Papuan Precious Metals Corp.(“PPM” or the “Company”) (TSX Venture: PAU) is pleased to update field exploration activities at its 100% owned New Hanover Kuliuta gold prospect. Geochemical results from 1,006 soil samples taken from the southern and central sections of theKuliuta soil grid have expanded the gold-in-soil anomalous zone to 1,400 m X 600 m. This zone remains open in all directions. Gold assays over this part of the Kuliuta grid included 5 samples > 1.0 g/t Au and 211 samples (21%) > 0.1 g/t Au. Results from an additional 155 soil samples from the northern portion of the grid and 208 channel samples/rock samples collected mainly from the historical Kennecott trenches are pending. Significantly, a large portion of the anomaly lies to the west and south of the previous drilling by Kennecott, where it remains open along a 500 m interval on the western edge of the soil grid.
Kuliuta has now been upgraded to the drill stage and a drill program is being planned for the end of Q1 2011.
The present phase of detailed exploration at the Kuliuta prospect concluded in December, 2010. During a series of three campaigns commenced in July, 2010, field teams completed 32 line km of soil sampling at 25 m centres covering a 3 km x 1 km soil grid area and mapped all streams within and adjacent tothe grid at 1:1,000 scale. In addition, bulldozer trenches completed by Kennecott in 1988-9 were resampled. PPM’s fieldwork represents the first significant field re-evaluation of the Kuliuta project since Kennecott’s withdrawal in 1989. This program followed PPM’s earlier sampling , which identified geochemical anomalies (gold values in soil > 0.1g/t Au, and up to 5.92 g/t Au) in two zones measuring 225 m x 200 m and 100 m x 200 m (See news release October 25, 2010). These latest results have extended this anomaly over a length of 1,400m in length to a maximum width of 600m.
Drill targets on the Kuliuta prospect will be selected and prioritized from analysis of layers of soil geochemistry data, (creek, grid and trench) geology, and trench geochemistry. Plans are underway for a drill program to be finalized for commencement before the end of Q1, 2011.
All samples were sent to the Genalysis Laboratory in Lae, PNG, for sample preparation prior to pulps being sent to Jakarta for analysis. Complete results will be reported when available.
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
For further information contact Greg Downey at 1-250-868-8140.