Miner halts drilling

National, Normal
Source:

The National, Wednesday 17th April 2013

MINING exploration company Highlands Pacific Ltd temporarily wound up its activities in the Tifalmin area of the Star Mountains, West Sepik, last weekend.

HPL managing director John Gooding said in a statement that this was due to “unseasonal dry weather” and the potential for further logistic delays in weeks ahead.

“The company believes it is prudent to suspend drilling for the time being,” he said.

“This hiatus will allow Highlands to consider and develop new drilling campaign options and to hold further discussions with the PNG government and Ok Tedi Mine management on how better to explore more quickly and cost effective the extensive porphyry copper gold district indicated by Highlands’ successful recent drilling.”

Gooding added that HPL had a very close working relationship with the government and Ok Tedi Mining Ltd.

 “We are excited about the quality of results achieved so far at Star Mountains and we are hopeful that this new porphyry district in time will produce great benefits for all in PNG,” he said.

“We will remove the two rigs from site this month and look to develop a new programme for later in 2013.”

HPL has been conducting extensive exploration in the Star Mountains since 2010 when it drilled the first holes at the Olgal project – some 39 years after Kennecott drilled holes there in 1971.

It has invested some US$27 million (K59 million) into the exploration leases during this time. 

Gooding said it was important that they continued to apply cash reserves (in excess of US$10 million or K22 million) and other future funding in a structured manner.