Geopacific Resources has started construction at the Woodlark gold project in the Milne Bay province of Papua New Guinea.
Following a successful $40 million capital raising announced in October, the first design work has begun in preparation for process plant construction.
The work will include road upgrades, new wharf construction, process plant site clearing, Kulumadau Village relocation and Woodlark mine camp upgrades.
Once upgraded, the mine camp will be able to accommodate an additional 250 people.
The civil earthmoving will be completed by HBS Machinery while international project manager Rhodes Projects will build house and village amenities.
Geopacific Resources managing director Ron Heeks said the company was excited to begin construction activities in such a short timeframe since the capital raising.
“Extensive work was undertaken to achieve this commencement date as we aim to deliver gold production in a safe, timely and cost-efficient manner,” Heeks said.
“Geopacific has made a commitment to engage as many Woodlark residents as possible for all aspects of the project, including the Kulumadau relocation.
“This is expected to create a skills transfer and sense of community ownership of the new village and they are excited to see the benefits of skills training, employment opportunities, health and education as a result of Woodlark’s advancement.”
The village will be relocated a short distance to new areas outside the mining lease selected by the residents. New houses, trade stores, churches, schools and other amenities will be built.
With tranche two of the $40 million placement approved, Geopacific’s issued capital share consolidation is under way, converting every 25 shares into one share.