PAPUAN PRECIOUS METALS CORPORATION(“PPM” or “the Company”) announces that drilling is continuing at the Kuliuta gold-copper prospect, which is testing both the near surface gold potential, in addition to the deeper copper porphyry potential. The program has been expanded from four holes to a total of six with completion expected before the end of July.
Holes KUD001 and KUD002
Drill holes KUD001 (azimuth 130o, dip 45o) and KUD002 (azimuth 130o, dip 45o) were drilled in the same section below Trench 12 (39m averaging 3.89g/t Au; see news release dated February 22, 2011). KUD001 intersected the target hydrothermal breccia from 2.0m to 28.0m down hole. Drill-hole KUD002 tested the hydrothermal breccia below KUD001 and intersected it from 39.0m to 55.0m down-hole. These intersections suggest a steeply dipping breccias body, narrowing slightly at depth. KUD001 was drilled to a total depth of 79.60m and KUD002 was completed at 100.60m.
Holes KUD003 and KUD004
Drill holes KUD003 (azimuth 300o, dip 45o, 103.70m total depth) and KUD004 (azimuth 300o, dip 45o, presently 208.7m depth) were collared below Trench 2 (27m averaging 3.58g/t Au). KUD003 intersected altered and stockworked latite from the surface to 44.7m and hydrothermal breccia over a 13.9m down-hole interval from 44.7m to 58.6m. Drill-hole KUD004, currently drilling, is designed to provide a deeper test below KUD003. It has intersected two intervals of target hydrothermal breccia of 36m and 13.5m width from 144.0m to 180.0m and 193.7m to 207.2m, respectively. The hole is currently drilling at 181.70m in argillised latite and is expected to be drilled to a total depth of approximately 230m.
Holes KUD005 and KUD006
Drill holes KUD005 and KUD006 will test the deeper copper porphyry potential underlying the coincident Au and Cu soil anomaly and copper occurrences at the surface in the La’mau’sing (or Zone A) area. Hole KUD005 will be drilled to an approximate depth of 180m and hole KUD006 to 300m.
Assays will be reported when available. Drill core from KUD001 has been logged and sampled. Logging and sampling of KUD002 is nearing completion. Samples are being sentto 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
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.
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 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, President and COO
For further information contact:
Greg Downey at 1.866.979.7022
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