Field activities are currently underway in preparation for a drilling programme expected to begin in the second quarter of 2011.
Over A$9 million was spent by Barrick (PNG Exploration) Ltd (“Barrick”) (a wholly owned subsidiary of Barrick Gold Corporation) in 2010. Exploration is being managed and carried out by Barrick under an agreement with Coppermoly Ltd which allows Barrick to spend A$20 million to earn 72% of the tenements EL 1043 (Nakru), EL1077 (Simuku) and EL1445 (Talelumas) over eight years. Coppermoly Ltd retains 100% ownership until earn-in is complete.
The Simuku project is on New Britain Island in Papua New Guinea and within a one hour drive by 4WD vehicle from existing infrastructure, including a deep water port which will be essential for future development. It hosts an Inferred Resource (pre-Barrick) of 200 million tonnes grading 0.36% copper containing 700,000 tonnes of copper, 12,000 tonnes of molybdenum, 12 tonnes of gold and 391 tonnes of silver (or 1.5 billion pounds of copper, 26 million pounds of molybdenum, 0.4 million ounces of gold and 13 million ounces of silver).
Reconnaissance mapping by Barrick in 2010 helped define structural information which has assisted drillhole planning (refer to Figure 1). The majority of structures are dipping towards east-southeast with other directions of south-southeast and northeast.
The Kulu prospect is 5.5 kilometres southeast of the Simuku Resource (refer to Figure 2) and rockchip sampling from the 2010 work programme confirmed anomalous grades of copper over an area of 800 metres by 600 metres (refer to Figure 3).
Over 200 rockchip samples taken during November 2010 had average grades of 0.11% Copper ranging from 123 to 6890 ppm. These results are consistent with historical surface sampling and drilling results.
“We look forward to a continued exploration and drilling programme this year which will continue to improve the value of the projects.
Additional sampling outside of the Simuku Inferred Resource will help develop the mineral potential of additional prospects which were historically explored by different companies and may well hold the key to finding additional resources in our tenements.” Commented Managing Director, Peter Swiridiuk.
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