Name of the Project
Woodlark gold project.

Location
The project is located on Woodlark Island about 600 km east of Port Moresby, in Papua New Guinea.

Project Owner/s
Geopacific Resources.

Project Description
A definitive feasibility study (DFS) on the project has demonstrated a robust project with a compelling development option from a technical and financial perspective.

The project has mineral reserves estimated at 28.9-million tonnes at 1.12 g/t gold and mineral resources of 47-million tonnes grading 1.04 g/t gold.

The DFS envisages opencut gold reserves at the Kulumadau, Busai and Woodlark King deposits using multistaged pit designs, with a stripping ratio of 3.9:1 over the life of the mine.

Waste rock will be deposited in engineered waste-rock dumps located adjacent to each pit.

Ore will be treated by a conventional carbon-in-leach gold processing plant.

The plant will have a capacity of 2.4-million tonnes a year, producing 967 117 oz of gold over a 13-year production life.

The project will incorporate a deep sea tailings placement system, including an estimated 12 km pipeline from the process plant to the north-east coast of the island.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at an 8% discount rate, of $148-million and an internal rate of return of 29%, with a payback of 2.2 years.

Capital Expenditure
Capital costs are estimated at $198.5-million.

Planned Start /End Date
Not stated.

Latest Developments
Geopacific Resources will consolidate its holding in the Woodlark gold project after receiving approval to acquire partner Kula Gold’s stake in the project.

Geopacific announced plans in March this year to gain full ownership of Woodlark by issuing Kula 150-million of its own shares, and paying an estimated A$700 000 in cash to Kula while cancelling its entire existing 85% interest in the company.

Kula will cease to be a subsidiary of Geopacific and will pursue new opportunities, with the company using the cash payment to repay a A$740 000 loan from Geopacific.

Both sets of shareholders have now voted in favour of the transaction, clearing the way for Geopacific to gain full ownership of Woodlark.

“Full ownership simplifies project financing discussions and further enhances the company’s attractiveness and general market appeal. Additional benefits of the simplified cost structure also includes a substantial reduction in corporate costs,” Geopacific MD Ron Heeks has said.

Heeks has said that the timing of the transaction coincides with the near completion of the project finance due diligence, and also a strengthening gold price that is well above the pricing assumptions in the DFS.

Key Contracts and Suppliers
Lycopodium (DFS).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Geopacific, tel +61 8 61431820 or email info@geopacific.com.au.