Ok Tedi commits A$37m on gold search

THE Frontier Resources yesterday reported that its Papua New Guinea joint venture (JV) partner Ok Tedi Mining had committed about A$37 million on exploration from now until 2014.
Frontier is listed on the Australian Stock Exchange (ASX).
Ok Tedi Mining had budgeted around A$13.5-million on exploration on two JV’s covering five exploration licences this year, with a further A$12-million a year set aside for both JV areas during 2013 and 2014.
“Ok Tedi Mining is now exploring in earnest on four of Frontier’s five JV exploration licences in Papua New Guinea, with the current programme of more than 21,000m of drilling having started from late 2011 extending through this year,” Frontier chairperson and managing director Peter McNeil said.
“This high level of exploration activity should ultimately be very beneficial to Frontier and its shareholders.”
Frontier had an earn-in JV agreement with Ok Tedi under which the PNG company was required to spend some A$60-million over a six-year period.
 Frontier was then deferred carried to completion of a bankable feasibility study on each JV, repayable from 50% of future cash flow.