Optimism on New Ireland gold
p. 31 · Read in the full issue
New Ireland gold
Great optimism is held in Papua New Guinea over what is reported to be a large gold bearing deposit on Lihir Island, New Ireland. Initial drilling tests, still in progress, seem to suggest that PNG may have a major gold deposit of about 20 million tonnes of ore averaging 2.1 grammes of gold per tonne.
However, New Ireland mem ber of parliament and former PNG prime minister, Sir Julius Chan, has warned against over optimism,and any idea in the public mind that the gold is lying about just for the taking.
The drilling tests are being conducted by a joint venture company formed by Kennecott, the big U.S. mining conglomer ate, and Niugini Mining Ltd., a local PNG consortium, which also involves Australian money through the Sydney stockbrok ing firm of Hattersley and Max well Partners. The Lihir deposit is smaller, and less rich, than Ok Tedi (estimated 34 million ton nes at 2.86 grammes per ton ne), but is in much easier terrain, on the coast and accessible for easy open-cut
mining methods. Kennecott is also reportedly sampling another deposit near Lihir, on Simberi Island, in the Tabar group.
Lihir’s gold deposit is in sul phide form which is more ex pensive to process but, given the quite easy terrain, Kenne cott’s experts are confident they have a viable mine, The gold finds have added to
the current great optimism in PNG over a resurgence of mining exploration and activity.
Adding to this have been a number of very promising oil finds in the interior, in the southern half of the territory.
There was a strike at Duha about a year ago and, just a few months ago another strike, the initial flow from which touched 1680 barrels a day of conde nsate. These wells are, howev er, in very difficult country about 300 km from the coast, and have been drilled fairly close together. Other wells, more widely spread, will be needed before the full extent of the field is known.
Yet, good though the strike seems to be, it is probably not viable in the present oil industry conditions. There is reportedly considerable gas in the conde nsate. This would probably have to be re-injected into the wells while the condensate itself would have to be piped to the coast and carried by tanker from there. All of that will involve enormous capital in vestment.
BHP have also been operat ing an oil rig in the Vanimo area and have just drilled three back to-back wells there with, apparently, some encouraging signs.