Firm needs approvals, permits before starting production

Business

GEOPACIFIC Resources Ltd, the operator of the Woodlark gold project in Milne Bay, says it needs various approvals, permits and licences before it can develop the mine and start mining.
When releasing its share purchase plan for the project, the company said while key approvals for the development had been obtained, there was no guarantee that the company would be able to obtain in a timely fashion all the required approvals, licences or permits.
“Even if an apparently viable mineral deposit is identified, there is no guarantee that it can be profitably mined,” it said.
“The estimated development costs for the Woodlark gold project are subject to a range of uncertainties and assumptions.
“And the actual development costs may differ from these estimates and assumptions.
“If the cost estimates and the underlying assumptions are not realised in practice, it may materially and adversely affect the development programme of the Woodlark gold project.
“The actual Woodlark gold project development timelines and expenditure together with planned exploration work to be undertaken will depend on many factors. As such, actual expenditure may differ from the budgeted expenditure presented.”
It said the construction of the project would be subject to typical construction risks including delays, design and/or quality issues, pricing and cost overruns and variations.
“Contractor performance may be constrained or hampered by labour disputes, plant, equipment and staff shortages, and default,” it said.
“Contractors may not comply with provisions in respect of quality, safety, environmental compliance and timeliness, which may be difficult to control.
“In the event that a contractor underperforms or is terminated, the company may not be able to find a suitable replacement on satisfactory terms within time or at all.”

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