A two year mining licence has been granted to Coppermoly by Papua New Guinea’s mining minister for its Makmak project area on New Britain Island. The tenement covers 280sqkm on the island’s remote south coast along the highly prospective Kulu Awit transfer structure which hosts significant copper and gold deposits including Vangold Resources’ Mt Penck.
Makmak is only accessible via 4WD from the provincial capital Kimbe and is just 9km from the company’s Nakru tenement, where recent drilling at one prospect intersected 190.85 metres @ 1.01% copper and 0.36 grams/tonne gold.
Reconnaissance sampling at Makmak in 2010 returned 10.7% copper and 15.5 grams/tonne silver from surface rock float samples. Coppermoly also owns two other nearby tenements which are under application.
The company’s farm-in partner Barrick will fund and conduct a $2.2 million exploration program for its West New Britain portfolio of projects during the next six months. The program will include exploration and drilling which is aimed at targeting the higher grade secondary copper enrichment zones at Nakru-1 and Simuku.
Coppermoly’s managing director Peter Swiridiuk says, “We are pleased that Barrick will continue to undertake exploration on the substantial copper-gold projects in PNG while it seeks to divest its 72% interest. We are also making good progress on the maiden inferred resource at Nakru-1.
“In addition, the conceptual mining study for Nakru-1 is nearing completion with results expected in August. We also have three large tenements under application on New Britain Island which can be progressed once granted in the near future.”
Meantime, the company has signed an agreement to earn up to 70% on the Esk Trough copper-gold projects in southeast Queensland. Drilling at the White Horse prospect has intersected 17 metres @ 1.4% copper and also identified near surface blankets of secondary copper enrichment.