Gold Mountain Seeking to Create Shareholder Value Through Flagship Project in Heart of PNG

  • Dec 17, 2019 AEDT
  • Team Kalkine
Gold Mountain Seeking to Create Shareholder Value Through Flagship Project in Heart of PNG

ASX-listed mineral exploration and development company, Gold Mountain Limited (ASX: GMN) operates in the heart of highly prospective, gold-copper endowed Papuan Mobile Belt (with outstanding Cu-Au mines such as Porgera, OK Tedi and Frieda River) in Papua New Guinea (PNG) through its flagship Wabag project.

GMN is involved in the activities of acquiring, exploring and developing areas that are highly prospective for gold and other precious and base metals and minerals in PNG as well as Australia. The Company holds eight exploration licences (ELs) covering an area of more than 2,500 km2 in one of the most underexplored regions of PNG. Moreover, GMN has submitted applications for additional two ELs in the areas surrounding the existing tenements.

With this backdrop, let us develop a deeper understanding of GMN’s flagship project and its whereabouts.

The Wabag Project in the Enga Province is focused on exploring for porphyry copper-gold deposits. Following are the key advantages to the project:

  • Only 75 km east of the 24-million-ounce Porgera gold-silver deposit and
  • 70 km north-west of Mount Hagen (regional capital with daily service by plane from Port Moresby).
  • The Wabag District has key services in place including power, water, road link to coast, road to main GMN exploration camp, airport and mining support services, and strong mining labour force.

The Wabag Project has significant potential carrying high-calibre targets, namely,

  • Monoyal Prospect
  • Monoyal Prospect is located approximately 1 km NW of Mongae Creek;
  • Cu-Au grades in trenches and soils demonstrate a large mineralised granitic intrusion;
  • Frequent fracture coated veinlets of pyrite-chalcopyrite-bornite-molybdenite in stockwork and sheeted quartz veins shown by mapping;
  • In the third quarter of 2019, Mongae trenching results were received, including 142 m @ 0.20% Cu and 0.11 ppm Au on surface;
  • In the fourth quarter of 2019, MCD003 was completed, with MCD004 drilling in progress;
  • Soil sampling continues NE of Monoyal.
  • Mongae Creek
  • Samples recovered from mineralised outcrop, and proximal floaters retrieved from the creeks have returned grades of up to 0.6% Cu and 0.44 g/t Au;
  • Gossanous, hydrothermally brecciated diorite is found in outcrop and as floaters in the creeks, which are crushed by locals and generate free gold;
  • Gold Mountain has commenced a detailed surface soil sampling programme over the entire catchment basin to assist in the next phase of targeted drilling.
  • Crown Ridge
  • The prospect spans an area of 1.5 km² with coarse, crystalline and dendritic gold steadily being recovered from streams near the headwaters of a river system;
  • Airborne magnetic survey 2016 revealed a magnetic low under Crown Ridge, inferred to be the result of magnetite destruction by hydrothermal fluids;
  • A 19-hole diamond core drilling campaign totalling 3761.8 m showed <0.10 g/t Au with the best intercept being 1 m @ 0.66 g/t Au from 77 m in hole CRD001;
  • More detailed and focused surface exploration work is being undertaken to identify outcropping mineralisation and to establish further drill targets.
  • Sak Creek
  • Located in the valley adjacent to Mongae Creek, Sak Creek shows promising features of porphyry-style mineralisation;
  • Identification of three concentric geochemical zones through the ridge and spur soil sampling;
  • Mapping campaign of the creeks between Mongae Creek and Sak Creek showed Cu-Au mineralisation occurring over a distance of 7km;
  • In tandem with exploration at Crown Ridge and Mongae Creek, high-resolution mapping and creek sampling are planned at Sak Creek.
  • K-Lam
  • Located in the valley between Sak Creek and Mongae Creek, this target also demonstrates promising features of porphyry-style mineralisation;
  • Elevated copper and gold mineralisation found in situ, in narrow copper veins within an altered diorite, outcrops over 30 m, and is open in all directions;
  • High-resolution mapping and creek sampling is planned to link Sak Creek and Mongae Creeks, with detailed trenching of exposed outcrop.

During FY19, the Company finalised two diamond drill holes for 876m at the Mongae Prospect and undertook close spaced soil sampling programs at Mongae and Mongae NW (EL2306), and at Sak Creek (EL1966) and Crown Ridge (EL1968).

Gold Mountain intends to complete the Monoyal drilling programme by 2020. Recently, the Company had updated the market regarding the observation of encouraging mineralisation during drilling at the Monoyal prospect.

Do Read: Gold Mountain Completes Drilling at Monoyal Copper; Encouraging Mineralisation Observed

Board and Management Team

A company needs to have an excellent Board and a good management team to successfully achieve its mission and goals. Quality of a Board plays an essential role in determining the potential of a company, while the management team upholds the key responsibility of producing results that build the confidence of investors, shareholders and other parties in the Company.

Let us get acquainted with Gold Mountain’s strong team with PNG experience, reputation and record of discovery.

GMN Stock Delivered 64.44% in Returns

Great Mountain seeks to create value for its shareholders through its exploration expenditure on activities that develop and quantify mineral assets. The Company is currently engaging in active exploration and development of the Wabag Gold Project in PNG and has made significant progress towards building shareholder wealth.

The GMN stock last traded at $ 0.074 on 13 December 2019, with a market capitalisation of $ 46.97 million and approx. 634.68 million outstanding shares. In the last one month, three months and six months, the stock has delivered 10.45%, 34.55% and 64.44%, respectively.

The strategy of Gold Mountain revolves around the continuous evaluation of mineral projects in the future and undertaking generative work to identify and acquire new resource projects.


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