Mineral Resources Authority Papua New Guinea

EXPLORATION AND

PROSPECTIVITY IN PNG

Licences Key

142° 144° 146°

Current Exploration Licence

Exploration Licence Under Renewal

Ministerial Reserve

WESTERN

SOUTHERN HIGHLANDS

MADANG

Exploration LicenceUnder Application

0 100 200 km

WEST SEPIKEAST SEPIK MANUS

EASTERN HIGHLANDS

GULF

P A P U A N E W G U I N E A

WESTERNHIGHLANDS

ENGA

148°142° 144° 146° 150° 152° 154° 156°

WEST NEW BRITAIN

ORO

EAST NEW BRITAIN

NORTH

SOLOMONS

MOROBE

CHIMBU

E x p l o r a t i o n L i c e n c e s t o J u l y , 2 0 1 0

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CENTRAL

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NEW IRELAND

MILNE BAY

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23 1

1539

EU Collaborative Projects with Geological Survey

Division in 2010

• Regional geological mapping survey 2010 with GMME & EU GEOMAP - map/publication series compilation

• Regional drainage geochemical survey• Training of PNG geologists (GSD and UPNG )

WBTA 2 and MRA Projects proposed for funding

• PNG Stratigraphic Lexicon / seamless 250K map • Cartography – GSQ & Geodatabase map Cartography – GSQ & Geodatabase map production in ArcInfoproduction in ArcInfo• Geotechnical operations review• Geothermal sites inventory and description

WBTA 2 and MRA Projects

• Updating open file geochemistry data from company reports• Work on developing an integrated Geological

and tenure database• Scanning of all geoscience data in the library

system and list of all open file reports• Core library plans and construction

Collaborative Geophysics training & projects

• Delft University airborne geophysics / remote

sensing interpretation courses • Earthquake survey of the SE Papua (Eastern

Papua Peninsula and Milne Bay Province) with Colombia University, USA.

• Ontong Java Plateau – LIP - JAMSTEC Seismic refraction, Seismic reflection, Marine gravity, Geomagnetics, Sea floor topography (side scan sonar)

Geophysics• Ontong Java Plateau – Large Igneous Province -

JAMSTEC Seismic refraction, Seismic reflection, Marine gravity, Geomagnetics, Sea floor topography (side scan sonar)

Collaborative projects / training

Wafi

Wafi-Golpu Cu-Au Porphyry

Wafi - Golpu Resource

• Pre feasibility study

• Large multiple lodes high sulphidation system

• Drilling to 1800m

• Resource is open to the north

• Au resource – Wafi - 8.8Moz

• Porphyry Cu - Golpu - 4.8Mt Cu

Deliverables from Project E MSSP and GEOMAP

• Fugro Highlands airborne Survey - final data - world’s largest heliborne magnetic/radiometric survey (PROJECT E)

• Multielement geochemistry - 48 element stream sediment survey of 14 map sheets of Area 1 (database and maps)

• Geological Map Publication series• Metallogenic maps

GEOMAP Partners

• British Geological Survey (BGS)

• Deutsche Montan Technologie (DMT)

• Council for Geoscience (RSA)

• Mineral Resources Authority (MRA)

FUGRO GEOPHYSICAL SURVEYMagnetic and Radiometric helicopter survey

Line spacing 4-500m - terrain clearance c.100mArea 1: c. 62,000km2. Area 2: 29,400km2

TMI magnetic of Area 1

BOSAVIGILUWE

Mount Hagen

EU- funded GEOMAP Project

Prospects for the discovery of

new mineral deposits • Prospectivity in PNG is very high with large

underexplored regions• Geochemistry shows potential in areas not

previously explored• Large numbers of streams contain alluvial gold

with no known hard rock source• The development of pre-competitive geoscience

data is bringing major companies to explore in PNG

• THE POTENTIAL FOR NEW DISCOVERIESIS VERY HIGH

Communication strategy

• Long term 5 year targeted, global effort.• Participation in industry conferences and trade

fairs.• Webpage - all information on the internet.• Industry reviews – published regularly.• Articles planted in leading industry publications.• Cooperation with other stakeholders (Chamber of

Mines & Petroleum).

Conferences & trade fairs

• Articles published pre-conference.• Attractive booth, location/lay out: PNG

exotic country with extraordinary geology.• Oral presentation.• Latest exploration results presented.• Special seminars organised.• Private meetings with targeted companies.• All material simultaneoulsy on webpage.

Focus countries

• Canada – global mining junior finance centre.• South Africa – important investor into PNG.• London – global mining majors’ finance centre.• Asia – emerging mining interests.• China – global mining boom engine and latest

investor into PNG.

PNG Facts & Figures at a Glance…

• Mineral dependant economy (65% total export receipts 2009).

• 2.2 million Oz Au, 13.3 tonnes Ag, 200,000 tonnes Cu produced in 2009.

• Contribution from 3x large mines, 2x medium mines, 2x small mines and 80,000 artisanal miners.

• 3x large land base mines, i.e. Yandera, Wafi, Frieda and one offshore mine, i.e. Solwara 1, to commence production in the next 5-8 years.

• Diversification of mineral base (Co, Ni & Mo).

Government Policies & Legislations - Mining Act 1992

• Principal legislation that regulates exploration & mining in PNG- first come first serve basis- EL up to 2,250 sq.km- unlimited renewals provided.

• Also allows- right in priority for mining lease- ML granted for 20 years (and renewable)

• License Types- EL, ML, SML, AML, Lease for mining purpose &

mining easement

Exploration Licences 2006-2009

Active Exploration Licences 2006-2010

0

50

100

150

200

250

300

350

2006 2007 2008 2009 2010

Year

No

Of

EL

s

Exploration Licence Applications2008-2009

0

20

40

60

80

100

120

140

160

2006 2007 2008 2009 2010

Year

EL

Ap

pli

ca

tio

ns

Exploration Expenditure2006-2009

-

10

20

30

40

50

60

70

80

90

2006 2007 2008 2009 2010

Year

EX

PE

ND

ITU

RE

(U

SD

mill

ion

s)

Grassroots Advance (Scoping To Feasibility) Total

Thank you for listening

PNG - a dynamic developing minerals industry

• Mineral Exploration in PNG • Geological Mapping• Geophysics• Geochemistry• Prospects for the discovery of new mineral

Resources

Functions of the Mineral Resources Authority

• Advise Minister on matters relating to management, exploitation, and development of PNG mineral resources• Promote orderly exploration and development of PNG mineral resources• Oversee administration and enforcement of Mining Act 1992, Mining Safety Act (chapter 195A), Mining Development Act, Ok Tedi Acts and Bougainville Copper Agreement Act• Negotiate mining development contracts and MOAs • Conduct geoscientific investigations into PNG geological resources• Provide small scale mining services• Collect, analyse, store, archive and disseminate and publish geoscientific information