Niuminco has restarted pilot mining at its Edie Creek mine in Papua New Guinea after receiving a 10 year renewal of its mining lease.
The company has also acquired a 100% interest in another exploration licence that adjoins to the north and west an exploration licence held by Morobe Mining Joint Venture (MMJV), which in turn surrounds Niuminco’s Edie Creek mining leases. The exploration licence is also to the south of MMJV’s Hidden Valley gold and silver mine.
Pilot mining, large scale sampling and gold production at Eddie Creek recommenced recently at the 0.9sqkm mining lease.
Monthly production levels are expected to rise to between 90 ounces and 120 ounces of gold from April, up from the current rate of about 30 to 40 ounces.
In addition, a proposed Stage 2, 10-hole, 2000 metre drilling program designed to test the Karuka-Enterprise Stockwork zone and Enterprise Diatreme/Maar on this lease is also scheduled to commence in April.
At the planned level of gold production (and sales), both the company’s projected operating and exploration expenditures for the next 12 months are intended to be funded from internal cash flow.