PERTH (miningweekly.com) – ASX-listed Highlands Pacific has laid claim to a portion of the Woodlark gold project, in Papua New Guinea, telling shareholders that it has identified a royalty entitlement after reviewing agreements relating to previously held exploration ground.
Highlands Pacific told shareholders on Friday that the royalty amount was for A$10/oz of gold for the first 200 000 oz produced at the area.
Highland’s precedent companies held an interest in one of the exploration tenements making up the Woodlark project in 1995, prior to the sale of the exploration tenement and the creation of the royalty entitlement.
Highlands has now reminded owner Kula Gold of the entitlement to the royalty.
Kula’s joint venture partner Geopacific Resources, which is earning an 80% share in the Woodlark project, recently identified a A$25-million capital saving at the proposed Woodlark plant.
Geopacific is also now looking at opportunities to achieve further savings in infrastructure costs.