Papua Mining is the ultimate holding company of a group of companies which hold mineral Exploration Licences in the West New Britain province on the Papua New Guinea island of New Britain (Other OTC: NBPOF.PK - news) (Exploration Licence ("EL") 1462, which is currently subject to a renewal process and EL 1730) and in Ambunti which is located in the East Sepik province on the mainland of Papua New Guinea (EL 1766). The Group also has eleven Exploration Licence applications, all of which are for areas in the West New Britain province on New Britain Island, and may seek to extend its exploration programme to the areas covered by such applications if and when such applications are granted. The Group's strategy is to explore for and, where the Directors believe that it is commercially feasible, develop deposits of gold and/or copper within the territory of PNG. It is the Group's intention to conduct its activities in a professional and responsible manner, for the benefit of the Company's shareholders, its employees and the national and local communities within which it operates. The Group has accumulated historic exploration data from its Licence Areas into a comprehensive electronic database, digitised the maps and ground-truthed data points over each of its Licence Areas and has identified targets to further explore. In addition, the two West New Britain Exploration Licences surround three areas currently being explored by Coppermoly (Frankfurt: A0M8C1 - news) in a joint venture with Barrick, the world's largest gold producer. Data released through the Coppermoly website indicates that their projects in West New Britain (Nakru, Simuku, Kulu and Plesyumi) are at a relatively advanced stage of exploration and have indicated some very positive drilling results. The Group's management has extensive and successful exploration experience in West Africa. The Chief Executive Officer, Hugh McCullough, and the Executive Technical Director, Kieran Harrington, have a strong exploration track record. As chief executive of Glencar Mining plc, Hugh McCullough oversaw the discovery of two commercial gold mines in Ghana, West Africa and the discovery of a promising new gold deposit in Mali. As chief geologist then technical director of Glencar Mining plc, Kieran Harrington also had first hand involvement in the discovery of one mine in Ghana as well as the Mali deposit. The Company's Chief Geologist, Chris Muller, was the senior geologist on site responsible for the drilling of the discovery hole on the Golpu West porphyry, the major copper porphyry deposit at Wafi Golpu in Papua New Guinea being operated by Morobe Mining Joint Ventures, which is owned equally by Harmony and Newcrest. £14.0 million m.cap Approx. £7 million cash held. Current major holders: South Pacific Mining Holdings Limited 9,884,621 31.01% Michael Somerset-Leeke 6,501,026 20.39% JP Morgan Asset Management UK Limited 2,550,000 8.00% Hargreave Hale Limited 2,035,000 6.38% Salida Capital (Europe (Chicago Options: ^REURUSD - news) ) Limited 1,700,000 5.33%
Projects: Ambunti deposit: Copper and gold. Exploration licence. No major ore body found. Some areas of gold found - 710g/t in Banang River area and 210g/t in Limpeling River. No drilling yet. 57 km soil sampling has been carried out in the north western corner with a 400 x 50 m grid. Copper and gold found and an area was delineated. 879 were taken and XRF analysis carried out. Aero magnetic surveys carried out recently and news due this quarter. A total of 3000 soil and 970 rock samples taken in Ambunti. Drilling to delineate by Q3 2012. No more info. My view is this is a very high risk deposit. No ore body was found, but they have an area outlined. The gold concentration is good, but may not apply everywhere. They are delineating so no JORCs coming just yet. The deposit is worth very little at the moment, but if a gold and copper body is found then it will be worth a lot if it fills that area.
New Britain deposit: Exploration licenses in West New Britain on New Britain Island. Some infrastructure available because of the oil-palm industry near the coast. Central parts are difficult to access due to mountains. Gold, copper and molybdenum. Another company operating in the area found 214 metres at 0.9% copper and 0.3g/t gold, 1km from the Papua Mining license area. This company also found 1002 metres at 0.24% copper, 3km from the Papua license area. They managed a 200Mt 0.47% Cu JORC (this is not Papua Mining, just a local company). 1.7 km from Papua’s license in another companies license area they found 7.9g/t gold.
This is an even higher risk deposit that the previous one.
Overall this is a high risk play. There are deposits near to some of their licenses and they have large license areas which helps. They have not discovered a deposit yet, but there is a potential that they will discover something and this puts a big upside potential. Th
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