PAPUA new Guinea-focused gold explorer Crater Gold Mountain has announced a high-grade gold zone target at its namesake project.
The Sydney-based company said the target at Crater Gold Mountain’s Nevera prospect high-grade zone was 50-250 karats at 13-30 grams per tonne gold for 60 to 100k ounces of contained Au.
It follows a site visit from independent geological consultants Mining Associates in mid-September.
The report suggested a target for the high-grade zone prospect based on selective underground mining, which could be developed at low cost and in a short period of time.
MA concluded the broader Crater Project potential was at least 20km across and a “major system”.
The report stated the potential quantity and grade was conceptual in nature, with insufficient exploration to define a mineral resource.
CGN confirmed the target was currently under active exploration development with surface mapping and sampling, audit development and both surface and underground close spaced drilling underway.
CGM exploration director Peter Macnab said: “Mining Associates has confirmed our expectations that the high-grade gold zone has the potential to be a rich source of ore, which could be developed at low cost and in a short period of time.
“Together with recent airborne geophysics data, we have been able to leverage off both our historical drilling and the work of the artisanal miners to show that the Crater Mountain mineralised system has the potential for short-term, medium-term and long-term production opportunities,” he added.
“We believe this system will in time demonstrate its potential to be another great PNG producer.”