Photo credit: Geopacific Resources
Geopacific Resources Limited is pleased to provide an update on corporate and project activities conducted at the Woodlark Gold Project together with an outline of planned future work programs for 2023.
Outcomes from 2022
In February 2022 Geopacific announced suspension of development activities at the Project due to a significant capital cost increase which impacted on available project funding. Geopacific provided a corporate update in May 20221 outlining a business transformation plan with a clear focus on re-evaluating the future pathways for the Project including clearing residual contractual matters and maintaining the Company’s social licence to operate.
The following are key outcomes from activities undertaken in 2022 which included execution of the business transformation plan.
- The completion of 23km of resource infill, extension and exploration drilling. This drilling improved confidence in high grade areas and identified new zones of mineralisation adjacent to the existing deposits.
- The completion of an updated Mineral Resource Estimate for the Woodlark Project. The update improved confidence in the 1.5Moz Mineral Resource with 94% now in the Measured and Indicated categories2 .
- The community relocation project continued to progress, with the project now 66% overall complete. This provided access to largely untested areas of the Kulumadau deposit within the footprint of the open pits delineated by past studies.
- The community relocation program has been well received by the Papua New Guinea (‘PNG’) government and regulators resulting in a letter of commendation from the Mineral Resource Authority of PNG and positive press coverage within PNG.
- Continuing community engagement and provision of services maintained the Company’s social licence.
- A strategic review was conducted following unsolicited approaches to the Company. This resulted in the identification of potential development partners and dialogue is ongoing.
Outlook for 2023
Following receipt of the Mineral Resource Update in December 2022, the Company has been busy preparing a work program for 2023, with the aim of maximising value in a cost-effective manner. The initial planning of the work program for 2023 is now complete, and subject to available funding, it is the Company’s intention to execute the following work streams during the course of 2023:
- Complete a geological and targeting review focused on high grade opportunities.
- Update of Project operating and capital cost estimates to reflect the current economic environment.
- Assess the potential to optimise the Project via relocation of the processing plant and associated project infrastructure, along with the potential for staged development with an initial focus on the high-grade core of the Mineral Resource.
- Update of open-pit designs and production schedules based on the Mineral Resource Update.
- Preparation of a Pre-Feasibility level study, taking into account the above, and subject to study outcomes enabling the re-statement of Ore Reserves for the Project.
- Continue with the community relocation project on a cost effective ‘self-perform’ basis. This will initially target houses which are near completion.
“The work programs executed in 2022 have provided a platform for future work to unlock value from the Woodlark Gold Project. Importantly, the exploration activity and Mineral Resource Update executed in 2022 have delivered valuable data to re-optimize the Woodlark development plan. We will continue to advance the key work packages in 2023, to define the optimal pathway to maximise value from the Project, and to unlock the island’s considerable exploration potential.”
