ncm [email protected]% cu and 2.23g/t gold discovery

John435 ponted out on day-trader thread that GMX's ground is only a few kms from NCM's discovery. He also provided a map on this GMX's thread.

GMX worths a look IMHO. Low MC of $15.4mln and $5.7mln cash should provide good buffer for exploration program.


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From The Australian:
http://www.theaustralian.com.au/business/mining-energy/newcrests-remarkable-discovery-restarts-papua-new-guinea-gold-rush/story-e6frg9ex-1226016697213

FORGET, for a moment, the 4.7 per cent share price jump, the extraordinary drill result and a new target of 30 million ounces of gold and 8 million tonnes of copper.
Instead, concentrate on the details of the drill hole.

Because what Newcrest Mining (NCM) announced on Friday is further proof of something that Pure Speculation has been boring its readers with for some time: that Papua New Guinea has only begun to unveil its mineral wealth.

The big market excitement on Friday followed details of hole WR377 at the Wafi-Golpu project, a joint venture with South Africa's Harmony Gold.

It certainly was impressive with an intercept of 883m at 2.15 per cent copper and 2.23 grams/tonne gold from a depth of 913m. But the most remarkable aspect is that the grade got higher the deeper the drilling went, so this same intersection includes 628m at 2.82 per cent copper and 3.06g/t gold from 1043m (or 1.04km) down.

There's been a great deal of prospecting and exploration in PNG over the years, but not all of that work was done to any great depth. According to the Mineral Resources Authority of PNG, vast areas of the country were, between the mid-1960s and the early 1970s, subjected to first-pass prospecting for porphyry copper-style mineralisation.

But here's the key passage in MRA's brief: "This work was carried out at a time of relatively low gold prices. Thus the exploration programs gave little or no consideration to gold as a possible exploration target."

It is easy to forget that the 1987 market crash effectively killed much PNG exploration for more than 10 years, so there's a big catch-up job now in play. Expect many more discoveries, especially as the drill holes go deeper.

The authority's history also refers to the 1987-91 gold rush at Mt Kare. During the week, Indochine Mining (IDC) -- whose Cambodia program we covered recently -- advanced its acquisition of Mt Kare with its estimated 1.7 million ounces. A JORC resource is targeted within six months of work beginning.