Kibush starts PNG operations

KIBUSH Capital announced it has begun operations last week on its Papuan New Guinean 694/695 alluvial mining lease.
Kibush starts PNG operations Kibush starts PNG operations Kibush starts PNG operations Kibush starts PNG operations Kibush starts PNG operations

Through its subsidiary, Aqua Mining PNG, operations manager Vincent Appo is overseeing the construction of project infrastructure which is scheduled for completion by the end of this month, and an anticipated operational start on May 1.

Test results from the project have shown 0.95 grams of gold per cubic metre, with the company forecasting 80 ounces of gold being processed per month, for the next three months.

CEO Warren Sheppard said this was a good start and that the company would be in a good position to increase production after the initial three-month period.

A review has confirmed extraction costs to be less than $US400 an ounce.

Kibush signed an agreement in September 2014 with leaseholders of ML369, who are from Bitoi River, Wae, to develop and commercialise the lease. Part of this was the application for an alluvial mining licence.

At the time, the company said it would initiate a geological survey to further evaluate the lease's potential, with a number of nuggets found weighing up to 93 grams and indicating a gold purity of 92% to 96%.

"Once we receive government approval to operate under the alluvial mining lease, Kibush will employ the best techniques and equipment to maximise output and profit margins," the company said last year.

"We see this particular agreement as a means to determine and prove an operating model that can be used on similar sized areas that leaseholders are interested in joining similar agreements with us.

"This would give Kibush the opportunity to lower operating costs over a number of cost centres but maintaining at the same time a level of expertise in management and financing that would ensure the cost centres operate at maximum efficiency and profitability."

Kibush also said that the company would work with local villagers and suppliers on the project.

loader
  • NEW: Digital version of PNG Report magazine - View here
  • Porgera: Barrick-PNG talks go on - Read more
  • Follow the companies investing in the PNG market - Read more