Name of the Project
Woodlark gold project.

Location
Woodlark Island (Muyua Island), in Papua New Guinea.

Project Owner/s
Gold exploration and development company Geopacific Resources.

Project Description
A July 2024 scoping study proposed total gold production of 1.14-million ounces over a 12.1-year mine-life from low-strip openpit mining of more than 97% measured and indicated mineral resources.

Average gold production of about 95 000 oz/y will be delivered by a 2.9-million-tonne-a-year conventional carbon-in-leach processing facility at an average 90.1% gold recovery.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Based on a A$2 900/oz gold price, the project has a pretax net present value, at an 8% discount rate, of A$625-million and an internal rate of return of 40.5%. Payback is estimated at 18 months from first production.

Capital Expenditure
Preproduction capital is estimated at A$326-million for mine development, gold plant and infrastructure engineering, procurement and construction management costs, first fills and critical spares.

Planned Start/End Date
Not stated.

Latest Developments
Following the completion of a A$40-million entitlement offer in January, Geopacific Resources is set to undertake extensive drilling and deliver a definitive feasibility study (DFS) by year-end. The funds raised will support key exploration activities, including drilling, road upgrades and trenching.

A major component of the next phase is a 30 000 m reverse circulation and diamond drilling programme aimed at extending known gold mineralisation and exploring new targets, with the potential to increase mineral resources. The programme will start in May, with two drill rigs starting operations, followed by a third rig in July. Drilling will focus on priority targets, including Little Mackenzie, Wayai Creek and Boscalo North/Great Northern, which have shown promising signs of economic gold mineralisation.

Trenching and drilling activities will start in March to better define the surface expression of mineralisation in key areas.

Geopacific has selected Papua New Guinea-based Quest Exploration Drilling as its preferred drilling contractor for the programme. The company is also working with a local earthmoving contractor to mobilise key equipment for site preparations, including road upgrades and drill pad construction.

About 20 km of road will be upgraded to ensure access to newly identified exploration areas, with initial drilling scheduled for May 2025.

To improve efficiency and turnaround times, Geopacific is upgrading its on-site sample processing and storage facilities. The project will also benefit from an enhanced sample transport and analysis strategy, with initial processing taking place on Woodlark Island before samples are sent for further analysis.

In addition to the drilling programme, Geopacific is re-engaging industry leaders GRES to update the DFS, which is scheduled for completion by the end of 2025. The updated study will assess and optimise various operational parameters, including process plant and infrastructure design, while also validating the project’s technical, economic and operational feasibility.

The DFS will build on a mid-2023 scoping study that identified significant economic and construction design improvements. Given the recent gold price increase to A$4,702/oz – nearly 62% higher than the price used in the initial feasibility study – the updated DFS will re-evaluate key factors such as throughput flexibility to maximise returns.

Geopacific is also advancing the project’s environmental assessments in collaboration with Erias Group. The environmental assessment report is on track for submission in the first half of 2025 and will support the necessary approvals for an expanded throughput rate of up to 3.5-million tonnes a year.

Key Contracts, Suppliers and Consultants
GRES (DFS update); Quest Exploration Drilling (drilling programme) and Erias Group (environmental assessments).

Contact Details for Project Information
Geopacific Resources, tel +61 8 6143 1820 or email info@geopacific.com.au.