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Geopacific to spend A$8M in 2 years at Woodlark Island gold JV with Kula Gold

GeopacificResources Ltd. has decided to spend A$8 million in two years aspart of the recently entered joint venture over the gold project inPapua New Guinea with Kula GoldLtd., according to a July 21 statement by the lattercompany.

The company will conduct at least 15,000 meters of diamonddrilling within the period, with an aim to increase the ore reserves of theproject to over 1.2 million ounces.

Geopacific intends to develop the project an over150,000-ounces-per-annum gold producer and increase the mine life to over 10years.

The company secured an option to earn up to a in the WoodlarkIsland project by spending A$18.7 million over 3.5 years.