Local contractor gets green light to buy mining fleet

GEOPACIFIC Resources Ltd, operator of the Woodlark gold project in Milne Bay, has issued a letter of intent to HBS (PNG) Ltd to support the purchase of its first tranche mining fleet.
According to a market release last week, the letter provides HBS with the authority to order five Caterpillar 775 haul trucks and one Caterpillar 6015 excavator, which will be delivered to the site during the fourth quarter of this year.
It said the commencement of mining operations in the fourth quarter (Q4) of 2021 was consistent with the overall mining strategy which entailed HBS undertaking pre-strip and the first three years of mining allowing Woodlark to leverage off their in-country expertise and de-risk the early stages of the project.
It added that mining contract discussions with HBS were progressing well with the contract anticipated to be finalised in the second quarter.
Chief executive officer Tim Richards said: “Committing with HBS to the procurement of this mining equipment reflects our confidence in the project and the progress that has been made since the release of the execution update in Q4 2021.
“HBS already has a significant presence on the island assisting the company with our pre-construction activities which are progressing according to schedule.
“The Q4 2021 delivery is consistent with our project timeline and sees the company well placed to achieve our Q4 2022 target for gold production.
“HBS is a local company with an outstanding reputation in the mining sector and we look forward to working with them to develop the Woodlark gold project over the coming years.”