Geopacific Resources says results from the second set of assay from development drilling at the Busai deposit of the Woodlark Gold project in Papua New Guinea have been encouraging. The results have confirmed that wide sections of continuous grade mineralisation exist below the current pit designs and at shallow depths.

The results build on the first assay results received from the current program and confirm the potential to extend current pit designs to capture additional mineralisation surrounding the southwest area of the Busai Main deposit.

Confirmation of the re-evaluated geological model and the broad bands of continuous grade mineralisation in these holes demonstrate that significant tonnes could be added to the model which gives confidence in Geopacific’s aim of delineating a 1.2 million ounce gold reserve.

There were 65.5 metres of mineralised intersections in one hole, including 22 metres from 126 metres @ 1.98 g/t gold and 23.1 metres from 152 metres @ 1.75 g/t.

There were also numerous intersections in another hole, including 2 metres from 17 metres @ 2.35 g/t, 2 metres from 52 metres @ 8.43 g/t and 6 metres from 57 metres @ 1.62 g/t.

Geopacific’s managing director Ron Heeks said, “We are pleased with these results. It is very encouraging to see such strong, wide intersections below the current pit design. The potential to increase tonnes and ounces while reducing the stripping ratio is obvious. This gives additional confidence to our plan to increase the current reserve inventory at Busai.”

Mineralisation beneath the current Busai pit design is currently excluded from reserve calculations because it is largely in the inferred category and requires infill drilling. Geopacific aims to re-categorise inferred resources into measured and indicated through the current program of drilling with the intent of increasing the reserve inventory.

The company anticipates that its drill program of about 15,000 metres from the Busai and nearby Kulumadau deposits will enable sufficient upgrading of resources to reach the reserve target. One rig continues at Busai with the other two operating at the higher grade Kulumadau deposit.

www.geopacific.com.au

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