Tempest adds mines to portfolio png

Western Australia-based Tempest Minerals has entered into a conditional agreement with Lole Mining to acquire the world class portfolio of assets including the high grade Tolukuma gold mine and Mt Penck project in Papua New Guinea.

The deal means Tempest shareholders will benefit from the additional value of a near term production asset within a +2000 kilometer exploration portfolio along strike from some of the biggest gold and copper mines in the world.

The acquisition comprises a conditional multi-stage transaction where Lole will amalgamate with Tempest under its ownership in PNG on an equity-based acquisition value of approximately $25.7 million.

Tempest managing director Don Smith said in line with the company strategy of sustainable discovery and development, it was pushing full steam ahead with exploration fronts at the Meleya and other Yalgoo regional projects in Western Australia.

“At the same time we have identified this fantastic opportunity to drive growth by positioning ourselves as a near term gold producer with associated revenue stream and by adding high potential exploration ground to the portfolio,” he said.

“Many of the current Tempest team have previously been mine developers and we are really excited to work with the great team at Lole and look forward to generating value through this transformative deal.”

The Tolukuma Mine produced high grade gold and silver intermittently since commencement in 1995. To date, the mine has produced about 1moz gold and 2.4moz silver from small open pit and underground operations.

Tolukuma has been on care and maintenance since 2015. Much of the term mine is accessible and the near phase of working to access the existing mine can be readily achieved with drilling of known structures to extend the current mineralisation.

The Mt Penck project is located in the West New Britain Province of PNG with vehicle access possible by car through existing agricultural infrastructure roads from the nearby town of Kimbe, which boasts numerous supporting facilities, including logistics, heavy machinery, workshops, government services, banking , schools, hospital, hotel services, and acts as a regional hub and launch platform for multiple operations.

The mineralization found to date is classified as a high sulphidation epithermal system, likely fed by underlying porphyries. This mineral corridor hosts a number of other notable projects with similar geology such as Mt Andrea, Simuku copper-molybdnum and Mt Nakru copper-gold deposits.

While the project has a history of successful exploration dating back to at least 1960, no exploration has been completed since 2011. Parts of the project (Meto Creek) were explored by major companies such as BHP and Placer.

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