Geopacific Resources advances its Woodlark Gold Project with promising drilling results at Kamwak and a crucial mining lease extension, while strengthening strategic partnerships and progressing its feasibility study.
- Discovery of new gold mineralisation at Kamwak prospect
- Ongoing 30,000m drilling campaign targeting resource growth
- PNG government grants two-year extension on key mining lease
- St Barbara Limited becomes strategic shareholder with 14.4% stake
- Company ends quarter with $27.3 million cash and $17 million in equipment
Exploration Momentum Builds at Woodlark
Geopacific Resources Limited (ASX – GPR) reported significant progress in its ongoing 30,000-metre drilling campaign at the Woodlark Gold Project in Papua New Guinea. The latest quarter saw the discovery of new gold mineralisation at the Kamwak prospect, with assays revealing 7 metres at 2.48 grams per tonne gold from 21 metres depth. This finding suggests a previously unrecognised mineralised zone adjacent to the established 711,000-ounce Kulumadau deposit, reinforcing the project's potential for resource expansion.
Additional high-grade intercepts were recorded at near-surface targets including Busai, Boscalo North, and Great Northern, with diamond drilling underway to explore depth extensions. The mobilisation of a reverse circulation rig to the Woodlark King area aims to test promising auger and trench sampling results, which have yielded impressive gold-in-soil anomalies up to 63.6 g/t at Little MacKenzie and 20.7 g/t at Wayai Creek.
Strategic and Regulatory Advances
In a key regulatory development, the Papua New Guinea government approved a two-year extension to Mining Lease 508 Condition 7(ii), extending the deadline for construction and commissioning to October 2027. This extension provides Geopacific with valuable flexibility to align its development and financing schedules with ongoing exploration and the outcomes of its definitive feasibility study (DFS).
On the corporate front, St Barbara Limited (ASX – SBM) became a substantial shareholder, acquiring a 14.4% stake in Geopacific. This partnership brings extensive operational experience in PNG and aligns strategically with Geopacific’s long-term vision for Woodlark. Additionally, the appointment of Glen Little as Chief Geologist signals a renewed focus on exploration leadership and resource growth.
Advancing the Definitive Feasibility Study
The DFS progressed steadily during the quarter, with completion of geotechnical drilling for pit and process plant design, mining studies, and metallurgical test work. Notably, the company is evaluating a potential relocation of the tailings thickener to the coastline, which could reduce capital and operating costs and de-risk tailings management. Environmental permitting processes are advancing, with an amendment lodged to reflect updated throughput and infrastructure plans.
Financially, Geopacific remains well-positioned with $27.3 million in cash and equivalents, $17 million invested in long-lead equipment, and a $1.4 million GST receivable from PNG authorities. The company reported no lost time injuries during the quarter, underscoring its commitment to safety and sustainability. Community engagement continues actively, including health initiatives and support for local clinics and relocation programs.
Outlook
With drilling ongoing and numerous assay results pending, Geopacific is poised to refine its resource estimates further and advance project development. The combination of exploration success, regulatory flexibility, and strategic partnerships positions Woodlark as a compelling asset in the gold sector.
Bottom Line?
As Geopacific deepens its resource base and navigates development milestones, the next quarter will be critical in shaping Woodlark’s path to production.
Questions in the middle?
- Will upcoming assay results confirm the extent and grade of the new Kamwak mineralised zone?
- How will the potential tailings thickener relocation impact overall project economics and timelines?
- What strategic initiatives will St Barbara pursue to leverage its PNG experience within the Woodlark project?