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Gold and copper explorer Triple Plate Junction plc (LSE:TPJ) disclosed Monday that their partner Newmont Ventures Limited decided to suspend drilling operations at the Morobe project in Papua New Guinea for six months, following a failure in discovering any significant deposit from its second exploration target.
Gumots, one of the 15 prospective drill targets in the 3,761 km2 Morobe project, did not encounter any “appreciable thickness” that would merit “significant results to report”, which prompted Newmont to halt further explorations for the time being.
“Newmont has decided to suspend active drilling for an anticipated six month period,” Triple Plate Junction advised the authorities and the public, adding that “whilst the project focus is directed at additional exploration field work for the purpose of opening up and de-risking future drilling at the numerous additional potential drill targets across the territory.”
Disappointed
The Morobe Project is held by Triple Plate Junction on a 49% woking interest with Newmonth Ventures Limited, a subsidiary of Newmont Mining Corporation, getting the other 51% in a joint venture signed by both companies in 2008.
The licence area is located adjacent to historically known gold mining areas, including the Wafi-Golpu project estimated to have about 16 million ounces of gold that was made basis of the acquisition of the Morobe acreage.
“I am, of course, disappointed that the drilling results indicate that we have not yet hit a material high grade intersection,” said Fraser McGee, Chief Executive Officer of Triple Plate Junction, who still remains “extremely excited” about the future of the project.
“…It must be remembered that we have only drilled eight holes and at what is a colossal exploration project with many prospects. To have hit a massive intersection in the first few holes was always an ambitious hope,” he added.
Drill Results
Bill Howell, Triple Plate Junction’s Exploration Director confirmed that there were only three intersections in the three holes drilled, pending full assay results.
The best result, according to TPJ’s statement, was a mere two metres of 0.67 grams per tonne of gold.
Triple Plate Junction said there are 13 prospective drill targets the company has identified, anticipating a future exploration programme that would include complete geological mapping and surface geochemistry, among others.
“So whilst we will have to be patient during this next part of the exploration stage of this project, it should be remembered that the commitment to finding a giant or super-giant deposit has not waned at all, but just become more focused after experience gained at the property,” CEO McGee further said.
Company Spotlight
Triple Plate Junction is a gold and copper exploration company incorporated in the United Kingdom with operations in Vietnam and Papua New Guinea.
The company was admitted on the Alternative Investment Market in 2004. Shares of the company closed at 1.625 pence a share today, after losing more than a fifth of its value from last Friday’s trading.
