Newcrest Mining, whose interests in PNG include the Lihir Gold mine and a 50% share in the proposed WafiGolpu project with Harmony Gold Mining Company Limited, has a long-standing partnership with PNG.

Newcrest MD and CEO, Sandeep Biswas, travelled to Port Moresby this week and met with Prime Minister James Marape, during which he reaffirmed the company’s deep commitment to PNG through its operations.

“Newcrest is pleased that it has been able to continue to make a significant contribution to the PNG economy throughout the challenges of the global pandemic. To date, we have had no material disruptions to production, and I would like to take this opportunity to thank the PNG Government for its support throughout a very challenging time”, said Mr Biswas following his meeting.

“I would also like to thank our employees, contractors and business partners for their resilience and flexibility, with extended rosters and time away from their families to support our Lihir operations’.

Newcrest employs approximately 4,500 people at its Lihir operations, with about 90% of those being from Papua New Guinea.

Newcrest’s investment in PNG continued despite COVID19 challenges. In the last financial year, K180 million was added to operational costs to mitigate the impact of the pandemic on our Lihir operations and employees.

In addition, over K1bn was spent with PNG suppliers, with more than K400m going to Lihirian vendors alone. Newcrest also contributed K284m in taxes, K99m in royalties and contributed USD450 million to the national account through the acquisition of K1.574bn in foreign exchange.

Newcrest established our Community Support Fund in April 2020, to support the Government and communities’ preparedness and response to COVID-19 across the jurisdictions we work in.

Since it's inception, 22 projects in PNG have been approved to the value of over K17m, and have been implemented primarily in response the priorities of the communities we work in, focusing on delivery of health care supplies and equipment.

We have worked provincially in partnership with the New Ireland, East New Britain, Morobe and NCD PHAs, and nationally in partnership with donors such as UNICEF.

“Most recently we have turned our attention to supporting the roll-out of the COVID-19 vaccine in New Ireland. Our implementation partner Australian Doctors International are working very closely with the Provincial Health Authority to overcome vaccine hesitancy and give the people of New Ireland the opportunity to understand the benefits of getting vaccinated”, said Mr Biswas.

Mr Biswas thanked the PM for his ongoing support for Lihir and commitment to progressing the discussions on the permitting of the Wafi-Golpu project.

“Newcrest looks forward to a long partnership with Papua New Guinea, which will deliver benefits to both the people and the Government of this country for many years to come,” he said.

Lihir Gold Limited is very well positioned for the future, with an aspiration of a million ounces a year in the coming years.

Photo credit: Mayur Resources - Central Cement and Lime Project - Decarbonisation Roadmap

Mayur Resources Limited has executed a Collaboration Agreement with ASX listed First Graphene Ltd for the development of graphene derived additives for cement manufacturing specific to low carbon cements and Portland Limestone Cements (PLC). The intent of the Agreement is to employ FGR’s technology as part of Mayur’s commitment to the production of low carbon cement products for the PNG and Australasian market from its Central Cement and Lime Project (CCL) in Papua New Guinea (PNG).

This is another key step in Mayur’s decarbonisation strategy for its nation building projects and follows the recent announcement regarding the grant of forestry concessions to Mayur Renewables, covering 800,000 hectares. This will enable the establishment of Verified Carbon Standard (VCS) carbon credits and the protection and preservation of PNG’s pristine rainforest, and through the monetisation of carbon offsets delivering sustainable commercial and social benefits to forest-based communities with far superior outcome compared to commercial logging.

Mayur Managing Director Mr Paul Mulder stated “The agreement with FGR presents a highly strategic opportunity to partner with a likeminded company that is passionate about innovation and development of tomorrow’s technology. If this additive works like we expect it to, it means we can use less clinker replacing it with high grade limestone, this has multiple benefits to the environment and the business by reducing process energy needs, reducing emissions and reducing costs.”

The purpose of the three-year Agreement is to facilitate the exchange of knowledge through research and development work. Each party will contribute scientific and industry knowledge, with FGR providing access to its PureGRAPH® product range, formulation and dispersion process technologies.

FGR Managing Director and CEO Michael Bell said: “The agreement with Mayur Resources adds another important strategic partner to First Graphene’s portfolio of global collaborators seeking to assist the cement and concrete industries to achieve its carbon reduction goals. First Graphene is implementing our go-to-market plan to become the world’s leading supplier of graphene-enhanced cement and concrete solutions and Mayur Resources is ideally placed to help the Company increase traction in the Australasian market.”

As part of its commitment to reducing emissions, the global cement segment is exploring methods to produce cements with lower clinker factor to produce “cleaner and greener” cement products. Ultimately, the objective of the collaboration is to jointly develop a low-carbon cement for the Australian and Asia Pacific cement markets using PureGRAPH®-enhanced cement additives. These would provide the Australasian cement industry with a global solution to reducing carbon dioxide emissions.

Article courtesy of Mayur Resources

Photo: Simberi Mine

St Barbara Limited notes the COVID-19 pandemic infection rates across the Tabar Island group have increased significantly, impacting the local communities and our workforce. While gold production at Simberi Operations continues, ramp-up of mining operations is not achieving target rates and uncertainty remains as to when full workforce participation can resume. The Company has elected to withdraw FY22 guidance as it focuses on the health and safety of the local community and its workforce, while also progressing recovery options.

St Barbara Managing Director and CEO Craig Jetson said, “The health and safety of the local community and our workforce is our primary concern. Of our circa 600 daily workforce, today there are 139 active cases. The majority of those cases are asymptomatic with no-one hospitalised. While we have experienced previous COVID-19 surges, this Omicron outbreak is proving to be far more disruptive. This is a difficult time for the community, the site team and I have met with the community leaders to offer our support. The Community Relations and Medical teams are actively working with the community offering testing and vaccination support.”

St Barbara notes the current reduction in commercial flights across PNG due to pilot shortage as the pandemic impacts the aviation industry. This is anticipated to impact our ability to source additional supplies and rotate senior national and expatriate staff. The mine and processing plant continue to operate at a reduced rate.

When we have greater certainty on the situation St Barbara will be in a better position to quantify the ongoing impact of the COVID19 outbreak and provide updated FY22 guidance.

Article courtesy of St Barbara Limited

Landowners from the Panguna Mine area and the Autonomous Bougainville Government have reached a joint resolution to re-open the Panguna Mine.

The joint resolution was signed by clan chiefs and representatives from the five major clans of the Panguna area – Basikang, Kurabang, Bakoringu, Barapang and Mantaa.

The signing took place at the end of a three-day summit for the Panguna Landowner groups hosted in Tunuru, Central Bougainville this week.

ABG President Hon. Ishmael Toroama acknowledged and congratulated the five clans and their respective leadership for taking the bold stand to re-open the Panguna Mine.

He said the signing of the joint resolutions signifies the beginning of a new chapter for Bougainville.

“Today marks the ending and the beginning of a new chapter, a chapter to realize Bougainville’s independence,” he said.

President Toroama reassured the landowners that the government will continue to be there to protect the people and their resources through relevant laws passed through the Bougainville Parliament.

He urged the landowners to continue to use the government as a tool to control what rightfully belongs to the people in terms of resources.

The Toroama-Nisira government is confident that the re-opening of the Panguna Mine will be a major booster for Bougainville’s economic future and at the same time, guarantee Bougainville’s political independence.

Following the signing of the joint resolutions, the ABG through the Department of Mineral and Energy Resources and other relevant departments, will work together with the landowner groups to facilitate the process towards the re-opening of the mine.

Photo credit: Adyton Resources. Figure 1 - Feni Island – showing Kabang drilling area – other prospects also shown

Adyton Resources Corporation is pleased to report the Exploration License at its 100% owned Feni Island Project (Feni) in Papua New Guinea has been renewed for a two year period from August 2020. 

Adyton Resources CEO, Mr Tim Crossley, said “the renewal which was recommended by the Mineral Resources Authority (MRA) and approved by the Minister for Mining was welcomed as the company moves into the next phase of its exploration program at Feni follow the highly successful 2021 drilling campaign which culminated in hole ADK004 intersecting significant copper & gold mineralization.” Mr Crossley added that the world class ADK004 intersect had generated significant interest from large strategics who are searching for their next generation of copper ore bodies. 

Mr Crossley thanked the MRA, Mining Minister and Landholders for entrusting Adyton with the rights to continue exploration on Feni Island and expressed confidence that the exploration success to date would continue. 

The Feni Project

The Company’s maiden drilling program of five diamond holes (1,982m) at Feni was completed in late 2021 (see TSXV Announcement 01 December 2021: Adyton hits significant copper at Feni Island 6.4m @ 5.1% Cu (including 3.6m @ 6.9% Cu)). 

The initial objectives of the program were to expand the gold resource as well as test various induced polarisation (IP) geophysical anomalies testing for the potential of a copper porphyry system.

Figure 2: Kabang drilling area showing IP conductive channel, IP phase targets and location of the five completed Adyton diamond drill holes. Note the prospective corridor is > 1.5kmslong, lightly drilled, andunder younger volcanic cover at the northern end which has hindered previous exploration efforts. Hole ADK004 is shown.

Multi‐element assays contained significant copper intersections from hole ADK004, drilled in the Matangkaka area (Figure 2), in two zones – a shallower disseminated zone of copper mineralization followed by a zone of massive sulphide copper mineralization:

Massive sulphide Cu + Au Interval: • 6.4m (149.7 to 156.1m) @ 5.1% Cu & 1.6g/t Au Incl 3.6m (151.5 to 155.1m) @ 6.9% Cu & 2.1g/t Au Incl 0.7m (154.4 to 155.1m) @ 14.5% Cu & 2.4g/t Au

Disseminated Cu + Au Interval: • 35.9m (70.7 to 106.6m) @ 0.3% Cu & 1.1g/t Au

In terms of gold only, Hole ADK004 previously reported several significant Au intersections as follows:

• Hole ADK004 drilled 500m north of holes ADK001 and ADK003 intersected 84.10m (72.0 – 156.1m) @ 0.96 g/t Au, including 10m (74.0 – 84.0m) @ 1.41 g/t Au; 15.60m (91.0 – 106.6m) @ 1.20 g/t Au; 4.60m (151.5 – 156.1m) @ 2.00 g/t Au and 1m (335.0 – 336.0m) @ 5.24 g/t Au.

At Kabang, 500m to the south of ADK004 (Figure 2)significantintersections ofmineralization were recorded in all three holes drilled in this area:

• Hole ADK001 intersected gold from surface 144.80m (1.0 – 145.8m) @ 0.8 g/t Au, including 42.70m (48.3 – 91.0m) @ 1.33 g/t Au; 28m (63.0 – 91.0m) @1.60 g/t Au and 5m (70.0 – 75.0m) @ 2.96 g/t Au and a shallow copper intersection of 16m (7.0 – 23.0m) @ 0.3% Cu. 
• • Hole ADK002 intersected 10.0m (45.0 – 55.0m) @ 0.6 g/t Au. 
• • Hole ADK003 intersected 84m (55.0 – 139.0m) @ 0.6 g/t Au, including 2m (55.0 – 57.0) @ 1.36 g/t Au; 3m (61.0 – 64.0m) @ 1.16 g/t Au; 6m (93.0 – 99.0m) @ 0.96 g/t Au and 15m (124.0m – 139.0m) @ 1.26 g/t Au.

These results validate the company’s geological model that Feni Island has the potential to host zones of significant porphyry copper and gold and epithermal gold mineralization within the highly mineralized Kabang 1.5km long structural corridor. Other significant conclusions from the drill program included:

• The initial resultsfrom the first five holes are very encouraging, confirming the potential for higher grade gold and copper ore zones within a broader mineralised gold envelope. 
• The short programs at Kabang and Matangkaka provide further impetus for the next phase of work which will be focused on resource extensions and testing the depth potential along the more than 1.5 kms strike extent. 
• The IP modelling is clearly picking out the strong “pyrite halo” around the porphyritic intrusive which is encouraging as the gold appears to sit above and within this zone. 
• The company considers thatfollowing the success of the short initial diamond drilling program, there is a significant discovery to be made in the Kabang structural corridor with a focused IP program to refine targets followed by drilling along the 1.5km long by 500m wide zone. 
• There are a number of other prospects that also need following up (Figure 1), which will be further defined in future work programs.

Article courtesy of Adyton Resources

Geopacific Resources, an Australian mining company, has halted operations on its Woodlark gold and silver project in Milne Bay, Papua New Guinea, as it reviews cost projections and timetables.

Geopacific predicted in December that Woodlark's capital costs would almost certainly rise.

"Having recently been chosen as chairperson, I am focused on ensuring the firm properly works through its strategic choices," said Andrew Bantock.

“The suspension of these activities limits the company’s cash spend as we reassess how to develop the Woodlark gold project in the most efficient manner possible.

“However, we remain focused on the underlying value of the Woodlark gold project which has over one million ounces of gold in reserves, significant untested mineral resource growth potential and has seen over AU$100-million (about K257 million) invested over the past 18 months in project design and development.”

Geopacific Resources Ltd received AU$100 million (K257.5 million) in July to build a gold and silver mine on Woodlark Island in Milne Bay.

Chairman Ian Clyne acknowledged that the money will come from a loan facility.

Jerry Garry, general director of the Mineral Resources Authority (MRA), stated that the company had halted building activity because it wanted more time to recalculate costs.

Over a 13-year mine life, the project cost AU$130 million (K314.88 million).

The Woodlark project was predicted to generate 980 000 oz of gold, with a net present value of AU$347 million (K840 million) and a 34 per cent internal rate of return.

Despite the building halt, Garry claims that Geopacific's house plans for the relocation exercise have improved as a result of MRA's assistance.

He went on to say that the exploratory effort is still ongoing.

"The initial cost of constructing mine has increased dramatically because of the Coronavirus phase," Garry said. 

“Costs of building mines now have increased by 16 per cent to 20 per cent.

“Geopacific suspended some of their activities.

“They have to raise further capital.

“Construction work was suspended as of this morning (Thursday).

“All fly in fly out employees were made redundant until further notice. But they continue with relocation exercises of locals and exploration work on gold resources.

“Eighty decent houses were completed for landowners.”

Reference: Pacific  Mining Watch (7 February 2022). “Australian miner halts work on Woodlark Gold and Silver project in PNG”. 

The Porgera Project Commencement Agreement (PPCA) formally took effect recently with the execution of the document by its final signatory, Mineral Resources Enga (MRE), marking a significant milestone in the process of reopening the mine.

The next critical steps are to sign the Shareholders Agreement, the substance of which along with that of the Company Constitution have already been agreed, and complete other formalities so that the New Porgera joint venture company can be incorporated and apply for a Special Mining Lease. Finalizing the Operatorship Agreement is also an essential condition to reopening.

Barrick President and Chief Executive Officer Mark Bristow commented, “The formal execution of the PPCA represents important progress. Our senior executives have been in PNG once again to oversee the final execution of the PPCA and the negotiation of key implementation agreements. Our task now, in partnership with the State, is to accelerate the process so that the new company, which will be 51% majority owned by Papua New Guinean shareholders, is incorporated and a sound tenement granted, enabling the mine to reopen at the earliest opportunity and resume delivering economic benefits to the landowners and community of Porgera and to PNG.”

Commenting on the December quarter, Kingston Managing Director Andrew Corbett said: “We’ve hit the ground running in 2022 after finishing last year strongly on a number of fronts. Three key events – the acquisition of the Mineral Hill Mine, the divestment of our interest in the Livingstone Project, and a successful $14 million capital raising – have given us a great platform from which to grow in 2022.

“The Mineral Hill operations team is continuing to ramp up production through the transition period, and we look forward to to delivering positive cash-flow from the operation in the coming months. We are also very excited to have drill rigs arriving on site imminently to commence our exploration program.

“In addition to the near-term operations and exploration news flow from Mineral Hill, we expect to complete the Definitive Feasibility Study for the Misima Project in March – the results of which will be reported together with an updated mineral Reserve. This amounts to a very positive outlook for Kingston in the months ahead as we strive to achieve our objective of building a substantial diversified gold producer in the Asia-Pacific region based on the two high-quality assets in our portfolio.

Misima Gold Project

Definitive Feasibility Study

Process Plant Design

The process plant design contract for the Misima Gold Project DFS was awarded to Lycopodium Minerals Pty Ltd (ASX: LYL) during the September quarter. Work on plant design has advanced rapidly during the December quarter with process design criteria finalised, simulation work complete and the layout now finalised. The procurement process and pricing is now in progress.

Engineering Studies

Together with process plant design, the remaining work programs including civil works, site water management, HV electrical work, non-processing infrastructure, mine geotechnical assessments and mine planning are all well advanced with a number of tenders sent to market and pricing received.

Geotechnical Program

Geotechnical work commenced at the end of July and is now complete for pit slope assessment and waste rock dump design, with the necessary design assumptions finalised for inputs into mine planning.

Mine Planning

Initial pit optimisations have been run, with pit and waste rock dump designs complete. Estimation of detailed operating parameters is now underway.

Estimating and Financial Modelling

The project estimate is currently being compiled from market pricing and quantities estimates derived from the engineering studies with the financial model set up also underway.

Environmental and Mining Approvals

ESIA work programs continued during the quarter. The baseline field surveys, including the necessary marine surveys, are now largely complete. Initial data reports are largely complete with impact assessments to now be finalised, informing the ESIA to be submitted to the PNG Conservation and Environment Protection Authority (CEPA).

The Artisanal and Small-Scale Mining Study, the In-migration Study, the Human Resources and Localisation Plan and the Business Development Plan are continuing. This work will contribute to the Proposal for Development required as part of the Mining Licence Application.

Community Engagement

Kingston’s community engagement team has been continuing consultation activities with various stakeholders including community members, landowners, government, and other organisations as part of its commitment to keeping all stakeholders appraised of the work being carried out and the proposed project development strategy.

Photo credit: International Mining

Harmony Gold Mining Company Limited wishes to share an update on its production as at the end of December 2021 (“first 6 months of the financial year” or “H1FY22”) ahead of its interim results to be announced on 28 February 2022.

South African operations

Gold production for H1FY22 from the South African operations remains steady at 22,355 kilograms (718 726 ounces) compared to the 22,031 kilograms (708 310 ounces) produced during the previous six-month period ended 30 June 2021 (“comparable period”). These specific periods are being compared as they both include a full six-months’ production from Mponeng and related assets (“Mponeng”) whereas the six months ended 31 December 2020 (“H1FY21”) only included three months’ production from Mponeng.

Rand per kilogram costs for the South African operations remain broadly in-line with what was originally guided and remains unchanged at R765,000/kg to R800,000/kg.

Papua New Guinea – Hidden Valley mine

Gold production in H1FY22 at Hidden Valley was down 26% to 1,871 kilograms (60,153 ounces) against the comparable period as a result of geotechnical issues which prevented the effective mining of stage 6 of the open pit, resulting in more lower grade stockpiles being processed. Covid-19 related restrictions and rostering also had an impact on the workforce in Papua New Guinea further impacting production.

In addition, 6-kilometers of overland conveyor belt was damaged in early January 2022 and will be replaced. This will have a significant impact on full-year production at Hidden Valley. Waste and ore mining at the mine continues and trucks are being used to transport ore to the plant until the belt repairs are completed towards mid-March 2022. During this period, major scheduled maintenance work will be carried out on the process plant.

As a result, Hidden Valley’s production is revised downwards from 153,000 to 161,000 ounces (as previously guided) to 115,000 to 117,000 ounces for the financial year ending 30 June 2022 (“FY22”).

The modified guidance from Hidden Valley will result in a 4% adjustment to total production from 1.540 to 1.630 million ounces as guided at the beginning of FY22, to 1.480 to 1.560 million ounces. The overall all-in sustaining cost (“AISC”) has consequently been revised from R765,000/kg to R800,000/kg as previously guided to R805,000/kg to R835,000/kg for FY22. Investors are reminded that guidance for our South African operations remains within the original cost range guided of between R765 000/kg to R800 000/kg.

Harmony’s interim results for the six months ended 31 December 2021 (“H1FY22”) will be released on both a virtual platform and in person (Covid-19 regulations permitting) on Monday, 28 February 2022.

Article courtesy of Harmony

Photo credit: K92 Mining

K92 Mining Inc. is pleased to provide its operational outlook for 2022. The Company expects a significant, year over year, increase in gold equivalent production of up to 34% to 115,000 to 140,000 ounces, while also delivering low-cost production with an estimated cash cost of $560-$640 per ounce gold and all-in sustaining cost (“AISC”) of $890-$970 per ounce gold. Additionally, the Company plans to ramp-up exploration activities and invest in future production growth.

On exploration, 2022 is forecasted to have a significant increase in both near-mine and regional activities with forecasted expenditures of $12-15 million. Since 2020, the drill fleet has more than doubled to up to eleven drill rigs. Importantly, exploration has recently made a major pivot to focus on resource growth from previously largely infill-drilling at Kora, with plans to drill the Judd, Kora, Judd South and Kora South vein systems, and the Blue Lake porphyry. Significant generative surface exploration activities from 2021 are planned to continue into 2022.

Growth capital is forecasted to be $41-$47 million, which includes the ongoing Stage 2A Expansion to 500,000 tonnes per year (1,370 tonnes per day), substantial upgrades to our underground and surface infrastructure and the twin incline development to also support the Stage 3 Expansion. The twin incline is designed for a throughput capacity of up to 2 million tonnes per annum (“tpa”) or 3 million tonnes per annum with conveyors. As of December 31, 2021, the furthest twin incline has advanced 893 metres.

John Lewins, K92 Chief Executive Officer and Director, stated, “2021 was a record year and we plan to deliver another record year in 2022. The end-of-year momentum from the fourth quarter of 2021 which delivered record production, mill throughput, mine throughput and some of the highest metallurgical recoveries over the past two years for both gold and copper, has certainly set the operation up well for 2022. We also achieved our beginning of 2021 target of reaching Stage 2 Expansion mine and mill throughput by year-end, and we look to continue to expand in 2022 through the Stage 2A Expansion designed to increase throughput +25% to 500,000 tpa with commissioning planned for 3Q 2022.

We are also very excited about exploration for 2022, with most of the program focused on resource growth. Surface drilling is advancing at Judd South and Kora South, targeting large step-outs from the existing known deposits. Surface drilling is also advancing at Blue Lake with deeper drilling targeting the potassic core. Underground drilling for the first time has the majority of drill rigs at Judd and plans are also in place to leverage the twin incline later in the year for step-outs at Kora along strike to the north and at depth.

Advancing the Stage 3 Expansion is a key part of our plans this year, with considerable progress planned on multiple fronts. Twin incline development advance has performed well, exceeding budget in the second half of 2021. The resource update for Judd and Kora is planned to be announced together this quarter, and our Stage 3 Definitive Feasibility Study and Updated Preliminary Economic Assessment (“PEA”) are progressing well and planned for Q2 publication. Work on the drilling of a 5-metre diameter raisebored ventilation shaft located in the south of the Mining Lease is also scheduled to commence in late 2022.

In terms of COVID-19, it continues to be a factor to societies and industries globally, and as a result, we have incorporated a contingency in our production guidance range by extending its lower bound. It is also important to highlight that our resiliency to the pandemic has significantly improved over the past year, with over 65% of our workforce having received their first vaccine dose and COVID-19 control measures on site have proven durable to date. Operations have also benefited from a substantial improvement in international travel for our expatriate workforce, consultants and suppliers.

Lastly, I would like to once again thank our workforce – their strong commitment and resilience have been extraordinary. The Government of Papua New Guinea and the Government of Australia have also been a major factor in our success. This has set up a potentially very exciting 2022.”

Article courtesy of K92 Mining Inc.

A positive first meeting of the Panguna Mine Legacy Impact Assessment Oversight Committee was held in Buka in 2021. 

Representatives from clan, landowner, and community organizations, as well as the Papua New Guinea government, Rio Tinto, Bougainville Copper Limited, and the Human Rights Law Centre, were hosted by the Autonomous Bougainville Government.

The committee gathered to examine the next steps in analyzing the old Panguna mine's environmental and human rights implications.

"This process is equally vital and necessary for all parties, the people of Bougainville, ABG and BCL," Geraldine Paul, representing the ABG, said in her opening remarks.

She praised Rio Tinto and BCL for agreeing to collaborate with ABG and stated that "ABG has offered its full support for the Panguna Mine Impact Assessment to be carried out through the executive council."

Furthermore, Hon. Geraldine Paul informed the committee that a political timeline for Bougainville's independence has been established, and that this process is timely in order to support the people of Bougainville's political ambitions.

Rio Tinto’s representative on the Committee, General Manager for Closure Delivery, Mr. John Dumbill said, “Rio Tinto is sorry that we did not come forward earlier to understand the impacts from the mine. We are ready and willing to participate in this process with you. I hope that I can help to move this forward, and I am personally committed to making sure this process is fair and representative."

The Honourable Theonila Roka Matbob of the ABG, who is also the spokesperson for the Panguna Complainants group and has recently won an international award for her efforts to seek justice for affected communities, thanked him for the apology and noted that Rio Tinto had been constructive in working through the complaint brought against them by communities through the Australian National Contact Point (AusNCP):

“This meeting marks what we hope is the start of a new chapter for the communities impacted by the Panguna mine. Personally, it fills me with great hope to see all these stakeholders come together to discuss a way forward to find solutions to the huge problems our people are living with. We are looking forward to working with the Committee to ensure work on the ground can start as soon as possible," Hon. Theonila Matbob said.

Following the meeting, the committee issued a statement through its Independent Chairman, Mr Martin Brash of the Tanorama Consulting Group, said “All parties at the meeting have committed to collaborating in a fair and effective process that helps address the concerns of affected communities. 

In this first meeting, the committee has established operating arrangements for the process and have also finalised and endorsed a procedure to go to market to find a professional firm to complete the technical impact assessment.”

The committee also approved a motion from the ABG's Honorable Geraldine Paul to conduct the next meeting in Panguna in February of this year, when they will get a desktop report tracing available pertinent background information regarding the environment and population in Panguna. The committee and the impact assessment contractor, who will be nominated by the committee in April 2022, will benefit from this study.

Reference: Autonomous Bougainville Government (12 January 2022). “Panguna Mine Legacy Impact Committee holds first meeting”

The Enga Provincial Executive Council (PEC) has adopted the National Government's revised project framework for reopening the Porgera mine in April this year.

While announcing the PEC approval over the weekend, Enga Governor Sir Peter Ipatas praised the National Government for its goal to reopen the world-class Porgera Gold Mine under a new project framework.

“The Marape Government has been bold and decisive in negotiating a new deal for the country and I am proud to say that Enga Province under my administration firmly supports the effort,” Sir Peter said.

The governor said the Enga PEC's approval was a significant step toward restarting the mine this year, and he hoped to achieve even better outcomes.

Sir Peter also urged all Porgera landowners to get together and support the Marape Government's new vision for Enga Province and the country.

Sir Peter stated that the provincial administration was now looking forward to drafting a new memorandum of understanding (MoA) with the project partners and that the province will work closely with the Marape government to ensure that the mine's goal is realized.

He said that the vision will ensure future development for Enga Province's present and future generations.

Following Prime Minister James Marape's announcement last year, Barrick Niugini Limited (BNL) is preparing to reopen the mine in April.

BNL is also expected to issue a public statement later this month about the mine's re-opening progress.

Reference: Post-Courier (7 January 2022). “Enga provincial gov’t Supports New Porgera Mine Deal”.

K92 Mining Inc. announces production results for the fourth quarter of 2021 at its Kainantu Gold Mine in Papua New Guinea, of 36,145 oz AuEq or 33,220 oz gold, 1,048,100 lbs copper and 28,218 oz silver. Annual production also achieved a record of 104,196 oz AuEq or 95,055 oz gold, 3,375,528 lbs copper and 70,792 oz silver, exceeding the updated guidance range of 96,000 to 102,000 oz AuEq.

During the fourth quarter, the process plant delivered record throughput of 99,713 tonnes. Excluding 5 consecutive days of downtime due to scheduled plant maintenance, the mill operated at an average throughput of 1,146 tonnes per day (“tpd”), exceeding Stage 2 Expansion design throughput of 1,100 tpd. Multiple daily records were set during the quarter, with 21 days exceeding 1,300 tpd throughput and a daily record of 1,538 tonnes set on October 24, 2021.

Importantly, recoveries were also strong during the quarter at 92.8% for gold and 92.9% for copper, both exceeding budget. Gold and copper recoveries represent the highest recoveries since Q4 2020 and Q4 2019, respectively. Plant capabilities are expected to also further improve with the full integration of the gravity circuit planned for Q1 2022.

With the process plant continuing to deliver significantly above design throughput and a notably finer than required product size, a Stage 2A Expansion to increase throughput from 400,000 tonnes per annum (1,100 tpd) to a nameplate of 500,000 tonnes per annum (1,370 tpd) has been approved ( see October 7, 2021 press release: K92 Mining Announces Stage 2A Expansion to Increase Throughput +25% to 500,000 Tonnes Per Annum at Kainantu Gold Mine) . Works are already underway targeting commissioning in Q3 2022, with an estimated plant expansion capital cost of US$2.5 million.

Mining operations also achieved record material movements in the fourth quarter with 108,461 tonnes of mill feed material movements. The mining rate exceeded our target of achieving the Stage 2 target throughput of 1,100 tpd at year end, averaging ~1,180 tpd (mill feed), and the strong performance resulted in an increase to our stockpiles.

During the quarter, the first production stope from the Judd #1 (“J1”) Vein was mined and has delivered strong performance thus far, including solid geotech, high grades, and strong drill and blast characteristics (see Figure 1). Judd has also shown that it is capable of delivering large stopes (first stope 40 m strike x 30 m height x 4.5-5m thickness) and large blasts with a fast turnaround cycle, including a stoping single blast record of 4.1 kt in December 2021. The establishment of the Judd Vein System as a new major mining front has provided a significant boost to operational flexibility and material movements. Judd is located ~150-200m from existing infrastructure at the Kora high-grade deposit, making it highly efficient to access going forward.

The operation delivered head grades of 11.2 g/t gold, 0.51% copper and 10 g/t silver (12.1 g/t AuEq) in Q4. Gold grades delivered a positive reconciliation against the resource model and were also above budget. Long hole stoping continued to perform to design, with operations focused on Kora’s K1 and K2 veins and also Judd’s J1 Vein for a total of 7 levels mined. Mining on Kora was conducted on the 1150, 1170, 1205, 1225 and 1265 levels and Judd on the 1235 and 1265 levels.

The new twin incline development resumed in late May, after the COVID-19 Papua New Guinea and Australia travel restrictions were lifted and the COVID-19 situation in Papua New Guinea improved. Twin incline development advancement has continued to progress well, exceeding budget for the second half of 2021 and in line with budget during Q4. The #2 (6m x 6m) incline has now advanced a total of 803 metres and the #3 (5m x 5m) incline has now advanced a total of 893 metres as of December 31, 2021.

COVID-19 Operational Resiliency

The Kainantu Gold Mine operates under a comprehensive COVID-19 Management Plan and has continuously operated during the pandemic. A considerable focus is on health and safety and risk-mitigation. Under the COVID-19 Management Plan, K92 has established a Government-recognized testing lab facility utilizing qualified medical personnel on site, established quarantine and isolation facilities for incoming staff, and implemented enhanced hygiene, disinfecting and training systems and procedures. Additional controls were implemented in 2021, requiring external COVID-19 testing prior to travel to quarantine at site in addition to on arrival at site before reporting to quarantine. A focus has been supporting Government efforts at a national, provincial and local level through the 1.5 million PGK (Papua New Guinea Kina) COVID-19 Assistance Fund and a further 1.0 million PGK of additional assistance funding to Eastern Highlands Province.

In addition to various control measures, K92 continues to make considerable progress increasing our resiliency through vaccinations of our expatriate and PNG national workforce, with vaccinations administered on site well underway. Over 65% of our workforce (employees and contractors) have received at least one vaccine dose. The Company is in close communications with the provincial and national health authorities of Papua New Guinea and the Government of Australia, in addition to the Papua New Guinea Chamber of Mines and Petroleum to deliver an effective pandemic response.

John Lewins, K92 Chief Executive Officer and Director, stated, “The fourth quarter delivered our strongest quarter to date at the Kainantu Gold Mine, with record production, record mill throughput, record mine throughput, above budget processing recoveries and an excellent start to stoping activities at Judd, our new mining front.

We believe that Q4 represented a major inflection point for Kainantu both operationally and with exploration. Operationally, we met our beginning of year goal of achieving Stage 2 Expansion mine and mill throughput by year-end and exceeded our updated production guidance. In 2022, we look to take another step forward with the Stage 2A Expansion, increasing nameplate throughput by +25% to 500,000 tonnes per annum, targeting commissioning in Q3 2022.

On exploration, activities have recently shifted from an extended period of infill drilling at Kora to now almost entirely focused on resource growth. Step-out drilling is underway at Judd, Judd South, Kora, Kora South and also the Blue Lake Porphyry. We certainly are excited about our 2022 exploration program.

It is also important to highlight that COVID-19 was certainly a factor in Q4, with a record surge of cases during the first two months driven by the Delta Variant in Papua New Guinea. K92 has a tremendous attachment to our communities, the people of Papua New Guinea, a strong sense of responsibility and it was especially painful to see the impact that COVID-19 has had. We are proud to have provided an additional 1.0 million PGK of COVID-19 assistance funding to Eastern Highlands province in Q4, in addition to our 1.5 million PGK COVID-19 Assistance Fund created in April 2020. Our site logistics team was active in rapid procurement and delivery of medical oxygen plants from Australia to the local Goroka hospital, and we strongly believe that our efforts made a difference and saved lives.

I am also pleased to report that our COVID-19 control measures on site held up very well, although there were impacts from absenteeism. Encouragingly, our COVID-19 resiliency continues to improve with over 65% of our workforce vaccinated with at least one dose, and a progressive easing of restrictions has begun within the resources sector in Papua New Guinea. We have also seen a significant improvement in international travel for our expatriate workforce, consultants and suppliers over the last three months that is beginning to benefit the operation.

Lastly, I would like to once again thank the K92 workforce for their extraordinary commitment, dedication and resourcefulness. The support of the Government of Papua New Guinea, and also the Australian Government has been a major factor in our success as well.”

Article courtesy of K92 Mining Inc.