Following acquisition of the Woodlark Island tenement by Highlands Gold Limited, an exploration programme using extensive diamond drilling has confirmed that the style of gold mineralisation is similar to other SW Pacific Rim carbonate base metal gold systems. The two centres of gold mineralisation at Kulumadau and Boniavat-Busai are inferred to be related. to buried porphyry centres localised on NE trending major horst bounding structures. Individual prospects are localised on NW trending cross structures peripheral to the porphyry centres._x000D_
Gold mineralisation has been derived from the mixing of hot saline magmatic fluids with cool dilute meteoric waters. While the bulk of mineralisation occurs in dilational tensional gash fractures, bonanza grades resulted from fluid quenching in feeder structures. Pre-mineralisation breccias created plumbing systems for hydrothermal fluids and similar paragenetic sequences are defined for Busai and the Kulumadau areas. These include early, distal porphyry, low sulphidation mineralisation, followed by base metal gold and carbonate deposition.