Geopacific Resources Limited have begun drilling at the Woodlark Gold Project in Milne Bay Province.
The Board of Geopacific announced on Dec 1, that drilling is now underway to allow for the company to deliver a 1.2 million ounce gold reserve.
This is expected to make the project sufficiently viable to be attractive to project financiers.
Managing Director Ron Heeks says “the drill rigs have arrived on site to begin development drilling, as we initially indicated. Drilling begins at the Busai area, follows shortly after that at the Kulumadau area.”
“We look forward to releasing drilling results regularly, along with other project updates, as we move Woodlark forward,” he added.
Drilling will start at Busai before moving on the Kulumadau area, the company said.
The Woodlark Minig Project is owned by 100% by Kula Gold Limited through its subsidiary Woodlark Mining Limited (WML).
If Geopacific achieves its target of delivering 1.2 million ounce gold reserves by spending a maximum of $8 million, (K24 million) Geopacific will earn 51% of Woodlark from Kula Gold.
The PNG Government has agreed to a 5% participating interest, which is yet to be assigned.