Mining Lease Application

The Feasibility Study, together with an Application for the Mining Lease and the Proposal for Development, were submitted to the PNG Mineral Resources Authority on 30 October 2012.   The submission of the Mining Lease Application commenced a number of processes by the Mineral Resources Authority which included a wardens hearing for the Mining Lease, a review of the Project by a PNG State team, the Community Consultative Workshop and final review of the Mining Lease Application by the Mining Advisory Council.

The Mining Advisory Council deferred their final decision on the application, subject to the Company providing additional information on the status of the Environment Permit and the business case for the Project on current gold prices.

The Company has provided additional information to the Mining Advisory Council regarding the grant of the Environment Permit and the Project economics at a gold price in the US$1,300 per ounce range.  The Mineral Resource Authority have since engaged an independent expert to advise on the Project business case and recommend conditions which could accompany the grant of the Mining Lease.  The Company expects to have the Mining Lease granted in the second quarter 2014.