Photo credit: Geopacific Resources
The developer stated that work on the Woodlark Gold Project is now delayed and behind schedule.
In an update, Geopacific Resources Limited reported that the company has decided to postpone the project until Q1/Q2 2022.
The impact of unseasonal inclement weather, according to the firm, has resulted in a short-term worsening in ground conditions, reducing the capacity to undertake the civil works program in preparation for the CIL plant's construction.
COVID-19 cases have continued to climb across Papua New Guinea, with a flow-on impact to the rest of the country, due to a lack of project construction on the island at the level necessary to guarantee work streams were performed cost effectively and efficiently.
Geopacific remains dedicated to assisting in the implementation of this essential health program as quickly as feasible.
The corporation has also opted to revisit the original wharf design and consider a potential improvement of the current wharf facilities in order to minimize costs and construction complexity while increasing community involvement in the project.
According to the firm, design and engineering work for the offshore component of the tailings pipeline is behind schedule, which is delaying the issuance of construction tenders required to finalize capital estimates.
Chief executive officer, Tim Richards said, “Whilst the delays in the Project are disappointing, they should not take away from the quality of the underlying asset base.
Woodlark is a compelling project, with a goal of producing over 1 million ounces of gold at an all-in sustaining cost of A$1,239 per ounce during the asset's life.
“We are doing everything we can to minimise the impact of the delays on the Project schedule, and post the completion of the Project review we will update the market to the extent of the impacts on the Project Execution Plan.
“Importantly, we continue to progress exploration, with these activities continuing.
There remains significant exploration potential at the Project, which we expect will result in additional value creation at Woodlark.”
Reference: Post-Courier (17 November 2021). “Woodlark Gold Project Faces Delay”.
