LONDON (Alliance News) - Papua Mining PLC said Thursday that it has commenced its drilling programme at the Flying Fox target, and that initial drilling results have demonstrated encouraging signs of nearby porphyry at the Junction target.
In an operations report from the gold and copper exploration and development firm, Papua says it has successfully completed the drilling of the first two boreholes on its prospective exploration licence, EL1462, West New Britain Province. Plans for an additional porphyry centre, adjacent to the site at the Tripela prospect look set to go ahead with drilling to commence shortly, following ground geological and geochemical surveys.
Detailing its recent exploration undertakings, Papua said that after extensive surveys, prospectivity in new sites can be realised, in the Nakru area in particular. The company has been concentrating its exploration efforts in the Mount Nakru region of EL1462 at Junction, Flying Fox and Triplea, with ongoing positive results continuing to confirm their prospectivity.
While potential prospective sites are being identified, the company's interim report for the half-year to June 30 shows encouraging signs, recording a USD1.2 million loss, up from its USD1.7 million loss for the comparable period in 2012. The firm attributes USD411,000 of this loss to exchange rate differences on cash balances during the period, and USD262,000 to share-based payments on share options issued in 2012 and 2013.
During the half-year, Papua expended USD3.2 million on its exploration programme, up from USD1.2 million for half-year 2012. The company says that the elevated exploration costs are indicative of the increasing pace of exploration, noting specifically, EL 1462, the geophysical surveys completed and the commencement of its diamond drilling programme in April 2013.
After placing new, publicly traded shares in Papua in February this year, the company raised USD2,5 million in new equity financing. Papua reports a USD6.9 million cash holding for the end of the half-year.
Papua stocks were up 1.80% Thursday morning to 56.50 pence.
By Alice Attwood; aliceattwood@alliancenews.com; @AliceAtAlliance
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