The Gulf Project Precinct located near the Provincial Capital of Kerema in PNG includes the Orokolo Bay, Gulf South, and Malalaua projects.
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In December 2020, a Mining Lease Application was submitted for the flagship Orokolo Bay Project which will produce a number of products including titano-magnetite, construction sands and a zircon-rich heavy mineral concentrate.
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This followed the completion of a Definitive Feasibility Study (DFS) for the project which reinforced its status as a simple, low CAPEX, and financially robust project with multiple product revenue streams.
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The DFS confirmed that the project will produce a post-tax (real) NPV of US$131 million (10% discount rate) and an IRR of 103.7%. An operational design with an initial CAPEX of US$20.5 million has been calculated to establish a simple near surface mining operation that is forecast to produce 0.5mtpa of titano-magnetite, 1mtpa of construction sand and up to 10ktpa of zircon-rich heavy mineral concentrate.