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Righlands Pacific eyes further expansion of Kainantu mine

By BRIAN GOMEZ
EVEN as Highlands Pacific prepares its first gold concentrate shipment to Japan, further expansion of the 115,000 ounce a year Kainantu gold mine in Eastern Highlands appears only a question of timing.
Highlands Pacific managing director Ian Holzberger told The National exploration will continue in areas close to the mine with the aim of increasing gold reserves so the Kainantu mine could be expanded.
The company’s December quarter report pointed to the discovery of the Chinook lode 250m below the bottom of the mine ore reserve block following intersection of a two-metre wide mineralised zone by a mine access ramp.
Mr Holzberger confirmed that the entire 250m interval has not been tested.
This provides additional confidence that gold reserves will be significantly increased at Kainantu with underground drilling expected to commence in the current quarter to test the Mill, Judd and Chinook veins at depth.
The quarterly report said the development drive that intercepted the Chinook vein was “the first significant intercept of gold mineralisation in the Chinook system and is encouraging in terms of the extension of the mineralisation at depth”.
The access ramp being built from the lower portal has also intersected the Mill and Judd lodes at depth.
Drilling also commenced in December at the Eutompi area, which lies in between the 950,000 ounce Irumafimpa orebody, that is now being mined, and the high grade 820,000 ounce gold resource at Kora.
The report said since Eutompi was adjacent to the Kainantu mine development it “could be easily accessed by extension of the underground workings and from auxiliary surface openings”.
Three holes of a 12-hole programme to drill 2,800m have been completed and assay results are awaited.
Planned drilling at the Mati-Mesoen prospect has been postponed due to delays in securing landowner agreements for access to drill sites. Discussions are continuing.
Meantime, the Land Title Commission has completed inquiries into ownership of lands covered by the mining lease but further hearings are to be held on claims covering the associated lease for mining purposes. This should be completed by the end of next month.
“Until the LTC hands down its decision all royalty and land rent payments accruing to the landowners will be deposited into a trust account,” the report said.
As the deadline for the mid-February shipment of gold concentrates nears, Highlands Pacific share prices have continued to rise to its highest levels in about eight years.
The share rose A1c on Friday to A83c compared with A79.5c on Jan 30. Highlands Pacific has been enjoying a steady increase since hitting a low of A8c in August 2001.