MINING company Crater Gold has reported bonanza gold results from its Crater Mountain High Grade Zone project in Papua New Guinea.
Channel sampling of development on mineralised gold bearing structures returned bonanza gold grades on at least three separate structures, Crater said in an August announcement.
Crater said channel sampling of mineralised gold bearing structures in development drives has confirmed contiguous zones of high grade mineralisation along strike suitable for selective mining.
Development is underway to prepare these high grade zones for stoping.
Crater Gold managing director Russ Parker said he is pleased with the success of the sampling results.
“It enables the company to move rapidly towards increasing gold production.”
“A modular process plant has been fabricated and will be shipped to site within the next two weeks. Underground development is underway to enable stoping of the identified high grade shoots,” he said.
In May the company contracted the fabrication of an expanded modular process plant incorporating a crusher, hammer mills, primary centrifugal gravity concentrators and table for secondary concentration.
The incorporation of the process plant plus increased underground development rates will result in higher mining production and the company anticipates it will be cashflow positive in the fourth quarter.
Crater said the plant has been assembled and inspected in the factory for engineering compliance and was due to be shipped in mid-August.
Crater’s flagship project, Crater Mountain, is located in the Eastern Highlands of PNG near the eastern end of the New Guinea Orogen geological province.
The New Guinea Orogen hosts a number of world-class copper-gold deposits including the world’s largest copper-gold mine at Grasberg in Indonesia’s Papua province, and OK Tedi,
Frieda River, Yandera and Wafi-Golpu in PNG, as well as the Porgera and Hidden Valley gold deposits in PNG.