New Guinea investment Coppermoly to form Barrick JV
2012-01-12 11:18 ET - News Release
Shares issued 234,013,436
NGG Close 2012-01-11 C$ 0.045
Mr. Greg Heaney reports
Coppermoly Ltd., an Australian Securities Exchange-listed company of which New Guinea Gold Corp. holds 20,973,683 shares, released the following announcement on Jan. 9, 2012.
Coppermoly to form a joint venture with Barrick
Barrick has notified Coppermoly that it has met the $20-million expenditure commitment under the farm-in agreement on Coppermoly's tenements on New Britain Island (Simuku, Nakru and Talelumas). A joint venture for the exploration and evaluation and, if warranted, the development of the tenements will now be formed. Coppermoly will retain a 28-per-cent interest in all tenements and its cash contribution towards completion of a feasibility study will be delayed until after the commencement of production and will be repaid from Coppermoly's share of any future production revenue.
The joint venture will provide significant upside to Coppermoly shareholders through the retention of a substantial interest in these advanced projects which are all within a four hour drive by 4WD vehicle from existing infrastructure, including a deep water port at the provincial capital of Kimbe.
At the Simuku project, a total of 10,248 metres has been drilled in 37 diamond holes. It is host to an Inferred Resource of 200 million tonnes grading 0.47% copper equivalent. Assay results from the last hole drilled to 900m depth are pending.
At the Nakru project, copper, gold and zinc mineralisation has been intersected in three prospects with a total of 31 diamond drillholes for 7,253 metres.
The Nakru-1 copper-gold system is the most advanced prospect within the Nakru tenement with 27 diamond drillholes completed for 5,928.4 metres. One diamond drillhole through the centre of a geophysical chargeability anomaly intersected 213.75 metres grading 0.92% copper and 0.33 g/t gold from 74.45 metres depth. Within the bounds of existing drilling, Nakru-1 has an Exploration Target of 50 to 60 Mt grading 0.7 to 0.9% copper. Further drilling of geophysical and geochemical targets will determine additional tonnage potential. In addition to the exploration being undertaken by Barrick, Coppermoly expects to be able to undertake its own exploration on the new areas that we currently have under application on New Britain Island, as they become granted.
We seek Safe Harbor.