New Guinea Gold Corporation has retained Australian-based consulting group Mining Associates to prepare an independent strategy study for ongoing and future development of the Sinivit Gold Mine.
The company expects the report to cover and make recommendation regarding all aspects of possible future development at Sinivit. The report is scheduled to be completed this month.
It may include:
- A program to define remaining oxide gold mineralization, including the Kavursuki Zone which is presently being explored.
- A program to define deeper gold/copper/tellurium sulphide mineralization and possible development and extraction of these metals when the oxide mineralization is depleted.
- A review of present processing with the objective of converting the gold recovery process to CIP/CIL (or a variation thereof) to recover remaining gold in the vats which cannot be recovered by the current leaching process. This would also allow for better gold recoveries in the processing of the remaining oxide mineralization, including mineralization defined at Kavursuki.
- A review of possible procedure for recovery of tellurium, which is presently not recovered by the vat leaching process and recommend a forward strategy with respect to tellurium.
- Recommend a drilling program to explore the chargeability and resistivity anomalies defined in the recent induced polarization survey. Chargeability anomalies may reflect sulphide mineralization at depth and resistivity anomalies may reflect silicification which accompanies the gold mineralization at Sinivit.
- Recommend a drilling program to explore a possible porphyry copper system just west of the Sinivit Mine. This system is also defined by a significant chargeability anomaly.
- Recommend an exploration program to explore the Sinivit mineralized structure which extends for about 10km, both to north and south of the present mine.
New Guinea Gold's acting CEO Bob McNeil says, “This independent report will allow management and the Board to more effectively plan and finance the ongoing and future development at Sinivit. The report will be in NI 43-101 format but initially may not be compliant and will not be released in its entirety. However, it is expected that the conclusions and recommendations by Mining Associates will be released by mid/late March 2011.
“The Sinivit project is now at the stage where an independent report on the future development of the project is warranted. Sinivit encompasses a major mineralized system but to date development has been piece-meal. We hope that this report will provide the impetus for a major increase in exploration and development and define a comprehensive development plan for the project.
“At Kavursuki, exploration, including both excavator trenching and diamond core drilling is continuing. Although a considerable body of data has already been collected and substantial gold mineralization has been encountered in both trench and drill holes, at this stage more information is required on continuity of the oxide gold mineralization. Once continuity is confirmed a meaningful assessment of the potential of this zone can be completed.”