Niuminco steps up on strategy

PAPUA New Guinean explorer Niuminco Group says it has confirmed the significant potential of its May River and Bolobip tenements.
Niuminco steps up on strategy Niuminco steps up on strategy Niuminco steps up on strategy Niuminco steps up on strategy Niuminco steps up on strategy

The company commissioned a review of all historical geological work following the termination of the farm-in and joint venture agreements with Mincor Resources and the acquisition of 100% interests in the licences.

Reports and recommendations on the prospectivity and "next steps" for the tenements confirmed the significant potential of the tenements, the company said in its December quarterly report.

Consultant John Nethery recommended the drilling of the three target drillholes at Bolobip to a depth of 300m to 350m each, as well as further field examination of the South May River anomalies and structures.

Niuminco confirmed an assessment of the remote sensing and geological surveys lent encouragement to the concept that the South May River anomalies shared the same structural geological setting as the Frieda River deposits.

"The company is now in a position to control both the pace and direction of future exploration on these highly prospective properties and to this end commissioned John Nethery to undertake a review of all historical geological work and to prepare reports and recommendations on the prospectivity and ‘next steps' on these tenements," company secretary Mark Ohlsson said.

"The board investigated options for the recommended stage 2 drilling program of 10 holes to 200m each but carried out no drilling during the quarter.

"Subject to further capital raising and general market conditions, the company will consider drilling these 10 holes in the current quarter.

"Contingent upon successful stage 2 results and then general market conditions, the stage 3 drilling program may follow with the aim of establishing a JORC resource as soon as practicable."

Niuminco's quarterly also noted the off-market takeover offer for TNT Mines - which closed in November with 72.55% acceptances from 3392 shareholders - and the listing of the company's shares on the Port Moresby Stock Exchange.

Its directors were also encouraged by the acquisition of Glencore Xstrata's 80% interest in the adjacent Frieda River copper-gold project in PNG by PanAust.

"The board and management are continuing to reduce the cash costs incurred by the group and pursuing funding strategies to advance the group's Papua New Guinea and TNT Mines Limited projects, including asset disposals where appropriate," Ohlsson added.

"Managing director Tracey Lake has offered to take a $100,000 reduction in the fees his company is paid for the provision of services for the next 12 months, effective from March 2014 and the non-executive directors continue to draw no cash remuneration.

"The board will make further announcements in the near future on current debt and equity raising initiatives."

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