Imwauna

IMWAUNA (NORMANBY) PROJECT

Location

The Imwauna project is located about 325 kilometres east of Port Moresby and 65 kilometres north-east of Alotau in Milne Bay Province.

Latitude 10° 2’58.19”S Longitude 151° 7’20.60”E

Status

In Development.

Type of Mine and Waste Disposal

The Imwauna project is located within the Normanby Exploration License (EL1091) that covers 68 km2 in the central part of Normanby Island, the southern and eastern most of the D’Eentrecasteaux Island chain.  Imwauna contains defined gold mineralization scattered over approximately 10 km2and occurs in the same geological zone and is along structural trend as the Misima Mine.  The adjacent project Weioko (EL 1069 Sehulea) has now been included in this project with work commitment for both Imwauna and Weioko increased.  A Preliminary Assessment/ Definitive Feasibility Study to determine economic and other parameters was lodged in Papua New Guinea at Mineral Resources Authority on 19th April 2010. This is required by the PNG government and sets out the possible path to mine development.  Subject to a positive result from that study, mine construction could commence in late 2010 for possible commencement of mining in 2011.  Planning has commenced for underground exploration to confirm mining characteristics and grade.  The resource is likely to be largely open pit derived and free-milling.  No information on the type of tailings disposal to be employed could be found. However, the precedent has been for deep sea tailings discharge (DSTD).

Target Minerals

Gold, Silver.

Current Production

Not in production but estimated gold production of the order of 50,000 to 100,000 ounces per year.

Past Production

N/A.

Ownership and Finance

The Imwauna project is 100% owned by the New Guinea Gold Corporation (NGG). In September 2009, NGG entered into an Option Agreement with a Private Company giving the Private Company the right to acquire a 50% legal and beneficial interest in the Normanby’s (EL 1091) Imwauna property for a series of cash payments totalling $1 million, plus the purchase by way of Private Placement of $1 million worth of New Guinea Gold common shares. In addition, the Private Company must complete exploration expenditures totalling a minimum of $5 million over two years. Macmin Silver Ltd owns 18% equity interest subject to a 1% net smelter return. The original Normanby exploration license (EL1091) covering 461km2 was granted to Macmin PNG Ltd on 26th February 1994. Macmin PNG Ltd changed its name to New Guinea Gold Ltd after its acquisition by NGG.

Environmental Setting

The property terrain varies from broad valleys to steep mountains with relief of 1,073m from the highest peak of Mt. Hobiya to sea level. The property is mainly primary rainforest with secondary overgrowth in areas of shifting gardens.  Coconut plantations occupy some of the better agricultural land along the coast.  Rainfall varies from about 4.5-5.5 metres of rain/year in the project area.

Environmental Impacts

Yet to be determined.

Social Impacts:

Yet to be determined.