Vancouver, British Columbia – (MarketWire – October 25, 2010)Papuan Precious Metals Corp. (“PPM” or the “Company”) (TSX Venture: PAU) announces that it has received encouraging gold and copper results from a soil geochemistry survey and outcrop samplingonits New Hanover Property, New Ireland Province, Papua New Guinea (“PNG”). The New Hanover Propertycomprises two exploration licences (EL 1566 & ELA 1856: PPM 100%) covering 591.6 km2at the northwestern end of the Lihir-Tabar alkaline volcanic belt, host to the giant 41 million ounce Lihir gold deposit and the Simberi gold deposit. The Company has been focusing its ongoing sampling program at two of its eleven mineral prospects within the New Hanover Property: Kuliuta and Matamata Creek. Kuliuta is a high priority epithermal gold prospect, where limited historical drilling in the 1980s identified mineralized intersections including 20 m of 1.48 g/t Au and 4 m of 3.84 g/t Au. PPM has recently extended the limits of thisprospect to the south of the historical trenching and drillingin an area previously unexplored for gold, with a successful grid-based soil geochemical sampling program. Within this new area, located approximately 200-300 m southeast from anomalous historic trenches, preliminary results have identified 225 m x 200 m and 100 m x 200 mgold in soil geochemical anomalies(>0.1 g/t Au) with results up to 5.92 g/t Au. At Metemana Creek, a porphyry Cu-Au prospect to the southwest of Kuliuta, recent sampling by the Company has identified coppervalues as high as 9.67% Cu in outcrop.
Kuliuta Epithermal Gold Prospect
Historically, the Kennecott-Niugini Mining Joint Venture, in a farmin on Nord Resources’ New Hanover Property, completed the most intensive exploration at the Kuliuta prospect. Six kilometers of trenching was completed in two areas, which became known as the Northern and Central Stockwork Zones. Trenching established a minimum strike dimension of 2 km for a zone that remains open to the northwest and southeast. Limited drilling identified gold grades comparable with those encountered in surface trenches. The best holes intersected 20m grading 1.48 g/t Au and 4m of 3.84 g/t Au. PPM’s 2010 grid soil sampling extends across a 3 km x 1 km area, with line spacing of 100 m and sample stations at 25 m, and covers the area of historic work. It extends the prospect by approximately 1,000 m to the southeast and 300 m to the northwest. The program, which also includes geological mapping, is continuing, and is expected to be completed before the end of October. It is anticipated that soil geochemical sampling and rock sampling across the Kuliuta grid will advance the project to where drill targets will be identified. While results reported are preliminary in nature and represents those for the first 10 lines to the south, PPM’s program demonstrates the Kuliuta prospect is a very large system with gold in soil anomalies extending well to the south of previous historical work in a previously unexplored part of the property. Further results will be updated as they are received.
Metemana Creek Copper Occurrence
The porphyry copper-gold potential of New Hanover has only been recently recognized as a result of PPM’s ongoing exploration efforts. At Metemana Creek, located approximately 3.5 km southwest of the Kuliuta epithermal gold prospect, PPM has discovered an area of outcropping breccia containing secondary copper minerals azurite and malachite, which assayed 9.67% Cu. This high grade copper sample was found in an area of poor outcrop, 2.4 km inland from the south coast. It is the first high-grade copper result to be obtained from the New Hanover Property, and demonstrates the potential for a porphyry copper-gold occurrence. Extensive zones of advanced argillic alteration (covering a 19 km2 area) with numerous porphyry-style signatures identified during PPM’s 2010 fieldwork, indicate a porphyry prospective zone inland from New Hanover’s south coast, extending east from Metemana Creek to Elang Creek, a distance of some 21 km. The Metemana Creek prospect warrants continued sampling, mapping and geophysical work to further evaluate the porphyry copper-gold potential.
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, 33 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
Dev Randhawa, CEO and Chairman
Papuan Precious Metals Corp.