Drilling completed last year, added to legacy data stretching back 60 years, has helped deliver a new global resource of 45.6 million tonnes grading 1.07 grams per tonne for 1.56 million ounces.

 

Tonnes have been reduced by 12%, the grade has been increased by 17% from 1gpt, and contained gold has increased by 3% or 19,000oz, with the changes due to a focus on delivering an update of 711,000oz grading 1.24gpt at the Kulumadau deposit.

 

Resources for the Busai, Woodlark King and Munasi remain unchanged.

 

Woodlark's open pits are modelled assuming a US$2400/oz gold price with a cut-off of 0.4gpt.

 

Interim CEO Matthew Smith said work completed since April had helped improve the understanding of the high-grade mineralisation at Kulumadau and had helped define new and extensional targets within the granted mining lease. 

 

Geopacific has exploration rights over 581sq.km on the island, but despite exploration beginning in 1962, the company believes shallow drilling has barely scratched the surface of areas of outcrop, but there is significant limestone cover that obscured the deeper prospective volcanics.

 

The recent work has helped define the depth potential, particularly at Kulumadau where there is sparse drilling below 150m. 

 

Work also continues on address optimal plant throughput and infrastructure locations, building on lessons learnt during the aborted attempt to develop the project prior to 2022.

 

It expects to deliver a strategic update in the coming weeks. 

 

Geopacific managed to raise A$6 million at 2c through an entitlement officer to fund its 2023 work program. The raising was underwritten by major shareholder Deutsche Balaton.

 

Geopacific previously expected to spend $255 million to support the production of 100,000ozpa over a decade at average all-in sustaining costs of $1239/oz.

 

The stock has traded at 1.2-7.7c over the past year and was up 6% today at 1.8c, capitalising it at $15 million.