Mountain project on hold

 By GYNNIE KERO

THE Star Mountains project is still in exploration phase and would take more work before getting anywhere close to doing a feasibility study, Highlands Pacific PNG general manager Ron Gawi says.

Gawi said: “We (Highlands Pacific) have suspended all drilling and put the camp at Tifalmin and all our equipment under care and maintenance until such time we are ready to restart drilling there.” 

Highlands Pacific said that given unavoidable delays in drilling at Star Mountains 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. 

Highlands has a very close working relationship with both Ok Tedi Mine Ltd management and the PNG government. 

Managing director John Gooding, in a statement, said: “We are genuinely 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.  

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

“Highlands Pacific has been conducting extensive exploration activities in the Star Mountains since 2010 when it drilled the first holes at the Olgal prospect, some 39 years after Kennecott drilled two shallow holes there in 1971.”  

Gooding said the company has invested some US$27 million into the exploration leases during that time. 

“It is important that we ensure that we continue to apply our existing cash reserves (in excess of US$10 million) and other future funding in a structured manner and where appropriate with well positioned strategic partners.”

“Highlands will continue to support the people of PNG and the efforts of the O’Neill government to increase and improve infrastructure development by seeking to discover and progress new mineral resource projects in the country. 

“The company’s other ongoing exploration activities and obligations in PNG will continue and the company looks forward to a renewed level of activity in the Star Mountains later in 2013,” he added.