The company's board terminated the farm-in agreement with MGL Ltd yesterday, citing its failure to meet the minimum requirements to gain any interest in the project.

$A3 million has already been spent on advancing project knowledge by MGL, however a further $A3 million was needed to be spent in order for the company to gain a 50.1% interest, which did not eventuate.

Board members are considering their options, as a number of interested parties have expressed their desire to engage with Pacific Niugini on Garaina.

The termination of MGL's agreement was anticipated in a presentation on the Nicolsons mine earlier this week, where the company noted there was an "opportunity for new JV arrangements".

The joint venture was signed in April 2013, in which MGL could have earned up to 70% interest in Garaina by spending up to $A21 million on exploration. The first phase of this spending required MGL to pay $A6 million in the first two years to acquire the 50.1% interest.

The company said drill results provided optimism, as assays "demonstrate the large potential of the system". Best hits were 2.89 grams per tonne gold from 107m, 4.72gpt from 114m, 3.04gpt from 136m, and 18.75gpt from 160m.

Although much of Pacific Niugini's attention was on its Australian operations, it said that PNG had huge exploration potential.