Augustus Acquires Third-in-Line Licence Application for Mt Kare with 2.1 Moz Gold Resource

Strategic Acquisition in Papua New Guinea

Augustus Minerals Limited (ASX: AUG) has taken a decisive step to expand its footprint in the Pacific by signing a binding share purchase agreement to acquire 100% of ACM Contract Mining PNG Ltd. This Papua New Guinea-incorporated entity holds a third in line licence application for the Mt Kare Gold Project, a historically significant gold and silver prospect located in Enga Province.

The acquisition consideration is a modest $250,000 in cash, funded from Augustus’ existing working capital. This transaction not only secures a contested licence application but also provides Augustus with a vehicle to pursue additional mineral opportunities in PNG’s prolific mineral corridors.

Mt Kare’s Historic Resource and Geological Promise

The Mt Kare Project boasts a historic mineral resource estimate under the JORC 2004 code of approximately 43 million tonnes grading 1.5 g/t gold, equating to 2.1 million ounces of gold and 18 million ounces of silver. Nearly 75% of this resource falls within the higher confidence Measured and Indicated categories, based on extensive diamond drilling conducted by previous owners.

Geologically, Mt Kare shares many characteristics with the nearby Porgera gold mine, one of PNG’s largest producers. This similarity underpins the project’s potential for resource growth, although Augustus has yet to validate the historic estimates under the current JORC 2012 standards. The company plans to undertake a comprehensive resource review and exploration program promptly if the licence is granted.

Navigating a Complex and Competitive Licence Process

The licence application held by ACM Contract Mining PNG Ltd is currently third in line behind two other applicants, with a total of 13 applications registered for the same project area. The Papua New Guinean Mineral Resources Authority oversees a rigorous process involving local landowner hearings, Mining Advisory Council recommendations, and ministerial approval. This process is expected to conclude within six months but carries inherent uncertainty and risk.

Augustus intends to actively engage in this process, including lodging objections to prior applications where legally justified and exploring potential collaborations with other applicants such as Tribune Mt Kare Gold Limited and Summit Development Limited. The company acknowledges the competitive nature of the tenure award and the possibility of protracted negotiations or legal challenges.

Strategic Implications and Forward Plans

The board of Augustus Minerals views the Mt Kare acquisition as a compelling risk-weighted opportunity given the project’s scale and regional significance. Beyond the immediate licence pursuit, the acquisition offers a strategic foothold in PNG, enabling Augustus to leverage its capital markets access and technical expertise to potentially consolidate and develop mineral assets in the region.

Should the licence be granted, Augustus plans to reinstate security arrangements, commence on-ground exploration within 90 days, and conduct a detailed resource review within a few months. This will be followed by feasibility studies aimed at optimising mine design and development pathways, funded from existing cash reserves.

While the path to tenure is uncertain, the acquisition signals Augustus’ commitment to expanding its portfolio beyond Western Australia and into one of the world’s most prospective gold provinces.