Papuan Precious Metals Corporation(“PPM” or the “Company”) announces that it has received geochemical results from selective grab sampling of various altered outcrops from its highly prospective 100% owned Kuliuta Gold Property, New Hanover, Papua New Guinea. A drill program, to test the near surface gold potential, in addition to the deeper porphyry copper potential, as indicated by results obtained to date, will commence in mid-May.
Following the trenching program completed earlier this year, eight selective grab samples from outcrop were collected. A narrow (< 1m wide) mineralised “single event” manganese-sulphide breccia, located within the Le’mu’sing or “Zone A” gold-in-soil anomaly, assayed 128.0 g/t Au, 188.0 g/t Ag, 1.78 % Cu and 18.8 % Mn. The high copper and molybdenum (30 ppm) contents of the breccia suggest sourcing from a possible copper porphyry at depth below “Zone A”. In addition, the recently completed airbornegeophysical survey detected a thorium anomaly underlying the Kuliuta soil grid, coincident with the large 1,400 m x 600 m >0.1 g/t Au soil anomaly, providing further indication of a possible copper mineralized porphyry at depth below a “gold cap”. Thorium is associated with other porphyry copper deposits in PNG.
SJ Geophysics Ltd, Delta, BC, Canada, has been contracted to complete a 3D-IP geophysical survey over the area of coincident gold-in-soil and thorium anomalies. This program is expected to commence mid-May, 2011 and will provide additional information for targeting planned deeper drilling of the copper porphyry potential.
Previously reported gold samplesfrom trenching in “Zone A” include: Trench 12 – 39m grading 3.89 g/t Au including 21m grading 6.54 g/t Au, including 3m grading 31.64 g/t Au; Trench 11 – 51m grading 0.90 g/t Au, including 9m grading 1.56 g/t Au; Trench 2
(500 m SE of Trench 12) – 27 m grading 3.58 g/t Au, including 12m of 7.64 g/t Au,including 3m of 23.43 g/t Au;and Trench 4 – 33 m grading 0.90 g/t Au, including 6m grading 1.83 g/t Au (see press release dated February 22, 2011).
Quest Exploration Drilling (PNG) Ltd of Lae, PNG, has been contracted to complete 1,500m of drilling. A barge transporting drilling equipment, supplies, fuel and bulldozer (contracted from Garon Ltd, Rabaul, PNG), is scheduled to arrive at New Hanover on May 8, 2011. Equipment and supplies will be hauled 7 km inland to the drilling site. The first two drill holes are planned in the vicinity of Trench 12, followed by two holes in the vicinity of Trench 2. At least two drill holes of approximately 300m will test the deeper copper porphyry potential.
The initial budget of C $600,000, may be expanded depending on results. Core samples will be sent to the Genalysis Laboratory in Lae, PNG, for preparation prior to being forwarded to their lab in Townsville, Australia for analysis. Gold analyses will include standard 25g lead collection Fire Assay followed by Flame Atomic Absorption Spectrometry.
Copper and molybdenum analyses involves multi-acid digest, including hydrofluoric, nitric, perchloric and hydrochloric acids in Teflon tubes. Analyses will be completed by Inductively Coupled Plasma Optical (Atomic) Emission Spectrometry. Results will be provided when available.
The New Hanover Project
New Hanover is an outstanding opportunity for the discovery of Lihir-style gold mineralisation 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 km2at the northwestern 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.
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 member 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, COO and President
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