SINIVIT
Location
About 50 kilometres south, south-west of Rabaul in the East New Britain Province
Latitude 4°33'55.71"S Longitude 152°1'23.93"E
Status
Operating Mine
Type of Mine and Waste Disposal
Open-Pit. Commercial production commenced in April 2008. The Sinivit property covers about 4,300 Hhectares and a 15 kilometre prospective interval of a 26 kilometre long north, north-east trending veined zone. The Sinivit (formerly Wild Dog) mine will operate for three and half years. The mine is moving steadily ahead although various problems, relating to weather and the mine’s remote location, continue to be encountered. Although the initial project has a relatively short life, New Guinea Gold has an active exploration/development program with the objective of defining additional gold mineralization. In May 2010 drill results have extended the known oxide gold mineralization in the Central Oxide Zone. The Sinivit property comprises four tenements Mining Lease (ML122), Mining Easement (ME70), Exploration License (EL1140) as well as EL1362 (Baining Mountains). ML122 and ME70 are wholly contained within EL1140.
Target Minerals
Gold, Silver.
Current Production
Production only recently commenced. Gold production for the calendar year 2008 was 7418 ounces (210,321 grams) and silver 1227 ounces (34,774 grams).
Ownership and Finance
New Guinea Gold Corporation (NGG) acquired the rights to the Sinivit property through its acquisition of Macmin PNG Ltd (Macmin) from Macmin Silver Ltd (Macmin Silver) on 13th June 2002. Macmin, a wholly owned subsidiary of NGG, has a beneficial interest in about 92% of the Sinivit property. Gold Mines of Niugini Holdings Pty Ltd (GMNH) holds about 8%. Macmin Silver holds 16.7 million shares in NGG. NGG entered into agreement with Celtic Minerals and Triple Plate Junction PLC whereby each could earn a 22.5% interest (45% total) in the project by spending CAD$5 million to bring the property to small scale production. Macmin Silver holds a 1% smelter royalty.
Environmental Setting
The Sinivit mine and leases are situated along the Rim of Fire, an active circum-Pacific volcanic belt that hosts most of the areas large porphyry copper-gold deposits and a number of world-class epithermal gold deposits. Examples of these types of deposits that have, or are actively being mined, include OK Tedi, Porgera, Lihir and Panguna in Bougainville. The Sinivit property is situated on the north-east slopes of the Baining Mountains at the eastern end of the island of New Britain. Locally relief ranges from 500m and the highest peak is at 1,440m above sea level.
Environmental Impacts
Little is known of the impacts of this mine. However, local communities have complained of water way pollution.
Social Impacts:
An agreement was signed on 16thJanuary 1996 between the Government of PNG, Provincial Government of East New Britain, the Uramot Company Limited (representing the traditional owners), Macmin and GMNH. This agreement, as well as other issues, determines the royalty split between the traditional rights owners and the Provincial Government. The Provincial Government has waived its rights to royalties in favour of the Uramot Company Ltd provided that gold production does not exceed 20,000 oz per annum. The royalty rate is 2%. The agreement provides for 50% of the compensation to be paid in cash to the Uramot Company Limited and 50% to be spent on community projects agreed to by the relevant Local Level Governments and the Provincial Government. The compensation agreement was executed with the landowners on a proposed Sinivit development on 27thApril 1994 and registered by the Mining Registrar of the Department of Mining and Petroleum of the PNG Government on 5thMay 1994. This agreement established a schedule of compensation and annual payments to the landowners applicable to land and plants damaged, destroyed and/or occupied during mining activities within the current leases. Compensation has been paid annually since 1995. The mine was closed temporarily by local landowners in 2006 as they sought compensation and a revised Memorandum of Understanding following pollution of local waterways.