WOODLARK

BASE FOR PNG

EXPANSION
POSITIONING GEOPACIFIC AS THE DEVELOPER OF
CHOICE WITHIN THE SOLOMON SEA
  OUR PROPOSAL OVERVIEW
A Woodlark centric strategy for Geopacific, to
springboard into other PNG projects.

By developing strong government and

community support via free-carry equity, host
procurement and employment
policies, leveraging government backing and
evidence of Woodlark host community support.

Geopacific can position themselves as the

developer of choice in PNG.

And continue with their successful M&A formula in

the region, taking control of other assets.

To be operating 3 mines in the region over the next

5 years, with other projects bolstering the
development pipeline.

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GEOPACIFIC OVERVIEW

Profit
52-week range Market Cap Revenue 2020 Dividend
Company  ASX  2020 
share price ($)  ($m)  ($m)  Annual yield 
($m) 

GeoPacific Resources Ltd.  GPR  0.205 - 0.745  148.72  0.09  -7.28  0 

Geopacific engages in the exploration and development of gold and copper deposits
in Papua New Guinea (PNG) and previously Cambodia. 
The A$149m market-cap company announced a latest loss of A$7.28m on 31
December 2020 for its most recent financial year result as it looks to develop the
Woodlark gold project in PNG.
With Geopacific's current path to profitability in mind, we are gauging Geopacific's 
current market position and potential strategy update.  

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GEOPACIFIC HIGHLIGHTS + LOCAL CONTEXT

KEY FACTORS
• Experienced management team – well versed transitioning from exploration
to production.
• Community engagement, housing, port, power and roads. Consider: High
speed internet comms – possible value add for community.
• Solid business case - low AISC, conventional mining, proven larger mines in
same region.

PAST EVENTS IN THE REGION

• Vitoplant (Palm Oil) project was cancelled due to inhabitant opposition - root cause
analysis would be valuable.
• Gold Ridge mine also challenged by militants fighting a lack of local opportunity
engagement.
• Gold Ridge had a massive tailings disaster when a dam overflowed in 2016 -  forcing
the operators out1. Source: (Evans, 2010)
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WOODLARK OVERVIEW – THE BUSINESS FOUNDATION

KEY PROJECT METRICS

• High margin of 43%
• Rapid payback period of 1.8yrs
•Simple mining and process route
•+1Moz of gold in ore reserves (and growing)
•+10 year project life
•AISC of AUD 1,239 /oz
•Shovel ready well progressed
•Untapped exploration potential

Source: (Geopacific 2021) Source: (Geopacific 2021)

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WOODLARK OVERVIEW – METRICS AND MILESTONES
Financial Metrics Unit 2018 DFS Execution Variance Financial Metrics Unit
Post Tax Update Post Tax
Free Cashflow A$ Million (M) 344 575 231 Free Cashflow A$ Million (M)
  NPV @ 8% A$ Million (M) 197 347 150   NPV @ 8% A$ Million (M)
  IRR % 29 34 5   IRR %
Project Payback Years 2.2 1.8 0.4 Project Payback Years

Source: (Geopacific 2021)

Date Milestone
Jun 2021 Qtr Commence construction of process plant and infrastructure
Dec 2021 Qtr Commence mine pre-strip and haul road construction
Jun 2022 Qtr Power plant complete and permanent power supply available
Sept 2022 Qtr Complete DSTP facilities
Sept 2022 Qtr Commence commissioning and plant start up
Dec 2022 Qtr Commence first gold production

Source: (Geopacific 2021)

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WOODLARK SUCCESS: CRITICAL FOR EXPANSION STRATEGY
COMPREHENSIVE DE-RISKING
• As of Q1 2021 there is no progress update on critical infrastructure – no contracts
for construction on wharf, power station or process plant; or project financing
• Accelerate commercial surety on wharf, power station, processing plant and
project financing
• Gold price predicted to drop as production ramps up – the easy gold with highest
margin will be exhausted within 3-5 years
• Interest rates likely to increase, a tightening gold market will coincide with lower
margin gold deposits
TAILINGS MANAGEMENT
• Community concerns are growing with Deep Sea Tailing Placement (DSTP,
pumping tailings deep sea) and potential impact on marine life, which villagers
rely on as food source (RNZ 2020; Morse 2020)
• Investigate in a marine monitoring solution into the project and seek any other
engineering solution to improve DSTP
• A win/win meeting all parties interests and a key differentiator

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EXPANSION PROPOSAL
Positioning Geopacific as the developer of choice within the Solomon Sea

 Successful commissioning and operation of Woodlark Project (including Marine Tailings solution), to
define the Geopacific brand
 New shared stakeholder equity business model announced by board member, Sir Charles Lepani for
Woodlark and all future projects; reducing Woodlark cashflow for Geopacific, but positioning the
company to take over other projects
 Proposal for Geopacific to leverage shared equity business model to negotiate development agreement
with Papua New Guinea Government 
 Strengthened support for Geopacific within the Solomon Sea region, with government and community
backing for new projects based on support for Geopacific style project shared stakeholder equity business
model 
 Using this leverage to acquire other projects within Soloman Sea.

Three projects (operational or under development) within the next 5 years

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EXPANSION PROPOSAL – STRATEGY DETAILS
POSITIONING GEOPACIFIC AS THE DEVELOPER
OF CHOICE WITHIN THE SOLOMON SEA

 7.5% government equity in project (paying dividend)

 2.5% host community equity (paying dividend)
 Use above as basis to negotiate development agreement
with government (i.e. reduced fuel tax rate, delayed tax
period during project ramp-up of projects, stability
assurance, expatriate policy etc.)
 Confirm government backing for Geopacific expansion
 Introduce M&A analysis process to identify suitable
projects within the region and pursue with government and
community support
 Continue to apply the shared stakeholder equity business
model with all new projects, further strengthening support
and allowing for larger targets

Source: (Geopacific 2021)

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RISK ANALYSIS OF THE PROPOSAL
HISTORICAL LESSONS
Whist mining has been a part of the Solomon Islands economy since the late 1800’s -
there has been much turmoil caused with some common themes emerging:
• poor environmental risk mitigation
• inadequate community engagement for both the life of the mine and beyond
• sustained government support
Category Risks Treatment
Gold price falls Low cost for initial production and LOM means margin makes project sustainable. 
below A$1400/oz 
Project/  Tailings Self-imposed conditions of operation and monitoring including emergency
Commercial  management response.  Tailings management must be a key priority so Geopacific can provide a
environmental unique and repeatable value proposition. 
impact  

Government Written commitment to provide opportunities to the community and handover of

support is useful assets at project completion.  Shared value creation.
withdrawn 
Political
Challenges from High level engagement with Sir Charles complemented with a comprehensive
community   training plan for local workers. 

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 REVIEW OF STRATEGIC OPTIONS
Low-side Sustaining Upside Bluesky
Gold price <  $1,500 > $1,500 > $1,800 > $1,800
(AUD)
Volatile gold Stable gold price Stable gold price and project support Stable gold price and successful Woodlark
price. Permitting and project for Woodlark. Strengthened support operation. Reduction in political tension
Externalities and construction support for for Geopacific by PNG government around Bougainville independence.
issues with Woodlark
Woodlark
Delayed (Current (Proposed Strategy) Successful upside scenario (approx. 5 years of
Woodlark Strategy) Continue with Woodlark Development, successful operations in the region) allows
development Continue with but ensure operation represents ESG Geopacific to make a government supported
until externalities Woodlark best practice in region. Leverage pitch for Panguna mine on Bougainville
improve. development as national and local government, plus Island. Point of difference compared to
  Strategy
Continue with per current plan. host community support (via shared majors would be demonstrated regional
small drilling No other equity agreement) to enable stakeholder support and balanced equity;
campaign to projects within Development Agreement and plus, a proportion of project cashflow will
extend JORC pipeline. aggressively expand into other junior report to the reclamation of the current
reserve projects in the Soloman Sea.    environmental/social issues.   

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EXPANSION PROPOSAL: UPSIDE IMPLEMENTATION FOCUS
Positioning Geopacific as the developer of choice within the Solomon Sea

• Mine design and scheduling - Optimum pit design techniques must be evaluated to allow for maximum
utilisation of the ore grade and to compensate for shared equity strategy. 
• Processing Plant Capability - The processing plant reliability and the effect it has on the gold production, must
be added in the short and long term mine planning schedule. 
• Best practice ESG credentials - All efforts must be made to ensure Woodlark is a social and environmental
success as it is the backbone of the "developer of choice" strategy. The marine tailings method must be
engineered to minimise potential impacts.  
• Community Engagement - Communicate regional goals for staff involvement and commitment, whilst
displaying a unified participative management approach 
• Shareholder Engagement - All stakeholders must be aware of the updated strategy, as it reduces shareholder
return on Woodlark initially; but aims to improve shareholder value by gaining access to other projects.

Three projects (operational or under development) within the next 5 years

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SOLOMAN SEA (POTENTIAL TARGETS)

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 POTENTIAL  TARGETS: SMALL MINES AND EXPLORERS
Project Company Size Current project status Potential weakness and GPR opportunity
GPR
Wangou International Mining On Care on Maintenance. Re- Historical flooding issues.
Gold Ridge & AXF Resources 2M oz Appears to be political Chinese foothold (so mine
start date unavailable.
(China: private owned)  may be secondary and not re-start) 

Historical mine related land slides.

Asidokona Mining Resources On Care on Maintenance. Re-
Tolukuma (Singapore: private owned) 2Moz start date unavailable. Potential mine related environmental and social
liabilities remain.

Operational high grade Technical requirements may exceed GPR current

Kainantu K92 Mining (TSX) 2Moz underground mine abilities
Gameta Gold
KSN Adyton Resources (TSX) 3 Moz Mature exploration Delineating orebody. Potential current target
Projects
Misima Kingston Resources (ASX) 5Moz Misima PFS published Historical environmental issue with marine tailings 
November 2020
KRL South & Kainantu Resources Ltd (TSX) N/A Early exploration None identified. GPR to watch for future potential.
KRL North
Keveri Project Golden Birch Resources (TSX) N/A Early exploration None identified. GPR to watch for future potential.

Kimono project Frontier Resources (ASX) N/A Early exploration None identified. GPR to watch for future potential

Sinivit Gold Abandoned N/A Abandoned and pending Heavy rainfall threatening cyanide spill.
Mine hazardous material spill Use case study as support for GPR's ESG priorities.  
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TARGETING SOLOMON SEA’S TROUBLED PROJECTS

BE THE DEVELOPER OF CHOICE

Will Rio Tinto keen to fix Bougainville?
To implement the Blue-Sky strategy:
1. Showcase the success of the Woodlark project. Especially the
success of Deep-sea tailing placement improvements and the high
level of community engagement.
2. Identify projects that play to GeoPacific strengths 
3. Ascertain the owner’s appetite for change through board
engagement
4. Provide compelling proposal based on track record
5. Develop strategic roadmap with key milestones that deliver
incremental, measurable value

Source: (Geopacific 2021) Source: (Geopacific 2021)

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NEXT STEPS TO FOR IMPLEMENTATION
POSITIONING GEOPACIFIC AS THE DEVELOPER OF
CHOICE WITHIN THE SOLOMON SEA + BEYOND
We recommend that the Woodlark project is used to develop a
best practise methodology focused on risk reduction in the key
areas that have traditionally caused failure and leverage this
experience into the acquisition or development of other
suitable opportunities in the Solomon Sea.
Beyond the Solomon Sea – 
• become the “goto” team for working with troubled projects 
• champions of sustained environmental and social
responsibility
• our difference is our success in developing a proven Deep
Sea Tailing Placement methodology
Our initial market scan indicates that there are opportunities
both within the Solomon Sea region and beyond.  
This ensures that Geopacific has a clear plan for sustainable
expansion and a unique market offering.

Source: (Geopacific 2021) Source: (Geopacific 2021)

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TEAM OVERVIEW

PAUL FRY BAILA SHAH MICHAEL MEAD

NIGEL BULL
STUDENT ID: 22154771
STUDENT ID: 22400204
23 years experience in 30 years international
operational technology experience in technology
consulting and project solutions delivery for many
management, supporting industries with a strong focus
clients with innovative on oil & gas.  Executed
professional services to strategic roles in all sizes
uncover business of organizations leveraging
improvement. technology to create
measurable value.
STUDENT ID: 21437921 STUDENT ID: 21409407
7 years experience in Control 14 years experience in the
Systems Design  & Sustainable Development field,
Commissioning Engineer, working with mining companies
currently leading a team of to strengthen their ESG
Electrical and Mechanical credentials. 
Engineers to optimize plant
performance. Also leading the
process of building and
managing 5year Opex & Capex
budget plan.
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THANK YOU
INFO@UNEARTHED_CONSULTANTS.COM

UNEARTHED_CONSULTANTS.COM
REFERENCES
EVANS, D.(2010) TENSIONS AT THE GOLD RIDGE MINE, GUADALCANAL, SOLOMON ISLANDS. AVAILABLE FROM: HTTPS://OPENRESEARCH-
REPOSITORY.ANU.EDU.AU/HANDLE/1885/157983

GEOPACIFIC 2021, FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020, GEOPACIFIC RESOURCES LIMITED. AVAILABLE FROM:
HTTP://WCSECURE.WEBLINK.COM.AU/PDF/GPR/02359003.PDF. [31 MARCH 2021].

MORSE, I 2020, LOCALS STAGE LATEST FIGHT AGAINST PNG MINE DUMPING WASTE INTO SEA, MONGABAY. AVAILABLE FROM:
HTTPS://NEWS.MONGABAY.COM/2020/05/LOCALS-STAGE-LATEST-FIGHT-AGAINST-PNG-MINE-DUMPING-WASTE-INTO-SEA/. [31 MARCH 2021].

RNZ 2020, PNG OPPOSITION GROWS TO DUMPING MINE WASTE AT SEA, RADIO NEW ZEALAND. AVAILABLE FROM:
HTTPS://WWW.RNZ.CO.NZ/INTERNATIONAL/PACIFIC-NEWS/425575/PNG-OPPOSITION-GROWS-TO-DUMPING-MINE-WASTE-AT-SEA. [31 MARCH
2021].

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