Magnetite, gold and sulphides
The Ok Tedi River Heavy Minerals Project is the most advanced of the AMD’s projects and provides the company with near term production capability. Located to the south of the producing Ok Tedi Copper-Gold Mine (operated by Ok Tedi Mining Limited ‘OTML’), which is one of the largest mining operations in PNG and currently contains the revised 2013 Global Resource of 871 Mt @ 0.44% Cu ad 0.54g/t Au.
Substantial volumes of tailings have been generated from Ok Tedi and have been deposited into the active drainage of the Ok Tedi River System for a distance of over 150km and have been reworked and deposited into sand bars and silty levee bank deposits overlying gravel.
The Ok Tedi Heavy Mineral Project consists not only of tailings deposited in the active Ok Tedi River but also two engineered stockpiles containing a total, drill estimated 259 million tonnes of sand supported by two Exploration Licences covering 80km of the Ok Tedi River. This advanced project contains a large established resource of high-iron magnetite and valuable sulphides with by-product gold in reworked riverine disposed tailings sands, which are amenable to low cost mining and processing using established mineral sand industry technology.
The East and West Stockpiles, located downstream to the Ok Tedi Mine and AMD’s two ELs, are the result of environmental dredging to relieve the flood plain carried out since 1998. With 17-20 million tonnes of heavy mineral bearing sands dredged each year, it is anticipated that at least 10 years of further dredging is yet to be completed. The engineered stockpiles on the East and West bank of the Ok Tedi River covering 1,000 hectares store waste from the last 20 years.
By focusing its efforts on the stockpiles, the advantages for AMD moving forward include:
Continuous operations are ensured
Reduction to traditional landowner risk
Substantial reductions in caped due to existing infrastructure
Significant source of very low-cost premium magnetite, gold and sulphides
Inferred JORC (2012) Resources contained within the East and West stockpiles are as follows:
The Company already has in place a fully operational Mineral Sands Lab, which is the first of its kind in PNG. Fully compliant with OHSE and workplace standards and employing local skilled and semi-skilled labour, AMD continues to demonstrate its commitment to its long-term investment into the local area of Kiunga.
AMD will carry out an infill drilling program to underpin a Feasibility Study, to be completed post-listing.