Name and Location
Nicolsons gold project, Australia.

Client
The project is a joint venture between Pacific Niugini and Bulletin Resources through its wholly owned Halls Creek Mining subsidiary.

Project Description
The Nicolsons underground mine has an estimated probable reserve of 435 455 t at 6.17 g/t for 86 362 oz of gold.

The project is targeting production of about 130 000 t/y from a small-scale underground mine at the base of the existing openpit operation.

The project is expected to have an initial four-and-a-half year mine life.

Net Present Value/Internal Rate of Return
The project has a net present value, at a discounted rate of 8%, of A$42-million and an internal rate of return of 162%.

Value
Existing infrastructure at the Nicolsons mine will enable Pacific Niugini to restart operations for a minimal capital injection of A$10.7-million.

Pacific Niugini secured a financing proposal for the mine restart in December last year, and is now assisting Bulletin Resources to do the same.

Duration
Not stated.

Latest Developments
The Western Australia Department of Minerals and Petroleum has approved the project management plan for the Nicolsons project.

The final approval allows Pacific Niugini to immediately start work on the refurbishment of processing facilities and construction of an underground mine.

Dewatering of the openpit will be a short process, with the start of pumping imminent. Key contracts for the works will be executed as soon as possible to ensure that construction works can be initiated as soon as mine financing, including completion of the current rights issue, is in place.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Pacific Niugini, tel +61 8 9215 6005, fax +61 8 9220 5757 or email admin@niugini.com.au.