Photo credit: Ok Tedi Mining

Ok Tedi Mining Limited (OTML) Chairman Dr Roger Higgins recently announced that the Company has declared a final dividend of PGK300 million which was paid on Friday 24th December to its shareholders, bringing total dividends paid by OTML this year to PGK450 million.

Dr Higgins noted that despite a fire incident at the mine’s processing facility late last year that impacted its January 2021 production, a two-week suspension of operations in March 2021 and ongoing labour shortages due to COVID-19, the Company had benefitted from strong final quarter production and favourable metal prices.

He said, “this has enabled the Board to declare a dividend to Kumul Minerals (Ok Tedi) Limited, which now owns 67% of Ok Tedi following the recent transfer of shares from the Independent State of Papua New Guinea, and the three landowner entities representing our communities and collectively owning 33% of the Company”.

He added that OTML continued to maintain a strong balance sheet with no debt and liquidity remaining within the established guidelines.

Dr Higgins thanked management and the workforce for their collective efforts, and the support from the local communities to deliver this “Christmas present” for the people of PNG especially during a particularly challenging year.

He added that 2022 will be a modest year as the business transitions from low grade to high grade ore which will present in 2023. With the recent appointment of the three new directors to the OTML Board, including the first female director, he is confident that OTML will continue to deliver value to its shareholders.

He also announced that the Board had approved an investment of nearly PGK750 million over the next two years to refurbish and upgrade the aging processing facility to ensure its effective and efficient operation beyond the current mine life of 2032.

Meanwhile the OTML Special Mining Lease is due to expire in May 2022 and an application for the renewal of the SML and associated leases has been lodged with the Mineral Resources Authority on Monday 20th December 2021. The lodgement was witnessed by Ok Tedi MRA Project Coordinator.

Article courtesy of Ok Tedi Mining

Photo credit: Mayur Resources

Mayur Resources Limited’s 100% owned subsidiary company, Mayur Iron PNG Ltd’s (“Mayur”) Orokolo Bay Iron and Minerals Sands Project (“Orokolo Bay” or the “Project”) in Papua New Guinea (PNG), is a major step closer to production with the PNG Government announcing today it has granted the project a 20- year Mining Lease (ML).

The grant is the final statutory approval required to allow full-scale production of a multi-product operation, that is slated to produce 0.5 million tonnes per annum (Mtpa) of magnetite, 1 Mtpa of high-grade construction sand, and up to 10,000 tpa of zircon concentrate with its target markets being Japan, Australia, China and Singapore.

Mayur Managing Director, Mr Paul Mulder, said first delivery of magnetite into the seaborne iron ore market was on track for the second half of 2022, with other products of construction sands and zircon to be shipped once initial magnetite shipments had been made. Remaining COVID considerations are to be managed through a construction and operational plan that has received approval from the PNG State Police Commissioner, Mr David Manning. The company is looking to further mitigate any potential future international covid travel constraints by the appointment of resident in country PNG mining services contractors to undertake project construction activities and operations.

Orokolo Bay will produce 3 different products and thus remains an attractive global Quartile 1 cost producer when these product streams are combined, as demonstrated by the Definitive Feasibility Study (“DFS”) that was completed in late 2020. The DFS was conservative when it adopted a magnetite price that was discounted off the Iron Ore Price for 62% CFR China Platts Index price of US$66.30 per tonne.

“Orokolo Bay is to be the flagship of our iron and industrial sands business that is planned to be listed on the ASX in 2022 as Ortus Resources Limited. Having a suite of products provides another level of insulation from any singular shift in commodity prices as valuable by-products of construction sand and zircon provide additional revenue for marginal cost,” Mr Mulder said.

“The Project will be a simple, onshore, near-surface mining and processing operation 4 kilometres inland from the ocean with direct access to the ocean via the large Purari River. Orokolo requires a small amount of ripping, no blasting, has no grinding requirements nor chemical processing, that is combined with a very low (planned) capital cost of only US$21 million.

“Mayur first identified Orokolo Bay ten years ago and since that time we have diligently de-risked the project through Concept, Pre-feasibility and Definitive Feasibility Studies, supported geologically with over 1,400 drill holes with assays every 0.5 metre interval, and subsequent detailed multiple metallurgical/mineral processing trials via drill hole and bulk samples. Such works provides us with a high level of confidence that Orokolo Bay will offer strong returns for shareholders and PNG stakeholders alike,” he said.

Mr Mulder said the grant of the ML complemented the earlier receipt of an environmental permit from the Conservation and Environmental Authority for a period of 25 years.

“With all approvals in place, EPC construction bids received and site development camp established the company can now look to expeditiously progress the projects financing and remaining development activities to achieve first production in 2022.”

“In getting this far we are also very grateful to all of the landowners and stakeholders that have supported the development and in particularly those that have been affected by COVID in recent times. We look forward to working with the local Landowners on the already communicated direct employment, spin off jobs/ businesses and other benefits and liaise with these Landowners, the Local Member, the Provincial Administration and the Mineral Resources Authority in this regard and formalise this via an MOU” he said.

Ortus Resources Chairman, Mr Richard Seville, said that “Our plan is to provide the Landowners and surrounding community with sustainable employment and revenue opportunities through a mechanised commercial scale post-mining sago production operation that will serve both local demand and also be transported and sold in the larger Port Moresby market.”

PNG’s Mining Minister, Mr Johnson Tuke, agreed the project promised considerable upside and diversified the country away from traditional copper and gold projects. “In these challenging times, any new project that can diversify our economy, and develop a new export for PNG is most welcomed by the PNG Government,” he said.

PNG’s Gulf Governor, Honourable Chris Haieveta said “I have worked with Mayur from the commencement of my term as Gulf Governor, agreeing to create jobs on a sustainable long-term basis in Gulf Province whilst at the same time, the developer (Mayur), committing to contribute to local infrastructure such as Aid Posts, Schools, Air Strips and rehabilitate and/or establish connecting roads. Mayur having mapped and ascertained Landowner rights, committed to meaningful and sustainable post mining rehabilitation and land use i.e. via mechanised Sago is the type of developer we want in Gulf Province. Mayur has committed to ensure that adequate compensation of landowners for their resources in the immediate and long term is made via spin off jobs, direct employment and an opportunity for equity, which is what myself and other members of parliament representing our people want to see. Not all understand, but large or small resource projects take a very minimum of several years to get progressed to this point and the majority fail to get to this stage, however a long term aligned arrangement between the developer, Landowners and PNG State and Provincial Governments will ensure its success” he said.

Article courtesy of Mayur Resources

Photo credit: K92 Mining

K92 Mining Inc. is pleased to announce results from the ongoing underground diamond drilling of the Kora deposit at the Kainantu gold mine in Papua New Guinea.

The results for the latest 50 diamond drill holes completed from underground into the Kora deposit are summarized in Table 1 below. The results continue to demonstrate the high-grade and continuity of Kora, with intersections largely focused on increasing drill density up-dip, down-dip and to the south to upgrade resources for the upcoming Kora resource update which will then be integrated into the Stage 3 Expansion Definitive Feasibility Study. Results also include step out drilling to the south and north outside of the existing resource envelope. From the drilling results, all drill holes intersected mineralization, with 10 intersections exceeding 20 g/t AuEq, 25 intersections exceeding 10 g/t AuEq and 53 intersections exceeding 5 g/t AuEq.

The results are highlighted by holes KMDD0415 recording multiple intersections including 7.51 m at 192.50 g/t Au, 8 g/t Ag and 0.22% Cu (192.92 g/t AuEq, 4.11 m true width) from the K1 Vein; KMDD0312 recording multiple intersections including 7.60 m at 41.02 g/t Au, 24 g/t Ag and 0.41% Cu (41.91 g/t AuEq, 4.96 m true width) from the K1 Vein; KMDD0441 recording multiple intersections including 12.65 m at 25.97 g/t Au, 94 g/t Ag and 6.60% Cu (36.54 g/t AuEq, 8.16 m true width) from the K2 Vein, and; KMDD0471 recording multiple intersections including 8.00 m at 17.78 g/t Au, 39 g/t Ag and 2.03% Cu (21.16 g/t AuEq, 5.26 m true width) from the K1 Vein. Holes KMDD0415, KMDD0441 and KMDD0471 extended high-grade mineralization up-dip, and hole KMDD0312 delivered higher grades than nearby holes.

Drilling to the south continued to record high-grade intersections. Highlights include: KMDD0443 recording multiple intersections including 16.90 m at 3.03 g/t Au, 283 g/t Ag and 4.30% Cu (12.83 g/t AuEq, 10.42 m true width) from the K2 Vein, and; KMDD0453 recording multiple intersections including 8.20 m at 5.52 g/t Au, 97 g/t Ag and 6.35% Cu (15.77 g/t AuEq, 4.88 m true width) from the K2 Vein, both located outside the current resource. Additionally, KMDD0427 recorded multiple intersections including 12.00 m at 12.57 g/t Au, 194 g/t Ag and 8.46% Cu (27.08 g/t AuEq, 8.15 m true width) from the K2 Vein, and; KMDD0459 recorded multiple intersections including 6.20 m at 5.65 g/t Au, 166 g/t Ag and 8.74% Cu (20.19 g/t AuEq, 4.12 m true width) from the K2 Vein, both extending a known high-grade area towards the south, within the resource envelope.

Step-out drilling to the north also encountered high-grade intersections, demonstrating the potential for higher-grade mineralization to extend to the north, which was previously not an exploration focus. Highlights include: KMDD0312 recording multiple intersections including 7.60 m at 41.02 g/t Au, 24 g/t Ag and 0.41% Cu (41.91 g/t AuEq, 4.96 m true width) from the K1 Vein; KMDD0342 recording multiple intersections including 5.36 m at 29.28 g/t Au, 4 g/t Ag and 0.11% Cu (29.50 g/t AuEq, 4.30 m true width) from the K1 Vein and 5.60 m at 13.77 g/t Au, 153 g/t Ag and 1.49% Cu (17.90 g/t AuEq, 3.93 m true width) from the K2 Vein, and; KMDD0332 recording multiple intersections including 1.65 m at 21.41 g/t Au, 2 g/t Ag and 0.07% Cu (21.53 g/t AuEq, 1.07 m true width) from 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.

Other high-grade intersections include: KMDD0401 recording multiple intersections including 5.53 m at 16.73 g/t Au, 6 g/t Ag and 0.75% Cu (17.87 g/t AuEq, 3.40 m true width); KMDD0322 recording multiple intersections including 6.20 m at 16.91 g/t Au, 3 g/t Ag and 0.19% Cu (17.22 g/t AuEq, 5.01 m true width), and; KMDD0328 recording multiple intersections including 4.80 m at 16.31 g/t Au, 2 g/t Ag and 0.07% Cu (16.44 g/t AuEq, 4.34 m true width), all three intersections from the K1 Vein. On the K2 Vein, KMDD0437 recorded multiple intersections including 2.15 m at 19.27 g/t Au, 10 g/t Ag and 1.12% Cu (20.99 g/t AuEq, 1.64 m true width).

Long sections of K1 and K2 showing the location of the latest drill holes are provided in figures 1 and 2, respectively. A long section showing Kora drilling to date is provided in figure 3. A core photograph of drill hole KMDD0415 is provided in figure 4 and a core photograph of drill hole KMDD0427 is provided in figure 5.

John Lewins, K92 Chief Executive Officer and Director, stated, “The latest drilling results at Kora continue to deliver very high grades, solid thickness while also expanding known and delineating new high-grade areas. Of the 50 holes drilled, all intersected mineralization, 10 intersections exceeded 20 g/t AuEq and 25 intersections exceeded 10 g/t AuEq. The results also featured one of our higher-grade holes reported to date, KMDD0415 at 7.51 m at 192.92 g/t gold equivalent from the K1 Vein.

In addition to high-grade step-outs to the south, the results were also highlighted by high-grade step-outs to the north. Until recently, northern strike extension drilling has not been a focus and we are very encouraged by the high-grade drilling results, which included KMDD0312 recording 7.60 m at 41.91 g/t AuEq from the K1 vein; KMDD0342 recording 5.36 m at 29.50 g/t AuEq from the K1 Vein, and; 5.60 m at 17.90 g/t AuEq from the K2 Vein. As the twin incline advances to the south towards the resource at Kora, in the second half of 2022, we plan to utilize this infrastructure to explore not only Kora Deeps but also potential northern extensions to Kora.

I would also like to note that this set of results at Kora will be our final set ahead of our upcoming Kora resource update. Over the past 18 months, drilling at Kora has largely been infill and we are pleased to highlight that we have recently commenced a major pivot to resource growth focused drilling. At Judd, there now four drill rigs operating from underground; the majority of our underground drill rigs. At Kora South, drilling has recently commenced for the first time from surface and plans are in place to add a second drill rig. Step-out drilling at Kora will also progress from underground. Deeper targeted drilling at the Blue Lake porphyry is well underway, in addition to multiple holes awaiting core logging and assay. We have eliminated our core logging and assay backlog at Kora and Judd. We are certainly excited about our exploration activities for 2022.”

Article courtesy of K92 Mining

According to Prime Minister James Marape, the multi-billion kina Porgera mine will reopen in April of next year.

He said that Papua LNG, P'Nyang, and Wafi-Golpu, the country's three main significant resource projects, were "on track."

The government also aims to "finish off" the Pasca A oil and gas project.

“For Porgera, work to restart (the mine) has happened and we are looking at April 2022,” Marape said.

“For P’Nyang, we brought it back on the table and it’s pretty much in advanced discussions with the SNT (state negotiating team).”

He stated that the government wants more "for our resources." “The industries respect what we want, even in the context of existing law,” he said.

“The push to get back more for our resources remain very much active on the table.

“We are trying to synchronise P’Nyang with the Papua LNG.

“Papua is moving ahead. They will be going into feed next year and hopefully by 2024, they go into FID and construction later on.

“We are trying to ride P’Nyang on the back of Papua. If the two constructions are sequenced properly, this country will see the benefit of six, seven or eight years of construction activities.”

He stated that negotiations with landowners and the Morobe administration on Wafi-Golpu will continue shortly.

Reference:  Pacific Mining Watch (6 December 2021). “PNG's Porgera Mine to Open in April, 2022 : Marape”.

Over the next few years, OK Tedi Mining Limited expects to witness a gradual growth in dividends of up to K1 billion each year.

Musje Werror, managing director and chief executive officer, spoke at the PNG Mining and Petroleum Conference and Exhibition in 2021.

Mr Werror stated that OTML's 2021 Strategic Business Plan affirmed a US$475 million increase in value to US$3.7 billion, with the mine life extended by three years from 2029 to 2032.

A boost in value from the 2020 plan, which saw the mine's life extended from 2026 to 2029.

According to him, the revised value and mine life extension are contingent on the timely completion of five critical essential projects.

These projects include the removal of 20 million tonnes of debris from the Centre Pit at a cost of $62 million in order to gain access to high-grade ore from 2023, the construction of a 400 million tonnes Engineered Waste Rock Dump at a cost of $135 million to allow for a larger pit shell and the possibility of in-pit disposal, underground depressurisation of the pit walls to ensure wall stability at a cost of $10 million, increasing storage capacity for PCon to extend beyond 2032 at a

The US$240 million Crusher Replacement Project was another big project completed last year. By 2023, mining will have begun where the old crusher stood, allowing access to high-grade ore.

“The next 12 months will see OTML complete the transition from current lower grade ore to high grade ore sources.

“While we had hoped this transition would start to be evident by the final quarter 2022 the impact of COVID on material movement in the mine over the last 15 months has pushed this into 2023.”

Mr. Werror predicted that revenues would rise steadily from around US$1 billion per year to around US$1.4 billion in the coming years.

“This in turn will see a progressive increase in dividends up to PGK1billion per annum over the next several years, before increasing even further thereafter.

“This of course subject to fluctuation in metal prices and assumes copper price will be in the range US$3.70 to US$3.80/lb over the three-year period and a gold price that will trend down from US$1,800/oz towards US$1,500/oz,” he added.

“The Company expects to generate circa PGK30 billion in benefits over the next 10 years.

“The future looks very promising from a social and economic perspective for the country and the extension of mine life provides additional time for the company to explore and develop new ore resources.”

Reference: Post-Courier (3 December 2021. “Werror: OK Tedi Eyes K1bn In Dividends”.

Photo credit: Adyton Resources

Adyton Resources Corporation has reported significant copper assays at its 100% owned Feni Island Project (Feni) in Papua New Guinea following the completion of the company’s maiden drilling program of five diamond holes (1,982m) in September.

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

Multi-element assays have now been returned with significant copper intersections being recorded from hole ADK004 in two zones – a shallower disseminated zone of copper mineralisation followed by a zone of massive sulphide copper mineralisation:

Disseminated Cu + Au:

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

Massive sulphide Cu + Au:

•             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

Adyton Resources President, Executive Chairman and CEO, Mr Frank Terranova, said the assay results demonstrated Feni’s significant copper potential.

“The results confirm that Feni could contain zones of high-grade copper within the extensive gold mineralisation and this confirmation of massive sulphide copper in the system justifies more work which is currently being planned,” Mr Terranova said.

“The recent drilling program has highlighted the potential for a significant discovery to be made in the 1.5km long Kabang structural corridor. The corridor is lightly drilled, and going north is covered by younger volcanic cover, which has hindered previous exploration efforts – a focus of the next program will be exploring under this younger cover.”

Located in a Tier 1 region along a mineral belt containing the world class Simberi, Lihir, and Panguna gold and copper projects, Mr Terranova added that the model at Feni was for a “Lihir-style” epithermal gold overprint on a deeper porphyry copper system.

Photo credit: Ok Tedi Mining - Manager Mine Maintenance, Mek Kelly.

Ok Tedi Mining Limited (OTML) is proud to announce the recent appointment of a national to lead the Mine Maintenance Department within its Mining Business Unit.

Mek Kelly was appointed Manager Mine Maintenance effective as of November 19th 2021.

Mr Kelly started with OTML 18 years ago as an apprentice and then joined the Mine Maintenance Department as a Heavy Equipment Fitter and worked on the shopfloor for 5 years.

He then progressed into supervisory positions and has held the Mine Maintenance Superintendent Workshop role for the past 4 years.

Whilst working for OTML, Mek also obtained additional engineering qualifications from the Australia Pacific Technical College and TAFE.

Acting General Manager Mining, David Laulau, said, “Mek’s leadership style, commitment to safety, technical expertise, dedication and work ethic will ensure a smooth transition into his new role and will greatly assist the Mining Business Unit in achieving OTML’s Vision for the future.”

Mr James Lees, who held the Manager Mine Maintenance role for the past 4 years, will assume the role of Advisor Mine Maintenance and will continue to support, mentor and advise Mr Kelly going forward.

In line with OTML's Vision 2025, several national employees were appointed to leadership positions this year.

They include Isaac Kwetok as Deputy General Manager Processing, Anna Ila as Manager Safety, Robin August as Manager ICT, Francis Karogo Manager Power Services, Oala Rarua as Manager Geology & Exploration, Masket Siune as Manager Mine Support Services and Iga Au as Manager Bige Operations.

OTML Managing Director & CEO Musje Werror said that OTML is blessed with strong and committed national leaders who are ready to take on senior roles in the company and are focused on maximising benefits for the country.  

Article courtesy of Ok Tedi Mining

Prime Minister Hon. James Marape says his Pangu Pati-led Government’s vision to build a gold refinery and mint factory in the country is a bold move in the right direction to take back more from our gold resources and reserves.

It also includes having a gold bullion bank into the future.

PM Marape was responding to questions from Opposition Leader, Belden Namah, on the full details of the signing of a proposed PNG Gold Refinery and Mint Factory and accusations of him selling PNG gold rights.

He said of all the natural resources PNG was blessed with, gold was the highest-valued asset  in the country, and a secure form of bankable commodity that PNG could use to secure its economy from economic shocks. 

PM Marape said since the 1800s, gold was harvested in the country, and the country had been exporting gold since but  never saw and or knew how much gold was produced in country.

The Prime Minister said he was stepping into a new frontier where past governments, leaders, and prime ministers had never trod: to take back more for our gold through downstream processing which would add value to our economy.

He told Parliament that the proponents of the PNG gold refinery and mint factory and the Government had signed an agreement for the business, but the deal was a work in progress, not final, and open to scrutiny to any suggestions for improvements so as not to harm the national interest.

“The agreement that we have  signed with the proponents of the proposed PNG Gold Refinery and Mint Factory can be relooked at if it is not in the best interest of our country and nation, " PM Marape said. 

“We do not owe a bar of soap to the proponents. 

" They have been pushing this proposal in the last eight to nine years through past governments and ministers. 

"The former Prime Minister’ Cabinet approved the project in 2014 through NEC Decision 297/2014, and my Government has reviewed this to get better benefits.

“The former Prime Minister knows about it. 

" They have been going and coming back and forth with their proposal, and they wanted an 80-90-year exclusivity right to mint and refine all gold in PNG and export overseas.

" Under the review that my Government put through the State Negotiation Process, we have arrived at a much improved version that includes an equal 50-50 ownership, with Refinery Holdings Ltd putting up the entire capital to construct the refinery and associated business. 

"The 50 per cent State equity will  be split between Mineral Resources Development Company for landowners, as well as an option for alluvial miners and Kumul Minerals

"Contrary to what many speculate, the agreement is for a 30-year period with another option of extending for another 30 years, and in all material time State has option of paying the investor partner out.

“All our normal State processes, including State Solicitor clearances, were done, hence, NEC processed the submissions. 

"We are now allowing industry and stakeholder consultation, and a review on what we are doing so we get it right in this direction we are moving." 

PM Marape also instructed the proponents to ensure that they were fully-linked and compliant to  world gold industry bench-markers like the London Gold Bullion Association and their market rules.

“Government intention is correct, as this will link to international benchmark for gold bullion and refinery trade, and this is the right and first step in that direction that we are taking,"he said. 

“The agreement we have signed is not the final document, but continual due process will take its course, including consultations with gold industry stakeholders. 

" This includes  big operators and our small alluvial operators, so that our intention to downstream our gold adds value to both their business and our economy. 

“I give my country my assurance that we will not sell and sign off our country’s birthright. 

"We do not owe a bar of soap to the proponents, and if there is  room for improvements in the agreement in our national interest, then those improvements will be made.

“We can review the agreement and or any agreements we have signed if it is not consistent in law, it is only the 10  Commandments that you don’t change. 

"But as far as the advice that Cabinet and my Office received, all due process were complied with thus far, and we are now consulting for the legislation to be promulgated to embrace this venture."

PM Marape appointed a committee of leaders to headed by Governors Gary Juffa and Dr William Tongamp, Hon. Don Polye and Hon. Manasseh Makiba to go through what was agreed to ensure national interest was secured.

He also met the Chamber of Mining today,  led by Mr Richard Kassman, on this matter and gave assurance that this proposal would not be rushed through without stakeholder consultation. 

"This is because the industry must appreciate the shift in my Government’s focus towards downstream processing of raw resources and for export of finished products," PM Marape said. 

“My stand is very clear, and as the Prime Minister, we want to add value to the benefits from our resources like gold, oil, gas and others. 

" Our industries must now realise that downstream processing of resources will be the way of business for us in PNG, and gold is no exception.

“All stakeholders will be consulted and their views taken on board, and review the agreement to add value to our gold resources. "

Photo credit: Geopacific Resources

The developer stated that work on the Woodlark Gold Project is now delayed and behind schedule.

In an update, Geopacific Resources Limited reported that the company has decided to postpone the project until Q1/Q2 2022.

The impact of unseasonal inclement weather, according to the firm, has resulted in a short-term worsening in ground conditions, reducing the capacity to undertake the civil works program in preparation for the CIL plant's construction.

COVID-19 cases have continued to climb across Papua New Guinea, with a flow-on impact to the rest of the country, due to a lack of project construction on the island at the level necessary to guarantee work streams were performed cost effectively and efficiently.

Geopacific remains dedicated to assisting in the implementation of this essential health program as quickly as feasible.

The corporation has also opted to revisit the original wharf design and consider a potential improvement of the current wharf facilities in order to minimize costs and construction complexity while increasing community involvement in the project.

According to the firm, design and engineering work for the offshore component of the tailings pipeline is behind schedule, which is delaying the issuance of construction tenders required to finalize capital estimates.

Chief executive officer, Tim Richards said, “Whilst the delays in the Project are disappointing, they should not take away from the quality of the underlying asset base.

Woodlark is a compelling project, with a goal of producing over 1 million ounces of gold at an all-in sustaining cost of A$1,239 per ounce during the asset's life.

“We are doing everything we can to minimise the impact of the delays on the Project schedule, and post the completion of the Project review we will update the market to the extent of the impacts on the Project Execution Plan.

“Importantly, we continue to progress exploration, with these activities continuing.

There remains significant exploration potential at the Project, which we expect will result in additional value creation at Woodlark.”

Reference: Post-Courier (17 November 2021). “Woodlark Gold Project Faces Delay”.

Bougainville Copper Limited (BCL) is prepared to assist the government and the people of Bougainville.

Sir Mel Togolo, Chairman of the BCL Board of Directors, shared this sentiment, saying that the business stands ready to assist ABG in generating the type of money it needs to grow its economy.

Sir Mel claimed that the ABG Government and the people of Bougainville now control 36 per cent of BCL and that the company must help the country's economic revival.

He claimed that after the National Government's remaining 36 per cent shares are transferred to Bougainville as promised by Prime Minister James Marape, Bougainville would own 72 per cent of the company, with private stockholders owning the remaining 28 per cent.

Sir Mel went on to say that this is true independence for Bougainville, and that it will spur additional economic activities for Bougainvilleans who will be able to run private service contracts, which will spur further economic activity in our villages.

“Bougainvilleans need to make up their mind to start exploration operations before 2025.

“The quicker we start something the better for Bougainville.”

Sir Mel further stated that BCL, as a local firm, continues to accept requests for financial help from organisations in Bougainville as part of its community commitments.

On Bougainville, it has helped with school fees, other educational support, health care, sports, religious groups, youth and women's groups, and communication and tourist activities.

When workers, contractors, and the firm itself pays taxes to ABG, the Chairman claims that the corporation can still earn enough revenue for Bougainville's economic recovery program using cutting-edge technology.

Sir Mel indicated that BCL is ready to begin work provided the ABG and its people, particularly the Panguna landowners, grant their approval.

Reference: Post-Courier (16 November 2021). “BCL Ready To Rescue Bougainville”. 

Photo credit: K92 Mining Inc. 

K92 Mining Inc. is pleased to announce financial results for the three and nine months ended September 30, 2021.

John Lewins, K92 Chief Executive Officer and Director, stated, “Despite 2021 being one of the most challenging years our Company has faced due to the impact of the COVID-19 pandemic, it has also featured numerous major accomplishments, setting the operation up for a very promising near and long-term.

On production, the processing plant achieved Stage 2 Expansion run-rate throughput in September averaging 1,100 tpd. Importantly, the plant delivered a notably finer than required grind size and also set multiple daily records well in excess of the 1,100 tpd design. This has continued in October, with a new daily record of 1,538 tonnes processed on October 24, 2021. The strong performance of the process plant, resulted in the approval of a Stage 2A Expansion, which is expected to increase throughput a further +25% to 500,000 tpa. Commissioning is expected in Q3 2022, with a low estimated plant expansion capital cost of US$2.5 million. The expansion is expected to provide a considerable boost to our ability to self-fund the Stage 3 Expansion.

Operations are also expected to get a considerable boost via the commencement of a new mining front at the Judd Vein System. Long-hole drilling is underway and production stoping is planned to commence this quarter. The proximal location of Judd to much of Kora’s mine-infrastructure, makes for low cost and highly efficient mining and exploration of the system.

On exploration, we are now at a major inflection point, where the vast majority of activities will be focused on resource growth, as infill drilling is complete at Kora for its resource update later this year. The resource update due in Q4 will underpin the Stage 3 Expansion Definitive Feasibility Study in the first half of 2022. A majority of underground drill rigs have now commenced drilling at Judd, and we plan to increase this further. On surface, drilling for the first time is underway at Kora South, significantly increasing our ability to step-out along strike. And, drilling at Blue Lake is also progressing and with the backlog of holes to assay and core-log at Kora and Judd almost complete, we expect to provide an update in the near future.

On COVID-19, our pandemic resiliency continues to improve. The vaccination roll-out has made considerable progress with over 55% of our workforce having received at least their first dose. As our vaccination uptake increases, we expect to progressively ease other COVID-19 mitigation measures. International travel restrictions have also begun to considerably ease, particularly within parts of Australia, enabling more efficient personnel movement. Importantly, this has enabled access to specialized project contractors, in most cases for the first time since the pandemic began, to provide additional operational support and also commence several highly accretive projects near-term, including the commissioning of the gravity circuit for the Stage 2 Expansion.

Lastly, once again, I would like to thank the workforce at the Kainantu Gold Mine. Their dedication and resourcefulness have been extraordinary. The support of the Government of Papua New Guinea and also the Government of Australia continues to be a major factor in our success as well .”

Article Courtesy of K92 Mining Inc.

Mayur Resources is in advanced talks with a large-scale international investor interested in acquiring a stake in its proposed Central Cement and Lime project west of Port Moresby.

According to the company's annual report, it followed a 20-year mining lease granted by the government in August.

The article said the project has been given special economic zone designation, indicating local government backing and obtaining a variety of benefits such as tax reduction and duty exemptions.

“This significantly strengthens the financial outcomes for the project, enabling it to compete with other similar businesses established in special economic zones elsewhere in Asia,” the report said.

“With a number of multi-billion-dollar resource and infrastructure projects in the pipeline in PNG, the demand for cement and quicklime is expected to increase dramatically.”

The project will be completed in two stages by the firm. Phase one is the quicklime plant, and phase two is the clinker and cement facilities, both of which will be constructed once the quicklime plant is completed, with development expenses covered by cash flow from the first phase.

“The procurement strategy for the project has continued with the engineering, procurement and construction scope to include a minimum of two quicklime kilns to take advantage of economies of scale and shared infrastructure.

Mayur stated the planned project was a vertically integrated production plant with the capacity to satisfy 100% of PNG's cement, clinker, and quicklime needs, with exports to the Australasian area, substituting Asian imports.

The project's co-located quarry, plant site, and deep-draft wharf, located on the coast 25 kilometres north of Port Moresby and seven kilometres from Exxon's PNG LNG facility, would enable very low operating costs while providing direct access to both seaborne domestic and export markets such as Australia and other South Pacific nations.

Reference:

Pacific Ming Watch (2 November 2021). “MAYUR Resources in Talks with Investor for PNG Cement Project”.

Following the successful completion of the final and significant mill shutdown, Ok Tedi Mining Ltd (OTML) business unit is eager to end the year on a high note.

More than 350 workers, contractors, and service providers were affected by the massive closure in September.

Isaac Kwetok, deputy general manager of processing, said the business unit's current emphasis was on delivering the amended copper goal of 65,000 tonnes by the end of the year.

“We intend to keep the mills running till the end of the year and to exceed the production target so we can pay our dividends and keep this great company operating efficiently,” he said.

“This is our biggest mill shut down for this year and it consisted of a number of different activities.

“One of these activities was the total plant shutdown in which the two mills were stopped, and inspections were conducted on them before their liners were replaced.

“The other major activity was the total plant outage in which the power supply to the plant was suspended to allow both the Tabubil power services and our electrical teams to conduct statutory inspections and also work on the transformers and other electrical equipment which cannot be done when power is on or when the mills are operating.” A key component of the successful shutdown was the incorporation of a Coronavirus (Covid-19) management plan which kept all the workers safe from Covid-19.

“With cases of the Covid-19 Delta variant in Tabubil and Kiunga, we had to stringently implement the Covid-19 management plan,” he said.

“This meant all our workers had to be tested before the shutdown commenced. We also made sure hand sanitisers and masks were made available to everyone and ensured social distancing was observed during meetings.”

“Overall, it was a very good shutdown, in terms of planning right through to execution.”

Reference:

Pacific Ming Watch (2 November 2021). “PNG's Ok Tedi Mine’s processing business unit optimistic”.

According to St. Barbara's last quarterly report, the company's Simberi facility in New Ireland is doing well with the pre-investment phase of their sulphide project.

“The pre-investment phase is advancing well, with initial new fleet purchases completed and the front-end, engineering and design (Feed) study package awarded and on track for delivery in the third quarter of the next financial year,” the company said.

“The final investment decision remains a third quarter of next financial year as well.

“Concentrate sale and purchase agreements for the majority of the life of mine gold concentrate have been finalised with a number of global trading companies, subject to a satisfying standard conditions precedent of a positive investment decision by the board and the project achieving commercial production.”

The Conservation and Environmental Protection Authority is reviewing the social and environmental impact statement, according to the corporation.

“The two addendums relating to further trials and testing of waste rock management and the deep sea tailings placement (DSTP) footprint were submitted during the quarter.”

Reference: The National (28 October 2021). “Project phase going well: Firm”. 

The Porgera Project Commencement Agreement was signed by the State and Barrick Niugini Limited, paving the way for the commencement of mining activities at the Porgera Mine.

Prime Minister James Marape confirmed the government's commitment to reopening Porgera Mine as soon as possible, with BNL as an equity partner and operator, and vowed to provide BNL the certainty it needed to go from care and maintenance to mine reopening.

He said that the commencement agreement is the master agreement that details the parameters agreed to in the historic Project Porgera Framework Agreement signed in April, while the Shareholders Agreement, Operatorship Agreement, and MDC are still being finalized.

The following are some of these terms:

• On a 53/47 basis, PNG stakeholders and BNL will share the economic advantages achieved during the mine's lifetime.
• BNL will provide the necessary funds to reopen the mine.
• A large number of landowners who are the customary owners of the land where Porgera is located will get an increase in equity; and
• After ten years, the State will have the option to purchase the remaining 49% of the mine from BNL at fair market value.

“The commencement agreement provides a framework for their negotiation and will help accelerate progress on the remaining steps so that Porgera can be reopened,” Marape said.

He urged all parties, particularly the Porgera landowners and community, to band together and work with the government and BNL to establish the proper conditions for the mine to resume, including addressing the Porgera valley's peace and order situation.

“We look forward to the setting up of the New Porgera Project Company and for work to begin in preparation for the processing of gold ore at the soonest possible date.

Porgera’s restart helps PNG get back more for our people, creating local jobs and contracts in partnership with one of the world’s leading mining companies,” Marape said.

On behalf of BNL shareholders Barrick and Zijin Mining, Barrick chief executive officer Dr Mark Bristow urged all parties to redouble their efforts and complete the remaining agreements as soon as feasible.

“As we move toward starting up mining operations, our common task is to negotiate expediently and in good faith so that Porgera, a mine with enormous potential, can resume production and take its place as an engine of the PNG economy and contributor of foreign exchange once again,” Dr Bristow said

Dr. Bristow and Marape agreed that their negotiating teams will continue to work closely together in the coming weeks to ensure that all remaining criteria for the resumption of operations at the Porgera Mine are satisfied as soon as feasible.

Reference: Post-Courier (18 October 2021). “Govt, Barrick Sign Porgera Mine Commencement Agreement”.

Photo credit: Adyton Resources Corporation

Adyton Resources Corporation has reported an 88% increase in total gold ounces across the company’s 100% owned Fergusson Island Gold Project and Feni Gold and Copper Project, located within Papua New Guinea’s renowned “Rim of Fire”.

Fergusson Island maiden Indicated Resource of 175,000 gold ounces at 1.33 grams/tonne (g/t) and Inferred Resource increased by 33% to 540,000 gold ounces at 1.08 g/t. 

Feni Island Inferred Resource increased by 123% to 1,460,000 gold ounces at 0.75 g/t.

Adyton Chairman, President and Chief Executive Officer, Mr Frank Terranova said the updated resource estimates would provide a strong basis for technical studies to be undertaken in preparation for submitting a Mining Lease Application for the Fergusson Island Project by the end of calendar 2022. 

“When we acquired the Fergusson Island and Feni Island Projects, we saw a unique opportunity to create a portfolio of complementary projects, each of which demonstrated clear pathways for accelerated development,” Mr Terranova said.

“Fergusson Island Project provides a relatively simple pathway to near term production while Feni Project has the potential to be a project of international significance. 

“With a relatively modest drill program at Gameta and a re-assessment of the economic cut-off grade based on a conceptual mining study we have significantly increased the size of our overall mineral resource estimate, which leaves the company confident for the future,” he said.

Mr Terranova was confident that future exploration programs would continue to grow the mineral resources on Fergusson Island with the resource being close to surface, and open in multiple directions including at depth. He added that Feni Island’s resource estimate upgrade was also very encouraging. 

“The recent drilling at Feni has confirmed our belief that this project is geologically analogous to the neighbouring Lihir and Simberi deposits and demonstrates its potential to be a major gold discovery with copper porphyry potential,” he said.

Article courtesy of Adyton Resources Corporation