16 May 2014
Papua Mining plc
(“Papua” or “the Company”)
Papua Mining plc (“Papua” or “the Company”), a UK company focused on the exploration for and if commercially feasible, development of gold and copper deposits in Papua New Guinea (“PNG”) presents this update in respect of recent exploration activities on its licences.
Papua has approximately 2,400 square kilometres comprised in twelve exploration licences in Papua New Guinea. Eleven of these licences are on the island of New Britain. Extensive “boots on the ground” exploration has been carried out across the licenced area and the Company has defined three main anomalies, namely the Flying Fox, Junction and Tripela drill targets in the EL1462 tenement area. In total, just over 4,000 metres of diamond drilling has been completed at the Junction, Flying Fox and Tripela targets, and drilling in mid 2013 at Junction intersected strong indicators of porphyry development, but at deeper levels than drilled at that time.
The first phase of drilling on the Tripela prospect area was completed last week and it is this target that has been delineated as the Company’s primary focus in the search for a buried porphyry copper-gold deposit. The drilling programme has collected essential vectoring geological information to map the alteration halo of the inferred porphyry target.
In addition, assay results have been received for rock samples collected by our reconnaissance geological team on the EL2051 tenement area during March and April. Of the 326 samples collected, 28 samples returned gold values greater than 1g/t. A maximum grade of 35.5g/t was returned from an outcrop sample.
Soil and rock sampling at Tripela, followed up by geological and alteration mapping, culminated in the commencement of a relatively shallow, vector drilling programme in January 2014, designed to test for alteration mineralogy and other data which would enable us to vector towards the buried porphyry body interpreted from geological evidence. That initial shallow vectoring programme has now been completed for a total of 2,100 metres of drilling. A number of holes in this programme intersected broad zones of visible copper mineralization which, although not of economic grade, represent further positive vectors towards the projected deeper porphyry.
These results combined with the surface discovery of high grade copper mineralization in outcrops, many of which are interpreted as D Veins, point to the likely presence of a porphyry nearby. We are now in the process of using these results to update the geological model for the target.
High Grade Gold Discovery on EL2051
While drilling at Tripela was ongoing, we continued with a modest but focused regional exploration programme on our other licences. A field programme in EL2051 carried out in March and April by a team led by field technician Frank William had located evidence of extensive surface mineralisation in both float and outcrop in a predominantly intrusive rock suite in the southern part of the licence area. Assay results received confirm that the outcrop and float contains significant gold mineralisation with values up to 35.5 grams per tonne. Of 328 samples collected, 28 graded above 1.0 grams per tonne Au and 13 were greater than 5 grams per tonne Au. The maximum grade returned was 35.5 grams per tonne Au from a sulphide rich andesitic outcrop. Anomalous samples fell largely within a zone with a north-south extent of 4.5 kilometres and an east-west extent of 1.5 kilometres. The Company’s XRF analyses of these high grade samples show that they also contain copper values. Results of laboratory assays for copper are awaited.
Following receipt of the assay results, a field team led by Chief Geologist Dr Chris Muller was dispatched to the area to examine the rocks in the anomalous area and carry out confirmatory sampling on the mineralised zone. Dr Muller has provisionally reported that his field observations are consistent with the assay results. It is now planned to carry out full and detailed geological mapping as well as geochemical soil sampling on a grid basis in due course, to trace the extent and tenor of this exciting new mineralized zone.
This area is located some 20kms north of the Tripela porphyry target. Further information on this new EL2051 discovery zone will be released as it becomes available.
A recent presentation which provides certain background and additional technical information on the Company’s properties and activities is available on the Company’s website www.papuamining.com
Hugh McCullough, EurGeol., PGeo, Chief Executive Officer of Papua, is a member of the Institute of Geologists of Ireland. He is a qualified person as defined in the Guidance Note for Mining, Oil and Gas Companies, March 2006, of the London Stock Exchange. He has reviewed and approved the technical information contained in this announcement.
|Papua Mining plc|
|Hugh McCullough, Chief Executive Officer||+353 1 532 9535|
|Cenkos Securities – Nominated Adviser & Broker|
|Beth McKiernan/Alan Stewart||+44 131 220 6939|
|Square1 Consulting – Financial Public Relations|
|David Bick/Mark Longson||+44 207 929 5599|