Papua Mining applies for new Queensland exploration licence

Gold and copper exploration company Papua Mining announced on Monday that it has, through its 100%-owned subsidiary BGM Investments, recently applied for a new strategic and highly-prospective exploration licence which lies close to its 100%-owned Lighthouse Gold Project in Queensland, Australia.

The AIM-traded firm said the award of the licence was subject to formal grant by the Queensland Department of Resources and Mines.

It said the new tenement application, called Monarch, lies 10km south of Charters Towers, where six million ounces of gold has been mined, and 8.5km north of the Mt Leyshon Gold Mine, which has produced four million ounces of gold.

More than 25 historical workings, which are prospective for gold and silver, occur inside the new application tenement including Gregory's, Try Again, Ivory Elephant, Lady Musgrave and Mabel Jane, the Papua Mining board said, along with an additional 23 un-named, historical gold workings.

Although no historical production records were available, the company said the workings were “extensive” and included Gregory's, where the workings are 430m long and down to 42m deep; Lady Musgrave, where the workings are 230m long, 10m wide and down to 23m deep; and Mabel Jane, where the workings are 183m long, 10m wide and down to 61m deep.

When granted, Monarch would increase the available exploration potential by a further 30 square kilometres surrounding the Lighthouse Project

“In line with our strategy of acquiring highly prospective, low-entry-cost opportunities which are close to our existing tenements and critical processing infrastructure, Papua has applied for the Monarch tenement,” said chief executive David Price.

“Once granted, Monarch will provide Papua with additional high-grade gold targets which management believe are similar to both Double Event and Lower Lighthouse Prospects within the Lighthouse tenement itself.

“Management continues to keep a close eye on highly-prospective, low-entry-cost, long-term growth opportunities.”

Price said that in the meantime, Papua was awaiting results of its recently-completed reverse circulation drilling program which involved drilling 2,111m in 11 drill holes into the Plateau Prospect within the Lighthouse tenement.

“Shareholders will be informed of these drilling results once they have been received from ALS Laboratories in Townsville, Queensland.”