Anomalous Gold Values In Breccias Bolster Copper Porphyry Potential at Kuliuta
PAPUAN PRECIOUS METALS CORP (“PPM or the “Company”) announces it has received final assay results for drill holes KUD003 and KUD005, which tested the gold-bearing hydrothermal breccias below the trenches within the La’mau’sing or “Zone A” gold-in-soil anomaly (see news releases dated February 22 and May 2 2011). Zone “A” is located approximately 200m to the west-southwest of the sub-volcanic hosted, copper-bearing zone tested by drill holes KUD007 to KUD011, which identified native copper over long intervals. On November 10th PPM announced it was resampling and reassaying core from KUD007 to determine a reliable assay method for analysing native copper in holes KUD007 to KUD011. Kuliuta continues to represent a highly prospective porphyry copper target.
Hole KUD003 (azimuth 300o, dip 45o, 103.70m total depth) was collared below gold-bearing breccia in Trench 2 (27m averaging 3.58g/t Au). Drilling intersected altered and stockworked latite from the surface to 44.70m and hydrothermal breccia over a 13.90m down-hole interval from 44.70m to 58.60m. Anomalous gold mineralization was encountered in several discrete intervals, up to 4.0m wide, from 3.0 – 65.0m downhole.
KUD003 assay results are presented in the following table:
Hole KUD005 (azimuth 130o, dip –45o, 120.10m total depth) tested the down-dip extensions of the breccia cluster intersected in overlying Holes KUD001 and KUD002 and drilled below Trench 11 (50m averaging 0.9 g/t Au), in addition to testing the deeper copper porphyry potential below a nearby surface breccia that returned 128 g/t Au, 1.78 % Cu, 18.8 % Mn and an anomalous 30 ppm Mo (see news release dated May 2 2011).
KUD005 intersected hydrothermal breccia from 19.60m to 42.50m. At 24.70m minor chalcopyrite was noted with botryoidal haematite. A 20m wide zone of haematite flooding was noted 66.40m downhole. Anomalous gold mineralization was encountered in several discrete intervals from 23.0 – 34.0m downhole.
KUD005 assay results are presented in the following table:
The surface evidence and narrow gold intersections identified during this first phase of drilling at Kuliuta continues to suggest that deeper copper-bearing rocks should be present beneath or adjacent to these breccias, due to its close proximity (200 m west-southwest) to the copper-bearing latite stock intersected by drill holes KUD007-KUD011.
PPM believes that Kuliuta represents a significant porphyry copper target for the following reasons:
· Peripheral breccia swarms, some of which are narrowly gold and copper mineralized;
· Extensive hypogene haematisation (oxidation) that both caps La’mau’sing Mountain and is present in the sub-surface;
· The presence of both hypogene (or primary) native copper, varying from trace to locally high (visual estimates) concentrations, and sulphide copper as disseminations, stockworks and void-fillings over long drill intervals below (the tested southern flanks of) La’mau’sing Mountain;
· Long intervals of latite and pyroclastic breccia with porphyry-style argillization (illite-quartz-pyrite) as well as zones of brecciation and hypogene haematite flooding. Haematite flooding with blebs of native copper persists to downhole to a depth of 480m (Hole KUD011).
Assays for Holes KUD007 to KUD011 will be reported when available. Drill core from each of these holes has been logged and sampled, while KUD007 has been resampled to determine representative copper assay values. Quarter core from Hole KUD007 has been sent to ALS-Chemex, Brisbane, Australia, for further analysis, as outlined in the Company’s November 10 2011 news release.
Samples from KUD008 to KUD011 are being sent to Genalysis Laboratory in Lae, PNG, for sample preparation prior to pulps being sent to Townsville, Australia for analysis. Gold analyses will include standard 25g lead collection Fire Assay followed by Flame Atomic Absorption Spectrometry.
The New Hanover Project
The Company believes New Hanover is an outstanding opportunity for the discovery of porphyry copper and epithermal gold mineralization in a geological terrane that has been bypassed by modern mineral exploration for the past 22 years. The project comprises two 100% owned exploration licences (EL 1566 ELA 1856) covering 591.6 km2 at the north-western end of the Lihir-Tabar alkaline volcanic belt, host to the giant Lihir and Simberi gold deposits. Andesitic-dacitic volcanic rocks are widespread on New Hanover. They were erupted from a coalesced complex of Late Miocene-Early Pliocene stratovolcanoes that were built upon older Late Eocene-Late Oligocene submarine andesitic and basaltic rocks. Diorite, microdiorite and micromonzonite stocks intrude the younger volcanic rocks. Of particular interest is the presence of alkalic rocks, having relatively low silica content and enriched in sodium and potassium, at the Kuliuta epithermal gold prospect, indicating that New Hanover is geologically related to the Plio-Pleistocene Lihir-Tabar chain of alkaline volcanic islands.
Further details of the New Hanover project are available at www.ppmpng.com.
The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and reviewed on behalf of the company by Ian David Lindley, President Chief Operating Officer of Papuan Precious Metals Corp, a Qualified Person. Dr. Lindley has First Class Honours and Ph.D. degrees in Geology, 34 years mining industry experience, and is a Fellow of the Australian Institute of Geoscientists.
This press release contains “forward-looking information” Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause PPM’s actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Such factors include, but are not limited to: uncertainties related exploration and development; the ability to raise sufficient capital to fund exploration and development; changes in economic conditions or financial markets; increases in input costs; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological or operational difficulties or inability to obtain permits encountered in connection with exploration activities; and labour relations matters. This list is not exhaustive of the factors that may affect our forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. PPM disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
ON BEHALF OF THE BOARD
David Lindley, President and COO
For further information contact:
Greg Downey at 1.866.979.7022
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