 2014 in terms of export revenue.” “It is the biggest industry in the country,” he said. According to MR Garry, the alluvial gold sector's export income was less than K300 million at the time, but it increased to K640 million last year. “We assessed close to US13bn worth of projects.” Minister Tuke has started getting Wafi up and running, and once Frieda River is operational, we will see a massive increase in our metal exports from now until 2050. “Gold will be over 2billion ounces per annum, reaching around 5million ounces, and copper for the first time will reach 700,000 tonnes per annum, averaging around 500,000 tonnes per annum compared to around 100 t0 180 000 tonnes produced by Ok Tedi that is a significant increase in the years ahead,” he said.   Reference: Post-Courier (22 April 2022). “Export Revenue For Mining High”. 

Mining

PNG Business News - April 25, 2022

Live Mining Data to be Available Soon

The Mineral Resources Authority will make all of the mining industry's operating live data available online in the coming months. According to Mineral Resources Authority executive director Jerry Garry, the mining amendment Act of 1992 mandates mining corporations to supply the state with information and data. Mr Garry said: “This was at a time when we were not so advanced and so in 2020 we were trying to specifically address that by saying that we want digital live information.” He said that all of the country's operators have no visibility, that they are manufacturing gold and exporting it without anyone understanding what they are doing. “To address this, we embarked on tapping into the heart of the mineral processing system of every mine that is from the crusher right down to the tails and end product, and if they have advanced process systems, we want to tap into it so that we can replicate this information in MRA.” “This means that on a second by second basis or minute by minute basis, whatever is produced in that processing plant is also in MRA just to manage the perception, and also we want to go down the path of reconciliation to reconcile the figures given by the company independently by the state so that we can all agree that we have been producing this much,” he said. Mr Garry stated that they have spoken to all tenement holders in the nation and that they have all voluntarily invited MRA engineers to visit their mine sites and that the feasibility study has been completed satisfactorily. He stated that they would begin actual work next year to collect all live data on all active mines, as well as data from the mineral processing plant. “This is a breakthrough, and we have done it. We piloted this now with Ok Tedi,” he said. All the other mining companies will be online in the next year.   Reference: Post-Courier (22 April 2022). “Industry To Have Mining Data Available Live”. 

Mining

PNG Business News - April 25, 2022

Tolukuma Mine Granted Extension Licence

The Tolukuma Gold Mine in Central Province has been granted an extension licence (ML104) for a period of ten years. Iain MacPherson, managing director and chief executive officer of Lole Mining Limited, said the next step is to implement a reopening plan because the mine has been closed for some years, and they are contemplating a lot of components. Mr MacPherson said that they are also considering restarting the mine, repairing the infrastructure, including an access road, and gradually returning the mine to its previous capacity over time. Tolukuma, he said, is one of the country's immense mineralised treasures, with colossal scale potential. “Tolukuma was built with a capacity of 60,000 ounces a year. We will get it back to that capacity over the next couple of years…but our vision is for a much larger operation framed similarly to the likes of the K92 mine. There is potential for maybe 150,000 or 200,000 ounces,” he said. Mr MacPherson stated that the initial restart will cost several million kina, including explorations, and that the budget will be based on that, including feasibility studies and development plans. He stated that the first stage would be to recommission the mine, followed by a two-year ramp-up to a capacity of 60,000 ounces. “There’s a lot of work that needs to be done. The mine is now fully permitted, and with regards to the tailings into the river, we will not be doing that as we are investigating ways to avoid that with the restart,” he said. Mr MacPherson also stated that the entire investment for the mine restart would be in the range of US$220 to $250 million, which is a significant sum that will only be known once the mine is dewatered.   Reference: Yafo, Melisha. Post-Courier (22 April 2022). “Licence Granted For Tolukuma”.

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