Geopacific Resources Limited (ASX: GPR) (Geopacific, the Company) is pleased to announce the results of a Scoping Study (Study) for its 100% owned 1.56 Moz4 Woodlark Gold Project (Woodlark, the Project) in Papua New Guinea (PNG).
The Study forecasts strong financial returns, including significant free cashflow and rapid payback over an approximate 12-year Life of Mine (LOM). Geopacific CEO James Fox said: 'This Study builds on the recent Mineral Resource and infrastructure improvements at the Project, and provides increased confidence that Woodlark is capable of generating strong financial returns for its stakeholders over a long-life operation.
These findings are underpinned by extensive technical and financial information, and are based on conservative estimates, including the assumed gold price of A$2,900/oz. Additionally, Woodlark offers substantial upside exposure to the gold price and ongoing resource inventory growth. We look forward to further advancing the Project with technical and environmental studies to support Infrastructure and Project throughput optimisation and de-risking initiatives, and drill planning to progress high-priority exploration targets with potential to augment the Project underway'.
Cautionary Statement
The Study referred to in this ASX release has been undertaken to evaluate the potential development of the Woodlark Gold Project in PNG. It is a preliminary technical and economic study of the potential viability of the Project. The Study outcome, production target, and forecast financial information referred to in this release are based on low-level technical (unless otherwise noted), and economic assessments that are insufficient to support the estimation of Ore Reserves. The Study is presented in Australian Dollars to an accuracy level of +/-35%. Each of the modifying factors was considered and applied, however, there is no certainty of eventual conversion to Ore Reserves, or that the production target itself will be realised. Further evaluation, and appropriate studies are required before the Company will be able to estimate Ore Reserves, or to provide any assurance of any economic development case. Given the uncertainties involved, investors should not make any investment decisions based solely on the results of this Study. The Company concludes that it has reasonable grounds for disclosing a production target and forecast financial information which includes a small amount of Inferred Mineral Resources (4% of the tonnes reported as mined). There is a low level of geological confidence associated with Inferred Mineral Resources, and there is no certainty that further exploration will result in the determination of Indicated Mineral Resources or that the production target itself will be realised. Over the planned 12-year life of the Project, Measured and Indicated Mineral Resources account for 96% of the tonnes mined, and 97% of the gold expected to be mined. Inferred Mineral Resources comprise less than 4% of the production schedule over the LOM. On average, during the first 3 years of planned mining in the Study production plan, approximately 99% of the material to be mined has been classified as Measured and Indicated, which comfortably recovers the forecast capital required for startup. The viability of the development scenario presented in the Study does not depend upon the inclusion of Inferred Mineral Resources. The Mineral Resources underpinning the production target in the Study have been prepared by a Competent Person in accordance with the JORC Code (2012). For full details on the Mineral Resource Estimate, refer to the Company's ASX announcement on 14 September 2023 titled 'Woodlark Mineral Resource Update - Grade Boost at Kulumadau'. Additionally, the Company confirms that it is not aware of any new information, or data, that materially affects the information included, and that all material assumptions and technical parameters underpinning the estimate continue to apply and have not changed. The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcements. To achieve the range of outcomes indicated in the Study, Project capital funding of over A$320 million would be required. Investors should note that there is no certainty that the Company will be able to secure that amount of funding when required. It is also possible that such funding may only be available on terms that may be dilutive to shareholders, or otherwise affect the value of the Company's shares. It is also possible that the Company may pursue other value realisation strategies, such as a sale, partial sale, or joint venture of its interest in the Woodlark Gold Project. This announcement contains forward-looking statements. The Company has concluded that it has a reasonable basis for providing these forward-looking statements and believes it has a reasonable basis to expect that the Project development will be able to be funded. However, several factors could cause actual results or expectations to differ materially from the outcomes expressed or implied in the forward-looking statements, and given the uncertainties involved, investors should not make any investment decisions based solely on the results of this Study.
Exploration
Substantial gold resource growth potential exists at Woodlark. Near-surface priority growth targets areas have been assessed, and included Great Northern and Wayai Creek that host potential for new mineral resources to be estimated using existing data. At Little MacKenzie, a considerable gold mineralised footprint with an approximate 1 km strike extent has been delineated at surface through a combination of historic drilling, mapping, and trenching. Infill and extensional drilling is required at Little MacKenzie prior to any resource estimation. Field mapping will continue over areas that have favourable host lithology, complex magnetic responses, favourable structures, and anomalous geochemistry, each with the potential to host economic gold mineralisation. The new field mapping will aim to validate existing data and support further testing through trenching and drilling. Compilation of recent and historical geology, structure, alteration and mineralisation is on-going, with a process to improve exploration success, integrating the above with surface geochemistry, geophysics and the extensive drillhole database. Soils collected in 2023 have been assayed for gold and multi-elements and merged with the results from the 2018 soil program. This forms a robust surface layer over the outcropping Okiduse and Loluai Volcanics on Central Woodlark. Drill chips over prospective targets continue to be scanned with PXRF to provide improved mineral chemistry from outside of the known deposits and potential vectors to blind or buried mineralisation. The 2014 heliborne magnetic survey has been re-processed by Intrepid Geophysics and fifty (high resolution) sub-surface magnetic targets identified in outcropping volcanics and below recent cover. A surface geochemistry review is being conducted by SensOre, using the new surface data to generate new and/or buried targets that have not been previously recognised in Central Woodlark Okiduse and Lolaui Volcanics
Contact:
Tel: +61 8 6143 1820
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