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Pacific Niugini Hits Bonanza Gold Heights At Nicolsons

Pacific Niugini (ASX:PNR) has delivered some very high-grade gold results from diamond holes at the Nicolsons Gold Mine near Halls Creek in Western Australia.

The company is looking to re-commence mining and ore processing at the high-grade Nicolsons Project, which has an existing 120,000 tonne per annum processing plant.

Nicolsons has a resource of 260,000 ounces at 5.6g/t gold.

The latest highlights from five holes include:

- 1.2 metre at 102.92g/t gold from 121.6 metres, including 0.8 metres at 149.17g/t gold; and

- 3.4 metres at 13.21g/t gold from 117.3 metres, including 0.36 metres at 121g/t gold from 117.3 metres.

Adding to the multi-metal potential, coincident high grade silver highlights included: 1.2 metres at 130.2g/t silver from 121.6 metres, including 0.8 metres at 193g/t silver.

These results follow on from last week's 3 metres at 20.43g/t gold from 106 metres, including 1.6 metres at 34g/t gold.

The results further support the company's view that the mineralised lode structures are narrower and higher grade than is depicted by block modeling from predominantly reverse circulation drilling with 1 metre sample intervals.

There is the potential for selective mining of narrow, high grade lodes which could deliver higher head-grades and a better economic output from mining and processing.

Paul Cmrlec, managing director, commented: "These outstanding results are confirming the huge opportunity that exists at Nicolsons where we are working to establish a small-scale but high-value underground gold mine.

"Due to the significant in-place infrastructure including the 120,000 - 150,000tpa process plant we believe that Nicolsons presents a low-cost and low risk mine development.

"The evaluation of this ore system from an underground development perspective is in its infancy with the ore system shallowly drilled and the ore body open in all directions."

In addition to the Nicolsons Mine there are known resources at the Wagtail and Rowdies Prospects, located 2 kilometres to the south and along strike of the mine.

These have been primarily drilled using reverse circulation methods, with several high grade intercepts.

Halls Creek Project JV structure

Pacific Niugini is currently the 49% owner and sole manager of the Halls Creek Project following acquisition from Bulletin Resources (ASX:BNR).

BNR is currently the 51% owner of the project. PNR is increasing its ownership of the project to 80% through expenditure on the project.

Pacific Niugini expects to meet its first stage $1.2 million expenditure around December 2014, at which time its ownership in the project will increase to 65%.

Analysis

Today's results further emphasise the high grade potential at the Nicolsons Gold Mine, which already hosts 260,000 ounces at 5.6g/t gold.

Pacific Niugini is farming in to a high-grade gold project with supporting infrastructure including an existing 120,000 tonne per annum processing plant.

This initial drilling program has been focused on areas of immediate interest for mining and a re-start of operations.

Adding to the prospectivity, there is the potential to extend high-grade mineralisation to the north, and at depth, where the current resource is only constrained by the amount of drilling completed to date.

More assays are pending.

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