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 has completed a A$40-million capital raise, with a further A$5-million raising in its sights, to fund development activities at its Woodlark gold project.

The company has placed 1.6-billion new shares at 2.5c each. The offer price represents a 10.7% discount to Geopacific’s last closing price.

The placement consists of two tranches, with the first raising A$17.2-million, while the second will raise A$22.8-million, subject to shareholder approval.

In addition to the share placement, Geopacific will also undertake a share purchase plan, priced at 2.5c a share, to raise an additional A$5-million.

The plan will allow shareholders to subscribe for up to A$30 000 worth of new shares in the company.

 “The raising will allow the company to commence early works in preparation for process plant construction, which will enable gold production to be reached in a shorter timeframe”, Geopacific MD Ron Heeks has said.

Geopacific is now funded to start the first phase of development at Woodlark and move towards a complete project financing solution. The funds raised will be used for front-end engineering design, project civil construction, mine camp upgrades, project financing costs and other working capital.

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.