Tag Archives: Eastern Highlands

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.

Advertisements

Leave a comment

Filed under Exploration, Papua New Guinea

K92 Mining brings Kaintantu gold mine back to life

kainantu-mine-plant

Sarah Byrne | Business Advantage PNG | 7 February 2017

After eight years in mothballs, Papua New Guinea’s Kainantu gold mine is preparing to export gold concentrate again. K92 Mining’s Chief Operating Officer, John Lewins, tells Business Advantage PNG the company plans to ramp up to full production around April this year.

The Canadian company has spent in excess of C$10 million (K24 million) in refurbishment and rehabilitation costs to bring the operation back into production.

‘It had been sitting for eight years,’ says Lewins. ‘There was a fair amount of capital required for refurbishment and rehabilitation of the mine.’

Kainantu gold mine, located in the Eastern Highlands of Papua New Guinea, had been on care and maintenance since 2008, when Barrick Gold acquired the operation from Highlands Pacific.

When Barrick Gold decided to sell Kainantu it provided an opportunity for K92 Mining, Lewins explains.

‘We had a couple of people on board with K92 Mining who were ex-Barrick and thought this was a fantastic project, so we acquired it,’ Lewins says.

Cash flow

K92 Mining expects to achieve positive cash flow in March or April this year.

Positive cash flow will provide the company with revenue to pay for future exploration activity, which Lewins says is critical in today’s market conditions.

K92 Mining’s original plan to fund the operation went out the window when the market went downhill in 2015, Lewins explains.

As a result, the mining company secured initial funding from New York private equity firm Cartesian Capital, before going ahead with its listing three months later.

Negative sentiment in the market is an ongoing challenge for any junior mining company, Lewins comments.

‘That market for raising funds isn’t necessarily there, so you’ve really got to focus on cash flow and generating positive cash flow to use for exploration.’

Self funding

Self-funding exploration is critical, Lewins says.

In terms of cash flow for exploration activity, Lewins says the company must work within its means.

‘I personally believe the market will change towards the second half of the year, but right now it’s a difficult market for junior mining companies,’ Lewins explains.

Kainantu’s current resource is over two million ounces, which includes the Irumafimpa area and Kora deposit. According to K92 Mining, two million ounces is only a small part of Kainantu’s potential resource.

With no previous drilling in the area between Irumafimpa and Kora, Lewins says the area has significant potential for the company.

‘It’s one of the most exciting bits of ground that I’ve seen, and one of the most exciting projects that I’ve been involved in—and that’s having spent almost 40 years in the industry.’

Production

K92 Mining aims to ramp Irumafimpa up to full production by April this year and to commence production from the Kora deposit towards the end of this year, or early next year.

In an effort to step up production activity, there are two diamond drill rigs currently working on the ground, and a third rig ready to commence work at Kora in the coming weeks.

Exploration between Irumafimpa and Kora is a focus for the company, but Lewins says there is great potential for exploration outside the mining lease. In January, K92 Mining reached an agreement with local tribal group, the Pomasi, and it has since commenced exploration in this area that spans two of the company’s exploration leases.

With connections to grid power and access to the main highway, Lewins says from a location and infrastructure perspective ‘this [Kainantu] is about as good as it gets in Papua New Guinea.’

Many areas of Papua New Guinea have limited infrastructure, but according to Lewins there are areas like Kainantu that have the benefit of road access and remain underexplored.

‘If it was in Australia, it would be overrun. Papua New Guinea is an incredibly well endowed and a massively underexplored area of the world.’

2 Comments

Filed under Mine construction, Papua New Guinea

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.

Leave a comment

Filed under Exploration, Financial returns, Papua New Guinea

Locals to explore their own land for minerals

Giopa Holdings Ltd likely to start mine exploration

Pacific Mine Watch

A LANDOWNER company in Goroka, Eastern Highlands, will soon begin mine exploration on their own land.

Giopa Holdings Ltd got their exploration licence from Mineral Resources Authority to explore copper and gold in Kufia-Kombofari prospect area on the border of Eastern Highlands and Madang last week.

Managing director Kondango Wau said it was their objective to have ownership of the resources and the licence would allow them to explore their own resources without foreign control.

“Our resources were formerly owned by a foreign miner that owned the exploration licence to our land. We saw that we were missing out from any development that was supposed to come to us from the exploration that was happening on our land.

“We saw that there were other areas in PNG that were owned by foreign companies that went in for exploration activities. Their exploration report did not indicate the to landowners of what was available on their land.

“For us, we couldn’t be just landowners and claim for environmental damages and royalty issues but we wanted to take ownership, 100 per cent equity and not royalty.

“And that was the main aim for us to have ownership of the land so that we have exploration data available so that we could eventually venture into mining if the data proved viable.

Wau said the company was locally funded by the 59 clans of the prospect area with support from provincial and National governments.

1 Comment

Filed under Exploration, Papua New Guinea

Reopening of Kainantu Mine moves a step closer

Otterburn Target K92 Receives Mining Lease Renewal Notification From Barrick Gold Corp.

Otterburn Resources | Junior Mining Network

  • Otterburn Resources Corp. announces Mining Lease renewals
  • Mining lease renewals trigger sale completion between Barrick and K92
  • Project includes existing mill, mine development and substantial infrastructure

Otterburn Resources Corp. is pleased to announce that K92 Holdings International Limited has received notification from Barrick Gold Corp that the Kainantu Mine mining lease renewals sought by Barrick’s wholly owned subsidiary Barrick Kainantu Limited have been obtained.

With the mining leases now renewed for 10 years from June 14, 2014, as per BKL’s application to the Mineral Resource Authority (MRA) of Papua New Guinea, and with all required cash payments from K92 to Barrick having been made to complete the transaction, the sale of BKL to K92 Holdings (PNG) Limited (wholly owned by K92) has been triggered. The sale completes in ten business days and the control of the Kainantu Mine Property transfers to K92 at the end of the ten day period.

The Kainantu property covers a total area of 410.74 square kilometres and is located in the Eastern Highlands province of Papua New Guinea, approximately 180 kilometers via paved road, west-northwest of the town of Lae, Papua New Guinea. Papua New Guinea is a democratic commonwealth country with a population of approximately 7.4 million people, and a land area of 462,840 km2. Mining is a major source of economic activity with multiple large mines operated by major mining companies. Mining and petroleum contribute more than one-third of all government revenue. While there is constant investment news from the mining sector in Papua New Guinea, including the recent announcement of Anglo America’s proposed multimillion dollar joint venture with Highlands Pacific Limited at Star Mountains, the most recent news garnering attention is the recent decision by Newcrest to proceed to feasibility of its Golpu copper-gold deposit with a proposed life of mine capital expenditure of approximately USD $3.1 billion. The Golpu deposit is situated approximately 110 km east south-east of the Kainantu Mine.

Within K92’s mining lease, there is an historical inferred resource of 1.8Moz at 11.8 g/t Au Eq. and an indicated resource of 340,000 oz. Au at 17.7 g/t Au Eq*. Please refer to the Company’s news release of August 25, 2014. Otterburn has commissioned a NI 43-101 compliant technical report to review and confirm these historic resource estimates, and anticipates filing this report shortly. Otterburn will be embarking on an expansion drilling program designed to target additional mineralization throughout 2015 and 2016, via the expansion and definition of previously drilled mineralized areas. Onsite, there exists fully developed infrastructure including an operational mill, camp, offices, access roads, reliable hydro supply via a dedicated power line, a life of mine tailings facility, and extensive underground mine development. Barrick purchased the project from Highland Pacific Ltd in December 2007 for USD $141 million and invested capital in regional exploration, definition drilling of the Kora deposit and mine development at the Irumafimpa deposit.

Mineralization on the property includes gold, silver and copper occurring in intrusive related gold telluride veins; copper-gold-silver sulphide veins and related porphyry copper-gold systems; and alluvial gold. The Irumafimpa-Kora vein deposit is the most advanced project at Kainantu, with past modern mining activity in the Irumafimpa area. The Irumafimpa-Kora deposit occupies a broad northwest-trending mineralized zone more than 2.5 kilometres long and up to 60 metres wide.

Mr. Doug Kirwin, K92 Advisor, notes “The structures hosting the lodes strike for several kilometers and have known vertical extents of hundreds of meters, and are open beyond this. This indicates significant potential to add to the existing resource, and the probability of discovering parallel lodes is high.”

Upcoming activities planned by K92 onsite include the refurbishment of the existing mill and the Irumafimpa Mine underground infrastructure; underground and surface drill testing from Irumafimpa to Kora; definition drilling in other zones of mineralization discovered but not yet defined as a resource; and exploration targeting the discovery of new high grade deposits. Future plans, dependent on available financing, include an underground incline drive from the Irumafimpa deposit to the Kora deposit, and additional upgrades to the mine and mill.

K92 Chief Executive Officer, Mr. Ian Stalker, states “Today’s mining lease renewal news is in many ways a starting point for K92. However, it is also the culmination of a period of hard work by both our team in Papua New Guinea and by Barrick personnel. I thank both groups for their dedication to this process to this point and to the upcoming transition process onsite. K92’s focus is to fast track the restart of mining and milling operations onsite, and commence exploration with the goal of identifying and defining further high grade resources. Our business model, developed by an outstanding team of mining professionals, is based on a foundation of low and well defined Capital Expenditure requirements, high grade resources and a strong existing infrastructure.”

Leave a comment

Filed under Exploration, Mine construction, Papua New Guinea

Ol wildlife long Crater long PNG bai bagarap sapos maining wok igo hed

Pius Bonjui | ABC Radio Australia

Wanpela long ol eria long PNG em igat ol wildlife long en bai nap bungim bagarap sapos maining wok i kamap long en.

Ol kain animal olsem dispela tree kangaroo long Crater eria inap bungim bagarap sapos maining wok i kamap (Credit: ABC)

Ol kain animal olsem dispela tree kangaroo long Crater eria inap bungim bagarap sapos maining wok i kamap (Credit: ABC) 

Ol i ibin tokaut oa declarim olsem Crater eria long Eastern Highlands Provins long Papua New Guinea olsem wanpela Wildlife Management area stat long 1993.

Tasol givim mining licence long karim aut ol  maining wok long dispela hap  bai nap givim heve igo long  ol wildlife.

Robert Bino blong lain Research na Conservation Foundation itok ibin gat sampela wok painim em sampela maining kampani ibin stap insait long en long dispela eria ibin kamap sampela taim igo pinis.

Emi tok sapos PNG National gavaman i givim tok orait na givim laisens long wanpela maining kampani dispela bai min olsem olgeta animal long bus bai inap bungim bagarap.

Long 1993 ibin gat wanpela loa oli bin kamapim blong wildlif management long imas gat bikpela luksave  long ol samting blong bus long dispela eria nau ol toktok blong maining wok bai kamap long en.

Tasol long lukluk blong Mr Bino  emi tok dispela loa ino stopim wanem tingting inap kamap bihain sapos sampela wok development oli girapim long dispela eria.

Emi tok pastaim long national gavaman i kamapim dispela Wildlife Managment loa long 1993, ol wok painim long ol minerals long dispela eria ibin stap bifo long en.

Mr Bino itok stat long taim emi joinim dispela grup dispela ibin bikpela wari blong ol sapos ol maining kampani igo insait long stat kamapim maining wok long dispela eria

1 Comment

Filed under Environmental impact, Papua New Guinea

Aust gold company hopes to mine wildlife management area in PNG

ABC Radio Australia

Bird of Paradise in the Crater Mountain WMA

Bird of Paradise in the Crater Mountain WMA

A small Australian mining company has found ‘bonanza’ grade gold deposits at Crater Mountain in Papua New Guinea and has lodged an application for a mining licence.

But locals are concerned that the plan includes mining one of PNG’s most important wildlife reserves and they are calling on the PNG government to live up to its obligations to protect the country’s biodiversity.

Presenter: Jemima Garrett

Speakers: Greg Starr, Managing Director, Crater Gold mining Ltd

Robert Bino, Natural Resource Management Program Manager, Research and Conservation Foundation of PNG

GARRETT: Crater Mountain and its forested ramparts straddle the border between Papua New Guinea’s Eastern Highlands province and Simbu province.

This biodiversity hotspot was declared one of PNG’s few wildlife management areas in 1993 after local landowner leaders became concerned about declining numbers of birds of paradise and other fauna.

But it also contains mineral riches.

Greg Starr, Managing Director of Crater Gold Mining Limited, says it is a wonderful resource that is shaping up as PNG’s next large scale copper and gold resource.

STARR: What we have identified here is a project which can go into production in the near term and with ongoing work has shown the potential for a multi-million ounce resource, and if like other gold-porphyry systems, could be many millions of ounces.

GARRETT: Crater Gold has 180 square kilometres of exploration licences both inside and outside the Wildlife Management Area.

Greg Starr says the mine will take up just one and a half square kilometres of the reserve’s total area of more than 2000 square kilometres .

But Robert Bino from the Eastern Highlands-based Research and Conservation Foundation of PNG, is concerned about the mine’s impact.

BINO: It would have a dramatic effect on the wildlife and the animals around that area where the mining is taking place. We know that many of the mining activities in Papua New Guinea, they have tailings issues and the northern part of Crater, most of the rivers, they head down towards the Purari in the Gulf province. They make up the headwaters of the Purari (River).

GARRETT: Greg Starr says the mine will bring benefits to a remote part of Papua New Guinea.

STARR: Primarily jobs and further infrastructure. While it is a small scale project in the beginning, we are looking to grow the project to the much larger scale, and that means you get jobs, infrastructure to enable coffee to get out, infrastructure associated with education, and medical facilities always come with these things and business opportunities

GARRETT: Robert Bino says mining will kill-off forest-based businesses.

BINO: Some of the tourists that have come to Crater have come there because of pristine conditions, to come and see the wildlife in the forest and experience village life with the people and all that. I think if we have mining in Crater it may affect potential to attract tourists. That’s what I think.

GARRETT: Robert Bino says with so few health and medical services provided by the government offers from mining companies can influence landowners.

He says the PNG government should live up to commitments it made when it signed the International convention on Biological Diversity.

BINO: There should be more commitment from the government to exclude those other competing activities within those areas designated as conservation areas, or protected areas throughout the country. What we see is that we have gazetted areas throughout the country but there is also this competing activities encroaching onto those so-called protected areas. So we would like to see more political will to support these initiatives to protect biodiversity and our biological resources.

GARRETT: Crater Gold’s Managing Director, Greg Starr, is confident landowners will agree to change the boundaries of the Wildlife Management Area.

STARR: The process there is you speak to the landowners who have groups who manage the areas that we are touching on, and you work with them and if they approve any change of classification then you are able to get your lease on that area. We are a very very small area that is touching on that Wildlife Management Area and secondly we are underground as well.

GARRETT: This is a globally significant rainforest and PNG’s most significant forest-based Wildlife Management Area. Doesn’t that mean it should be kept free of mining?

STARR: As I say we are mining underground so the impact on the surface, if any, is very minimal but more importantly, this isn’t only a question of the company, this is working with the landowners and at the end of the day it is the landowners who will make a decision or make a recommendation to the government.

GARRETT: Other mines in Papua New Guinea have excised sensitive areas from their plans even after resources have been found there. Is that something Crater Gold Mining would consider?

STARR: We would work with the landowners to discuss with them the issues that they see and the impact on the environment and if that is something that we all agree is appropriate then that will be the case but we will go through the process. As I say, this will have minimal impact a) because it is underground and because it is a very small area that we are covering.

3 Comments

Filed under Environmental impact, Mine construction, Papua New Guinea