PNG Gold has announced its strategic goals for this year under the guidance of a new management team which was appointed mid-2012.
Management took over operations from a previously contracted third party in order to achieve greater direct control over its Normanby Island projects. This transition is now complete, resulting in a significantly lower cost per metre drilled for the company’s projects.
“The restructuring has also provided us with the necessary infrastructure, relationships and flexibility, to efficiently operate and assess the vast mining and exploration opportunities in Papua New Guinea, differentiating PNG Gold amongst its exploration peers,” says chief operating officer Lorne Warner.
The company has purchased four new diamond drills and completed its 2012 drill program of 40 holes over 9668 metres at the Imwauna and Kelas prospects. It has also developed the first detailed geological model on the Imwauna main structure.
The new management team hired an operations team at the Alotau office and operations camp and completed the construction and equipped a 100-plus person modern camp.
A new country manager, Marc Plante, was employed along with a key structural geologist, Dr Guowei Zhang, in order to begin defining the structural controls to mineralization at the Imwauna and Kelas prospects.
PNG Gold is expecting to receive final assay results from first shipments of the Imwauna main structure in coming weeks.
The company is now focusing on achieving its 2013 goals which revolve around the aggressive exploration of the Imwauna main structure in order to define the geometry of several of the high-grade gold zones situated along the structure as outlined in the geological model.
PNG Gold plans to be able to define the high-grade gold mineralization with the objective of undertaking an NI 43-101 resource study. “We will also complete systematic exploration in 2013, including diamond drilling of our other gold zones and prospects situated on our mineral claims,” said Lorne Warner.
Geological interpretation of the Imwauna main structure and interpreted gold mineralization along the structure by using historic and recent drilling indicates that drilling needs to continue at 25x25 metre intervals where high-grade gold mineralization is anticipated.
The company expects to minimize capital expenditures in 2013 and manage its cash balance by scaling its drilling and administrative operations as circumstances dictate, in order to remain in a financially flexible position. The investments made to date in equipment and rigs has reduced cost per metre drilled to less than half of that previously paid to an Australian contractor last year.
The exploration licence is on the north side of Normanby Island, about 80km northeast of Alotau, provincial capital of Milne Bay province, eastern Papua New Guinea. The project consists of two main prospects, Imwauna and Kelas, along with numerous untested prospects.