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

The Nakru-1 copper and gold system is the most advanced prospect within the Nakru tenement with an exploration target of 50 million tonnes to 60 million tonnes grading 0.7% to 0.9% copper. Golder will also undertake a review of all drillhole data at the Simuku copper and molybdenum system to upgrade the Resource.

Both the Simuku and Nakru-1 projects are located on New Britain Island in Papua New Guinea within 4 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 silver at the Tobarum Prospect.

Significantly, the mineralization 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 mineralized targets.

In January, Coppermoly announced the formation of a joint venture with Barrick Gold Corporation for the Simuku, Nakru and Talelumas tenements on New Britain Island. Barrick Gold has earned 72% stake in the three tenements after meeting the USD 20 million expenditure commitments under the farm in agreement.

The JV will be formalized 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.

Swiridiuk said that 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.

(Sourced from www.proactiveinvestors.com.au)