Coppermoly targets maiden Inferred copper gold JORC Resource at Nakru in Papua New Guinea

Coppermoly (ASX: COY) is working towards a maiden Inferred Resource at the Nakru-1 copper-gold system in Papua New Guinea, appointing Golder Associates to review all drillhole data from the project.

The Nakru-1 copper-gold system is the most advanced prospect within the Nakru tenement, with an exploration target of 50-60 million tonnes grading 0.7-0.9% copper.

Golder will also undertake a review of all drillhole data at the Simuku copper-molybdenum system to upgrade the Resource.

Both the Simuku and Nakru-1 projects are located on New Britain Island in Papua New Guinea, within four hourse drive from the provincial capital of Kimbe, which has a deep water port.

Simuku hosts an Inferred Resource of 200 million tonnes at 0.47% copper equivalent, based on a 0.3% cut off grade, including an Inferred Resource of 80 million tonnes grading 0.6% copper equivalent using a 0.5% cut off grade.

Since the Resource was defined in 2009, a further 4227 metres of diamond drilling has been completed.

Assays from drilling at Simuku in 2011 returned a substantial intersection of 1,001.9 metres at 0.24% copper, 60 parts per million molybdenum and 2.38 grams per tonne (g/t) silver at the Tobarum Prospect.

Significantly, the mineralisation extends to more than 500 metres below the existing Inferred Resource of 200 million tonnes at 0.47% copper equivalent and opens up large areas for additional mineralised targets.

Results from the reviews are expected in April.

Barrick New Britain partnership

In January, Coppermoly announced the formation of a joint venture with Barrick Gold Corporation (NYSE: ABX, TSE: ABX) for the Simuku, Nakru and Talelumas tenements on New Britain Island.

Barrick Gold has earned a 72% stake in the three tenements after meeting the $20 million expenditure commitment under the farm in agreement.

The joint venture will be formalised in the coming months. Coppermoly will retain a 28% interest in the tenements.

The company’s cash contribution up to the completion of a Feasibility Study will be delayed until the commencement of production, and will be repaid from Coppermoly’s share of any future production revenue.

“From Coppermoly’s perspective we can now continue to watch the projects being advanced without needing to contribute any cash until the completion of a feasibility study,” Swiridiuk told Proactive Investors.

Other operations

In addition to the joint venture tenements, Coppermoly has applied for a further three tenements on New Britain Island, which Swiridiuk said were significantly larger than the existing tenements.

“We’ve got three other applications that are ten times larger than those under the agreement with Barrick, we’re going through the process of getting them granted.”

In the meantime, the company plans to start drilling at its Queensland projects in the hopes of identifying another potential joint venture opportunity.

“Similar to the projects we have in Papua New Guinea, they’re gold-copper projects close to infrastructure, so they’re only a four hour drive from Brisbane.

“What we want to do is a 3,000 metre drilling program to determine if there’s any size potential to these copper gold systems, and then if  there is we can take them into a joint venture as well.”

Originally published at: http://www.proactiveinvestors.com.au/companies/news/24799/coppermoly-targets-maiden-inferred-copper-gold-jorc-resource-at-nakru-in-papua-new-guinea-24799.html