Pacific Niugini (ASX:PNR) is drilling on-site at the Halls Creek...

Pacific Niugini (ASX:PNR) is drilling on-site at the Halls Creek Project, and expects to meet its stage one expenditure of $1.2 million dollars by the end of 2014.

Therefore the company could meet its first year spending commitments several months ahead of the required timeline.

Pacific Niugini’s ownership will increase to 65% at the time that the expenditure is reached.

Halls Creek is located in the Kimberly Region of Western Australia, and the project provides the company with a platform for development and operation of its first producing gold asset.

The project hosts an existing high-grade gold resource of 260,000 ounces and includes a 120,000 tonne per annum processing plant at the Nicolsons Prospect.


Force Majeure event

The company has also advised, through its wholly owned subsidiary Halls Creek Mining Pty Ltd, that it has notified Bulletin Resources (ASX:BNR) of a Force Majeure event at the Halls Creek Project.

The event relates to government approvals process timelines extending beyond the guidelines provided by the Department of Minerals and Petroleum.

The company is awaiting feedback and approval of its Mining Proposal for the project, following lodgement on the 4th of August 2014.

The event does not affect the company’s ability to continue working on site, but may impact mine development timing, and therefore project expenditure timing if delays persist.


Halls Creek project ownership

Pacific Niugini is currently the 49% owner, and sole manager of the Halls Creek Project following acquisition from Bulletin Resources.

BNR is currently the 51% owner of the project.

Pacific Niugini is increasing its ownership in the project from 49% to 80% by spending $2.4 million over the initial two years.