Geopacific Resources Ltd (ASX: GPR) has released an updated Mineral Resource as part of its plans to revitalise the Woodlark Island Gold Project in Papua New Guinea.
During 2022, Geopacific has been focussed on a business transformation plan to better define the Woodlark Island Gold Project following the suspension of project development in February 2022.
A key element of this plan has been undertaking closed spaced grade control and resource infill drilling in the vicinity of the currently defined open pits. This has resulted in improved resource confidence and better definition of the high-grade zones within the Project.
Following completion of the above work, GPR is pleased to announce an updated Mineral Resource estimate for the Woodlark Gold Project.
Key Highlights
• Increased drilling density within selected areas of the previously defined resources, combined with step out drilling, has resulted in the combined Measured plus Indicated Resource increasing from 86% to 94% of the total Mineral Resource estimate at Woodlark.
• Near surface high-grade Measured Resources have been defined in Kulumadau (0.71Mt at 4.13g/t Au) and at Busai (1.7Mt at 2.2g/t Au). These provide increased optionality for future project configurations, together with the confirmation of the early cash flow generation potential highlighted by previous studies.
• Substantially improved knowledge of deposit geology, with increased confidence in domains and structural controls on the mineralisation. This provides a robust and resilient framework on which to base further analysis.
• Growing geological understanding of the controls on high-grade mineralisation will further guide resource definition and further exploration targeting across the highly prospective Woodlark project.
Geopacific said that following the revision of the Mineral Resource, the company has re-assessed its existing Ore Reserve. A number of key assumptions which underpin the Ore Reserve have materially changed since its publication. These include, potential material changes to assumptions relating to operating and capital costs, largely due to changing market conditions, potential changes to project design and scale and a material improvement in the old price.
The 2022 Mineral Resource, and the changes to key assumption listed above, require that further work is undertaken prior to delivery of an updated Ore Reserve estimate for the Woodlark Project. Until further work is completed the company has withdrawd the Ore Reserve estimate and recommended that shareholders no longer place reliance on the previously disclosed Ore Reserve.
It told shareholders that this is not a reflection on either the quality of the work underpinning the historical Ore Reserve, or the Board’s view on the future viability of the project, but rather a function of the need for further work to support a new Ore Reserve based on the updated Mineral Resource model and the other factors mentioned above. Until further work is complete it is unclear what, if any, material changes to the historical Ore Reserve will eventuate.
