Taruga Minerals has entered a 12-month option to acquire two advanced gold and copper projects in Papua New Guinea, backed by a $1.5 million capital raise to fund exploration and resource development.
- 12-month option to acquire 100% of East Normanby gold and Kol Mountain copper/gold projects
- East Normanby includes Weioko gold deposit with significant historical drilling and high-grade intercepts
- Kol Mountain features multiple copper porphyry and skarn prospects with prior exploration by BHP and Rio Tinto
- $1.5 million placement led by Discovery Capital to fund trenching, geophysics, and assays
- Acquisition terms include option fees, deferred payments linked to resource milestones, and royalties
Taruga’s Strategic Entry into PNG’s Mineral Riches
Taruga Minerals Limited (ASX – TAR) has taken a significant step by securing a 12-month option to acquire two promising exploration projects in Papua New Guinea (PNG) – the East Normanby gold project on Normanby Island and the Kol Mountain copper/gold project on New Britain Island. This move positions Taruga to tap into PNG’s rich mineral potential, with both projects boasting advanced exploration histories and substantial geological data.
East Normanby – A Gold District with Depth and Scale
The East Normanby project covers a vast 491 square kilometre tenement package, anchored by the Weioko gold deposit. Historical drilling, 67 holes totaling nearly 5,800 metres, has revealed impressive gold intercepts, including intervals such as 108 metres at 2.4 grams per tonne gold and high-grade zones with assays up to 58.9 grams per tonne. The deposit remains open at depth and along strike, suggesting considerable upside potential. Surrounding prospects like Sipupu, Lataona Hill, and Wenasia further enhance the district’s exploration appeal, with elevated gold-in-soil anomalies and high-grade rock chip samples indicating multiple targets for follow-up.
Kol Mountain – Copper and Gold with Major Company Legacy
Kol Mountain spans 123 square kilometres and hosts a complex of copper porphyry and skarn prospects, including the Esis and Bukuam targets. Historical exploration by industry giants BHP, Rio Tinto, and Ok Tedi Mining has delivered substantial drilling data, with highlights such as 222 metres at 0.38% copper and significant gold intercepts at the Kapea Shear zone. The project’s geology suggests a vertically extensive mineralised system, with supergene enrichment zones and open-ended copper mineralisation at depth. However, the area is partly affected by PNG’s new Protected Areas Act, introducing some tenure uncertainty that Taruga is actively reviewing.
Funding and Forward Plans
To support exploration, Taruga has arranged a $1.5 million placement led by Discovery Capital, with directors committing $600,000. The funds will underpin trenching, geochemical surveys, drone and ground geophysics, and metallurgical studies. The company also plans to engage Peter McNeil, an experienced PNG geologist and vendor, to assist with the transition and in-country operations. Taruga aims to validate historical data, update resource estimates compliant with the JORC 2012 code, and apply modern exploration techniques to unlock the full potential of these assets.
Acquisition Terms and Market Implications
The option agreement includes modest upfront fees, deferred payments contingent on resource milestones, and 1.5% net smelter return royalties on both projects. Taruga retains the right to buy back half of these royalties before a mining decision. This structure aligns vendor incentives with project success while preserving Taruga’s financial flexibility. The acquisition, if exercised, could materially enhance Taruga’s resource base and market profile, particularly given the high-grade nature of the gold and copper mineralisation and the strategic location within PNG’s prolific mineral provinces.
Bottom Line?
Taruga’s PNG acquisition and capital raise set the stage for a pivotal exploration campaign that could redefine its growth trajectory.
Questions in the middle?
- How will PNG’s Protected Areas Act impact tenure and exploration at Kol Mountain?
- When can investors expect a JORC 2012 compliant resource estimate for Weioko and Kol Mountain?
- What are the planned timelines and targets for upcoming drilling and geophysical surveys?