Is Gold Mountain’s PNG Crown Ridge Project the next Porgera or Ok Tedi?
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Little known Papua New Guinea focused gold exploration company Gold Mountain Limited (ASX: GMN) is methodically unlocking considerable value through an aggressive, low-cost exploration program at its flagship Crown Ridge Project, located near to and over similar geology to PNG’s giant ~28 Moz Au Porgera Mine in the PNG Highlands.
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An extensive works program indicates that Crown Ridge could join the ranks of the PNG Majors:
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The right address – “Gold Mountain is Hunting Elephants in Elephant Country”: Crown Ridge is located in the PNG Highlands, the same address as some of the world’s largest resources projects, including ~16 Moz Au Ok Tedi mine, ~28 Moz Au Porgera Mine, the ~20 Moz Au Wafi/Golpu Project and the ~20Moz Au Frieda River Project.
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Highly encouraging early exploration results: Gold Mountain has focused on Panning, Trenching and Bulk Sampling, which has identified significant amounts of free gold, and some platinum, in the soils at Crown Ridge. 48, 8m3 Bulk Sampling pits recovered extensive amounts of free gold. Very encouragingly, ~1 ounce of gold (37.6 grams) and ~4 grams of platinum have been recovered from the first half of the maiden larger 125m3 pit.
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Another Ok Tedi? Crown Ridge’s geology has similarities to the ~16 Moz Au Ok Tedi mine, where free gold in the surface soil was recovered in a bulk mining scenario prior to the hard rock being reached. This could prove to be a major early value driver for Gold Mountain. Geophysical modelling gives an estimated depth of the soils at Crown Ridge to 40 metres.
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A possible near-term Bulk Mining operation? Gold Mountain recently commenced a larger-scale Bulk Sampling Program with 22 test pits of 125m3 each planned. Should sufficient free gold be recovered, Gold Mountain will be able to calculate an inferred JORC resource and could then quickly develop a shallow, low-cost ‘bulk mining’ operation in 18 months. Mining will be simply free-digging soil in bulk, and recovering gold through a basic washing and screening process.
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Free gold recovered is close to the hard rock source: A possible near-term Bulk Mining operation? Gold Mountain’s geological team is excited by the amount of free gold and some platinum recovered from the soils at Crown Ridge. The free gold in the soil is not alluvial gold, a clear indication that this free gold is located near to a much larger hard rock source.
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A potential diatreme and Porphyry target: mapping, geotechnical sampling and geophysical surveys have identified a potential diatreme, commonly associated with significant gold mineralisation. A potential porphyry target has also been identified, adding further geological appeal to Gold Mountain.
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Experienced technical leadership and support: Gold Mountain’s ‘on-the-ground’ Exploration & Operations Director, Doug Smith, has extensive PNG experience and is a key asset to Gold Mountain. The Company is well supported by highly respected geological consulting firms GEOS Mining & Minerals Consultants, and Allender Exploration in South Australia.
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Gold Mountain expects to deliver steady operational news flow in the coming weeks and new geological results. With a low operating base, Gold Mountain is sufficiently funded and has excellent shareholder support to underpin its growth.Exploration and Operations Director Doug Smith said:
"In my 20+ years working as a geologist, I have never worked on a project with such compelling geology. I can confidently say we have the opportunity to very quickly develop a low-cost bulk mining operation at Crown Ridge, while at the same time identifying what is clearly a very large hard rock source for future exploitation. There is no doubt in my mind we are sitting on another PNG Elephant.”
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GMN Price at posting:
15.0¢ Sentiment: Buy Disclosure: Held
