Company RNS

Exploration Update

By April 21, 2015 No Comments

21 April 2015

Papua Mining plc

(“Papua” or “the Company”)

 

Papua Mining plc, a UK company focused on the exploration and development of gold and copper deposits in Papua New Guinea (“PNG”), presents this update in respect of its drilling activities at the Tripela Prospect.

Highlights:

  • The drilling programme at Tripela target on Exploration Licence 1462 (the “Tripela Prospect”) indicates proximity to a porphyry system
  • Independent experts’ findings support Papua’s exploration conclusions
  • 6,985 metres of drilling completed to date at Tripela Prospect
  • Next phase of drilling will be targeted at the interpreted porphyry core

Commenting on the recent drilling programme, the Chief Executive Hugh McCullough said:

We are very encouraged by the results of the recent drilling. Significant inner propylitic alteration has been encountered in all of the four deeper drillholes. Independent expert analyses have supported our conclusion that we are close to a porphyry body. The next phase of drilling, which is designed to intersect the interpreted porphyry core, will be a particularly exciting one.”

Tripela Drilling

Since the commencement of our drilling programme at the Tripela Prospect, we have completed approximately 6,985 metres of drilling.

HoleID Easting Northing Elevation Azimuth Dip Length
N62DDH004 228238 9337492 955 356 -45 252 m
N62DDH005 228206 9337689 929 0 -60 205 m
N62DDH006 228141 9337667 937 270 -45 331 m
N62DDH007 227986 9337964 919 90 -45 257 m
N62DDH008 228085 9337465 973 0 -60 306 m
N62DDH009 228053 9337771 922 125 -60 620 m
N62DDH010 228180 9337854 897 0 -75 199 m
N62DDH011 228099 9337448 980 0 -70 427 m
N62DDH012 228059 9337771 950 180 -70 1,070 m
N62DDH013 228059 9337771 950 210 -65 1,002 m
N62DDH014 228177 9337415 984 340 -85 1,044 m
N62DDH015 228099 9337771 950 180 -80 1,272 m

Table 1: Diamond drill hole parameters for the Tripela Prospect drilling programme.

The initial drilling programme at Tripela, which was undertaken between January and May 2014, was designed to seek evidence confirming underlying porphyry emplacement in the area where our field teams had discovered significant occurrences of metal rich veins at surface. The principal aim of the shallow drilling was the recognition of the zonation of argillic, phyllic and propylitic alteration at Tripela that would lead us to an inner-potassic alteration zone which is in turn believed to be at the core of the porphyry deposit.

The last four holes, DDH012 – DDH015, were deep holes, designed to follow up on the vectors to porphyry development interpreted from the initial, shallow drilling programme.   These four holes each intersected strong evidence of inner propylitic alteration consistent with proximity to a nearby porphyry body or bodies.

Independent expert analysis and review has been carried out on the latest data from the Tripela drilling programme.

Spectral Geoscience Pty Limited (“Spectral”) of Sydney has carried out spectral analysis of core samples from the recent drilling. This analysis confirms Papua’s belief that the recently completed drillholes potentially lie in close proximity to a copper porphyry system. The Spectral report states:

“The composition of the chlorite within the diorite (952 – 1270 m) exhibits the strongest gradient change from an intermediate Fe-Mg composition to a Mg-rich chlorite composition. This observation, coupled with the spatially correlated intense epidote alteration and magnetite interpreted from the magnetic susceptibility readings, provides the evidence for interpreting the bottom of drill hole DDH015 as an inner propyllitic alteration zone and is potentially close to or intersecting the margin of a Cu porphyry system.”

In addition, Corbett Menzies Cunliffe Pty Limited, (“CMC”), the world renowned experts in copper porphyry development, has recently completed a full review of recent drillhole and other technical data from the Tripela drilling programme. The CMC report concludes:

“Strong epidote-magnetite alteration, interpreted by petrographic and SWIR analysis as skarn-style and inner propylitic alteration which, along with elevated down-hole Mo values, are interpreted to represent a zone of propylitic alteration typical of that formed marginal to porphyry Cu-Au style mineralisation, and might vector towards an inferred caldera-margin ring fracture as a source region.”

The Corbett Menzies Cunliffe Report dated April 2015 is available on the Company’s website at www.papuamining.com

Recent petrological analysis of drill cores from N62DDH015, the last hole drilled at Tripela in the recently completed programme, show strong alteration to a suite of minerals typically associated with a nearby porphyry centre.

The next phase of drilling, consisting of up to four drillholes will be targeted at the interpreted porphyry core.

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.

For further information on the Company please visit www.papuamining.com or contact the following:

Papua Mining plc,Hugh McCullough, Chief Executive Officer +353 1 532 9535
Cenkos Securities plc – Nominated Adviser & Broker,Derrick Lee/Nick Tulloch +44 131 220 6939
Square1 Consulting – Financial Public Relations,David Bick/Mark Longson +44 207 929 5599

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