Geopacific Resources Ltd eyes Woodlark’s ‘growth potential’ as review of options continues on PNG gold project
The company remains focused on realizing the full potential of the project and will continue a drilling program aimed at extending the pit and extension targets across Woodlark Island.
Geopacific Resources Ltd (ASX:GPR) continues to review schedule and cost estimates, including the implications of a significant increase in capital costs for its Woodlark Gold project in Papua New Guinea
It is important that as the review progresses and conclusions are drawn, changes are gradually implemented to safeguard the financial and asset position of the business.
At the same time, Geopacific remains focused on realizing the full potential of the project and will continue a drilling program aimed at extending the pit and extension targets across Woodlark Island.
“Untested growth potential”
Geopacific Chairman Andrew Bantock said, “Having recently been appointed Chairman, I am focused on ensuring the company works thoroughly on its strategic options.
“The suspension of these activities limits the company’s cash expenditures as we reassess how to develop the Woodlark gold project in the most efficient way possible.
“However, we remain focused on the underlying value of the Woodlark Gold Project, which has over one million ounces of gold in reserves, significant upside potential from untested mineral resources and has seen over 100 million dollars invested in the last 18 months in the design and development of the project.”
Review of strategic options
Given the continued delays in the project schedule and the resulting implications for escalating capital costs, a series of measures have been taken, including the suspension of all engineering and civil works detailed in pending a review of the company’s strategic options.
Suspending these activities preserves cash reserves while the company undertakes its review that will require layoffs across the organization.
Trading in Geopacific shares remains suspended until the completion and announcement of the outcome of the review and evaluation of strategic options for the company.
Community involvement continues
Geopacific remains committed to engaging with local communities on Woodlark Island and activities associated with the community resettlement program will continue.
The company will also continue to support other community programs on the island, including educational facilities and healthcare services.