The PFS demonstrates that Woodlark is a robust, low-cost, low-stripping ratio, open pit operation that can deliver an annual average of 100,000 ounces of gold over 10 years.
The company is progressing a definitive feasibility study (DFS) which is expected to be completed in the September quarter of 2018.
Ron Heeks, managing director, said: “We are extremely pleased at how the project has evolved over the past year.
“Our PFS indicates a robust, open-pit mine plan with strong, steady-state production over a long mine life.
“Woodlark benefits from flat topography, wide zones of ore from the surface, a substantial proportion of free-dig material, as well as the proximity of the plant to the pits and waste dumps.
“Our PFS presents a low-cost solution for treating low-grade ore, to improve returns and deliver a project payback estimated at two years.
“We expect the project to grow further from the substantial, demonstrated exploration upside.”
Shares increase 13%
Shares were up 13% to 4.1 cents in early trade.
The PFS was completed in conjunction with independent consultants and some elements, including mining costs and metallurgical test work, have been completed to a DFS level.
It focused on the Kulumadau, Busai and Woodlark King deposits, which are on the existing mining lease.
The proposed plant site is between Kulumadau and Busai deposits on flat terrain, and less than 3 kilometres from each.
Resource of 1.573 million ounces
Woodlark has a resource of 47.04 million tonnes at 1.04 g/t gold for 1.573 million ounces of gold.
Within this is a reserve of 34.7 million tonnes at 0.99 g/t for more than 1.101 million ounces.
There is also significant regional exploration potential.
The PFS demonstrates an all in sustaining cost of $990 per ounce for the first five years and $1,110 over the mine life.
Final DFS elements focus on FEED
Geopacific’s board has approved completion of the final elements of the DFS, which will centre on front end engineering design (FEED).
The aim of the DFS is to finalise and optimise the plant design and infrastructure to deliver capital cost estimates to within a 15% level of accuracy and further optimise operating costs.