Augustus Minerals (ASX: AUG) is set to explore the Mt Kare gold project in Papua New Guinea by acquiring ACM Contract Mining PNG (ACMPNG). ACMPNG holds a third-in-line license application for the project, located near the Porgera mine. Mt Kare, considered a prime resource project in PNG, hosts a historical mineral resource estimate of 43 million tonnes at 1.5 grams per tonne gold, totaling 2.1 million ounces of gold, and 18 million ounces of silver.
The binding share purchase agreement requires Augustus to perform due diligence and pay $250,000 in cash. Executive chair Brian Rodan views Mt Kare as a premier gold development opportunity in the Australasia-Pacific region. However, ACMPNG’s application is contested, meaning it currently lacks rights for exploration and development. Rodan noted that the acquisition also allows Augustus to acquire further assets in PNG’s mineral corridors. Since its initial discovery by Rio Tinto in 1987, approximately $75 million has been invested in Mt Kare. Previous attempts to develop the project have been unsuccessful, and the mining rights have been in dispute since 2015.
