Tag Archives: Crater Gold Mining Limited

Crater Gold awaits inspection before mining restarts in Papua New Guinea

Crater Gold awaits inspection before mining restarts in Papua New Guinea

Proactive Investor | 1 February 2018

Crater Gold Mining Ltd is awaiting a final site inspection by the Chief Inspector of Mines before restarting operations at the HGZ underground gold mine in Papua New Guinea.

The inspection forms part of the approval process for a revised mine plan for HGZ and the company hopes to schedule it in the next few weeks.

Restarting operations requires reissue of several operational permits which had lapsed during the period of care and maintenance, and human resources activities.

These include the re-hiring of past employees, the hiring of new employees and associated OH&S induction activities.

Crater Gold continues metallurgical testing of samples taken from the 1960 RL at HGZ, which is part of the company’s Crater Mountain project.

This information is being used to investigate modifications or changes to the processing equipment on site with a view to increasing the levels of gold recovery.

Modifications will be implemented and refined once ore is being produced from mining at the 1930 RL.

Upcoming exploration drilling will initially be undertaken from within the 1960 RL adits.

The start of drilling also has to wait for the approval to recommence underground operations.


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Crater Gold secures funding for PNG works programme

Megan Van Wyngaardt | Mining Weekly | 20 November 2017

ASX-listed Crater Gold Mining has secured a $4-million unsecured loan facility with major shareholder Freefire Technology that will enable it to continue to advance its flagship Crater Mountain gold project, in Papua New Guinea.

The loan will be used to restart exploration activities at the mine, including drilling, and also the restart of mining operations at the high-grade zone (HGZ).

The funds will also further exploration activities at Crater’s North Queensland polymetallic and graphite projects.

The first $1-million in funding is available at the option of the company, with the balance of $3-million requiring the consent of Freefire prior to a drawdown request being executed. Key terms of the loan facility include an interest rate of 12% a year, payable quarterly in arrears. The repayment of the facility will occur after the next equity raising or convertible note raising with the amount repaid to be determined upon the board considering the company’s financial position and future cash requirements.

Crater MD Russ Parker said on Monday the funding enabled the company to move confidently into 2018, well financed to continue working on its key priorities.

“The funding will also allow us to start a drilling programme at the mixing zone project during 2018 and to also explore the other significant exploration targets that exist on other licences the company holds at Crater Mountain.

“We are focused on putting this funding [to work] as productively as possible [toward] advancing our projects and generating positive results from our exploration and mininga ctivities, which we hope will put us in a good position to support future capital raisings,” he added. 

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Drilling to recommence at Crater Mountain

Cedric Patjole | PNG Loop | October 11, 2017

Crater Gold Mining Limited has announced to recommence drilling activities in the near term following an agreement to acquire a drill rig.

The company said this in line with its strategy to restart exploration at its flagship Crater Mountain Gold Project in Eastern Highlands Province.

CGM has agreed to purchase a 2002 Atlas Copco Diamec 252 drill rig (“Diamec 252 Drill Rig”) together with additional ancillary equipment. They include: A 415 volt 45 kilowatt electric over hydraulic power pack; A 1,000 volt 45 kilowatt electric over hydraulic power pack; An air over 22 kilowatt hydraulic power pack;Bob Cat mounting accessories; And feed frames and positioners, skid mounted; and Hydraulic motors and pumps.

The Diamec 252 Drill Rig is a very compact drill rig and is estimated to be able to drill diamond core holes of up to approximately 300 metres in length.

Despite reports that the CGM has had difficulties raising capital, the announcement is expected to see positive results shortly.

The project is located approximately 50km southwest of Goroka and comprises 3 connecting exploration licences, straddling the border between the Chimbu and Eastern Highlands provinces.

This region is in the centre of the New Guinea Orogen, an extensive geological zone that makes up the mountainous spine of PNG. The western portion of this zone encompasses the world class mining operations of Porgera, OK Tedi, Wafi-Golpu and Grasberg.

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Crater Gold Mining is reinvigorated, debt free and focused on PNG gold

Alexander Molyneux, proposed chairman

Papua New Guinea is home to multi-million ounce major gold mines

Proactive Investors | 24 July 2017

Crater Gold Mining Ltd has undertaken a transformation change, and is back trading on the ASX.

New funding will retire material debt and leave circa $4.3 million to $5.1 million in cash to pursue its strategy at the flagship Crater Mountain Project in Papua New Guinea.

The new “Crater Gold” company will have a recognised mining industry leader on the board and in management.

The project is highly prospective, and contains two separate existing epithermal gold Inferred Resources which combined exceed 800,000 ounces of gold.

This resource was formulated from just 14,500 cumulative linear metres of drilling that mainly took place in 2010-2013.

At the time the company became side-tracked the proposed development a small-scale mining operation and taking on a debt burden to do so.

A re-invigorated Crater Gold aims for a transformational increase in resources, which will be done by the purchase of two drill-rigs to be based at the project.

This will deliver over 10,000 cumulative linear metres per year.

Funding strategy

The funding injection will include up to $16.2 million, comprising:

– A 11 for 2 renounceable pro–rata entitlement offer at $0.01 per share to raise at least $13.0 million and up to $15.0 million before costs; and
– The proposed conditional sale of 100% of non-core Croydon Project for $1.2 million in cash.

Why Papua New Guinea

Papua New Guinea is home to multi-million ounce major gold mines with operators such as Barrick, Newcrest and Harmony present.

The country’s annual production exceeds 2.1 million ounces and has been growing.

PNG also offers a stable and competitive tax and regulatory regime – no material change in minerals law for 25 years – and the currency is ‘pegged’ to USD.

Adding further interest, incoming directors regard the owner of nearby Kainantu Project, K92 Mining as a key relevant peer.

A new name and new board

The current proposed name change is to Paradise Gold Mining Ltd.

Sam Chan and Richard Johnson have agreed to resign from the company’s board and three new proposed directors have agreed to join on completion of the entitlement offer.

The three new proposed directors are:

  • Alexander Molyneux, proposed chairman – 20-years’ experience in the minerals industry as an executive, director and specialist industry investment banker.
  • Dorian L. (Dusty) Nicol, proposed non-executive director – Career geologist with over 40-years’ experience in discovery and resource development. Worked extensively in Papua New Guina for Esso Minerals and Rennison Gold Fields, including on Crater Mountain and Kainantu projects.
  • Robert Usher, proposed non-executive director – Mining engineer with more than 25-years’ experience. Significant gold production experience including in PNG with Placer Dome at its Porgera operation from 1993 to 1999.

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Crater Gold Mining Ltd sells first gold from Papua New Guinea mine


Proactive Investors | 7 June, 2016

Crater Gold Mining Ltd has sold the first gold from stockpiled material from its HGZ mine In Papua New Guinea since commissioning of its new gold processing plant.

The processed material was sold for $351,000 was largely sourced from stockpiled material derived from initial development work at the HGZ project.

CGN is expected to ramp up production rapidly over the next few months as new material is sourced from the higher grade material of the central high grade gold block of the HGZ mine.

The HGZ project should become a high margin operation producing 10,000 ounces of gold in the first full year of production, at a very low all-in cash cost of below $400 per ounce.

While the focus remains on the HGZ mine, there is potential to increase the current resource of 790,000 ounces gold at the nearby Mixing Zone project at Crater Mountain.

CGN had raised $800,000 earlier this year through a placement of 10 million shares at $0.08 each to new institutional and wholesale investors.

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Crater accelerates PNG mine

Crater Gold Mine

Esmarie Swanepoel | Mining Weekly | 3 May 2016

Junior Crater Gold Mining on Tuesday told shareholders that gold mining at its High Grade Zone mine, at its Crater Mountain project, in Papua New Guinea, would be accelerated with the installation and commissioning of a new custom-made gold processing plant.

“This marks an important milestone for the company as we transition from [being] a developer to a gold producer,” said MD Russ Parker.

“This newly installed processing plant enables us to work towards full production in the near-term and is expected to deliver strong cash flows on high margins going forward. This, in turn, will allow us to fund further development at the High Grade Zone mine and exploration activities at our other assets.”

Crater was expected to produce some 10 000 oz of gold in the first full year of production at the High Grade Zone mine.

Parker said on Tuesday that, while the company’s current focus remained on the High Grade Zone mine, there remained potential to increase the current Joint Ore Reserves Committee-compliant resource of 24-million tonnes, grading 1 g/t gold for 790 000 oz of gold, at the nearby Mixing Zone project at Crater Mountain.

“Our recent discovery at the South Artisan Workings Zone also highlights the potential for additional mineralisation in close proximity to the High Grade Zone mine and a potentially longer mine life operation.”

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Crater Gold finds bonanza gold in Papua New Guinea

A bonanza for who – local people or Australian shareholders?

crater mountain

Proactive Investors

Crater Gold has encountered bonanza grade gold while continuing underground development at the High Grade Zone project in Crater Mountain, Papua New Guinea.

Channel sampling returned grades of up to 1,740 grams per tonne and confirmed contiguous zones of high grade mineralisation along strike suitable for selective mining.

To date, three distinct high grade shoots have been delineated for stoping.

Success of the sampling program enables the company to move rapidly towards increasing gold production.

A modular process plant has been fabricated and will be shipped to site within the next two weeks.

Incorporation of the new process plant plus increased underground development rates are expected to result in higher mining production.

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