The Asia Miner

OCT-DEC 2016

The ASIA Miner - Reporting Important Issues to Mining Companies in the Asia Pacific Region

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Page 8 of 75

Volume 13 • Issue 4 | 2016 | ASIA Miner | 7 Road to Success plan . Scout drilling, geophysics and air- borne magnetics have identified numerous targets that require follow-up . These areas will be prioritised and developed as the proj- ect progresses . Indications are that Wood- lark has the potential to host more than 5 million ounces of gold . Primary focus The company's primary focus is to prog- ress Woodlark by defining a development plan allowing it to define an initial 1.2 million ounce reserve . The reserve is an incentive target and achieving it will earn Geopacific 51% . Ron Heeks says, "The arbitrage is on Woodlark because it is permitted and ba- sically ready to go – it could be built tomor- row . The metallurgy is done and we are well down the path to re-basing the costs . It's not like we have to finish drilling, then do metallurgy, then do this and do that – we already know all of that . The deepest of the open pits will be 170 metres, so you don't have massive cut-back issues . " On the future he says, "We are happy with the projects we have, which will keep us busy, but if the right project comes along in the right region we would be silly not to consider it . Woodlark is a serious operation of 120,000 to 150,000 ounces of gold an- nually and I can't think of another permitted, unmined resource just sitting there, ready to go . "With gold prices, anything north of US$1200 is fantastic . We still have the Aus- tralian dollar advantage as well and if the price goes north of this, it goes straight on the bottom line . " Kou Sa for the future Cambodia has been a fantastic place to operate, according to Ron Heeks . "I have worked in a lot of countries and place it at the top of the list – the government is very much on side, the locals are supportive and it's a low-cost environment . The Kou Sa project is remote but now easily accessible. At the start we were 45 minutes up a dirt road but now are alongside a bitumen high- way, mains hydro-electric power has come in and there is fibre optic cable. There are better comms in the local village than we have in the Perth office and eight months ago they didn't even have power . Cambodia is developing rapidly and it's fantastic that the development is reaching regional areas . "The new road and mains power will re- duce costs significantly. We are only 2.5 hours from an international airport, build costs in the region are exceptional and there skilled workers are available . "The site is logistically simple - it is flat, easy to move around and no flooding issues. The government has introduced a new mining code based on the Western Australia model and has been proactive at all times . "We have had some fantastic results and recently announced a maiden resource of 51,000 tonnes of copper equivalent, which is a bit lighter than we had hoped but this is probably more due to geological complexity and we are still only testing the low-hanging fruit . We can see that we will have enough for a starter operation, which we envisage as a 10,000 tonnes/ annum plant . "We are now focusing on the deeper, big- ger targets that have been on the backburn- er . We wanted to see a path forward and can now test some of the other targets . The 190 Gold zone is coming along well . There is an interesting high grade core within a bigger system and we have drill rigs there . " The most recent results have confirmed that this zone holds potential to host more significant mineralisation. The drilling en- countered additional gold and silver miner- alisation in the epithermal system . The best result was 6 . 0 metres from 22 . 5 metres @ 3 . 56 g/t gold and 15 . 48 g/t silver, including 3 . 0 metres @ 6 . 80 g/t gold and 29 . 45 g/t silver . These results indicate that the zone ex- tends upwards while also continuing to the west . The gold zone remains open to the west and east with a potential open plunge to the southwest . "Kou Sa is in a developing area and the problem with going into an area where no one has explored within 300km is that you start from a very low geological base," Ron Heeks says . "We now have a very good un- derstanding of what is happening . "It's very cost effective for us to work there . We are accepted by and work well with the locals and the project is coming along well. It is a longer term proposition than Wood- lark . " The target is a kick-starter, maiden re- source and scoping study to take the project into production with a modest but profitable operation and ongoing exploration to increase the scale of the project well be- yond the initial resource . "The current resource is only from the 150 and 160 areas and we are working on four or five other areas, so we believe we are just about there to be able to support a starter operation . "We have advanced a lot of costings and a 750,000 tpa float plant built by an Australian engineering company is about $20 million on site . Our plan is for the plant to be built in the region . Capex costs are fantastic, which is one of the benefits of operating in Asia." Fiji revisited Geopacific's initial work was in Fiji. At the time that Kou Sa was included in Geopa- cific's portfolio there was also a change in A visit to the project site on Woodlark Island. Geopacific Resources managing director Ron Heeks (left) examines samples at the Kou Sa project in Cambodia. Drilling at the Kou Sa Gold Project in northern Cambodia .

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