Tag Archives: West New Britain

Papua Mining’s future in the balance

Gold and copper explorer Papua Mining PLC said on Friday that its loss for the year narrowed and that it is aiming to secure funding for its mines in Papua New Guinea.

For calendar 2016, pretax loss narrowed to USD8.2 million from USD10.2 million the previous year.

The value of Papua Mining’s assets fell to GBP2.3 million from GBP9.6 million.

At the end of 2016, the company had USD453,517 in cash, up from GBP286,891.

Chairman Michael Jolliffe said Papua’s financial resources are limited, and the company is in talks with investors to provide additional funds.

Jolliffe stressed there was no guarantee that the discussions will be successful and should Papua fail to secure funds, he could “not cannot guarantee that the company will be able to continue trading indefinitely”.

During the year, Papua finished additional exploration on the Mt Visi licence and relinquished two additional licences which “had not shown sufficient promise in the initial exploration programmes”.

Papua currently holds six exploration licences granted by the Papua New Guinea government, which are located in the central part of New Britain Island and total 1,400 square kilometres.

Jolliffe said that greenfield exploration programmes such as the company’s in Papua New Guinea have been “very much out of favour amongst the investing community in the last few years”.

“Nonetheless, the work we have carried out has confirmed our belief that we are close to discovery of a copper porphyry system near surface at Mt Visi. Notwithstanding the currently depressed view that the market takes of early stage projects such as ours, we firmly believe that this will change in due course as the lack of recent exploration activity globally leads to an inevitable dearth of new projects to take to production,” he said.

“At that time, the technical attractiveness of what we have established at Mt Visi, and also at Tripela, will be recognized, thus presenting an opportunity to realise true value for the shareholders,” Jolliffe added.

He said that raising finance in current market conditions has been “extremely difficult” and so the company is aiming to preserve the work they have done in Papua New Guinea “for the benefit of the shareholders until such time as the realisation of that value may be achieved in the way most advantageous to the shareholders”.

Shares in Papua were down 9.4% to 1.20 pence on Friday.

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LOs concern over Pomio mining surveys

Post Courier

Landowners from Central Inland Pomio have expressed disappointments over an exploration mining company that is currently carrying out surveys on their land over mining prospects.

Ballygowan Limited is one of the many exploration companies that have carried out surveys at Central Inland Pomio for the Ora Mine.

Pomio MP Elias Kapavore is standing firm with his people to support them and their decision over the Ora mine and the granting of exploration license.

Mr Kapavore said the landowners have expressed their disappointments over the lack of consultations between the landowners and the company over the Ora mine area.

He said he will be writing to the office of the Prime Minister as well as the Minister for mining to stop further discussions on these mining activities.

He added that his people needed more consultation and awareness on the environmental impacts plus the conditions on agreement if this company is granted licence.

The landowners want more consultations with the mining company and they also want to see previous reports from past companies who have also surveyed the area.

Mr Kapavore said from previous experiences, companies have been flying in helicopters into the area conducting fast surveys and spending between 15 to 20 minutes with landowners and leaving for good.

A warden’s hearing has been set for the end of the month for landowners together with the company to get together and talk over issues of concern over Ora mine.

Speaking on behalf of the landowners, the Pomio MP said they are not happy with the way the mining company is fast tracking the surveys to allow for the exploration licence to be issued by the Department of Mining. He strongly called for the hearing to be cancelled.

The mining company is also the same company that is applying for an exploration licence for the Sikut mine in the Sinivit LLG.

The MP together with the landowners have requested for Ballygowan Limited not to go ahead with the warden’s hearing at the end of January.

The warden’s hearing is arranged for the landowners to come together with the mining company to air their views on the mine issue, however, landowners are not at ease for this to go ahead.

Mr Kapavore said the people of Pomio have learnt their lesson with the Sinivit Gold Mine and they do not want to repeat the same mistakes, without making proper consultations at the initial stages of the mine.

He said he is supporting the decision of his people and will stop such companies who have not done proper consultations with the landowners to exploit their resources.

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Coppermoly still needs permit, firm says

The National aka The Loggers Times 

THERE is no guarantee that Coppermoly will be able to obtain all of the necessary approvals, permits, licences and consents required to develop the West New Britain (WNB) project, the company says.

Coppermoly is an Australia Stock Market-listed exploration company targeting porphyry-style large scale-low grade projects prospective for copper, gold and molybdenum.  The company’s projects are located in WNB.

The company in its 2015 report said WNB projects and its other licences were subjected to the following key sensitivities:

  • The delineation of sufficient copper/gold reserves so as to result in the viable extraction and processing of copper/gold from the West New Britain projects,
  • copper and gold prices,
  • mining and processing costs of copper and gold ores,
  • the capital cost to construct any required processing plant and associated facilities or the cost of transporting any extracted materials to a third party’s processing facility,
  • national/provincial/local government stakes that may be included in any subsequent development agreement; and,
  • consent from the customary landowners or other parties for access to exploration licences.

Coppermoly’s wholly owned subsidiary, Copper Quest Papua New Guinea Ltd, is the legal holder of five exploration licences (EL).

The five are; EL 1043 (Nakru),  EL 2379 (Simuku), EL 1782 (Powell), EL 2014 (Makmak), EL 2272 (Wowonga) . As at the date of this report, the current term of the Powell EL has expired.

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PNG land and resources being traded in shady foreign deals

Once again the rights to access customary land in PNG and explore for valuable mineral resources have been traded in a shady offshore deal without the knowledge or approval of affected communities. This latest foreign transaction involves three separate gold-copper-silver projects located in West New Britain and Milne Bay – Mt.Penck; Allemata; and Fergusson. The projects each cover over 100 square kilometers of land….

Trigold Signs Agreement for 95% Interest in Gold Tenements in Papua New Guinea

Trigold Resources | Marketwired

trigoldTRIGOLD RESOURCES INC. is pleased to announce that it has signed a definitive share purchase agreement among Trigold, Pacific Kanon Gold Corporation and 0990601 B.C. Ltd. pursuant to which Trigold will acquire from the Vendor 100% of the shares of Vangold (PNG) Limited.

Vangold PNG holds title to three mineral tenements located in Papua New Guinea. On July 28, 2014, the Vendor’s Covenantor acquired all of the shares of the Vendor from Vangold Resources Ltd. in consideration for the assumption of certain debt of Vangold PNG by the Vendor’s Covenantor. At present, the exploration licences that comprise the PNG Tenements have not been renewed for the current term. Trigold is working with applicable governmental entities in Papua New Guinea and expects to receive approval of the Mineral Resources Authority of Papua New Guinea (“PNG”) for the renewal of the PNG Tenements on or before October 31, 2014. The renewal of each of the exploration licences that comprise the PNG Tenements, together with the approval of applicable governmental entities in Papua New Guinea, is a condition to closing of the Transaction.

As consideration, in part, for the acquisition of all of the issued and outstanding shares of Vangold PNG, at closing of the Transaction Trigold will issue to the Vendor 1,300,000 common shares in the capital of Trigold and deliver to the Vendor cash payments in the aggregate amount of $72,000. Based on a deemed price per common share of $0.10, the value of the total deemed consideration for the Transaction is $202,000. The Consideration Shares will be subject to a four month restricted period in accordance with the policies of the TSX Venture Exchange and applicable securities law requirements. In accordance with the terms of the Share Purchase Agreement, if, on or before the closing of the Transaction, the Vendor has obtained the agreement to settlement terms by persons holding an aggregate portion of at least 70% of the Vangold PNG Debt, then the Consideration Shares and a $25,000 cash payment will be delivered to the Vendor at closing. If the Closing Release Condition has not been satisfied at closing, 800,000 of the Consideration Shares and the $25,000 cash payment shall be held in escrow until the earlier of the satisfaction of the Closing Release Condition or one year. If the Closing Release Condition has not been satisfied within one year of the closing of the Transaction, the 800,000 escrowed Consideration Shares and the $25,000 cash payment shall be returned to the Trigold. Additionally, Trigold delivered a $35,000 cash deposit to the Vendor’s Covenantor on February 4, 2014 and has agreed to deliver a cash payment to the Vendor in the amount of $12,000 on the closing date of the Transaction.

The Share Purchase Agreement provides for customary representations, warranties and closing conditions, including, among other things, the approval of the TSXV for the Transaction and the listing of the Consideration Shares for trading on the TSXV. Conditions to closing in favour of Trigold also include the discharge and release of Vangold, the Vendor and a third party of all debt due by Vangold PNG to Vangold, the Vendor and such third party, respectively. The Share Purchase Agreement provides for a right of first refusal in favour of the Vendor’s Covenantor upon the proposed disposition of any of Trigold’s interest in Vangold PNG or the PNG Tenements. Trigold also agreed to offer shareholders of the Vendor’s Covenantor an opportunity to provide services in related to the activities of Vangold PNG or Trigold in respect of the PNG Tenements, upon terms and conditions determined by Trigold. It is anticipated that the closing date of the Transaction will be on or before October 21, 2014.

The PNG Tenements comprise three separate gold-copper-silver projects located in Papua New Guinea (Mt.Penck; Allemata; Fergusson). The projects cover 101.4 km2, 150 km2, and 115.94 km2 respectively, of exploration ground with considerable historical exploration.

All the projects are located in the low lands. The Mt. Penck Project is located on New Britain Island and access is by all season road from the provincial capital of Kimbe. Allemata is easily accessible by a 20 km all-weather road from the port and provincial capital of Alotau. The Fergusson Project is located in the D’Entrecasteaux Islands, with access by boat from Alotau on the nearby mainland or by fixed wing aircraft. All the projects have reasonable access and active small scale artisanal mining.

Mt. Penck is the most advanced Project where historic drilling consisted of 93 drill holes totaling 8,500 meters that were completed within the licence area. Selected historical drill results are summarized in the table below and include: 133 meters (“m”) of 1.83 grams per tonne gold (“g/t Au”) and 72m of 1.79g/t Au. In addition, selected trench results include: 131m of 2.36g/t Au and 97m of 3.39g/t Au. Although the Mt. Penck project/licence area is the most advanced, both the Allemata and Fegusson projects have historical drilling and trenching.

Trigold plans to provide a technical report in respect of the Mt. Penck Project in support of the Transaction.

Papua New Guinea’s unique geology and substantial mineral resources result from its position on the Pacific ‘Rim of Fire’, the interactive tectonic boundary between the cratonic Indo-Australian Plate to the south and the oceanic Pacific Plate to the north. The Pacific ‘Rim of Fire’ is host to a number of producing world class mines.

About Trigold Resources Inc.

Trigold is a Canadian mineral exploration company headquartered in Edmonton, Canada. Common shares of Trigold are listed for trading on the TSX Venture Exchange under the trading symbol “TGD”. Trigold’s management includes proven and seasoned resource sector professionals who have a track record of advancing exploration projects from grassroots through to production scenarios.

The technical content of this news release have been reviewed and approved by Dean Besserer, P. Geol. the Technical Advisor of the Company and a Qualified Person as defined by National Instrument 43-101.

ON BEHALF OF THE BOARD OF DIRECTORS

Jim Greig, President and Chief Executive Officer

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Coppermoly hits visible copper at Nakru-2 in Papua New Guinea

Proactive Investors

Coppermoly Limited should trade higher today after intersecting visible copper mineralisation in two reconnaissance diamond core drill holes at its Nakru-2 prospect in West New Britain, Papua New Guinea.

Indications of continuous mineralisation start near surface and continues to below 100 metres, with assays pending.

These early results also appear to confirm Coppermoly’s model of mineralisation, complementing surface sampling late last year of copper-in-soil up to 66,800 ppm and rock chips up to 24% copper.

The Nakru-2 prospect is located 1 kilometre west of Coppermoly’s Nakru-1 prospect, which has an Inferred Resource of 38 million tonnes at 0.61% copper and 0.28g/t gold.

The two new diamond core holes are spaced 100 metres apart, testing for a pumice breccia unit; a  similar pumice breccia unit is the host to mineralisation at Nakru-1.

Only three drill holes have been previously drilled at Nakru-2.

Two diamond core holes drilled by Coppermoly in 2009 intersected strong chalcopyrite mineralisation with a best interval of 51.7 metres @ 1.21% copper including 27.7 metres at 1.90% copper.

Then in 2010, Barrick Limited drilled a deep hole from the north that intersected 64 metres at 0.59% copper.

Coppermoly’s mineral exploration activities are focused solely on the island of New Britain in PNG where it holds five exploration licences, and an additional two under application.

These licences cover copper, gold, silver, zinc, molybdenum and iron mineralisation, and the company is capitalised at around $5 million.

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PNG’s resource-rich provinces rank poorly in basic service delivery

Radio New Zealand

The latest Provincial Expenditure Review in Papua New Guinea has pinpointed several resource-rich provinces as failures in the delivery of basic services.

The National Economic and Fiscal Commission’s review names the provinces as Western, New Ireland, Morobe, West New Britain, Southern Highlands and Enga.

The Commission Chairman, Hohora Suve, has told EMTV that these provinces have been outperformed by lower funded provinces in priority areas including health, education and transport infrastructure.

“Although they are putting their money into goods and services, they are not putting it to the level that we want. When we are doing our assessment, we allow for them to use their funds for development but we expect them to use their funds for goods and services as well.”
Hohora Suve

The review ranks Simbu as the best-performing province in basic service delivery over the last two years.

Central, Manus, Sandaun, and Milne Bay provinces also ranked highly.

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Coppermoly! Miner bags PNG deal

Jenny Rogers  |  goldcoast.com

COPPERMOLY marked yesterday as “a significant turning point” for the company after it sealed a $5 million deal to take full control of three mining tenements in West New Britain.

The deal will give Coppermoly immediate access to the Papua New Guinea tenements, one with a 40 million tonne copper resource.

The Gold Coast-based junior minerals explorer announced it had entered into an agreement with Canadian mining giant Barrick to re-acquire Barrick’s interest in the tenements.

Coppermoly has been working since late last year to stitch up financing arrangements to fund a buyback of the Nakru, Simuku and Talelumas tenements from Barrick, which earned a 72 per cent stake through a farm-in deal.

The $5 million acquisition will be funded in three tranches, with payments staged over five years.

Coppermoly said the acquisition was conditional on it raising $2 million by August 14.

Coppermoly will place 3.7 million fully paid ordinary shares with underwriter Jelsh Holdings, at an issue price of 4.5c, to raise just over $166,000.

Jelsh Holdings also has agreed to underwrite a 1-for-4 non-renounceable offer to shareholders at 4.5c a share to raise a further $1.95 million.

The funds will be used to make the $2 million first payment to Barrick and will allow Coppermoly to begin exploration activities on all three tenements.

“This is a fantastic outcome for Coppermoly to re-acquire 100 per cent of the West New Britain project, and importantly, regain control of the exploration activity,” Coppermoly managing director Maurice Gannon said.

“Barrick has spent well over $20 million acquiring its interest in the project (so) for Coppermoly to re-acquire 100 per cent of the project for $5 million over five years is a significant achievement,” he said.

Mr Gannon said the share placement would be fully underwritten at a 50 per cent premium to the current share price, which was “a remarkable achievement in the current market”.

“Other junior mining companies are raising capital at huge discounts to keep their noses above water, but we are fortunate to have an underwriter who understands our industry and will come in as a strong cornerstone investor in future.”

He said Jelsh Holdings’ Australian representative was a PhD-qualified geologist who had worked for BHP and was a conduit to major Chinese investment funds.

Coppermoly shares are up 16.67 per cent to 3.5c.

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Coppermoly in negotiations for sale of PNG tenements

Proactive Investors

Coppermoly looks to have struck a deal with Barrick over the West New Britain Project tenements.

Company and Barrick are partners in the West New Britain Project tenements. 

Since 2009 Barrick has spent over A$22 million on exploration on these West New Britain projects.

Coppermoly is in discussions with a number of parties that would likely involve the purchase and immediate sale of the tenements in Papua New Guinea.

The outright sale would result Coppermoly gaining a net cash surplus position.

Barrick has agreed to extend a period of exclusivity for Coppermoly to finalise terms with a third party until 31 December 2012.

The tenements are Exploration Licence numbers 1077 Simuku, 1043 Nakru and 1445 Talelumas).

Coppermoly would retain its existing exploration base in Kimbe, the provincial capital of the West New Britain Province of Papua New Guinea.

A successful completion of the transaction would see Coppermoly intensify and focus its exploration activities on the Makmak Exploration Licence (EL 2014).

The Makmak Licence is held 100% by Coppermoly and is located on the same geological trend as the West New Britain Project tenements – the Kula Awit Fold Belt. 

Exploration of the Makmak Exploration Licence to-date has generated a number of significant targets for further exploration, the first stage of which will be scheduled to commence in the first quarter of 2013.

Makmak shows early potential for IOCG style mineralisation based on preliminary fieldwork by Coppermoly.

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Beneath Kimbe Bay : What PNG is risking by allowing Nautilus Mining to mess around with a perfect natural wonder

Extracts from “Coral Crucible” by Don Silcock | Airlines PNG inflight magazine vol 22, 2012.

Surveys by famous marine biologists like Professor Charles Veron and Dr Jerry Allen, and respected organisations like The Nature Conservancy, have helped to establish a bewildering array of statistics for the area.

Kimbe Bay is host to around 860 species of reef fish, 400 species of coral, and at least 10 species of whales and dolphins.

To put that in a global perspective – in an area roughly the same size as California – Papua New Guinea is home to almost five per cent of the world’s marine biodiversity.

Just under half of that fish fauna and virtually all of the coral species can be found in Kimbe Bay, which means that the bay should really be considered as a kind of fully stocked marine biological storehouse.

Bounded by the long Willaumez Peninsula to the west and Cape Tokoro, some 140km to the east, Kimbe Bay is sheltered from the worst of New Britain’s weather.

Along the coastal area of the bay, a 200m shelf runs parallel to the shore for about 5km before dropping down to around 500m and up to 1,000m in the eastern part. On the northern outskirts of the bay, as it approaches the Bismarck Sea, the sea floor drops off rapidly to in excess of 2,000m.

Across this deep seascape are dramatic seamounts and coral pinnacles that rise up towards the surface and provide isolated ecosystems for the marine creatures of the bay.

The seamounts in particular act as beacons to the bay’s diverse and prolific pelagics and marine mammals – with twelve species of mammals identified to date, including sperm whales, orcas, spinner dolphins, and dugong!

The deep waters and generally benign conditions function as a kind of marine nursery and are fundamental to the incredible biodiversity of Kimbe Bay, but the other significant element is the nutrient-rich currents of the Bismarck Sea that provide the nutrients to sustain the bay’s residents and visitors.

To the south of New Britain are the 4,000m-deep water basins of the Solomon Sea that the Southern Equatorial Current crosses as it makes its way to the Bismarck Archipelago.

As this powerful current approaches the south coast of New Britain it creates upwellings that suck up the nitrogen and phosphorous-laden detritus of the sea from those deep basins.

The nutrients are carried north through the Vitiaz Strait in the west, and the St Georges Channel (between New Britain and New Ireland) in the east, in to the Bismarck Sea where they enter the predominantly anticlockwise circulation produced by the regional current flows.

As those currents flow along the north coast of New Britain and around the top of the long and narrow Willaumez Peninsula, eddies are produced in the western part of Kimbe Bay that direct the nutrient-rich flows into the bay and induce further upwellings from the deep water basins to the north.

In a nutshell, the forces of nature have combined to produce an almost perfect natural environment to create and sustain the coral crucible and the creatures that cohabit with it.

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Newcrest invests in ‘new Lihir’ in West New Britain, PNG

Blair Price

Frontier Resources has finalised a nearly $A20 million farm-in agreement with gold mining heavyweight Newcrest Mining over its Andewa project in Papua New Guinea, reports PNGIndustry News.

Under the joint venture, Newcrest will earn 60% of the project by sole funding $19.25 million of exploration costs by the end of 2015. At least $2.5 million must be spent for Newcrest to exit this arrangement.

Once Newcrest earns the 60% stake, Frontier said it has the option to be carried until the feasibility study is complete, which is “repayable from 50% of mine profit”. Newcrest also has the option to acquire a further 12% stake before a mining investment decision.

Newcrest has already paid Frontier $1.915 million for the explorer’s project costs since the start of the year and for its drilling and equipment lease costs since then.

On the initial $2.5 million of Newcrest-funded exploration, Frontier said it will be the project operator but Newcrest can take over this role afterwards. Drilling is already expected to start tomorrow.

“Field crews have been mobilised to Andewa and both of Frontier’s large track mounted rigs are being utilised to enable the completion of the Phase One program (5 x 1,000m holes) as rapidly as possible,” Frontier said.

Frontier managing director Peter McNeil was involved with development work for the giant Lihir gold mine in PNG in which Newcrest operates after it acquired Lihir Gold. McNeil previously said Andewa’s geological and structural location was “conceptually” identical to Lihir’s.

The first hole at the Andewa project in West New Britain last year intersected 93.2m at 0.78 grams per tonne gold and 0.3% copper starting from a depth of 166.6m, including 48.5m at 1.02gpt gold and 0.38% copper. The second hole landed a 114m intersection grading 0.74 gpt gold and 0.20% copper with results announced in October.

Frontier shares are up 17% in morning trade to 8.2c while Newcrest shares are down 4c to $24.38.

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