Ok Tedi strengthens Frontier alliance

AS PART of its joint ventures with Frontier Resources, major Papua New Guinean copper and gold miner Ok Tedi Mining Limited has budgeted a total of $US37.5 million ($A35.86 million) over three years for exploring five licences in PNG.
Ok Tedi strengthens Frontier alliance Ok Tedi strengthens Frontier alliance Ok Tedi strengthens Frontier alliance Ok Tedi strengthens Frontier alliance Ok Tedi strengthens Frontier alliance

Frontier revealed that the owner of the Ok Tedi mine aimed to spend $13.5 million this year and $12 million each in 2013 and 2014.

Frontier chairman and managing director Peter McNeil said the high level of exploration activity would ultimately be very beneficial to Frontier and its shareholders.

"Ok Tedi Mining are now exploring in earnest on four of Frontier's five joint venture exploration licences in PNG, with the current program of more than 21,000m of drilling having commenced from late 2011 extending through 2012," Frontier said.

Of the five ELs, the Likuruanga project in PNG's East New Britain province has the biggest proposed exploration budget for this year at $6.33 million.

More than $2 million of exploration is also planned for EL 1598 in Central New Britain and the Bulago and Leonard Schultz projects in the Southern Highlands.

Two rigs are already drilling targets at the Bulago gold project.

OTML is pursuing other opportunities in PNG as its namesake mine gets closer to exhausting its economic resources after decades of operation.

Feasibility work to extend mining at Ok Tedi up to 2025 is expected to be complete midyear for board approval.

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