The Simberi Gold Project is located on Simberi Island in the Tabar Islands Group situated in the New Ireland Province of Papua New Guinea (PNG), approximately 80 km north-west of Lihir Island. Simberi is the oldest and northernmost island of the Tabar Group. It measures approximately 10 km east-west, 8 km north-south and rises to over 300 m above sea level. The currently known gold prospects (Sorowar, Pigiput, Pigibo, Botlu, Pigicow, Samat, Bekou and Monun Creek) on Simberi Island are located in the eastern half of the island within the central volcanic core. They are contained within a sub-cropping epithermal alteration system and structural corridor extending 4km north-south and 2km east-west. The host rocks for the mineralisation comprise Pliocene altered alkaline lava flows or intrusives (porphyries), volcaniclastics and tuffs.

Of the eight separate deposits, Pigiput in the south is by far the largest gold resource. Monun Creek is located immediately to the north-east of Pigiput, with Sorowar, the second largest resource, further north again. Pigibo, Botlu, Samat and Bekou lie to the west and south of Pigiput, and while relatively small, are relatively higher grade. All deposits lie within 2 to 3km of each other. Sorowar, Pigiput and Botlu are currently being mined via open pit methods.

Fine grained free gold in oxide material is the target of current operations. Within the sulphide zone gold is also fine grained (most grains are under 15 µm in diameter) but is generally within pyrite. Modifications are required to the current processing plant to allow flotation of pyrite and recovery of the gold.

The mining method for all deposits is open pit, using 5 m flitches and 20 m benches.

The oxide operation is expected to maintain the current production level during the expansion of the mining fleet and construction of the sulphide plant.

The sulphide plant has been designed to process 3.0 Mtpa, with a robust flow sheet and use of common equipment. In addition key equipment has been identified to increase throughput to 3.7 Mtpa, whilst maintaining the existing Semi-Autogenous Grinding (SAG) mill.

The expanded sulphide plant will enable processing of both oxide and sulphide ore and it is anticipated that oxide material will be processed as a batch operation to maintain and control stockpiles.

Construction of the sulphide processing plant is designed to minimise disruption to the existing operation, with construction phases to be completed in isolated packages. The project plans to utilise the existing infrastructure on Simberi island including the airport, tailings management, accommodation village, power generation and administration facilities.

Sulphide ore is refractive and cannot be treated economically through a standard CIL plant. Testing has indicated the flotation of the sulphid ........