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Kula gets closer to Woodlark Island development

21st January 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) - ASX-listed Kula Gold has submitted the environmental-impact statement (EIS) of its Woodlark Island gold project to the Papua New Guinea (PNG) Department of Environment and Conservation.

The company said on Monday that the lodgement of the EIS completed the submissions to the PNG government for the mining lease application and development process.

The EIS lodgement followed the lodgement of the company’s mining lease application late last year, in conjunction with the feasibility study and development proposal.

The feasibility study on the Woodlark Island project found that some 674 000 oz of gold could be recovered over the first six years of operations, through a 1.8-million-ton-a-year plant. Over the expected nine-year life-of-mine, some 813 000 oz of gold could be recovered.

The project would require a capital investment of $160-million, and would have a pre-tax net present value of $237-million, and an internal rate of return of 34%.

First production has been scheduled for the first half of 2015.

Edited by Creamer Media Reporter

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