Garaina Project

Garaina Project - EL1614 and EL2013 –  Morobe Province (100%)

The Garaina Project is located 150km southeast of the Hidden Valley Mine and Wau Town, in the Morobe province, covering an area of approximately 404 km2. The tenement area covers the suture zone between the Owen Stanley Metamorphic thrust to the west and the Papuan Ultramafic to the east. Most of the EL is underlain by the Owen Stanley metamorphic complex, which is common to the majority of the known major mineral deposits in PNG.

PNR discovered significant surface mineralisation at the Kusi Prospect in January 2011 and since that time has completed extensive exploration programs with exciting surface exploartion and drilling results.

Field campaigns have identified mineralisation and alteration signatures similar to those seen at the Kusi Prospect as far north as the Sim Prospect, and as far west as the Kasuma Prospect.

Pacific Niugini advised the ASX of a farm out and joint venture agreement relating to Garaina  on the 3rd of April 2013, and provided details of the joint venture company, MGL Limited in the March 2013 quarterly report. The agreement is designed to ensure the rapid drill testing of the Kusi prospect at Garaina, while enabling Pacific Niugini to focus capital expenditure on near term production potential projects.

MGL is earning up to a 70% interest in the Garaina Project by spending up to $21 Million on drilling and exploration works, with the first phase requiring $6 million to be spent in the first two years for a 50.1% interest in the project.


Work in PNG during the quarter was focussed on advancing the drilling program at Kusi with highly encouraging results from the initial holes. All drill holes have returned significant zones which include Au-Cu-Mo mineralization in quartz-monzodiorite porphyry, intensely potassic altered wall rocks adjacent to porphyry dykes, skarn and structurally controlled phyllic alteration zones.

The most significant drilling results to date include:

»  KSD004: 20m @ 2.89 g/t (with 2.0m of core loss) from 107m, including 11m @ 4.72 g/t (with 1.4m of core loss) from 114m (previously reported);

»  KSD007: 35m @ 3.04 g/t from 136m, including 4m @ 18.75g/t from 160m, and including 11m @ 8.24 g/t from 160m.  These high-grade intercepts sit within an overall broad alteration zone of 106m @ 1.32g/t from 109m.

» KSDD006: 17m@ 0.22g/t Au, 1383 ppm Cu, 43ppm Mo, and 1913 ppm Zn from 163.6m;

» KSDD006: 10m @ 0.14 g/t Au, 1218 ppm Cu, 70 ppm Mo, and 805ppm Zn from 189m, including 4.65m of core loss;

» KSDD006: 61m @ 306ppm Mo from 202m, including 1.7m of core loss.


To date, Pacific Niugini has only received multi element results to 264m for hole KSDD006 (total hole length 460m), and advises that Mo assays remain strong at the end of reported results. IN hole KSDD007, only gold results have been received with all multi-element results pending

The most recent drill hole, KSDD007, was drilled underneath KSDD004. Alteration and mineralization is very similar in both holes but with more intense potassic alteration and veining has been noted in KSDD007, suggesting that the hole is closer to the source of mineralisation in the area.

 Details of holes drilled to date are tabulated below:









Collar  Coordinates (m)













Target description









Magnetic low anomaly. Potential mineralised underlying porphyry body. Strong surface gold and copper, in trenches.


results received








Magnetic high. Interpreted as potential mineralised underlying porphyry.

Hole Abandoned, results received








Magnetic high. Interpreted as potential underlying mineralised porphyry.


results received to 264m, remainder pending








Target down dip extension to diorite porphyry hosted copper and gold mineralisatioin noted in KSDD004.


Gold results received. Multi-element results pending.


The mineralization corresponds to clearly defined potassic and phyllic alteration zones within and around porphyry dykes and faults. Chalcopyrite and molybdenite are evident in quartz-pyrite-magnetite and quartz-pyrite veins and copper is associated with both potassic and phyllic alteration.  Vein intensity in the porphyry dykes is typically 10 – 20 veins per  metre although greater intensity was also noted in some zones.


Petrology studies have confirmed the presence of multiple stages of intrusion including diorite, quartz diorite, and quartz monzodiorite.  Copper is hosted by each stage of intrusion but most abundant in association with quartz monzodiorite.


Farm-in partner MGL’s General Manager Dr Mark Lindsay stated: “Drill results to date are very exciting. Epithermal mineralization has been mapped over an area of 1500m by 300m, and combined with a multistage intrusion history with Copper clearly associated with each stage, intense porphyry style alteration, and porphyry style veining all highlight the prospectivity of the system and re-enforce the probability of a significant porphyry deposit nearby. The prospect clearly hosts a large hydrothermal system and Kusi has real potential to be the next major mineral discovery in PNG.”


Drilling is continuing at Kusi, with MGL having spent approximately AU$3 million to the end of February 2014 and required to spend an additional AU$3 million in order to earn its initial 50.1% interest in the project.