WOODLARK Gold Project operator Geopacific Resources Limited looks on target to bring the historic gold mining area back into production following the receipt of positive Pre-Feasibility Study (PFS) results.

The company said the results have confirmed that the Woodlark Gold Project is a robust, low-cost, low- stripping ratio, open pit operation that can deliver an average of 100Koz Au per annum over 10 years.

Under the terms of a joint venture agreement with Kula Gold Limited, the completion of this work allows Geopacific to increase its overall economic interest to 93%.

Geopacific managing director, Ron Heeks, said the company is extremely pleased at how the project has evolved over the past year.

“Our PFS indicates a robust, open-pit mine plan with strong, steady-state production over a long mine life.

“Woodlark benefits from flat topography, wide zones of ore from surface, a substantial proportion of free- dig material, as well as the close proximity of the plant to the pits and waste dumps.

“These factors result in an impressive strip ratio and higher operating margins. Our PFS presents a low-cost solution for treating low-grade ore, to improve returns and deliver a project payback estimated at two years.

“We expect the Project to grow further from the substantial, demonstrated exploration upside. We are rapidly progressing the DFS, moving towards a development decision,” Mr Heeks said.

Highlights of the PFS study results included:
• Annual production of 100,000 oz over 10-year mine life for 1.01 Moz Au (incl. 51,000 oz Au Inferred)
• Free milling ore, with recovery of 92% for first five years and 90% over mine life
• Up to 60% of gold recoverable by gravity
• Conventional 2.4Mt.pa CIL circuit optimised with upgraded ore from year three
• Head grade up to 1.63g/t Au in first years
• Low stripping ratio of 2.5:1 for first five years, 3.1:1 over mine life
• All in sustaining cost A$990/oz for first five years, A$1,110/oz over mine life
• Capital cost A$180m
• 2.2-year, post-tax project payback
• Free cashflow over life of mine A$388m (pre-tax) and A$314m (post-tax) at A$1,650 gold price
• Post-tax IRR 33%
• Recent discovery shows significant, regional exploration potential across Woodlark goldfield
• 34.7 million tonnes at 0.99g/t Au for 1,101,600 ounces of gold2
• High conversion of Resources to Reserves
• 47.04 million tonnes at 1.04g/t Au for 1,573,000 ounces of gold3
• 86% of Resource in Measured and Indicated JORC categories
• Mining and Environmental permits granted
• Board approval for Lycopodium to finalise a Definitive Feasibility Study, expected Q3 2018
• Joint venture incentive milestone achieved, overall economic interest increases to 93%1
• Woodlark is located on Woodlark Island, with favourable logistics and flat topography
• Geopacific’s team has a strong track record of bringing gold mining projects into production

Exploration and mining on Woodlark Island dates back to the 1890s. Modern exploration (post 1962) includes a total of 2,262 drill holes over 288,454 metres of drilling. This drilling comprises 396 diamond drill holes for 56,064 metres, 22 RAB holes for 1,729 metres and 1,844 RC drill holes for 230,670 metres.