Exploration continues despite trying market

The trying market condition of global commodity prices are forcing small mining companies to pull back exploration programs.

However, Gold Mountain Limited is one which is strategically operating against this bleak backdrop and is experiencing encouraging results.

In an interview with Business Advantage PNG, Gold Mountain managing director, Tony Teng, says market conditions have made operations ‘incredibly challenging’.

“One of the biggest challenges for a small company like Gold Mountain is raising capital for mining projects, especially during the exploration phase,” he says.

“With investors very wary of how ‘high cost’ operations in-country, we have kept a distinct focus on ensuring we are a low cost and low overhead company.”

Despite a drop in exploration activity between 2014 and 2015, and estimates of 2016 being even lower, Gold Mountain is moving forward with exploration at Crown Ridge in Wabag, Enga Province.

And recent trenching resulted in six trenches that produced positive results, with five of these centreed in a cluster where every pan collected free gold.

From the results, Gold Mountain Limited believes these systems have the capacity to produce world-class gold and copper projects.

According to Business Advantage PNG, director of exploration, Mathew Morgan, says they have commenced an intensive bulk sampling exercise, with possible feasibility studies to follow. They are gearing towards a Mining Lease application with the PNG Mineral Resource Authority.

“As some of the free gold is very shallow, at around two metres depth – which is almost under the grass in some zones – there may be the potential for a low cost, low strip ratio free gold resource that could be quickly bought forward into production generating significant cash flow for the company,” Morgan says.

Gold Mountain Limited is keen on pursuing identified drill targets following the establishment of a profitable shallow mining project.

The full report can be accessed on the following link: http://www.businessadvantagepng.com/juniors-continue-to-explore-in-papua-new-guinea-despite-difficult-market/

Picture Credit: static.wixstatic.com 

Author: 
Cedric Patjole