Wednesday, May 30, 2012

New Guinea Gold Corp mining leases and exploration license renewed

New Guinea Gold Corporation (NGG) chairman Ces Iewago yesterday welcomed renewal of its mining leases and exploration licenses at Sinivit in East New Britain, The National reports.
Pursuant to the recommendation of the Mining Advisory Council, Minister for Mining, Byron Chan has now executed formal instruments renewing the company’s expiring mining leases and mining easement (ML 122 and ME 70) and its exploration license (EL 1140).
The ML 122 has been renewed and extended for a further 10 years with a new expiry date of Feb 15, 2022.
ME 70 has been renewed for a period of eight years and now expires on Feb 15, 2020.
The exploration license (EL) has been granted for a further two years as is standard in Papua New Guinea and now expires on May 10, 2013.
“This is a great outcome for New Guinea Gold and reflects well on the relationship that has been fostered with the PNG authorities,” Iewago said.
“The company now has certainty of tenure and a great basis for moving ahead.
“We look forward to working closely with all of our stakeholders to maximise the value and benefits deliverable from the Sinivit mine and the surrounding high-potential exploration acreage.
“The possible addition of the state as a stakeholder in the project would be welcomed and the expression of interest confirms the belief the PNG government has in the potential of the project.”
The renewal of the MLs contained several ministerial conditions, which reinforce the ssState’s and company’s obligations under the applicable legislation.
Two of those conditions are material in nature:
• The company is required to change its processing method within 24 months from the date of approval to a “new and more efficient ore processing system”. This is consistent with the company’s current strategy and plans are underway to accommodate such a change should the definitive feasibility study (DFS) produce a positive economic outcome; and
• That the company enter into discussions with the state’s representatives to assess the state’s participation in the mining lease.

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