Papua Mining posts full year profit

Papua New Guinea focused gold and copper explorer Papua Mining posted a full year profit compared to a loss the previous year following an exceptional credit.

The group reported an operating profit of $55,589 for the year ended December 31 due to an exceptional credit, compared to a loss of £213,000 in 2010.

Papua Mining, which has three exploration licences in Papua New Guinea, said it is positive about its prospects for drilling success.

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Chief executive officer Hugh McCullough said, "Our licence holdings make Papua Mining one of the more prominent explorers in the region. We are operating in a highly prospective area with a strong team of professional geologists and technicians with proven track records."

"We have carried out an intensive exploration programme over the past 12 months, the results of which have confirmed management's confidence in the targets already identified and several promising new targets have also emerged."

The company has also applied for a further 11 licences, many of which are at an advanced stage of the application and issue process. If all licence applications are granted, the group will hold a total licence area of some 4,350 square kilometres, it explained in a company statement.

Papua Mining's drilling programme due to start in the fourth quarter of 2012.

CJ