MAC: Mines and Communities

Dispute on Crater Mountain gold prospect in PNG

Published by MAC on 2004-03-01


Crater Mountain gold prospect in Papua New Guinea

Letter to the National, PNG

1st March 2004

I refer to the advertisement by Chimbu Governor Alphones Willie (The National, Feb 23) in relation to a call by landowners on Macmin, NGG, Celtic Minerals and Mining Department for recognition on the Crater Mountain Gold Project.

The Governor has done very well in order to have a mine developed.

Unfortunately, we feel that the Salt-Nomane people have been misrepresented and not identified to claims as they are the landowners of Crater Mountain. We want this group of people of Karimui/Haia to make clear to us where they stand, whom they work for and which part of Crater Mountain they represent. We would like to say that the Nimi prospect area, which straddles the Chimbu and Eastern Highlands provinces, is traditional Karimui/Haia land. It is our hunting zone and we have sago growing there. No one from outside will claim that area.

The Governor has to note that there is no Karimuis involving with the Salt/Nomane people because they have formed an association illegally without seeking interest and consulting the people of Karimui/Haia. The chairman John So Edward is not recognised or appointed by the people of Karimui/Haia. Also Karimuis have not attended some of the major meetings held in Port Moresby, including the recent one at Granville Motel. We want all the executives and the chairman of "Nimi Resources Owners Association" to quit because we, the people of Karimui/Haia, plan to form our own association. At this stage, no one should lay claim to our resources on Crater Mountain until all outstanding issues are resolved. There is also a possible danger that this will cause damages to the lives of more than 28,000 people who live along the Nimi Rivers to Pio and Purari of Gulf province and the Ihu people because their sources of food is mainly the rivers. Therefore, we have to make a careful decision before the mining company comes in.

Ruben Yombe,
Councillor Sorio Bero Uraru &
Committee of the Crater Mountain Wildlife Management


Background from Press release of Celtic Minerals Ltd.


Celtic Acquires Option on Crater Mountain Gold Project

January 7 2004

CALGARY Celtic Minerals Ltd., (CME:TSX-VEN) has concluded an Option Agreement with New Guinea Gold Corporation (NGG.TSX-VEN) whereby Celtic can acquire a 75% interest in the 44 square kilometer Crater Mountain Project in the Eastern Highlands of Papua New Guinea.

Terms of Acquisition

Under the terms of the agreement, Celtic will earn a 51% interest in the concession by completing work programs totaling CDN $2.0 million within a three year period ending March, 2007 and the right to acquire an additional 24% interest in the concession by incurring further expenditures of CND $2.0 million within a five year period ending March, 2009. This time schedule can be accelerated. Should all terms of the agreement be executed Celtic would own a 75% interest in the concession at the end of term.

Historical Drilling and Exploration

BHP Minerals completed three drill holes exploring primarily for porphyry style copper mineralization. One drill intercept hit a very encouraging 115m at 1.83 g/t gold with the hole terminated at a depth of 340m while still in gold mineralization.

Macmin Silver completed four drill holes including the best result of 24m at 6.55 g/t gold also ending while still in gold mineralization.

All drill holes showed intense silica, argilic or carbonate alteration. Holes 4, 6 and 7 intersected numerous narrow and potentially structurally controlled intersections of mineralization. Celtic is very encouraged by these results as they appear to indicate that most holes intersected the envelope or upper parts of a major gold bearing hydrothermal system. All historical drilling was contained within a small portion of a 12 km2 mineralized area. The majority of the mineralized area has not been explored.

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