02 Dec 2021

The Woodlark Gold Project being developed by Geopacific Resources, is a high margin, low development risk project in the Milne Bay province.

Construction and development activities commenced in the second quarter of this year.

Key Activities

To date, the main project activities include:

•        Mobilisation of engineering contractor

•        Early earthwork activities and the long lead time equipment has been ordered

•        Key infrastructure activities including site preparation works, roadwork and community infrastructure works are well advanced

The impact of recent weather has delayed project activities and resulted in a deferral of all non-essential site activities until the new year

The Company is working on updated schedule of work which will be communicated when complete

In the coming months, the Geopacific will be focusing on:

•       Progressing key infrastructure activities including community infrastructure works and permanent camp development;

•       Ongoing design and engineering work with engineering contractor GR Engineering Services ;

•       Focus of all earthwork activities; and

•       Planning and engineering work to finalise and cost the optimal wharf location

•        The Company is well positioned to fund these activities with A$77.2m of unrestricted net cash reserves

Extending the mine life

Woodlark has a growth strategy which revolves around increasing reserves and inventory to the current mine plan.

•        Optionality exists to debottleneck and expand the mill footprint to accommodate increased ore feed

•        All drill-defined resources remain open along strike, down dip and at depth

•        Three Phase exploration strategy:

1.     Pit extension exploration

2.     Mineral Lease

3.     Regional step out on to exploration leases

•        Exploration budget will be managed with available cashflow and project development timing

Exploration in numbers at Woodlark

·       GPR has delivered a conversion rate of 5.4oz of resource per exploration metre drilled on the ML 

·       Over 40,000m of ML exploration drilling scheduled for 2021/22

·       Every 100koz of 0.5g/t ore adds $40m to post tax cashflow

Developing Sustainable Local Economies

Key initiatives include:

·       Training and development to provide industry standard skills and qualifications for local employees.

·       Partnering with key stakeholders and experts to identify and develop viable alternative industries on Woodlark such as agriculture, aquaculture or tourism.

·       Community development projects with a focus on long term and responsible economic growth and standard of living improvements.

·       Supporting the development of Government service improvements in the areas of health, education and law and order.

·       Improvement in female workforce participation and training.

·       Development of a Biodiversity Action Plan.

Hiring and upskilling local workforce

•        Woodlark Gold Project already employing and upskilling men and women in the community

•        GM of People and Performance, Susan Scheepers, passionate about hiring and developing a PNG workforce