The company said this in line with its strategy to restart exploration at its flagship Crater Mountain Gold Project in Eastern Highlands Province.
CGM has agreed to purchase a 2002 Atlas Copco Diamec 252 drill rig (“Diamec 252 Drill Rig”) together with additional ancillary equipment. They include:
- A 415 volt 45 kilowatt electric over hydraulic power pack;
- A 1,000 volt 45 kilowatt electric over hydraulic power pack;
- An air over 22 kilowatt hydraulic power pack;
- Bob Cat mounting accessories;
- And feed frames and positioners, skid mounted; and
- Hydraulic motors and pumps.
The Diamec 252 Drill Rig is a very compact drill rig and is estimated to be able to drill diamond core holes of up to approximately 300 metres in length.
Despite reports that the CGM has had difficulties raising capital, the announcement is expected to see positive results shortly.
The project is located approximately 50km southwest of Goroka and comprises 3 connecting exploration licences, straddling the border between the Chimbu and Eastern Highlands provinces.
This region is in the centre of the New Guinea Orogen, an extensive geological zone that makes up the mountainous spine of PNG. The western portion of this zone encompasses the world class mining operations of Porgera, OK Tedi, Wafi-Golpu and Grasberg.