Highlands Pacific Limited (ASX:HIG) (OTCMKTS:HLPCF) has revealed a maiden resource at its Star Mountains exploration project in Papua New Guinea.
Using a 0.3% copper cut-off grade, the Olgal prospect contains an inferred resource of 210 million tonnes at 0.4% copper for 840,000 tonnes of copper and 2.9 million ounces of gold (at 0.4 g/t gold).
Importantly, the Olgal resource area covers only a small part of the total Star Mountains tenement package of 1,049 square kilometres.
Highlands has a significant potential for additional discovery at other prospects within the tenement area.
Potential for a substantial mining project
Highlands’ Olgal resource estimate is based on data and assays from 23 diamond core drill holes at the prospect for a total of 8,949 metres.
The holes were drilled since the mineralisation was discovered by Kennecott in 1972, with exploration efforts intensified over the past few years.
The evidence gathered to date continues to suggest that Star Mountains may host a significant copper porphyry that may ultimately support a substantial mining project.
Highlands’ aim is to introduce a new joint venture partner to work with it to build on the maiden Olgal resource and continue to investigate other prospects.
Olgal could be amenable to conventional metallurgical treatment
At this early stage, a bulk mining operation seems likely for Olgal.
Olgal appears to be a typical copper porphyry, and mineralogical studies indicate that copper occurs as fine-grained disseminated chalcopyrite with local minor bornite.
Therefore, it is assumed that Olgal will be amenable to metallurgical treatment by conventional flotation.
