The Tolukuma Au/Ag vein system, Papua New Guinea

A continued exploration programme has further defined the geology of the Tolukuma vein system, verified the resource indicated by Newmont, and identified potential for additional mineralisation. The resource at Tolukuma Hill, designated as Zone C, is a measured 440,000t @ 17g/t Au and 46g/t Ag with an additional indicated resource of 120,000t @ 16g/t Au. A diatreme breccia localised at an intersection of structures, and a relationship of gold to base metal sulphides, are highly indicative of a porphyry association. Typical epi-thermal features such as crustiform banded quartz and quartz pseudomorphing. platy calcite are also present and locally contain lesser gold mineral-isation. Pre-existing dilatant structures have acted as a host to the ore fluids, resulting in the formation of the semi-continuous Tolukuma-Gulbadi veins over a 1100m strike. A fluid flow model suggests that mineralising fluids were sourced from the diatreme margins and migrated laterally along dilatant structures. Bonanza gold grades are derived through fluid quenching in the flexure between a hanging wall split which hosts much of the Tolukuma Hill resource and the feeder graben structure. Thus, the relationship between the pre-mineral structural geometry and fluid upflow at the margins of a diatreme breccia, controls the ore setting. Potential for more ore remains within the Gufinis and the 120 veins as well as in the outlying Prospects.