Geopacific Resources has reached a key milestone in the development of its 1.6 Moz (Mineral Resources) fully permitted and shovel ready Woodlark Gold Project in PNG, with the issuance of a Letter of Intent to contractor HBS (PNG) Ltd to support the purchase of the first tranche mining fleet. Woodlark Island is approximately 70 km long and 20 km wide, located in the Solomon Sea, in the Milne Bay Province of PNG.

The LOI provides HBS with the authority to order five Caterpillar 775 haul trucks and one Caterpillar 6015 excavator. Equipment delivery and commissioning targeted for Q4 2021 consistent with previously disclosed project schedule. Mining contract discussions with HBS are progressing well with the contract anticipated to be finalised Q2 2021.

The commencement of mining operations in Q4 2021 is consistent with the overall mining strategy which entails HBS undertaking pre-strip and the first three years of mining allowing Woodlark to leverage off their in-country expertise and de-risk the early stages of the project. The Woodlark project has a 13 year mine life at an average AISC of A$1,239 /oz.

CEO Tim Richards stated: “Committing with HBS to the procurement of this mining equipment reflects our confidence in the project and the progress that has been made since the release of the execution update in Q4 2021. HBS already has a signficant presence on the island assisting the company with our pre-construction activities which are progressing according to schedule. The Q4 2021 delivery is consistent with our project timeline and sees the Company well placed to achieve our Q4 2022 target for gold production. HBS is a PNG company with an outstanding reputation in the mining sector and we look forward to working with them to develop the Woodlark Gold Project over the coming years.”

An LOI has already been issued to GR Engineering Services Ltd (GRES) for the construction of Woodlark’s 2.4 Mt/y carbon in leach (CIL) treatment facility (process plant), tailings line and other supporting infrastructure. The goal for completion of the construction and commissioning of the processing plant is July 2022. HBS is currently working to clear the site for the plant.

Contract Power Australia Pty Ltd is to construct the Woodlark Power Station with Puma Energy PNG Ltd supplying fuel. The transport of equipment and supplies to site via barge from Lae on the PNG mainland is cost effective and reliable. Lae Port services the massive PNG mining industry from modern facilities. The existing wharf at Woodlark Island is capable of handling current requirements. A new wharf will service the mine during construction of the processing facility and into production.