Mincor abandons Edie Creek

MINCOR Resources has opted out of the Edie Creek project in Papua New Guinea after considerable drilling last year while it prepares to start exploration of the Bolobip copper-gold project 60km east of the Ok Tedi mine.
Mincor abandons Edie Creek Mincor abandons Edie Creek Mincor abandons Edie Creek Mincor abandons Edie Creek Mincor abandons Edie Creek

Both projects are part of a suite of joint ventures struck by the Western Australian nickel miner with PNG explorer Niuminco in 2011, with Mincor terminating their Kubuna JV project in February.

The Edie Creek project encompasses a historical gold mining area and Mincor said its 12-hole diamond core drilling program last year clearly demonstrated the presence of an epithermal and mesothermal gold system.

But drilling results did not support a further investment case to Mincor, which is renowned for its financial management.

"The company's interpretation is that this system is widely dispersed and likely to have generated numerous small gold deposits rather than a single, viable ore deposit," Mincor said.

"Therefore, while potential remains, the rewards no longer justify the costs and Mincor has elected to cease expenditure on the project."

Meanwhile, the exploration camp at the Bolobip project is complete.

Field exploration, along with airborne and ground geophysics programs, are expected to finish by the end of June.

Mincor said any targets identified could be drilled in late June or in July.

A review of CRA's (Rio Tinto) previous work there identified a 1km diameter copper-gold anomaly.

CRA was interested in the project in the late 1980s but ultimately backed off from PNG during this time due to the difficulties it faced with the Panguna mine on Bougainville Island.

Under its JV with Niuminco, Mincor will earn a 72% stake of the project by spending $A5 million on exploration.

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