Ok Tedi drops Frontier JVs

AFTER spending about $US28 million over three years, Ok Tedi Mining Limited has abandoned two joint ventures over five Papua New Guinea exploration licenses with explorer Frontier Resources.
Ok Tedi drops Frontier JVs Ok Tedi drops Frontier JVs Ok Tedi drops Frontier JVs Ok Tedi drops Frontier JVs Ok Tedi drops Frontier JVs

Roughly 18 months ago OTML had budgeted for a total of $37.5 million of expenditure for the licenses, with substantial drilling taking place on three ELs.

The decision to withdraw from further drilling and exploration was first recommended by OTML to its 63.4% owner PNG Sustainable Development Program Limited in late July, with PNGSDP following this advice after a meeting with Frontier directors in early August.

Frontier will maintain 100% ownership of the tenements and said it was looking for new JV partners.

Of the potential at these licenses, Frontier said very high-grade surface gold at the Bulago project's Suguma prospect was not adequately drilled.

It also said no ground-based exploration was done at its Central New Britain EL, despite four "excellent porphyry targets", with this licence scoped by aeromagnetics and a Lidar topographic survey.

OTML has handed over all of its data to Frontier, which could lead to some future drilling results announcements.

OTML's exit follows Newcrest Mining's decision to withdraw from the Andewa copper-gold project joint venture with Frontier Resources in June.

At the time, Frontier said Newcrest's $A500,000 final payment provided "adequate hibernation income" for the rest of 2013.

Frontier shares are unchanged at 1.1c, with the OTML news announced after 3pm AEST.


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