Queensland-based copper explorer Coppermoly Limited (ASX: COY) advises that its farm-in partner Barrick (PNG Exploration) Limited (“Barrick”) will fund and conduct a $2.21 million exploration program for the West New Britain portfolio of projects in Papua New Guinea during the second half of 2012 calendar year.
Under the Letter Agreement between the companies, Barrick is required to maintain the tenements in good standing. Coppermoly is not required to make any funding contribution to the program and will retain its 28% interest in all three tenements.
The 2012 exploration program will include exploration and drilling to commence as soon as possible. Drilling is aimed at targeting the higher grade secondary copper enrichment zones at Nakru-1 and Simuku.
“We are pleased that Barrick will continue to undertake exploration on the substantial copper-gold projects in PNG while it seeks to divest its 72% interest. We are also making good progress on the maiden Inferred resource at Nakru-1. Although its geological interpretation has delayed its progress, we expect results to be made available to the market over the coming weeks. In addition, the conceptual mining study for Nakru-1 is nearing completion with results expected in August. We also have three large tenements under application on New Britain Island which can be progressed once granted in the near future”, said Managing Director Peter Swiridiuk.
“In additional, we have continued to define significant copper mineralisation on our farm-in projects in Queensland, through a successful drilling campaign at the White Horse prospect. We intersected 17 metres of 1.4% copper and identified near surface blankets of secondary copper enrichment which occur within a largely untested 3km by 1.5km porphyry copper system. Shareholders have an interest and potential interest in very significant mineralising systems which will become further developed and their value improved”.