GEOPACIFIC RESOURCES LTD — Board/Management Information 2018

Jan 23, 2018

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24 January 2018
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Woodlark 2018 project plan

The Board of Geopacific Resources Ltd (Geopacific) is pleased to provide this summary on the status of project work streams to progress the Woodlark Gold Project (Woodlark) in Papua New Guinea (PNG). 2017 Was a defining year for Geopacific and Woodlark with Geopacific gaining control of the Project and completing a significant body of work to enable the successful development of Woodlark.

Project Highlights

• Project permitted to mine

• CIP processing plant permitted

• Environmental and social permits in place

• Logistically and socially attractive area to operate

• Large regional upside confirmed by identified exploration targets

• Over 290,000 metres of drilling completed (30,000 metres by Geopacific)

• Significant body of work and data with $150 million spent by previous owners

• Pit optimisation, mine planning and scheduling in progress

• New Resource and Reserve estimates due in March 2018

• New DFS due for completion in mid 2018, ready for release in Q3 2018

On track to deliver gold Reserve in March 2018

Geopacific is confident in the development program completed and its value to the successful development of Woodlark. The program comprised an extensive historic data review and validation process with a further 30,000m of drilling designed to infill and upgrade areas of inferred resources while extending mineralisation. Simultaneous engineering studies have delivered realistic operating costs, derived on a ‘first principles’ basis. The costs are being incorporated into reserve estimate calculations with pit optimisation, mine design and mine scheduling currently underway.

DFS preparation on track, DFS release scheduled for Q3 2018

Geopacific will follow an EPC contract to develop Woodlark, where process guarantees are provided by the constructor. Lycopodium was engaged to design and manage a metallurgical variability and optimisation testwork program to facilitate this. The program is progressing on schedule, with results expected to dovetail with the release of the Reserve for Lycopodium to use in the final engineering design and costing for the DFS. Reputable EPC contractors have been engaged in discussion, with final selection expected to follow a tender process after the DFS is released. The DFS remains on track for completion at the end of June 2018, ready for internal review prior to release in Q3 2018.

Exploration potential

Historic regional exploration confirms the vast, untapped potential of the greater regional goldfield on Woodlark Island. With the recent completion of resource/reserve drilling, Geopacific’s geological team have now turned their focus to evaluating this potential and available data to prioritise exploration targets. Geopacific believe that exploration success has the potential to significantly add to the gold inventory and continue adding to mine life at Woodlark.

Geopacific Resources Limited ASX Code: GPR (ASX code: KGD) www.geopacific.com.au

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Managing director Ron Heeks said

“Geopacific is well-positioned to deliver the key parameters that underpin a robust gold project in 2018. We made sure that the 2017 work programs were completed thoroughly, to achieve Resources and Reserves that we are confident about and a development-ready project. We are comfortable that the project development elements are running smoothly and now have the opportunity to evaluate the considerable exploration upside which is apparent right across the Woodlark project area.”

Significant works by Geopacific

• Over 30,000 meters of diamond and RC drilling

• Full geological review and interpretation

• Pre-Geopacific drillholes re-logged and integrated into geological model and database

• QA/QC updated to JORC 2012 standard

• Updated geotechnical drilling and review

• Independent metallurgical and process design review

• Independent processing and mining cost preparation on a ‘first principles’ basis

• Independent engineering review

• Variability and optimisation metallurgical test work

• Review of environmental studies

• Review and optimisation of key site infrastructure

• Resource and reserve calculations utilising independent consultants

• Independent consultant engaged to conduct DFS

• Established working relationships with key project stakeholders

Social

Geopacific recognises the importance of its role in relation to key stakeholders, particularly local communities and PNG authorities.

The geographic location of the Island presents a unique opportunity which bolsters the alignment of Geopacific and Island-based community interests. Geopacific is the sole-employer on the Island and enjoys strong support from the Island-based communities. Working relationships have been established with community leaders, while community projects and information sharing are integrated into daily operations.

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Figure 1: Exploration Manager and Community liaison manager visit villagers near Kulumadau.

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Contact

For further information on this update or the Company generally, please visit our website at www.geopacific.com.au or contact:

Mr. Ron Heeks Ms. Philippa Leggat

Managing Director Executive Director Corporate

	Company details	Board	Projects
	Geopacific Resources Limited	Milan JerkovicChairman	PAPUA NEW GUINEA
	ACN 003 208 393	Ron HeeksManaging Director	Woodlark Island Gold
	ASX Code: GPR	Philippa LeggatExecutive Director	CAMBODIA
	info@geopacific.com.au	Mark BojanjacNon-Exec Director	Kou Sa Copper
	http://www.geopacific.com.au T +61 8 6143 1820	Ian ClyneNon-Exec Director Matthew SmithCompany Secretary	FIJI Nabila Gold, Rakiraki Gold, Sabeto Gold- Copper, Vuda Gold-Copper, Cakaudrove
	HEAD OFFICE		Gold-Silver
	Level 1, 278 Stirling Highway, Claremont WA 6010.
	PO Box 439, Claremont WA 6910.

Competent Person’s Statement

The information in this announcement that relates to exploration results is based on information compiled by or under the supervision of Jim Kerr, a Competent Person who is a Member of The Australasian Institute of Mining and Metallurgy and General Manager, Geology for Geopacific. Mr Kerr has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and the activity he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Kerr consents to the inclusion in the announcement of the matters based on his information in the form and context in which it appears.

Forward Looking Statements

All statements other than statements of historical fact included in this announcement including, without limitation, statements regarding future plans and objectives of Geopacific Resources Limited are forward-looking statements. When used in this announcement, forward-looking statements can be identified by words such as ‘may’, ‘could’, ‘believes’, ‘estimates’, ‘targets’, ‘expects’ or ‘intends’ and other similar words that involve risks and uncertainties.

These statements are based on an assessment of present economic and operating conditions, and on a number of assumptions regarding future events and actions that, as at the date of this announcement, are expected to take place. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the company, its directors and management of Geopacific Resources Ltd that could cause Geopacific Resources Limited’s actual results to differ materially from the results expressed or anticipated in these statements.

Geopacific Resources Ltd cannot and does not give any assurance that the results, performance or achievements expressed or implied by the forward-looking statements contained in this announcement will actually occur and investors are cautioned not to place undue reliance on these forward-looking statements. Geopacific Resources Ltd does not undertake to update or revise forward-looking statements, or to publish prospective financial information in the future, regardless of whether new information, future events or any other factors affect the information contained in this announcement, except where required by applicable law and stock exchange listing requirements. Woodlark is permitted by the PNG Government, subject to meeting the conditions of the licence.

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