Exploration & Development of High-grade Copper-Gold at Laloki, PNG

Laloki Copper-Gold Project

Overview

Subject to the Company seeking and being granted a review of the Minister's decision not to grant its exploration licence (as announced on 28 January 2021) and its exploration licence applications ultimately being granted, the Company intends to explore for high-grade copper-gold Volcanogenic Massive Sulphide (VMS) mineralisation at Laloki, located about 15km from Port Moresby, the capital of PNG and in the adjoining Rigo area.

The Laloki copper-gold project comprises a single Exploration Licence Application (ELA2557) covering an area of 126 km² on the East Papuan Peninsula in Papua New Guinea. The Laloki project is centred approximately 15 km from the capital city of Port Moresby and is readily accessed via the Hubert Murray Highway to the north or the Magi Highway to the south. The unsealed Old Rigo Road, which traverses the Laloki project area, links the two highways. The Laloki project area is covered by a network of unsealed local roads and tracks.

Electrical grid power and scheme water are connected to the project area via the Rouna Falls Hydropower Station and the Port Moresby high-tension powerline. Skilled and unskilled labour, wholesale goods and services are readily sourced from Port Moresby, which serves as the main port of entry to Papua New Guinea via the Jackson International Airport.

The Company's application for ELA2557 was lodged in November 2017. The details of the application were negotiated with the PNG mineral resources regulator, the Mineral Resources Authority (MRA), and a statutory Mining Warden’s Hearing was conducted on 11 April 2018. 

Upon an application being made for an exploration licence in PNG, it is the Minister of Mines who has the power to grant that application, but only after considering a recommendation of the Mining Advisory Council (MAC). 

Torrens understood that it had complied with all obligations imposed on it under the PNG Mining Act for the grant of an exploration licence pursuant to ELA2557. 

Torrens understands MAC made its recommendation to the Minister on a date prior to 25 February 2019. 

Given the delay in the Minister determining ELA2557, on 30 September 2020 Torrens commenced proceedings OS (JR) 58 of 2020 to obtain an order in the nature of mandamus to compel the Minister to, in effect, make a decision on the grant of ELA2557. 

Torrens has now been informed by MRA that the Minister has refused Torrens’ application for the EL. 

Torrens is considering its position, which may include an application to the National Court of PNG for a review of the decision of the Minister to refuse the grant of the EL. Torrens remains fully committed to protect its investments in PNG.

Geological Overview

Geologically, the Laloki project is located within the Papuan Geologic Province which is a fold belt on the northern side of the Papuan Thrust. It is one of approximately 40 known polymetallic massive sulphide deposits or gossans that occur in the Astrolabe Mineral Field. These mineral occurrences are stratiform (or associated with gossanous zones) and are hosted within Tertiary shale and siltstones comprising lutite facies of the Port Moresby Beds. Previous work has suggested that mineralisation occurrences within the Astrolabe Mineral Field represent examples of common volcanogenic massive sulphide (VMS) mineralisation, with numerous historical references to the ‘Besshi style’, named after a type of VMS deposit in Japan.

Three main rock types have been identified within the area covered by the Laloki project:

• Sediments belonging to the Varirata Argillite member of the Port Moresby Beds:   These comprise mudstones, shales, lutite and calc-lutite with lesser amounts of limestone, sandstone, conglomerate and tuff.  Fossil evidence suggests mid-Miocene age and probably deposited in water between depths of 3,000 and 4,000 m.

• Gabbro and dolerite of the Sadowa intrusive complex: Its contact with the sediment is rarely seen but is generally thought to be conformable. The gabbro is coarse-grained and varies in composition from olivine gabbro to quartz gabbro.

• Scree and talus from the Pliocene Astrolabe Agglomerate occurring on the western edge of the tenement:  The agglomerate forms prominent scarps to the north and east of the tenement and is predominantly mafic laharic agglomerate and tuff and is unconformable over the gabbro and sediments.  Scree apron around the prominent Variarata Escarpment may mask areas that are prospective for mineralisation.

Historical Work

The Laloki project has a long work history, which includes the production of approximately 40,000 tonnes grading 4.5% Cu, 4 g/t Au and 15.3 g/t Ag. There are no current Ore Reserve, Mineral Resource or Exploration Target estimates for the Laloki project.

Prospectivity and Work Plan

A map of the prospects at Laloki is set out below. The Company has developed a work plan which includes an airborne geophysics program, a comprehensive desktop review and database development and mapping and sampling programs which will be used to form a local architecture/geological framework model and allow detailed local targeting. Given the issues related to tenure noted above, minimal funds have presently been allocated to Laloki. In the event the Company is granted an exploration licence for Laloki, it may consider re-allocating funds from other exploration programs, depending on the results of those programs.