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Geopacific's pre-feasibility study values Woodlark gold project at A$178M

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Geopacific's pre-feasibility study values Woodlark gold project at A$178M

Geopacific Resources Ltd. said March 12 that a pre-feasibility study for the Woodlark gold project in Papua New Guinea estimated a posttax net present value, discounted at 8%, of A$178 million, an internal rate of return of 33%, with a 2.2-year payback period.

The study was based on an ore reserve of 1.1 million ounces of gold contained in 34.7 million tonnes grading 0.99 g/t, a resource estimate of 1.6 million ounces contained in 47.0 million tonnes grading 1.04 g/t and a gold price of A$1,650 per ounce.

Initial CapEx for the open pit operation is estimated at A$162 million, including A$9 million for contingency, with sustaining CapEx pegged at A$16 million.

Average production is 100,000 ounces of gold per year at an all-in sustaining cost of A$1,110 per ounce over a 10-year mine life.

Following the positive results of the pre-feasibility study, the company agreed to proceed toward a definitive feasibility study, expected to be delivered by the third quarter.

The completion of the pre-feasibility study increased the company's stake in the project to 93% under a joint venture deal with Kula Gold Ltd., comprising a 51% direct interest in the project and a 42% interest in Kula shares.