Taruga secures option over two advanced PNG gold-copper projects

Taruga Minerals has locked in a 12-month option to acquire 100% of two highly prospective gold and copper assets in Papua New Guinea. The first, called the East Normanby gold project, spans 491 square kilometres on Normanby Island and the second is a 123-square-kilometre ground holding, dubbed the Kol Mountain copper-gold porphyry-skarn complex, on New Britain Island.

At East Normanby, 67 historic drill holes and a suite of trenched intervals have lit up the company’s flagship Weioko low-sulphidation epithermal deposit, where gold mineralisation remains wide open along strike and at depth.

Standout intercepts included a surface trench which delivered 108 metres grading 2.4 grams per tonne (g/t) gold, including 28m at 4.9g/t gold and another 4m run grading 21.9g/t gold.

A second trench, cutting across the regional structural and drainage trend, returned 68m at 5.9g/t gold, including 44m assaying 8.7g/t gold, which includes 4m at 58.9g/t gold.

Other drilling highlights included one hole that intercepted 2.9m at 33.9g/t gold within a wider 64.6m stretch running at 2.2g/t gold from surface.

Multiple satellite targets sit within an 8km-plus gold-in-soil corridor that remains open in all directions. Just 2km southwest of Weioko, the Wenasia prospect produced rock chips grading up to 49.9g/t gold and 1977g/t silver. At the same time, additional untested anomalies at Sipupu and Lataona Hill add even more upside.

A broad distribution of high-grade gold in stream results from Wenasia highlights an obvious exploration opportunity, supported by continuous gold anomalism stretching from Weioko to the southern end of the current known extent of Wenasia.

“We are delighted to have secured this transformational opportunity in PNG for Taruga shareholders, with high-impact work to be undertaken over the coming months. Weioko is an advanced exploration gold deposit with numerous satellite prospects, which will be the immediate target for future drilling and exploration. The Kol Mountain project covers multiple copper porphyry and skarn prospects with significant historical exploration.” Taruga Minerals chairman Paul Cronin

In the company’s second project at Kol Mountain, previous explorers, including BHP, Rio Tinto, and Ok Tedi, have drilled 37 holes totalling 8620m, which defined the extensive Esis porphyry system.

Drilling highlights delivered a 222-metre intercept assaying 0.38 per cent copper from 3m depth in one hole and 184 metres at 0.3 per cent copper from 2m depth in another hole. Several other holes ended in mineralisation, hinting at strong depth potential.

About 15km northeast of the Esis porphyry, the untested, 4.8km-long Bukuam porphyry target sits alongside the Kapea shear zone, where drilling delivered 35m at 3.8g/t gold, including 5m at a tantalising 13.1g/t. The zone is further supported by a separate 17m interval grading 5g/t gold at Kapea Shear North.

To establish a foothold in PNG, the company signed a binding 12-month option agreement for the new ground with Australian-based Metal Mining PNG Pty Ltd (MMPNG) and Exploration & Management Consultants Pty Ltd (EMC). Both companies are controlled by experienced PNG geologist Peter McNeil, who will join the company in a consulting role.

Under the agreement, Taruga has paid $100,000 in combined option fees for the two projects and must spend a combined minimum $300,000 across both projects during the option period.

If Taruga elect to exercise the option, the company will be required to pay a further $1.65 million in cash or scrip for each project, plus 1.5 per cent net smelt royalties, with staged deferred payments tied to future JORC resources.

To fund the option premium and future exploration, the company is undertaking a $1 million placement at 1 cent a share, with directors committing $600,000, subject to shareholder approval.

The East Normanby gold project and the Kol Mountain copper project host proven high-grade gold and large-scale copper-gold porphyry potential in proven jurisdictions.

Both projects are surrounded by multiple world-class gold and polymetallic operations, including gold monsters such as Newmont’s 87 million-ounce Lihir project on nearby New Ireland and New Porgera Limited’s 34 million-ounce gold operation in the PNG highlands.

Another standout project local to the area is the 28.2 million-ounce Wafi-Golpu mine, jointly owned by Newmont and Harmony Gold, highlighting just how prospective the region is for giant gold discoveries.

Being in such heady company – with at least a dozen more relative but still spectacular minnows sharing the same or similar tectonic setting – and with most of its own targets still wide open or only thinly tested by modern methods, Taruga could be onto a big catch.

PNG might not be the easiest terrain to explore. However, for proven gold ounces per square kilometre, it is off the charts.

Taruga clearly sees outstanding discovery and resource upside across its combined 614km² project footprint in this phenomenally endowed nation.

Is your ASX-listed company doing something interesting? Contact: matt.birney@wanews.com.au