According to Gold Anomalythe HGZ has been a popular spot for local miners, who have historically minedthe area.
Around 15,000 ounces of gold are estimated to have been mined from shallow underground workings in a steep spur between 2005 and 2012, applying very simple mining and gravity processing methods.
Gold Anomoly pointed out little drilling has undertaken onthe HGZ to date asthe company’s focus has been onthe Mixing Zone and its perceived deep porphyry-related lead-zinc-gold and copper-gold potential.
“The beatuty of owning an asset such as Crater Mountain is thatthe project has boththe potential for near term, low cost production as well as large scale, bulk tonnage, long term development,” Gold Anomaly executive chairman Greg Starr said inthe company’s announcement tothe Australian Securities Exchange.
“With markets still displaying volatility for the junior end,the company can focus on generating near term cash flows and capitalising on buoyant gold prices.”
Gold Anomaly also announcedthe appointment of Richard Johnson as general managePNG Operations, which it’said was in keeping with its strategy to target shallow, near term gold production at Crater Mountain.
Mr Johnson is a mining engineer with experience running small and large scale projects such as DRDGold’s high-grade underground Tolukuma gold mine in PNG rsquo;s Central Province.
Aside from his time at DRDGold Johnson has been a senior executive and director of a number of listed companies that operate inthPNG and Pacific region, including Alllied Gold.
“We are pleased that we have been able to attract someone ofthe calibre and experience of Richard Johnson,” Starr said.
“Withthe improverment in company finances, refocus of strategy and appointment of an experienced manager, we look forward tothe return of Gold Anomaly’s Crater Mountain project as one ofthe most exciting and fastest growing gold projects in PNG inthe near term.”