ASX-listed Geopacific Resources is set to begin a 30 000-m drilling programme at its 1.7-million-ounce Woodlark gold project in Papua New Guinea.

Following the completion of a A$40-million entitlement offer in January, the company is now set to drill extensively and produce a definitive feasibility study (DFS) by the end of the year. The funds raised will be allocated to key exploration activities, including drilling, road upgrades, and trenching. 

"Significant underlying value and upside potential exists at Woodlark. With funding for an extensive exploration and project development work programme now in place, the team is working hard to deliver on a series of key objectives," said Geopacific CEO James Fox in a statement on Tuesday.

A major component of the Woodlark project’s next phase is the 30 000 m of reverse circulation and diamond drilling, designed to extend the known gold mineralisation and explore new targets that could potentially increase mineral resources. The programme will begin in May, with two drill rigs set to start operations, followed by a third rig in July. The drilling effort will focus on priority targets such as Little Mackenzie, Wayai Creek, and Boscalo North/Great Northern, which have shown promising signs of economic gold mineralisation.

Trenching and augering activities will start in March to better define the surface expression of mineralisation in key areas. “We are keen to assess the impact of the materially higher gold price and ensure the engineering design appropriately considers throughput flexibility to maximise project returns,” said Fox, highlighting the project’s responsiveness to market conditions.

Geopacific has selected Papua New Guinea-based drilling contractor Quest Exploration Drilling as the preferred partner for the upcoming programme. The company is also working with a local earthmoving contractor to mobilise key equipment for site preparations, including road upgrades and drill pad preparation. About 20 km of road will be upgraded to ensure access to the newly identified exploration areas, with initial drilling slated for May 2025.

In a bid to improve efficiency and turnaround times, Geopacific is upgrading its on-site sample processing and storage facilities. The project will also benefit from an enhanced sample transport and analysis strategy, with processing to take place on Woodlark Island before samples are sent for further analysis.

In addition to the drilling programme, Geopacific is re-engaging industry leaders GRES to update the DFS, which is scheduled for completion by the end of 2025. The updated DFS will assess and optimise various operational parameters, including the process plant and infrastructure design. It will also validate the technical, economic, and operational feasibility of the project.

The updated DFS will build upon a scoping study completed in mid-2023, which highlighted significant economic and construction design improvements. Given the recent increase in the gold price to A$4 702/oz — nearly 62% higher than the gold price used in the initial feasibility study — the updated DFS will re-evaluate key factors like throughput flexibility to maximise returns.

Geopacific is also advancing the necessary environmental assessments for the project, working with Erias Group. The environmental assessment report is on track for submission in the first half of 2025 and will support the necessary environmental approvals for an expanded throughput rate of up to 3.5-million tonnes a year.

Geopacific's team is focused on delivering a series of critical milestones for the Woodlark gold poject in the coming months, including the commencement of the large-scale drilling programme, the updated DFS, and the continued advancement of environmental approvals. With strong funding in place, a clear development pathway, and a robust project plan, Geopacific is positioning the Woodlark Gold Project as a significant player in PNG's gold sector.

Fox concluded: "We look forward to updating the market as the project activities progress." With the drilling programme set to kick off soon, all eyes will be on the Woodlark gold project as it progresses towards its goal of delivering enhanced resources and a robust economic outlook.