Pacrim Energy - Growth through discovery

Other Projects

Fosterville Regional Joint Venture

(Victoria, Gold Fields Australasia Pty Ltd 7.1%
(conditional sale to Timpetra Resources Limited. Pacrim 22.9%)

Although no substantial field activities were carried out during 2010, Gold Fields notified Pacrim of having received a conditional offer for their interest. Pacrim waived a right of first refusal with respect to the offer. Proposed IPO, Timpetra Resources Limited are seeking to raise $10 million to fund further work on the Lockington East JV and the Lockington Project being acquired from Gold Fields. Pacrim looks forward to renewed enthusiasm to advance gold exploration in the area.

Manus Copper Gold Project

(Manus Island, PNG – Pacrim 13.43%)
(Operated by Newcrest Mining Limited).

An Agreement between Triple Plate Junction (TPJ) and Newcrest Mining Limited (“Newcrest”) was signed during the year in respect of funding exploration on the Manus Island Project.

TPJ, through its wholly owned PNG subsidiary Terenure Limited, currently holds a 75.98% participating interest in the tenements in joint venture with Pacrim Energy Limited (“PRE”, 13.43%) and Golden Success Limited (“GSL”, 10.59%).

Under the agreement Newcrest may earn 80% of TPJ’s participating interest (leaving TPJ with an interest of 15.20%) by funding A$6 million of project expenditure within five years of completion of the agreement, including a commitment to fund at least A$1 million of project expenditure within the first two years. Pacrim intends to dilute to a 10% interest, free-carried to decision to mine as per its entitlement under the existing terms. Newcrest are now the Manager of the project.

The Pacrim Board consider that Newcrest with its experience, technical expertise and funding capacity, is an ideal company to explore the potential of gold and copper mineralisation on Manus Island.

Newcrest is the world’s fourth largest gold producer with a current market capitalisation approaching A$30 billion and has a long history of major gold and gold-copper resource discovery and development of ore bodies. Update
The Manus Island project comprises Exploration Licences 1326 and 1473 that cover an area of approximately 674 square kilometres. Through previous work a number of mineralised centres have been recognised over a 30 kilometre long NW-SE corridor. Examples of geological prospectivity within the corridor include:

  • Mt Kren, where re-interpretation of induced polarization (IP) geophysics suggests the top of a significant anomaly occurs at 175 metres depth with an East-West dimension of around 500 metres lying on the eastern edge of known mineralization;
  • An extensive silica-alunite alteration cap at the Njekel prospect remains untested for any underlying mineralisation;
  • Exploration on the Kisi epithermal gold occurrence has outlined a gold-in-soil anomaly of +0.5ppm extending some 2km by one kilometre. Surface trench sampling of the intermittently exposed Kisi vein has returned high gold values including 16m @ 40g/t gold; and
  • Limited scout diamond drilling at Kisi has intersected a series of gold-bearing veins with a best intersection of 5.8m @ 4.98g/t gold from 116.4 metres down hole.

Pacrim anticipates renewed momentum in exploration on Manus and looks forward to the commencement of a new phase of advancement and discovery.