Papua Mining granted mining permit in Queensland

Gold and copper exploration company Papua Mining announced on Friday that the it had been granted the Monarch Exploration Permit to Mine, EPM 26726, in Queensland, Australia through its 100%-owned subsidiary BGM Investments.

The AIM-traded firm said the Monarch exploration tenement granted to Papua was for a five-year period, with the site being 10 km south of Charters Towers, where 6 MOz of gold had already been mined.

It was also 8.5km north of the Mt Leyshon Gold Mine, which has produced four million ounces of gold.

More than 25 historical workings which were prospective for gold and silver occurred inside the tenement, including Gregory's, Try Again, Ivory Elephant, Lady Musgrave and Mabel Jane, along with an additional 23 unnamed, historical gold workings.

Historical production records at the Mabel Jane Prospect showed 295 ounces of gold were won from 220 tonnes, with an average grade of 45.73g/t Au.

“We are thankful to the Department of Natural Resources and Mines for an expedited granting of the Monarch tenement,” said Papua chief executive David Price.

“Monarch hosts high-grade gold targets which appear similar to Double Event and Lower Lighthouse Prospects within the Lighthouse tenement.”

Price said Papua would advance the prospects rapidly, with an initial rock and soil sampling programme, followed by RC drilling to test the veins at shallow depths.

“The Monarch veins haven't been drill-tested, so opportunity exists to discover a narrow, high grade, near-surface gold resource.”