AUSTRALIAN Mining Crater Gold Mining Limited is set to become PNG’s next gold producer following the grant to its PNG subsidiary Anomaly Limited (Anomaly) of the Mining Lease for the Company’s High Grade Zone (HGZ) gold project at Crater Mountain, PNG.
Following a rigorous technical and environmental assessment process involving the PNG Mineral Resources Authority and Department of Environment and Conservation the Minister for Mining, Byron Chan, signed the Mining Lease, ML510 for Anomaly’s HGZ project at Crater Mountain in the Eastern Highlands Province (EHP)
Crater Mountain is located 50 km southwest of Goroka in the EHP. Formerly a tier-1 BHP asset, there has been in excess of 14,500 metres of diamond drilling to date, the majority focussed on the Nevera prospect, which hosts the HGZ project.
Gold mineralisation at the HGZ is confined to several narrow, highly oxidised veins that will be targeted by the small scale, underground mining operation. The Company anticipates extracting ~10,000 ounces of gold in the first twelve months of operation. Crater Gold’s chief executive officer Greg Starr "the granting of the Mining Lease is a watershed milestone for the Company as we transition from developer to gold producer.
"With the mill and gravity concentration circuit already commissioned on site, we can effectively commence mining activities and gold production in the current quarter. The Company is currently finalising a Landowner Compensation Agreement to clear the way for gold production. Cashflows generated will assist in developing our other Crater Mountain prospects.
"We appreciate the efforts of the PNG Government authorities who have worked diligently to process the Mining Lease and look forward to reporting on gold production and revenues going forward," Mr Starr added.