Tuesday, 18th April 2006 (2631 views)

Highlands Pacific has reopened its Kainantu mine in Papua New Guinea, causing the company's share price to recover.

The Papua New Guinean company had suffered a loss of value in its shares when it announced the closure last week, but the news of the reopening of the mine lent weight to thoughts of a recovery.

Following the announcement of the resumption of operations, the company's share price rose by four cents to 70 cents overall.

Concerns remain over the Kainantu mine however, as the expansion of mining at the site has been slower than expected, due to a more complicated ore body than had been anticipated.

The mine was first opened late last year in what is Highlands Pacific's third major project, alongside the Ramu mine in the Madang Province of PNG and the Frieda development in the northwest of the country.

Although relatively new and on a small and more local scale, the company holds approximately 14.1 million ounces of gold, along with substantial assets mining nickel, cobalt and copper.

 

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