Geopacific Resources Limited
Should the
1 Refer to ASX release on 30 May 2022 titled "Drilling success continues to highlight upside potential".
2 Assets held for sale based on materials cost paid to suppliers in respect of the Woodlark long lead equipment assets up to 30 June 2022. assets be subject to sale, any amounts realised may be below the materials cost.
3 Refer to ASX release on 28 July 2022 titled "Watou and Talpos RC drilling - reinforces Mining Lease and regional exploration potential".
Quarterly Activities Report
For the period ended 30 June 2022
ASX: GPR 29 July 2022

Geopacific Resources Limited ('Geopacific' or 'the Company'; ASX: GPR) is pleased to provide an update on its activities and cashflow for the quarter ended 30 June 2022.



Trading recommenced on the ASX on 31 May 2022 following the implementation of an intensive business

transformation program in response to the previously identified material capital cost increases at the

Woodlark Gold Project ('Woodlark' or 'the Project').

The Company advanced a number of concurrent work programs to progress the Project and optimise its


future development pathway including:

o an ongoing drill campaign aimed at growing the existing Mineral Resource and Ore Reserve;

o commencing studies to assess the implications of the potential Mineral Resource growth on the design

and economics of a future project development; and

o a Strategic Review to assess alternative options to maximise shareholder value, including potential

corporate and asset-level transactions.

Positive results were received from the ongoing drilling campaign at the Project, highlighting upside


potential within the existing pit shells and the broader exploration potential across the Mining Lease.

Assays were received from1:

o 25 grade control holes, including several significant high-grade intercepts (all within 60 metres of

surface); and

o 46 resource extension holes from Kulumadau, Kulumadau East (new zone) and Busai which reinforced

the potential for pit extension.

Geopacific remains committed to engagement with the local communities on Woodlark Island and activity

on the village relocation works and other important community initiatives continued.

The Company held $20.6m of cash at 30 June 2022, no debt and $21m materials cost of Project long lead

equipment assets, which are potentially available for sale2.

Post Quarter End

The process of board renewal was completed, with Ian Murray and Colin Gilligan resigning as directors and

Mike Brook, Richard Clayton and Hansjoerg Plaggemars appointed as directors on 7 July 2022.

Encouraging results returned from drilling at Talpos and Watou, including the identification of a new


mineralised zone at Talpos3.

Chief Executive Officer, Tim Richards commented

"Along with completing the intensive commercial and corporate program to achieve reinstatement of ASX

trading by 31 May 2022, we continued to progress our exploration and project review work streams. Our focus

remains on maximising the value of the Project. The grade control drilling campaign has increased our

understanding of the geology that exists within the existing pit shells. The broader resource extension drilling

campaign continues to identify encouraging prospective targets outside the current pits, such as Talpos and

Kulumadau East, which demonstrate the exploration potential that exists on Woodlark Island. With a second

drill rig now mobilised to site, exploration activity will continue to provide valuable knowledge for our studies

aimed at re-assessing the Project design and seeking to identify and capitalise on targeted economies of scale."


For personal use only

During the quarter the Company continued to receive positive results from its recently completed grade control campaign and the ongoing exploration drilling campaign at the Project.

Results from the final 25 holes in the grade control drill campaign at Kulumadau were received, highlighting the upside potential within the existing pit shells4. The results include a series of near surface, high gram-metre intercepts within the Kulumadau pit (Figure 1). Key grade control results received during the quarter include:

  • 080KUL116 with 41 metres at 10.4g/t Au (426 gram metres), from surface;
  • 080KUL120 with 28 metres at 10.05g/t Au (281 gram metres) from 32 metres; and
  • 080KUL129 with 30 metres at 4.92g/t Au (148 gram metres), from surface.

All grade control hole assays have now been received. The grade control drilling provides a greater level of geological understanding of the mineralogy and grade dispersion within the existing pit shell.

Figure 1: Kulumadau grade control drilling cross section

The resource extension drilling campaign at Kulumadau and Busai remains ongoing and continues to reinforce the potential for pit extension possibilities, with all three planned pits at the Project open along strike and at depth.

During the quarter, assay results from a further 46 drill holes in the resource extension drilling campaign at Kulumadau and Busai were received, with encouraging high-grade intercepts including:


  • KURC21020 with 8 metres at 2.31g/t Au, from 47 metres; and
  • KURC21019 with 12 metres at 1.68g/t Au, from 70 metres.

4 Refer to ASX release on 30 May 2022 titled "Drilling success continues to highlight upside potential".


Figure 2: Kulumadau resource extension cross section

For personal use only


  • BSRC21125 with 7 metres at 1.65g/t Au, from 31 metres, 4 metres at 4.88g/t Au, from 46 metres and 9 metres at 3.53g/t Au, from 52 metres; and
  • BSRC21065 with 4 metres at 1.66g/t Au, from 30m and 6 metres at 1.17g/t, from 41 metres.

Figure 3: Busai resource extension cross section


The resource drilling campaign also intercepted a previously unknown mineralised zone at Talpos, located approximately five kilometres south/south-east of the Busai deposit5. Results from this drilling were received after the end of the quarter and high grade intercepts included:

For personal use only

  • TARC22008 with 11 metres at 3.04g/t Au, from 49 metres and 11 metres at 0.74g/t Au, from 63 metres; and
  • TARC22003 with 3 metres at 2.66g/t Au from 32 metres.

At 30 June 2022, a total of 10 resource extension holes were completed at Watou with samples in the laboratory awaiting assay. However, initial results from this drilling included:

  • WTRC22006B with 10 metres at 2.80g/t Au from 68 metres, including 4 metres at 5.35g/t Au from 69 metres.

The ongoing drilling campaign will continue to focus on Woodlark's near-pit exploration potential within the existing Mining Lease (Figure 2). Post the end of the quarter, a diamond rig arrived on Woodlark Island and will be deployed to target the deeper extensions of the Busai and Kulumadau orebodies over the coming months, while the RC rig will target lateral extensions to the existing orebodies in addition to further testing of recently identified mineralised zones.

Figure 2: Mining Lease exploration target areas

5 Refer to ASX release on 28 July 2022 titled "Watou and Talpos RC drilling - reinforces Mining Lease and regional exploration potential".



For personal use only

During the quarter the Company initiated work on a planned series of studies to evaluate:

  • the optimal processing plant throughput for any increase in the Mineral Resource, including the potential to benefit from new economies of scale; and
  • the optimal mining fleet and materials handling infrastructure configuration to support any revised throughput.

Industry leading mining consultants, AMC, have been engaged to undertake an initial trade-off study to assess the optimal project configuration. Once this work has concluded, alternate power generation solutions considering recent market developments, potential project scale and evolving technologies will be assessed.

The re-evaluation work stream is running concurrently with the ongoing exploration drilling campaign, with a scheduled completion date in Q4 2022. The re-evaluation activities will consider capital and operating cost outcomes in the current global inflationary environment. Upon finalisation of this work, the Company will assess whether any material alterations to consents, approvals and the terms of the Mining Lease will be necessary.


As previously announced, following receipt of a number of unsolicited approaches from credible third- parties, the Board initiated a process to assess the merits of a corporate or asset-level transaction as an alternative to advancing the Project on a standalone basis ('Strategic Review'). The Strategic Review, assisted by Azure Capital and Lisle Group as financial advisers, is ongoing.


Occupational Health and Safety

During the quarter there were no lost time injuries recorded, the Company continues to work with the local community and Provincial Health Authority to provide COVID-19 awareness and vaccinations.

Community and Social Responsibility

Despite the cessation of construction works Geopacific remains committed to providing support to its local communities. As previously announced, Geopacific is continuing its community relocation activities, as well as maintaining its support of other important community programs, including education facilities and health care services.

Works associated with the community relocation program were 65% complete at the end of the quarter. There was limited progress due to the transition of works to a new contractor, and the lead time to procure additional material for completion of the program.


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Geopacific Resources Ltd. published this content on 29 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 July 2022 00:43:02 UTC.