Although relatively small compared to other mines in Papua New Guinea (PNG), LCL Resources’ Ono gold project represents a promising venture in the country’s mining sector.
Geological setting and exploration
Ono and its Kusi deposit are situated around 150km from the port city of Lae within the Owen Stanley metamorphic belt. This region is known for significant mineral deposits, including the Hidden Valley gold mine and the Wafi-Golpu copper-gold project.
LCL has identified additional exploration potential through historic trench results south-west of Kusi. One notable historic trench returned 28m at 0.8 grams per tonne (g/t) of gold and 21.6g/t of silver.
To further delineate mineralisation, LCL is planning a 3D-induced polarisation (IP) survey to target deeper zones within the lower limestone unit and define the Kusi intrusive body’s margins.
New and existing shareholders have strongly endorsed this strategy, and with Ono’s mineral resource estimate standing at 18.3 million tonnes at 1.42g/t of gold, it isn’t hard to see why.
“The geology supports the existence of further shallow pods of mineralisation around the central Kusi intrusive centre, as well as the possibility for deeper mineralisation within the lower limestone,” LCL Resources executive chairman Chris van Wijk said.
“Further exploration is warranted to investigate the tenor and scale of mineralisation in the lower limestone unit, as well as to test the obvious targets outlined by the soil geochemistry results.”
Independent mining consultancy WSP has been commissioned to estimate an inferred mineral resource incorporating all the drilling completed by LCL since it acquired Ono in 2022.
“[LCL Resources] is investing in the use of 3D IP to target mineralisation at depth in the lower limestone unit and to define the margins of the Kusi intrusive body,” van Wijk said.
“These results reflect the focus on the copper-gold assets within the portfolio. There remain a number of other copper-gold opportunities to follow up on in PNG which we are excited to continue exploring.”
The road ahead
LCL is committed to advancing Ono through responsible exploration and development practices by engaging local communities and stakeholders to ensure the project delivers meaningful long-term benefits to the region.
With the maiden resource estimate establishing a strong foundation, LCL is poised to undertake further exploration activities aimed at expanding the resource base and unlocking the full potential of Ono.
LCL also underscored its commitment to PNG in December by divesting its Andes gold and Quinchia projects in Colombia to Tiger Gold Corporation.
Tiger Gold paid $1 million in cash for both assets, with LCL receiving an additional $500,000 in cash and a percentage of the share capital that completes the going public transaction, equivalent to $8.5 million in consideration shares.
“This acquisition represents a pivotal moment for Tiger Gold, allowing us to pick up on the great work LCL has done to discover new resources, secure permitting at Miraflores, and continue the de-risking process to unlock the significant opportunity these assets have to develop into one of Colombia’s next producing gold mines,” Tiger Gold president and chief executive officer Robert Vallis said.
“We’re not just acquiring assets; we’re acquiring an experienced team on the ground with a view to establish a productive relationship with the local communities and create substantial value for all stakeholders.”
van Wijk said the company is delighted in Tiger Gold’s interest in the assets.
“We look forward to working with the Tiger Gold team to advance the projects and to grow our investment for the future benefit of LCL’s shareholders,” he said.
“This deal is a positive first step in rationalising the company portfolio of assets, bringing a material amount of cash into LCL which will see us well funded to continue low-cost exploration on our PNG assets and further business development activities aimed at generating returns for our shareholders.”
As global demand for gold remains robust, Ono stands out as a significant opportunity within PNG’s mining sector.
LCL’s strategic focus on this high-potential asset underscores the company’s commitment to contributing to PNG’s economic development through sustainable mining practices.
