The Kesar and Arau projects are strategically located in the Eastern Highlands province of PNG, immediately to the North and South of K92’s Kainantu Mine, respectively.
Kesar Exploration
The Kesar Project consists of Exploration Licence 2711. Exploration by previous operators at Kesar identified the presence of semi-massive copper rich sulphide mineralization associated with quartz veins on strike to the Kora gold deposit at Kainantu, as well as the potential for copper-gold porphyry prospects within the tenement.
Kesar Main Target Areas
The Kesar Project currently consists of five defined target areas: Anteruno (formerly West Vein Zone), Central Vein Zone, Fufunambi and Hampore (previously East Vein Zone) and the North-East Target.
Initial rock Chip Sampling
Thirty-two (32) rock chip samples were taken in Q2 2024 from outcrop and artisanal underground works and returned high-grade assays including 244 g/t Au (underground working), 116 g/t Au (outcrop), 36.5 g/t Au (float) and 33.4 g/t Au (underground working). Of the 32 samples, 19 samples were above 1 g/t Au and ten samples averaged 52.8 g/t Au (see news release dated May 13, 2024). Recently, a further 17 rock chip samples have been obtained and assayed with a peak result of 94.3 g/t Au and 11 samples of greater than 1 g/t Au averaged 25.1 g/t Au.
Soil Geochemistry
In addition to the rock chip sampling in Q2 2024, a soil sampling program was completed principally targeting the Anteruno and Central Vein Zones at Kesar. In total, the 332 soil samples returned numerous significant gold grades over a strike length of 5.5 km including a high-grade assay of 20.9 g/t Au (see news release dated May 13, 2024).
The initial first-pass soil program used a 200 metre by 100 metre or 50-metre grid and was very broadly based to cover most of the known prospective ground and to get an indication of the location of the most prospective larger structures. Gold mineralization was found in samples covering the entire 5.5km of sampled strike. Multiple parallel vein sets occur in close proximity within each of the three main vein zones.
Following the success of the initial soil sampling program principally targeting the Anteruno and Central Vein Zones at Kesar, a second follow up soil sampling program was carried out in July 2024. The follow up soil program consisted of a further 667 soil samples covering Anteruno, Central Vein Zone and Fufunambi/Hampore, which all strike northwest. This follow up program further defined gold prospects in Anteruno and Central Vein zones while also discovering gold mineralization in the Fufunambi/Hampore area, which is in part associated with the artisanal miners’ small-scale operations. The mineralization in the Fufunambi/Hampore region is open to the northwest where several parallel vein sets occur.
In Q4 2024, while drilling the Anteruno drill target at Kesar, the Company identified a high-priority targets at Fufunambi and Hampore. Located approximately 2km north-east of Anteruno, Hampore lies approximately 6km along strike approximately 6km from K92 Mining’s Kainantu operations. Recent chip and rock sampling from both Hampore and Fufunambi has returned exceptionally high-grade gold results, further underscoring their potential as significant exploration targets.
- Hampore hosts multiple artisanal mining sites
- 28 rock and chip samples taken in Q4 2024, average grade 24.5 g/t gold
- Sample 24120 (outcrop) = 110.0 g/t gold
- Sample 24119 (outcrop) = 93.3 g/t gold
- Sample 24139 (outcrop) = 74.2 g/t gold
- Drill hole KDH-06 expected to commence this week
- Fufunambi represents an anomaly 2km west of Hampore
- 14 samples taken in Q4 2024, average grade 16.2 g/t gold
- Sample 24135 (outcrop) = 58.8 g/t gold
- Sample 24136 (outcrop) = 43.8 g/t gold
Anteruno Diamond Drill Program
A reconnaissance surface mapping program at the Anteruno prospect was undertaken in September 2024 by the Company’s geologists and subsequently in October 2024 by a structural mapping consultant. In November 2024, the Company initiated a diamond drill program and completed five diamond drill holes for (5 holes for a total of 2,112 metres) testing an almost one kilometre long section of the Anteruno target.
Anteruno Prospect Exploration Summary and Highlights
The Anteruno Prospect, part of the Kesar Project located northwest of the producing K92 Mine within the mineralized Markham Transfer corridor, has recently completed its initial drilling program. Five drill holes totaling 2,112.40 metres were completed (Table 1), targeting mineralization hosted predominantly within granodiorite intrusions of the Akuna Intrusive Suite.
Table 1: Anteruno Area Drill Program Nov 2024 to January 2025
| Hole ID | Easting | Northing | RL | Grid ID | Dip | Azi | Max Depth(m) | Status |
|---|---|---|---|---|---|---|---|---|
| KDH001 | 368154 | 9325106 | 1408 | WGS84_55S | -55 | 185 | 500.0 | Completed |
| KDH002 | 368241 | 9324882 | 1293 | WGS84_55S | -60 | 185 | 27.5 | Abandoned |
| KDH002A | 368241 | 9324882 | 1293 | WGS84_55S | -50 | 045 | 400.0 | Completed |
| KDH003 | 368153 | 9325106 | 1408 | WGS84_55S | -55 | 035 | 320.7 | Completed |
| KDH004 | 367879 | 9324902 | 1314 | WGS84_55S | -50 | 245 | 504.6 | Completed |
| KDH005 | 368426 | 9324846 | 1256 | WGS84_55S | -55 | 245 | 359.6 | Completed |
| Total | 2,112.4 |
Multiple vein and structural intercepts exhibit gold mineralization between 0.5 to >10 g/t Au, highlighting potential for polymetallic, intrusion-related style mineralization. Key intercepts are shown in Table 2.
Key geological observations from Anteruno were, as follows:
- Mineralization dominated by quartz-carbonate-polymetallic veins associated with base metals (sphalerite, galena, molybdenite, chalcopyrite) and arsenopyrite.
- Strong structural control with mineralization hosted within NW-SE trending fault zones and secondary E-W trending structures.
- Alteration patterns include widespread propylitic (chlorite) alteration and localized phyllic (sericite-clay) and argillic alteration halos associated with higher-grade mineralization.
- Geochemical correlation suggests gold association primarily with arsenic, antimony, lead, zinc, and locally bismuth.
The initial results from Anteruno provide evidence for high-grade polymetallic gold mineralization, though limited to thin veins. Soil and rock chip anomalism within the main Anteruno prospect area has been adequately tested by the five drill holes.
Table 2: Anteruno Key Drill Intercepts
| Hole ID | From (m) | To (m) | Interval* (m) | Gold g/t | Silver g/t | Copper g/t |
|---|---|---|---|---|---|---|
| KDH-01 | 32.60 | 32.80 | 0.20 | 2.60 | 19.50 | 0.03 |
| KDH-02A | 65.80 | 66.83 | 1.03 | 1.65 | 62.60 | 0.12 |
| KDH-03 | 51.78 | 52.87 | 1.09 | 2.30 | 17.40 | 0.01 |
| KDH-03 | 82.47 | 85.60 | 3.13 | 3.67 | 10.78 | 0.01 |
| Including | 84.46 | 85.17 | 0.71 | 13.50 | 23.80 | 0.02 |
| KDH-04 | 122.00 | 122.30 | 0.30 | 2.57 | 3.67 | 0.24 |
| KDH-05 | 62.52 | 62.75 | 0.23 | 6.61 | ** | ** |
* Additional drilling is required to determine true widths.
** Assays pending.
The Anteruno project area remains an important piece of the broader geological framework, situated along a diffuse boundary between moderately conductive and resistive domains on the margin of a larger regional system. This setting is considered significant for understanding the structural architecture and fluid flow pathways that may control mineralization across the district. Ongoing work, including detailed geological mapping, geochemical zonation, and structural modelling, continues to refine its role in the broader exploration strategy.
Hampore and Fufunambi Drilling Program
Following the completion of the five drill holes at Anteruno, drill commenced at the Hampore and Fufunambi located 3 km northeast and 4 km north of Anteruno respectively (Figure 8). Seven drill holes were completed at both targets for a total of 2,112 m.
Hampore and Fufunambi Exploration Summary and Highlights
In contrast to Anteruno, both Hampore and Fufunambi are characterized by granodiorite and meta-sedimentary rocks (phyllite). The sediments are mostly dark phyllites which may be hornfelsed and colored due mostly to heating effects from the intrusive heat source and minimal hydrothermal alteration and are inferred to be similar to the main host rock at the Kora deposit to the south.
| Hole ID | From | To | Interval | Gold | Silver | Copper |
| (m) | (m) | (m) | (g/t) | (g/t) | g/t) | |
| KDH-06 | 26.8 | 27.45 | 0.65 | 3.85 | 39.8 | 0.01 |
| KDH-06 | 73.72 | 74.8 | 1.08 | 1.47 | 118 | 0.17 |
| KDH-07 | 47.8 | 50.56 | 2.76 | 1.34 | 1.28 | 0.11 |
| Including | 47.8 | 48 | 0.2 | 10.1 | 1.87 | 0.03 |
| KDH-08 | 35.4 | 36.4 | 1 | 2.59 | 4.9 | 0.01 |
| KDH-08 | 183.32 | 185 | 1.68 | 1.78 | 10.9 | 0.01 |
| Including | 183.32 | 183.7 | 0.38 | 5.25 | 32.5 | 0.01 |
| KDH-09 | 47.5 | 48 | 0.5 | 2.21 | 95.9 | 0.13 |
| KDH-09 | 82.83 | 83.13 | 0.3 | 1.39 | 24.2 | 0.02 |
| KDH-09 | 83.3 | 83.7 | 0.4 | 1.28 | 91.8 | 0.03 |
| KDH-09 | 144.68 | 145 | 0.32 | 4.86 | 115 | 0.04 |
| KDH-11 | 183.85 | 184.58 | 0.73 | 4.03 | ** | ** |
| Including | 183.85 | 184.14 | 0.29 | 9.08 | ** | ** |
** denotes reassays not received
Drilling intersected gold mineralization similar to that noted at the Anteruno target: narrow zones of quartz-sulphide stockwork and hydrothermal breccia, with individual veins up to 0.6 cm wide comprising quartz, carbonate, arsenopyrite, sphalerite and lesser galena. Of the seven holes drilled, hole KDH007 returned the best intercept: 2.76 metres @ 1.34 g/t gold (13 ppm silver and 0.11% copper) including 0.20 metres @ 10.1 g/t gold. Interestingly, molybdenite, common at Anteruno, was notably absent at Hampore and Fufunambi.
The key observation from the program is that while mineralization is similar at Hampore and Fufunambi compared to Anteruno, the contacts between the phyllite and granodiorite at Ahmpore/Fufunambi appears to be an excellent target for mineralization given sulphide mineralization and alteration is generally more pronounced along these host-rock contacts. It is inferred that these contacts provide a better fluid pathway, especially given the competency contrast between the two host rock units.
Kesar MobileMT Geophysics Survey
Key Highlights:
- A MobileMT survey has been completed across the entire tenement, with high-resolution 100-metre line spacing infill over the most prospective areas. The data outlines a large-scale, well-defined network of deep-seated structures with strong connectivity to known mineralization and geochemical anomalies at Hampore and Fufunambi. These structures are on trend and of comparable scale to those at K92 Mining (see figure, below).
- At Anteruno, MobileMT data highlights a reduced conductive anomaly on the margin of a larger regional system, an encouraging structural setting.
- MobileMT data, recent mapping, high-grade rock chip results, and evidence of artisanal mining have all contributed to the design of a 1,200-metre drill program at Fufunambi.
Preliminary MobileMT survey results have identified several significant magnetic and conductive anomalies across the entire Kesar tenement. The Hampore area lies immediately southwest of a significant northwest-trending conductive zone, while the Fufunambi area is positioned closer to prominent conductivity highs. Recent detailed mapping in these two areas highlight this zone as an important intersection between northeast and northwest-trending structural corridors, representing a highly prospective structural setting.
With the successful completion of the MobileMT survey, the Company is now focused on unlocking further value from the dataset through advanced interpretation and integration with existing geological information. The Company has engaged Expert Geophysics (EGL) to deliver a suite of interpretive products designed to refine drill targeting and improve structural understanding across the Kesar project area, where the geophysical signature strongly resembles that of K92 Mining. Interpretation work is currently in progress, with outcomes from this phase expected to inform drill program planning and be shared with the market once finalized.
The apparent conductivity trends from the Kesar MobileMT survey are shown in Figure 2, alongside publicly available data from the nearby K92 Mine for regional comparison.
Apparent Conductivity Map at 86 Hz (Source of K92 information: Exploration for deep gold bearing structures with natural field airborne electromagnetics; A Prikhodko, A Sirohey, A Bagrianski; Extended Absracts – 17th SAGA Biennial Conference & Exhibition 2022).
Arau Exploration
The Arau Project (Figure 4), comprises two tenements (EL 2651 and 2715) plus a third under application that covers almost 800 km2 and is contiguous with and to the southeast of the Kainantu mine in the Kainantu region, Eastern Highlands Province, PNG. Over the years, several exploration programs have been conducted, largely comprising of soil/stream geochemistry, rock-chip sampling, geological mapping, and various geophysical aeromagnetic and electromagnetic surveys. Mt Victor, located within the western portion of the project area, has seen the most work, including small-scale mining of oxide/gossan material that produced ~20,000 ounces of gold and 11,300 ounces of silver between 1987 and 1990. The remainder of the Arau project area has seen limited exploration work, and more work is warranted.
Mount Victor: Historical mapping and drilling indicate that the Au mineralized massive sulphide/gossan occurs as a >20m to 50m wide sub-horizontal lens along the Mount Victor Granodiorite and Omaura Formation (primarily intercalated sediments and limestones) contact. Last year, a 15-hole/1,646m RC program was conducted at Mt Victor targeting extensions to Au mineralization within the massive sulphide/gossan. The drill program successfully identified extensions to the massive sulphide/gossan lens to the southwest of the historical open pit. In addition, this drilling identified low-grade mineralization associated with quartz-pyrite veins/alteration and brecciation below the massive sulphide/gossan, perhaps related to a porphyry/epithermal system at depth. Highlight intercepts from the 2024 drill program at presented in Table 1. Figure 6 shows the location of both 2024 and historical drilling along a linear trend of high- to low- apparent conductivity (possibly representing the contact between volcanic and sedimentary rocks) while figure 5 presents downhole Au mineralization within hole highlight hole MVRC009.
Greater Arau Project Area: In 2025, GPAC conducted a brief one-day site visit to Arau/Mt Victor. One of the primary observations made during the site visit was the presence of an extensive (likely argillic) alteration zone that stretches several kilometres from the Mt Victor area. This alteration system combined with the Au mineralization in the historical pit suggests the potential for a large mineralized hydrothermal system beyond the gossan/massive sulphide mineralization that was the focus of previous mining efforts. A MobileMT survey conducted in 2022 also supports this interpretation, with numerous coincident magnetic/EM and apparent conductivity anomalies suggesting intrusions that could be prospective for porphyry-style mineralization (Figure 6). The relationship between the massive sulphide/gossan and surrounding alteration is not clear, but preliminary observations suggest the massive sulphide is a later feature. These observations suggest that a systematic approach to exploration, starting at Mt Victor and extending beyond to other parts of the Arau project area, is warranted. It is also recommended that the historical database be reviewed and verified as there is evidence to suggest some data could be misplaced.
Based on the data review and one-day site visit to Arau/Mt Victor during 2025, the following observations and recommendations have been made. No formal work/exploration plan has been designed or budgeted for in 2026:
- MobileMT indicates broader porphyry/epithermal potential: The MobileMT data has highlighted numerous targets that require follow up and together with the pervasive argillic alteration that was observed on the recent site visit suggests significant potential for porphyry/epithermal style mineralization.
- Relationship between Mt Victor and broader alteration system is interesting: The RC drill program in 2024 did successfully intersect at/near surface high-grade gold mineralization at and around the historical open pit. The relationship between the gossan/massive sulphide and surround alteration (if any) is worth exploring further.
- Size potential of massive sulphide/gossan at Mt Victor needs further assessment: The gold assays from the 2024 RC drill program at Mt Victor are interesting. More work is required to determine the potential of Mt Victor as a stand-alone target.
- Project easily accessible and broad community support: The western portion of the Arau project is accessible via dirt roads (albeit they are prone to washouts). The local communities are very enthusiastic to see more work done in the area.
- Eastern portion of project area less accessible: The eastern portion of the Arau project area is less accessible than the western portion around Mt Victor and will likely need air support. Some of the better targets defined by MobileMT are in this western portion so a cost-benefit analysis on these projects relative to others will need to be conducted.