The nearby Porgera mine is the second-largest mine in PNG and is regarded as one of the world’s top 10 producing gold mines
RTG Mining (ASX:RTG, TSX:RTG) announced its intention to acquire a majority stake in the Mt Kare gold project located in the Enga province of Papua New Guinea.
To carry on with such a plan, the Australian miner entered into binding Memorandum of Agreement with GMG Global Mining Group and Tribune Mt. Kare, the two priority applicants for the project who would sell an 80% interest if and when successful in securing the new exploration licence. The deal involves cash payments for a total of $6.5 million.
Located approximately 600 kilometres northwest of Port Moresby and 15 kilometres southwest of Barrick Gold’s (TSX:ABX) (NYSE:GOLD) Porgera gold mine, Mt Kare has a historical resource (JORC 2004), which includes a measured mineral resource of 1.2 million ounces of gold, an indicated mineral resource of 0.3 million ounces and an inferred mineral resource of 0.6 million ounces of the yellow metal.
Discovered in 1987 by Conzinc Riotinto of Australia, the project has had in excess of A$60 million spent on it by several companies, including 454 diamond holes totalling 73,639 metres.