Nord Pacific gets green light for mine in PNG

The government of Papua New Guinea has granted Nord Pacific (NORPY-Q) a licence that will allow the company to develop the Simberi gold mine in the Tabar Islands.

“This is the first step in the development of what could become a very significant operation,” said Pierce Carson, president of Nord Pacific.

The company plans to produce 40,000 oz. gold per year from five near-surface oxide deposits — the North, South and East Samat, Pigiput and Sorowar deposits. Operating costs are estimated at US$210 per oz., while development of the project is estimated at US$20 million.

The property hosts 4.4 million tonnes grading 1.54 grams gold per tonne, or 217,800 oz., and has an initial minelife of five years. Additional drilling is expected to expand the oxide reserve and resource base. To date, gold resources stand at 443,500 oz.

Drilling buy Nord Pacific will continue into 1997, and will focus on deeper sulphide mineralization below the oxide material. A limited number of deeper holes drilled in the 1980s intersected high-grade sulphide mineralization.

“We expect that, eventually, this deeper mineralization could turn out the bulk of the gold on Simberi island,” Carson explained. The company is also evaluating additional gold and copper targets on Tatau and Tabar island.

Several permits, which are expected by the end of the year, are required before construction of the mine, which is planned for early 1997, can begin.

Gold production could begin there in 1998.

In New South Wales, Australia, the company has calculated a revised resource estimate for the Tritton copper project near its Girilambone copper mine.

The deposit is now estimated to contain 9.75 million tonnes grading 3% copper, 0.21 gram gold and 11 grams silver, for 646 million lb. copper, 66,000 oz. gold and 3.4 million oz. silver. The calculation is based on 115 holes drilled as deep as 1,000 metres.

The deposit, a blind discovery located through geophysics, remains open at depth. Drilling continues.

Feasibility work there has focused on metallurgical and mining studies, which will continue into 1997. A development decision is expected later next year.

Nord Pacific holds a 50% interest in the Tritton project, while Australian-listed Straits Resources holds the remaining 50%.