Island Passage Development Canada Limited (IPDC) has announced the commencement of a mineral exploration program by its PNG subsidiary, Island Passage Development Limited (IPD), on the EL02 exploration licence in Bougainville, Papua New Guinea.
The program, conducted in partnership with Isina Resource Holdings Limited (IRHL), a customary landowner company, marks the first large-scale mineral exploration program on Bougainville outside the special mining lease held by Bougainville Copper Ltd (Rio Tinto – CRA) since 1965.
Located in south-central Bougainville in the Crown Prince Range, nine kilometres southeast of the historic Panguna copper-gold mine, the 261 square km EL02 exploration licence is a significant area with high mineral potential.
This marks the first time a licence for metals exploration in Bougainville has been issued under the Autonomous Bougainville Government’s 2015 Mining Act.
The exploration program, initiated in March, involves systematic stream sediment and panned concentrate sampling to cover the northwest trending prospective corridor on the licence. Led by experienced Indonesian geologists specialising in porphyry copper geology and exploration in similar terrains and climates, the exploration team is supported by over 30 Bougainvilleans who have undergone field operations training.
Prior to the sampling campaign, an advanced team from IRHL conducted extensive social awareness campaigns with customary landowners and neighbours to convey details of the plan and put logistical support in place.
The overall effort is coordinated by IPDC co-founder Lindsay Semple from Arawa, where IPD and IRHL are based.
Commenting on the significance of the exploration program, Donald McInnes, Co-Founder and CEO of IPDC, stated: “For 17 years beginning in 1972, Bougainville was host to one of the world’s largest copper-gold mines.
“Today, the world is chasing new supplies of critical and precious metals, and demand is driving gold and copper to new highs.
“Island Passage Development is committed to working with the customary landowners of Bougainville through an innovative partnership to reassess the mineral potential of Bougainville and to provide a sustainable future under the new mining law that is ahead of its time.”
The program is expected to continue through July, after which results will be compiled, and a phase two follow-up campaign will be initiated.
The island of Bougainville is one of the most prospective and under-explored porphyry copper terranes globally.
Since the closure of the world-class Panguna Mine in 1989, the development of Bougainville’s mining industry has been halted, except for the rise of small-scale artisanal alluvial mining.
The Bougainville Mining Act (2015) is a mining legislation that uniquely acknowledges the direct ownership of mineral resources by the owners of customary land.
This provision empowers customary landowners and requires their participation, setting a new stage for mining regulation.
Under the provisions of the Bougainville Peace Agreement, the Bougainville Mining Act is administered by the Autonomous Bougainville Government (ABG), independent of Papua New Guinea and its separate mining act.
EL02 is one of only two valid exploration licences on Bougainville and the only one under active exploration.
The Autonomous Bougainville Government has expressed strong support for the resurgence of a modern, sustainable mining industry as a key driver of economic prosperity.
Their vision for 2052 includes a diversified and sustainable economy, initially based on mining and later on agriculture, fishing, forestry, and tourism.
IPDC has entered into an earn-in agreement with IRHL to earn up to a 70 per cent interest in the project assets.
Once vested through its investment in the exploration of the mineral resources on the licence, IPDC and IRHL will proceed to develop the projects and assets together.
The exploration program by IPDC and IRHL signifies a significant step towards unlocking Bougainville’s mineral potential and contributing to the economic growth and development of the region.
