Papuan Precious Metals Corp.(“PPM” or the “Company”) is an active explorer in Papua New Guinea (“PNG”) with highly prospective exploration properties in both the porphyry copper-gold rich Central New Guinea Range and the gold-rich Lihir-Tabar alkaline volcanic belt. These mineral belts host world class Au-Cu porphyry and epithermal gold deposits, including the giant Grasberg and Lihir deposits, Ok Tedi, Frieda, Porgera, Wafi-Golpu and Hidden Valley. The Company has 100% ownership of six exploration licenses or applications (totalling 1158 km2) and is presently earning a 50% interest in two exploration licences (649 km2).
As part of its initiation of exploration activities since becoming a publicly traded company, PPM is pleased to announce that it has engaged Fugro Airborne Surveys Pty. Ltd. (“Fugro”) to complete an 8,127 line km detailed low-level airborne high-resolution magnetic and radiometric geophysical survey over its Mt Suckling, New Hanover and Waria River projects. Fugro has extensive recent PNG experience as the contractor for the PNG Highlands airborne geophysical survey acquired under the European Union Mining Sector Support Programme.
The airborne geophysical survey is expected to commence on the Mt Suckling project in early November 2010. Acquisition work in all three areas is expected to be completed in approximately nine weeks and will assist in verifying high priority areas for follow-up field investigation and identifying drill targets. PPM has budgeted AUD1.2 million for this phase.
Mt Suckling Porphyry Au-Cu Project
The Mt Suckling project comprises two exploration licenses (EL 1424 & EL 1618: PPM 100%) covering 316.8 km2 at the eastern end of the Central New Guinea Range. PPM has identified a cluster of porphyry-style Au-Cu targets within the Mt Suckling project. The geology of breccia-hosted Au-Cu mineralisation localised in an early-stage diatreme body (in excess of 1,700 m x 900 m size) at the Company’s most advanced prospect at Urua Creek is thought to be analogous with the Grasberg Au-Cu porphyry deposit, at the western end of the Central New Guinea Range.
The Mt Suckling project straddles the Keveri Fault Zone (“KFZ”), a large-scale broad structure that marks the once active boundary between the Pacific and Australian plates. The KFZ is the focus of all PPM identified Au-Cu porphyry and hydrothermal Ni-PGE mineral systems including (from W to E) Doriri Creek, Urua Creek, Araboro Creek and Ioleu Creek. The airborne geophysical survey is designed to cover the entire 25 km strike length of the KFZ within the project area. Magnetite is ubiquitous at Doriri Creek, and is also present as 1-2 cm wide veins at Urua Creek. It is expected that these porphyries and perhaps others yet to be discovered, will have a distinct magnetic signature observable in the survey data.
The Mt Suckling airborne survey totals 1,248 line km, with a 200 m flight-line spacing.
New Hanover Epithermal AuProject
The New Hanover project comprises two exploration licences (EL 1566 & ELA 1856: PPM 100%) covering 591.6 km2 at the north-western end of the Lihir-Tabar alkaline volcanic belt, host to the 41m oz giant Lihir gold deposit. The project area hosts severalgold prospects similar in geologicalsetting to Lihir. The airborne survey will cover the entire New Hanover land package and is designed to further delineate areas of extensive magnetite-destructive argillic and advanced argillic alteration, known to be associated with the ten anomalous prospects defined during PPM’s 2009 reconnaissance exploration and at the previously identified Kuliuta gold prospect. It is expected that potassium recorded in radiometrics data (collected at the same time as magnetics data) will also indicate and define areas of bedrock argillisation.
The New Hanover airborne survey totals 3,160 line km, with a 200 m flight-line spacing.
The Waria River project comprises three exploration licences (EL 1271 & EL 1732: PPM earning 50% interest; EL 1683: PPM 100%) covering 731 km2 in the Central New Guinea Range. The project is basically underlain by a similar geology as found at the Mt Suckling project. The Waria River tenements straddle the trace of the Owen Stanley Fault Zone and (in part) the Timeno Fault. The Owen Stanley Fault Zone is contiguous with the KFZ, some 350 km to the southeast. These fault systems separate rocks of the Australian plate from those of the Pacific plate. The intent of the airborne magnetic and radiometric geophysical survey is to fast track exploration in the Waria River, aregion known for its abundant pannable gold and platinoids, known since the early gold discoveries and dredging and lode mining operations of the1920s-1950s in the nearby Wau-Bulolo valleys. The Waria River area has received little modern day exploration. However, recent work conducted by PPM’s has, for the first time, identified Cu +Au mineralization in outcrop, with Cu samples as high as 1.74 %. The project is considered highly prospective for Au-Cu porphyry style mineralisation.
The Waria River airborne survey totals 3,719 line km, with a 250 m flight-line spacing.
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 Fission’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. Fission 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
For further information contact Greg Downey at 1-250-868-8140.
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