In its November 2018 definitive feasibility study, Geopacific estimated that Woodlark would deliver more than a million ounces of gold production at an average all in sustaining cost of $A1239 per ounce over the life of the asset.
But in November 2021, the company warned of construction problems due to unseasonal weather and challenges related to the pandemic. The company undertook a review of the project.
"Preliminary results from this review indicate that there is likely to be a material increase in the capital cost for development of Woodlark but, at this stage, the quantum of the change is still being assessed," Geopacific said.
"The company continues to undertake a detailed work program to define and quantify the extent of the increase.
"The review is occurring in an environment where significant price volatility is being observed which is increasing the time required to obtain sufficient confidence in a revised cost estimate. The suspension is required to ensure Geopacific shares are not trading on an uninformed basis."
The company said it has $74 million in cash holdings. Key construction works were progressing on Woodlark Island while the review continues, the company said.