GMJ132-July-Sept-web

Rigs return to Woodlark

by Michael Washbourne

While a DFS is imminent developed into a 100,000 ozpa
and project finance not far operation for $180 million, based

behind, Geopacific Resources on the construction of a standard

Ltd is ramping up its regional 2.4 mtpa CIL plant and associated

exploration efforts on Woodlark mining infrastructure.

Island. Key financials from the PFS

Geopacific is planning to drill a include AISC of $990/oz for the

number of promising regional first five years and $1,100/oz over

targets, including Great Northern, the life of mine (10 years, based

having announced an ambitious on current reserves), payback

exploration target of 5 moz @ 1-2 within two years, free cash flow

g/t gold for the Woodlark project, of $338 million and IRR of 38%,

about 500km east of mainland assuming a $1,650/oz gold price.

Papua New Guinea. Heeks said the DFS was tracking

Any additional finds would add on time and on budget, with lead

to the current 1.57 moz resource engineer Lycopodium Ltd focused

and 1.1 moz reserve at Woodlark on slashing costs across the

which is entirely contained within Geopacific is set to complete a DFS board.
three coherent open pits, namely
Kulumadau, Busai and Woodlark on Woodlark this quarter “You never really know with these
King.
things until you get to the very end

because all the numbers come in from all sorts of places, but

Geopacific managing director Ron Heeks said the upcoming Lycopodium have been doing a really fantastic job,” Heeks

exploration work – to be funded from a recent $10 million said.

placement – was the product of numerous requests from “There’s no reason we’re seeing that it should be any more
shareholders. expensive, if not cheaper, than doing it in Western Australia.”

“We were funded for the DFS anyway, but we got a lot of Heeks remains hopeful his company can lock down project
feedback from our existing shareholders and new people funding for Woodlark before year’s end. Geopacific has
that wanted to come in that they really wanted to keep an appointed Ironstone Capital to assist with the financing
aggressive exploration programme going,” Heeks told GMJ. process as it looks to join the likes of St Barbara Ltd as an

“We said, ‘well, we’re going to need more money to do established gold producer in the Asia-Pacific region.

that’ and people were very happy to support it. We’ve got a “We’ve talked to a lot of people around the world in the last
fantastic group of major shareholders, a world-class register few weeks and we think we’re very much the only one in this
and they were there to help us out.” space who is going to build next year,” Heeks said.

Drilling will initially focus on the Great Northern prospect “For people who want to ride that development curve
where historic hits of 26m @ 2.06 g/t gold, 20m @ 4.39 g/t and recycle money from where they have ridden that
and 18m @ 4.4 g/t were recorded. The rigs will then turn to development, we’re going to be the only game in town.”
the untapped corridor between Kulumadau and Busai.
Heeks said everything his company had achieved at
“We’re very much trying to join that Kulumadau to Busai Woodlark to date had justified the decision to pounce – via a
zone which is underneath a thin veneer of limestone cover, takeover of Kula Gold – on what some critics perceive to be
so geochem and things like that don’t work very well there,” a troubled asset.
Heeks said.
“We inherited a legacy project which we saw had a huge
“If you look at the repetition of the deposits that we’ve got amount of potential, but it had burnt a few people previously,
now, you can nearly bet your life there’s another two sitting let’s be honest,” Heeks said.
between Kulumadau and Busai.”
“People say ‘well, it didn’t work before, why is it going to
Heeks is confident the DFS on Woodlark will be completed work now?’, so we’ve got to get over that hurdle and show
by August. It will build on the results of the PFS released people it’s in an area where some of the world’s best mines
during the March quarter which found the project could be operate.”

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REGIONAL ROUNDUP

Paulson to shake
up gold sector

by John Tilak and Nicole Mordant, Reuters

US hedge fund Paulson & Co, led by long-time gold bull Paulson & Co, Van Eck, Livermore and Adrian Day declined
John Paulson, is set to name a group of investors that to comment. BlackRock, Tocqueville, Kopernik, Apogee

will work together to try to drive changes and better returns and Equinox did not immediately respond to requests for

from gold mining companies after years of dismal industry comment.

performance, according to people familiar with the situation. Founded by the billionaire investor in 1994, Paulson &

The Shareholders Gold Council (SGC), Co managed $US36 billion in assets

which was expected to be launched as at its peak in 2011. Losses in its funds

early as last month, will have more than as well as investor redemptions have

a dozen investors, including Delbrook contributed to the decline and now much

Capital, Livermore Partners and of the money belongs to Paulson and his

Tocqueville Asset Management, one of associates.

the people said. At the end of the first quarter, Paulson

Delbrook confirmed to Reuters that it will owned 4.3 million shares in the SPDR

be part of the group. Gold Trust, making it his firm’s biggest

BlackRock Inc and Van Eck Associates, position ahead of four health care

two of the biggest mining sector companies. Even as Paulson sticks to

investors, are also in discussions to his bet on gold, it has shrunk dramatically

join the group of hedge funds and over the years. Three years ago he

institutional investors, the source added. owned roughly 10 million shares in the

BlackRock manages about $US6.3 SPDR Gold Trust.

trillion in assets. Paulson & Co The sharp decline in assets has sparked

had $US8.7 billion in assets under industry speculation that Paulson, 62,

management in January, according to Led by John Paulson, the Shareholders Gold might turn the firm into a family office,
regulatory filings. but people close to him say he has
Council will release research reports on the gold no plans to stop managing money for
others and is redoubling his efforts to
The Canadian gold mining index mining sector in the hope of achieving greater raise fresh cash while concentrating on
distressed debt and merger arbitrage
has lost 40% of its value in the past accountability from the world’s top producers

decade, compared with a 9% gain in

the benchmark TSX Index and a 95% rise in the S&P 500. strategies.
Gold has risen 46% in the same period.
These investors own stakes in gold companies ranging from
Paulson & Co first announced its intent at an institutional Goldcorp Inc, Barrick Gold Corp and AngloGold Ashanti Ltd,
gold conference last September. though it was unclear which companies were likely to be

The alliance is unusual because there is no similar group of targeted first.

investors targeting a specific sector, activism experts say. Walied Soliman, co-chair of special situations and chair

The group will begin by releasing research reports on the of Norton Rose Fulbright Canada, described the move as

gold mining sector, the sources said, betting that shining a “unprecedented”.

spotlight on the space will result in greater accountability. “I have never heard of an industry-wide shakeup effort by a

SGC will push gold mining companies to make changes in coalition of major shareholders,” Soliman said.
capital allocation, compensation and corporate governance,
as well as aim to raise the sector’s profile among mainstream While success with this venture could result in similar
investors. initiatives in other sectors like oil and gas and automotive,
Soliman said the group could face challenges.
Others joining the fund will include Kopernik Global Investors,
Adrian Day Asset Management, Apogee Global Advisors “The most important driver of value in a mining company is
and Equinox Partners. commodity value. No activist can control that.”

Page 52



DEALS OF GOLD www.ddh1.com.au

DDH1 is drilling a 3,300m hole The $US211 million contract is for a 70-month term and
for Artemis in the West Pilbara includes the supply of all underground mining services,
including development, production activities and associated
DDH1 GOES “SUPER DEEP” IN THE WEST services.
PILBARA Work is expected to start this quarter.
“We are delighted to have secured this work and look forward
DDH1 Drilling Pty Ltd has been tasked with drilling more than to the partnership with SEMAFO, a Canadian-based mining
3,330m down into Artemis Resources Ltd’s West Pilbara company with gold production and exploration activities in
project, about 43km south of the Radio Hill mine. West Africa,” AUMS chief operating officer Blair Sessions.
Drilling began in mid-June and at the time of print the “super AUMS is a 50-50 JV between Ausdrill Ltd and Barminco
deep” diamond hole had punched more than 163m below Holdings Ltd.
the surface.
DDH1 is using the same Rig 43 that successfully drilled ENERGOLD DOUBLES UP FOR HGM
a 3,217m diamond hole at Northern Star IN AUSTRIA
Resources Ltd’s Jundee gold mine last February.
The same senior drilling crew which drilled that High Grade Metals Ltd (HGM) has enlisted Energold
hole is overseeing the West Pilbara contract. Drilling Corp as its preferred drilling contractor for maiden
Drill core from the hole is being moved from campaigns at the flagship Schellgaden gold project and
the drill site to Radio Hill, where core is being Leogang cobalt-copper-nickel project in Austria.
logged and photographed. The whole core is to Energold has multiple drill rigs available in Austria, giving
then be sent to the GSWA’s Perth Core Library HGM flexibility in its approach to the campaigns at each
for analysis. project.

AUMS DIGS DEEP FOR Energold will have two rigs turning at HGM’s
SEMAFO AT SIOU Schellgaden and Leogang projects in Austria

African Underground Mining Services (AUMS)
will provide mining services at SEMAFO’s Siou
underground mine in Burkina Faso for at least
the next five years.

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wwww.dwdhw1.n.cuocmle.uasusc.co.za

Drilling was slated to begin in early July at both Beadell is switching to a single mining
projects. contractor at Tucano, Brazil

An IP survey was completed over the Nöckelberg invoices, unbilled accruals, loans, termination costs,
cobalt-copper-nickel prospect during the last demobilisation and fleet purchase costs – will be consolidated
quarter, along with a soil geochemistry programme, into one loan, with an initial payment of $3 million due at the
with results due at the time of print. time of print. A further payment of $3 million is due on March
31, 2019, with monthly payments of $1.5 million thereafter
PACIFIC POWERS BEACON FOR from July 1, 2019 until June 30, 2022 or the loan is repaid.
JAURDI DEVELOPMENT
The total loan amount is reportedly $61 million and will attract
Power generation specialists Pacific Energy Ltd interest payable quarterly at a rate based on the Reserve
has secured a new electricity supply contract with Bank of Australia cash rate plus 5% per annum.
gold developer Beacon Minerals Ltd.
Beadell has agreed to work with MACA to put in place
Under the contract, Pacific subsidiary KPS will subordinated security arrangements for the loan, subject
build, own and operate a 5MW diesel-fuelled to receipt of appropriate consents from existing financiers,
power station at Beacon’s Jaurdi project, about among others things.
75km north-west of Kalgoorlie.
Meanwhile, MACA has been awarded a $6 million structural,
The contract is for an initial term of 3.5 years and mechanical and piping contract by AngloGold Ashanti Ltd at
continues a long association between Beacon the Tropicana gold mine in south-east Western Australia.
and KPS which dates back to 1985 when the
former first purchased a generator from Ken Hall, who is an The works, which are due to be completed by year’s end,
executive director of KPS. relate to a secondary mill upgrade at the plant and will
employ circa 25 employees at peak manning.
Commissioning is scheduled for Q4 2018.

BEADELL SWITCHES TO SINGLE
CONTRACTOR AT TUCANO

Beadell Resources Ltd has terminated MACA Ltd’s contract
for open-pit mining services at the Tucano gold mine in
Brazil, by mutual agreement.

MACA ceased mining services in late June, with all future
mining to be conducted by a combination of owner-mining
and the existing Brazilian mining contractor on site. A new
life-of-mine mining contract is expected to be executed with
the local contractor and the mine will transition to that single
contractor.

In a statement to the ASX, Beadell said the move to a single
mining contractor would lead to operational efficiencies and
reduced mining costs at Tucano.

All amounts owing to MACA by Beadell – including unpaid

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DRILL BITS www.ddh1.com.au

ALT KEYS INTO EMU

Alt Resources Ltd has announced results from the final 30
RC holes drilled at the Emu deposit, within the Bottle Creek
Gold Project, Western Australia.

A total of 8,500m of RC drilling was completed for 96 holes
at Emu with significant intercepts from the north end of Emu
including 11m @ 11.7 g/t gold from 82m, including 6m @
18.4 g/t, 24m @ 5.8 g/t from 56m, including 2m @ 27.5 g/t,
18m @ 4.8 g/t from 58m, including 1m @ 31.8 g/t and 5m
@ 5.8 g/t, 10m @ 4.4 g/t from 39m, including 4m @ 7.8 g/t,
7m @ 4.3 g/t from 65m, including 2m @ 11.7 g/t, 18m @
3.8 g/t from 53m, including 3m @ 8.4 g/t, 9m @ 3.4 g/t from
95m, 11m @ 2.6 g/t from 94m and 13m @ 2.4 g/t from 39m,
including 4m @ 6.7 g/t.

Alt reported broad, high-grade gold zones continue at the
north end of the Emu deposit, indicating mineralisation is
open along strike and at depth.

RIVERSGOLD TRIES FARR-JONES

Prodigy was drilling in the Northern Riversgold Ltd has
Territory at the time of print been granted a
programme of work
PRODIGY GETS FIRE STARTED AT CAPSTAN approval to drill the
Farr-Jones gold target,
Prodigy Gold NL has identified a new bedrock gold target north-east of Silver
from aircore holes drilled at the Capstan prospect, Northern Lake Resources Ltd’s
Territory. Randalls processing
facility in the Eastern
Capstan is within the company’s Bluebush gold project in Goldfields.
NT’s Tanami goldfields.
The RC programme Allan Kelly
Highlights from broad-spaced reconnaissance aircore Riversgold has lined
drilling at Top Hat, within Capstan, included 21m @ 0.65 g/t up will be the first
gold from 48m, including 9m @ 1.2 g/t from 54m and 6m @ time since 1992 the
0.31 g/t from 54m. high-grade Farr-Jones
target has been tested.
The new results continue to expand and further define
areas of interest at Capstan, with Top Hat 3km south of the “Along with the Cutler target, Farr-Jones is ideally located,
previously reported 4.5km gold trend. within close proximity to existing transport and processing
infrastructure, should we make a significant gold discovery,”
Final results from the 26-hole programme covering an Riversgold managing director Allan Kelly said.
additional two target areas was expected at the time of print,
while infill aircore drilling at Capstan and reconnaissance
drilling on adjacent prospects also in the pipeline.

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ANTIPA HITS OUT AT WACA

Antipa Minerals Ltd started a 50,000m drilling programme
at the Minyari Dome area at the end of June.

The purpose of the programme is to extend shallow
along-strike resource extensions at Minyari and WACA,
while also evaluating the high-grade gold potential at
Tim’s Dome and Chicken Ranch, which is within trucking
distance of Minyari-WACA and the Telfer mine.

The company hopes to expand its existing resource to
support a scoping study next year.

SOUTHERN GOLD HITS 133.7 G/T

Southern Gold Ltd has reported assays of up to 133.7 g/t
gold from recent drilling at its Transfind South project in
Western Australia.

Gold mineralisation was intersected in all 13 drill holes.
Shallow high-grade gold mineralisation was also
intersected south of the Transfind open pit.

Best intersections included 1m @ 133.7 g/t gold and 2m
@ 24.4 g/t.

A follow-up programme of about 1,000m is being planned

for the second half of 2018 with a view towards defining a

maiden resource at Transfind. Antipa Minerals started a 50,000m

Southern Gold also intersected gold mineralisation in the RC and aircore drilling programme
anticline at the Pryde and Logan prospects, which form at Minyari-WACA in June

part of its Cowarna gold project, to the south-east of

Transfind. The T6a prospect remains open to the west and T6b is open

A best intersection of 8m @ 1.05 g/t gold was reported at to the south.

Logan. A total of 394 holes for 7,937m at average depth of 20m

EIS co-funded diamond drilling is also planned for the were drilled on 400m by 80m spacing.

second half to test the potential for deeper mineralisation. Best gold drill intercepts to date were reported from T6a

and included 56m @ 0.8 g/t gold from 0m to end of hole,

ARROW ON POINT AT T6 including 24m @ 1.6 g/t and 9m @ 3.3 g/t; 34m @ 0.3 g/t
from 0m, including 6m @ 0.6 g/t and 3m @ 0.9 g/t and 45m
Arrow Minerals Ltd’s maiden aircore drilling programme over
@ 0.4 g/t from 6m, including 8m @ 0.9 g/t and 1m @ 2.1g/t.
the T6 prospect at the Strickland gold project, 100km west
of Menzies in Western Australia, has intersected bedrock Drill results from T2 were due in July, while drilling at T1 was
gold mineralisation in multiple adjacent drill lines across four under way at the time of print.

anomalies, ranging from 1.5km to 3.5km in strike length.

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HIDDEN TREASURES

Trail of discovery

The “golden” history of Kalgoorlie-Boulder City of Kalgoorlie-Boulder Tourism &
has been brought to life in the form of a Attraction coordinator Jessica Shilton at
new virtual gold trail. one of the stops on the virtual gold trail

Accessed via the free Heart of Gold Australia “From the first gold finds to the world-class mining operations
app, the Kalgoorlie Heart of Gold Discovery of today, trailblazers will delve into augmented reality treasure
Trail takes budding prospectors on a similar hunts, watch exclusive videos from gold mines nearby, and
path to the one Paddy Hannan trailblazed discover the evolution of gold mining with interactive widgets
for Western Australia’s Goldfields 125 years and more,” Hayes said.
ago, leading to one of the nation’s biggest
gold rushes. An official ceremony to mark the launch of the Kalgoorlie
Heart of Gold Discovery Trail was held at the Town Hall in
“In the decade that followed Paddy’s historic June 9. Former Hockeyroos captain Madonna Blyth and
discovery, the population of the State ex-West Coast Eagles footballer Sam Butler were special
quadrupled, growing at a faster rate than guests at the launch.
Australia’s entire populace has to date,” Gold
Industry Group chairman and Perth Mint chief
executive Richard Hayes said.

“Since those fundamental beginnings, the
Goldfields has developed into the gold hub of Australia, with
the demand for gold helping to grow, sustain and define WA
and our nation.”

The app requires trailblazers to embark on an interactive
journey through the City of Kalgoorlie-Boulder, discovering
“golden” secrets at 11 different locations en route to the
Museum of the Goldfields.

Once completing the trail at the Museum, explorers can
claim their commemorative Heart of Gold medallion.

INDEX

Acacia 49 Chifeng 50 Impala 7 Ramelius 32
Conico 34 Randgold 40, 46, 48
African Gold 40 Red 5
Resolute 11
Alicanto 20 Kalamazoo 36-38 Rio Tinto 40, 47
Riversgold 13-14
Alt 56 Dacian 28-29 Kirkland Lake 5, 12, 36-37
Draig 16-21 56
AngloGold 52, 55 DRDGold
11
Antipa 57 Mako 40, 46
Manas 40-41, 46
Apollo Consolidated 41 Millennium
MMG 30-31
Arrow 57 Emmerson 24 Musgrave 50 Saracen 4
Endeavour 40, 46 32
Artemis 54 Evolution 4, 22, 24, 32 SEMAFO 54
Excelsior
Atlas Iron 22 4 Silver Lake 56

Spitfire 4

B2Gold 47 Navarre 5, 37 St Barbara 4, 5, 18, 22-23,
Barra 34 32, 51
Barrick 49, 52 Galane 11 Newcrest 40, 46
Beacon 55 Geopacific 51 Stavely 37
Beadell 55 Glencore 12 Newmont 5
BHP 14, 21 Gold Fields 10, 11, 18, 23
Blackham 26 Gold Road 23 Norilsk 21 Teranga 20
Goldcorp 12-13, 52 Territory Resources 24
Northern Star 18, 22, 32, 54

Oklo 47 West African 42-42, 47
Western Areas 21
Carawine 37-38 Hancock Prospecting 5 Peel 23 Westgold 32
HGM 54 Perseus 46
Cardinal 47 Polyus 50
Prodigy 56
Castlemaine 38

Catalyst 5, 23, 37-38, 57 IAMGold 11

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