Kainantu District: High grade, low cost gold production
South Pacific Metals Corp ‘SPMC’ is an Asia-Pacific focused gold mining company with three highly prospective gold/copper projects, SPMC South, SPMC North and the May River Project. All projects are located in premier mining regions in PNG. Both SPMC North and SPMC South show potential to host high-grade epithermal and porphyry mineralisation, as seen elsewhere in the high-grade Kainantu Gold District. The May River project is in close proximity to the world-renowned Frieda River Copper-Gold Project, with historical drilling indicating the potential for significant copper-gold projects. SPMC has a highly experienced board and management team with a proven track record of working together in the region; and an established in-country partner.
In close proximity to K92 Mining’s ‘Kainantu’ mine, one of the highest-grade gold ore bodies in the world, these two tenement packages display several geological attributes common to the Bilimoia Mineral Field which hosts the K92 lodes:
Mesozoic metamorphic basement overlain by Tertiary sediments and volcanics intruded by Mid to Late Tertiary igneous units (Elandora Porphyry and Akuna Igneous Complex) both believed to be sources and drivers of the regionally extensive mineralization.
The Kainantu transfer structure transects the Bilimoia field as a NNE trending mineralized corridor: > 20 km long; >2.5 km wide. The corridor projects into the SPMC North leases, while several parallel elements mapped within the SPMC South leases coincide with emergent phases of igneous rocks. Significant cross-cutting NW and N trending dilational structures which also control mineralization are also present in the leases.
Mineralization in the Kainantu District includes gold, silver and copper occurring in quartz-Au telluride veins, sulphide Au-Cu-Ag veins, porphyry Cu-Au-Mo systems, Au-base metal skarns and alluvial Au. Most of these styles have been identified in SPMC South leases.
History of successful Au, Ag & Cu mining in the Kainantu District: Bilimoia field, Kathnell, Aifunka, Mt Victor, etc.
Key stats from the neighbouring high-grade K92 gold mine:
- +20.8 g/t Au feed grade (top 4 mine globally for high grades)
- $615/oz Au Eq AISC
- 5.2Moz resource at grade of 9.6 g/t Au
- 2020 production forecast 120koz/pa