LPMEL begins Panguna work after August 2026 certificate

Lloyds Panguna Metals & Energy Ltd (LPMEL) began Panguna preparatory activity after a 7 August 2026 certificate, while exploration drilling started to validate a reported 1,838 million-tonne resource containing 5.3 million tonnes of copper and 19.3 million ounces of gold. The work follows LPMEL’s 29 July 2026 partnership agreement with Bougainville Minerals Ltd.

What work has LPMEL started at Panguna?

LPMEL has started preparatory work, construction, local hiring and exploration at Panguna following the July 2026 agreement and August 2026 certificate. The presentation’s milestone table says the Autonomous Bougainville Government (ABG) issued Bougainville Minerals Ltd (BML) the LSML-01 Preparatory Works & Feasibility Certificate on 7 August 2026. It describes the certificate as covering preparatory works and feasibility, rather than as final approval for mine development.

The project’s formal sequence began in November 2025, when ABG approved LPMEL as preferred developer and strategic partner. A non-binding memorandum of understanding (MOU) with the Bougainville Executive Council followed, before the 29 July 2026 Partnership Agreement with BML for preparatory activities pending a Final Agreement. The presentation distinguishes this current stage from the later feasibility study, definitive agreement and further approvals.

The supplied pages list exploration drilling, geotechnical site inspection, Morgan Camp accommodation construction, community engagement and landowner engagement among current activities. More than 95% of the workforce is local and engaged in construction and training activities. One project page says preparatory works commenced by “ABC” on 7 August, but the supplied material does not define ABC; the milestone table instead identifies ABG as the certificate issuer and BML as recipient.

What mineral resource is LPMEL validating at Panguna?

LPMEL is validating a reported Panguna resource of 1,838 million tonnes at average grades of 0.30% copper and 0.34 grams of gold per tonne, containing 5.3 million tonnes of copper and 19.3 million ounces of gold. The presentation says exploration drilling has commenced to validate historical geology. It does not disclose drill metres, assay results, a resource-estimate date or a feasibility study outcome.

Measured and Indicated resources account for 1,538 million tonnes, compared with 300 million tonnes classified as Inferred. The Measured and Indicated category contains 4.6 million tonnes of copper and 16.1 million ounces of gold, while the Inferred category contains 0.7 million tonnes of copper and 3.2 million ounces of gold. Copper grade is 0.30% in both categories, whereas Inferred gold grade is 0.40 grams per tonne against 0.33 grams per tonne for Measured and Indicated material.

Mt means million tonnes, g/t means grams per tonne and Moz means million ounces. The reported resource includes both copper and gold, but the presentation provides no recoveries, processing design, annual production target, mine life or development-cost estimate. Those items are not disclosed in the supplied Panguna pages.

How is LPMEL’s Panguna partnership structured?

LPMEL is the preferred development partner providing funding and technical resources, while BML holds the mining lease and is wholly owned by ABG. The presentation places ABG at the government level, BML as mining-lease holder and LPMEL as the development partner. LPMEL’s disclosed role therefore differs from holding the mining lease itself.

The 29 July 2026 Partnership Agreement was signed with BML for preparatory activities pending a Final Agreement. The next listed step is a definitive agreement with BML and LML, followed by a feasibility study and further approvals, subject to board approval. The supplied presentation does not define LML, identify the relevant board or give a target date for the Final Agreement.

LPMEL says it seeks to have landowners and affected communities participate as long-term Panguna shareholders on terms to be agreed with them and ABG. This is presented as an intended ownership-participation approach, not an executed allocation. No community shareholding percentage, funding commitment or timetable for reaching such terms is disclosed.

What community and infrastructure work is underway at Panguna?

LPMEL has inaugurated a Learning & Development Centre, begun paid garment training for women, and progressed hospital and accommodation construction. The centre was inaugurated on 11 July, and the Apparel Training Centre’s garment training ran for three months across five villages. The presentation also refers to village training programmes, refurbished classrooms and youth sporting activities.

Construction of the Lloyds Kali Ammal Arawa Hospital was under way, with one page targeting completion in December 2026. Another page says hospital construction is in full swing and is to complete in FY27, while Morgan Camp accommodation construction is progressing. The material also lists medical supplies, disaster relief, medical evacuations and search-and-rescue support, but does not give spending totals or beneficiary counts for those activities.

The hospital update records steel erection, while classroom work included floors, windows, lighting, fans, desks and benches. The community section also says 24 to 25 athletes were shortlisted through the Lloyds Boxing Tournament and that a ladies soccer team placed third. These disclosed activities are separate from the drilling and preparatory certificate, but are presented alongside the project’s construction programme.

Conclusion

LPMEL has progressed Panguna from preferred-developer approval in November 2025 to a 29 July 2026 Partnership Agreement and a 7 August 2026 preparatory-works certificate. Its current programme combines historical-geology validation of the 1,838 million-tonne copper-and-gold resource with construction, training and a workforce that is more than 95% local.

The next disclosed milestones are a definitive agreement with BML and LML, a feasibility study and further approvals, all subject to board approval. Progress against the December 2026 hospital target, the separate FY27 completion reference, and drilling results that validate the reported 5.3 million tonnes of copper and 19.3 million ounces of gold are the next stated matters to watch.