Details on 2012 Milestones:
-- The Company purchased four new diamond drills, two of which have capacity to drill 1,000-plus metres of HQ core, which were delivered between Q3 2012 and Q1 2013. The objective of purchasing drills was to retain corporate control and reduce drilling costs by approximately half of last year's rate. Two of the drills are also capable of working underground and on helicopter assisted drilling programs-- As part of the PNG Gold's mandate to build necessary infrastructure, the Company has also purchased an additional D5 bulldozer and four all- terrain vehicles, in addition to upgrading the site access road for all weather access, in order for drill work to continue through the heavy rainy season-- As part of the 2012 drill program, the Imwauna Main Structure was drilled to test the newly developed geological model, continuity and depth extent of gold mineralization. Results for drilling at the Imwauna prospect will be released on a timely basis. The Company's 2012 drill program consisted of 9,668 metres in 40 holes at the Imwauna and Kelas Prospect, of which the majority were completed in Q4 2012, As part of the 2012 drill program, the Kelas prospect was drill tested to better define its structural orientation and potential relationship to the Imwauna Structure mineralization. Please refer to the image http://media3.marketwire.com/docs/855535FIG1.pdf for the potential relationship between Kelas and Imwauna.-- Completed the construction, equipped and staffed the 100-plus person capacity, modern camp in Q3 2012. The main road from the coast line to camp is currently being upgraded to an all-weather status for tired vehicles to use during the rainy season-- Restarted the entire operations including hiring of operations team at the Alotau office and operations camp. Ceased to utilize a third party's operations office in Brisbane, Australia, in order to attain more direct control of operations, minimize the use of consultants, and significantly reduce administrative costs at the Company's Alotau office-- The Company hired Marc Plante as Country Manager. Mr. Plante brings over fifteen years of drilling industry experience, primarily as a project manager and in logistics for major projects around the world, including as Logistics Manager at Boart Longyear, and Project Manager at Foraco Drilling. He has extensive management and supervisory experience in both surface and underground drilling. Mr. Plante has completed underground driller, surface driller, driller trainer and generic supervisor training at the Norcat School of Mining.-- The Company also hired Dr. Guowei Zhang as Vice President, Technical Services. Dr. Zhang brings over 30 years of international experience in the mining industry and has been responsible for the development of structural models at a series of gold mines in Canada.-- PNG Gold also hired two local representatives to be liaisons on community projects, including its ongoing medical, educational, and clean water programs.
Drilling Program and Rig Deployment for 2013
Geological interpretation of the Imwauna Main Structure and interpreted gold mineralization along the structure by using historic and recent drilling indicates that drilling needs to continue at 25 metre by 25 metre intervals where high-grade gold mineralization is anticipated. PIMA studies of the recent drill core are helpful in determining the alteration assemblages associated with the gold mineralization and anticipated depth to which mineralization may extend. The Company expects focus on two of five potential Zones along the structure to determine the depth potential of gold mineralization, and provide sufficient data to develop a reliable resource estimate.