Crater Gold Mining (ASX:CGN) should trade firmer with the Environment Permit for its Nevera High Grade Zone gold project at Crater Mountain in Papua New Guinea now issued.
The permit marks a significant milestone towards the development of the HGZ project following its assessment by the PNG Department of Environment and Conservation.
It is a crucial step forward towards becoming a gold producer and clears the way for the PNG Mining Advisory Council to recommend to the Mining Minister that the Mining Lease be granted to Anomaly Limited.
Following the MRA Technical Assessment Division completing its assessment of the Proposal For Development and with the Environment Permit now issued, the Mining Lease will be tabled for discussion at the next MAC meeting this week.
Crater proposes to commence small scale underground mining with target production of approximately 10,000 ounces of gold during the first year of operation.
Mineralisation is confined to numerous narrow highly oxidised veins trending north-south with several cross cutting east west structures.
Development and drilling has shown that the junction of these structures is favourable for the occurrence of bonanza grades of coarse free gold up to 847 g/t.
Detailed mine planning is being undertaken following interpretation of all the development and results, with gold extraction amenable to simple gravity concentration.
Some development activities have already commenced including the commissioning of a milling and gravity concentration circuit on site.
While the current focus remains on the HGZ for early production, there remains potential to increase the current JORC compliant resource of 24 million tonnes at 1g/t gold for 790,000 ounces at the Mixing Zone project.
