It had also initiated a strategic review to assess alternative options to maximise shareholder value, including potential corporate and asset-level transactions.
Geopacific resumed share trading on the Australian Securities Exchange after completing a range of corporate initiatives aimed at cutting costs. Earlier this year it had highlighted material increases to the capital cost of Woodlark which caused it to suspend the project's development. At the same time, Geopacific retrenched employees in both Perth and Papua New Guinea.
Chairman Andrew Bantock says the company advancing several concurrent work programs to progress the project and optimise its future development pathways, including a drill campaign to grow reserves and resources, and an assessment of the implications of the potential mineral resource growth on the design economics of a future project development.
"Having implemented an intensive business transformation programme following suspension of the Woodlark gold project development, we are pleased to recommence ASX trading with a renewed focus and pathway to realise value from this significant project," Bantock said.
"With the successful close-out of previous material project commitments, we are now well positioned to grow our 1.6-million ounces of gold mineral resources with $A28 million of cash, no debt, and $A17 million of project long lead equipment assets.
"Our ongoing drilling campaign is delivering encouraging results and step-out holes identifying new mineralised structures. With further drilling success, we see the opportunity to drive increased project value by undertaking studies to re-assess the project design and seeking to capitalise on targeted economies of scale.
"Strategic investors have recognised the opportunity at Woodlark and we have received unsolicited interest in the project from several credible parties. The board has therefore begun a strategic review process, assisted by Azure Capital and Lisle Group, to assess the best path to maximise shareholder value from the Woodlark project."
The Woodlark project is expected to produce 980 000 oz over its 13-year mine life and is expected to have a net present value of $A347-million and an internal rate of return of 34%.