A $77-million expansion plan has been approved for the Porgera gold mine in Papua New Guinea (PNG).
Vancouver-based Placer Dome (TSE) holds an 18.9% interest in the joint venture. Among the other partners is the PNG government.
The grinding and flotation capacity will increase to 17,700 from 10,000 tonnes per day, and daily production from the pressure oxidation circuit will rise to 700 from 400 tonnes. Enhancements will also be made to water storage capacity, lime production and power generation.
The expansion, to be completed by the first quarter of 1996, will improve gold production and help maintain production costs below US$200 per oz. for the life of the mine.
The lower costs are expected to increase the potential for increasing reserves. One area with potential resources lies 600 metres north of the 28-level adit, where channel sampling has returned assays with promising gold values. The joint venture has already begun drilling the target. At the end of 1993, Placer’s share of production from Porgera was 300,946 oz., and proven and probable reserves stood at 9.1 million tonnes averaging 5.5 grams per tonne.
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