On Friday, Yambali was buried under six to eight meters of rocks and mud, affecting thousands of people.
It is unlikely that there are survivors, the United Nations humanitarian adviser in the country, Mate Bagossy, told EFE on Thursday.
Volunteers and emergency teams were moving stones and clearing mud with shovels to rescue those stuck and recover the buried bodies.
Mining company Barrick, which operates the Porgera gold mine about 30 kilometres from the disaster area, is collaborating in the rescue work.
The land route connecting the disaster area is sinking and further complicating the rescue mission, the UN representative said.
The search and rescue operations will continue at least until June 6, until the expiry of the minimum 14-day period set by the country, after which authorities will decide whether to continue the mission or declare those buried as missing.
Most of the victims will likely be declared missing, Bagossy said.
Humanitarian aid began to arrive in this remote area of northern Papua New Guinea on Wednesday, amid difficulties due to the collapse of a bridge and adverse weather conditions.
The impoverished country's National Disaster Center informed the UN on Monday that more than 2,000 people were buried by the avalanche.
According to a UN body, the disaster affected about 7,800 people, 40 per cent of whom were under 16 years of age.
Papua New Guinea is rich in natural resources, but a large part of its over nine million people live in extreme poverty, without access to services such as health and education.