Tolu Minerals has more than doubled its reported gold resources to 1.33 million ounces after declaring a maiden 293,000-ounce resource at Mt Penck in Papua New Guinea. The project also carries a largely untested copper-gold porphyry target, but its proposed A$30 million exploration program still requires separate funding.
- Reported gold resources rise 111% to 1.33 million ounces
- Mt Penck adds a maiden 293,000-ounce Inferred resource
- Kavola Porphyry target spans approximately 1.6 kilometres by 900 metres
- Proposed two-year Mt Penck program carries an approximately A$30 million budget
- Tolukuma remains the priority ahead of a targeted early 2027 restart
Mt Penck lifts portfolio resources to 1.33 million ounces
Tolu Minerals Limited (ASX:TOK) has more than doubled its reported gold inventory in a single month, reaching 1.33 million ounces after declaring a maiden 293,000-ounce Mineral Resource at the Mt Penck Gold-Copper Project in West New Britain. The increase takes the portfolio 111% above the 631,000 ounces reported at the start of September and gives Tolu three reported deposits: Tolukuma, Saki and Mt Penck.
The new Mt Penck estimate comprises 7.3 million tonnes at 1.2 grams per tonne gold, reported at a 0.5 g/t cut-off. It is entirely classified as Inferred and was prepared by Rose Mining Geology Consultants from 115 historical drill holes completed between 1989 and 2011. No Ore Reserve has been estimated.
A shallow gold resource with a deeper porphyry target
Mt Penck’s resource sits within the upper 200 metres of a high-sulphidation epithermal system and remains open along strike and down dip. Tolu’s first proposed drilling phase is aimed at infilling and extending the Kavola resource, while testing the nearby Peni Creek prospect for a combined shallow resource with potential open-pit characteristics.
The more speculative prize lies beneath and beside that gold cap. Tolu’s interpretation of airborne MobileMT and historical 3D-IP data identifies the Kavola Porphyry, a copper-gold target measuring about 1.6 kilometres by 900 metres. A chargeability halo extends to at least 400 metres depth around a magnetic core interpreted as potassic alteration. Only two historical holes reached below 300 metres, while one 400-metre hole intersected sulphides along its full length. Those observations support further drilling, but they do not establish the size, grade or economic viability of a porphyry deposit.
Coastal access supports a larger development concept
Mt Penck’s location is central to the company’s development case. The project is about 55 kilometres west of Kimbe, roughly three hours by road from its deep-water port, and has water access through the existing wharf at Silavuti, about 4.5 kilometres away. Tolu says drill rigs and heavy equipment can be landed by barge, a logistical advantage it believes could support larger-scale processing, concentrate shipping and export options if the porphyry target is eventually proven.
An Independent Geologist’s Report has outlined a staged two-year program costing approximately A$30 million, including around 40,000 metres of drilling. The first phase would target Kavola Shallow, Peni Creek, Kavola East and Kavola Northeast, with deeper holes of 500 to 1,000 metres planned for the latter two porphyry targets. Tolu is considering a dedicated funding vehicle and technical team for Mt Penck so the project does not draw on capital committed to Tolukuma, but no structure has been agreed.
Tolukuma remains the near-term test
The company is keeping its immediate focus on Tolukuma, where a 75,000-metre near-mine drilling campaign is continuing with seven rigs. Tolu says it remains on track to target a return to gold production in early 2027 from existing permitted infrastructure, with a detailed drilling update expected in October and another resource update planned for 2027.
The quality gap between the two projects is material. Tolukuma’s 909,000-ounce resource includes a maiden 199,000-ounce Indicated component, while Mt Penck’s estimate is entirely Inferred and depends on historical data with no available QAQC records, density measurements or twinned holes. The Mt Penck resource also has no metallurgical testwork, pit optimisation or mining studies behind it, leaving the next round of modern drilling to determine whether the headline ounces can become something more substantial.
Bottom Line?
Tolu now has a much larger reported resource base, but Mt Penck’s value will turn on new drilling, funding terms and whether its untested porphyry survives contact with the drill bit.
Questions in the middle?
- Can Tolu secure separate funding for the approximately A$30 million Mt Penck program without diluting shareholder exposure?
- Will modern drilling upgrade the historical, entirely Inferred Mt Penck resource and confirm continuity beyond the shallow gold cap?
- Can Tolukuma deliver the targeted early 2027 restart while management advances a second, technically demanding exploration platform?