COPPERMOLY GOES FOR GOLD IN PNG

ASX-LISTED gold and copper miner Coppermoly Limited (COY) has assured shareholders that prospects are solid in its PNG tenements after securing future exploration funding with Canadian multinational Barrick Gold.

Barrick Gold is one of the largest and most successful exploration and mining companies in the world and will fully fund at least three projects in 2011. It has already funded $5 million in projects.

Despite recording a $2.1 million loss for FY10, Gold Coast-based Coppermoly has improved its cash position by $1.7 million, as it continues exploration work on its PNG copper-gold projects.
The company has exploration licence applications in place for additional tenements on New Britain Island and will continue to apply its expertise in exploration when granted.

Managing director Peter Swiridiuk, indicated that growth could be 20 per cent in FY11 if all applications are granted, with potential market cap of around $30 million.

“I have just arrived back from PNG and applications are in progress,” says Swiridiuk.

“We need to increase shareholders in PNG – there are currently 100 and we need 300. The second quarter next year could see us raise capital if exploration permits are granted.”
Swiridiuk says while security in PNG is a constant, the company is fortunate that it had not encountered landowner issues.

“Landowner groups have been quite supportive, they want to see these projects go ahead. We have two landowner groups working on one of the projects and have engaged another three groups on another.”

Chairman Peter McNeil (pictured) is optimistic given projects are in the pipeline.

“The company has substantially advanced its exploration licenses in less than three years of listing on the Australian Stock Exchange. It has also secured the future – to the extent that it is possible – for the ongoing exploration of those tenements,” he says.

All resolutions were passed at the company’s AGM on the Gold Coast today.

COY shares were down 6 per cent at close to $0.155.