Papuan Precious Metals Corporation(“PPM” or the “Company”) announces that it has received geochemical results from 71 rock samples (outcrop and float) collected during its recent follow-up reconnaissance sampling from Exploration Licence (EL) 1732 – Ondowa Creek, Waria River, Papua New Guinea (“PNG”). The best single sample result assayed 69.6 g/t Au, 84.6 g/t Ag and 14.5% Cu from an outcropping vein. EL 1732 is part of the Waria River farm-in agreement with Petromin (PNG) Holdings Ltd (“Petromin”), whereas PPM can earn a 50% interest by spending CDN $1.2 million by July 2012. The tenement is held in title by a 100 % wholly owned subsidiary of Petromin. EL 1732 is underlain by massive to highly fractured gabbro with late-stage leucocratic and aplite dyking and veining. Cu and Au bearing veins are associated with argillised/altered gabbro.
PPM’s sampling from EL 1732 focussed on two areas: Area A – 40 samples were obtained along the streams in the Ondowa Creek area, which drains the mountainous central part of the tenement, and Area B – 31 samples were obtained from the Onepa River area in the western part of the tenement. Visible gold is present in panned concentrates from both areas. In Area A, 19 of the 40 rock samples (47%) collected from the streams are anomalous for Au (10 samples >0.1 g/t Au), Ag (6 samples >25 g/t Ag) and Cu (19 samples >0.1 % Cu). Twelve of these rock samples contained 1 % or more Cu, including three from outcrop. In addition, 5 of the 20 float samples collected from Area B contained either anomalous Au or Cu values, with the best value assaying 1.71 % Cu. Vein float is locally abundant in streams and will require further prospecting to source.
Preliminary interpretation of the recently completed Fugro Airborne Geological survey data suggests the south flowing Onepa River follows a major fault structure nearly perpendicular to the through-going structures of the Central New Guinea Range. The central mountainous block to the east of the Onepa River is geophysically distinct with its radiogenic uranium, potassium and thorium anomalies. The geophysical results support the geochemical sampling completed to date, and have identified an encouraging new target for follow-up exploration.
Follow-up exploration planned in 2011 will involve traversing and sampling of the mountainous area east of the Onepa River, believed to be the source of much of the Au and Cu-bearing float.
Samples were sent to the Genalysis Laboratory in Lae, PNG, for sample preparation prior to pulps being sent to Townsville, Australia for analysis. Gold analyses were completed by standard 25g lead collection Fire Assay followed by Flame Atomic Absorption Spectrometry. Copper analyses involved multi-acid digest including hydrofluoric, nitric, perchloric and hydrochloric acids in Teflon tubes. Analyses were completed by Inductively Coupled Plasma Optical (Atomic) Emission Spectrometry.
The Waria River project
The Waria River project is located in the Central New Guinea Range, one of the world’s premier porphyry copper belts, and presents an outstanding opportunity to locate Au/Cu porphyry-style mineralisation similar to that of the nearby Hidden Valley mine and the giant Wafi-Golpu deposit (both Newcrest Mining/ Harmony). Located along what, at one time, was one of the main overland routes to the early 20th century gold rushes at Wau, Edie Creek and Bulolo, the presence of abundant alluvial gold in many of the Waria River tributaries has long been known. However, the area has remained relatively untouched by modern exploration.
The Waria River project comprises four exploration licences (EL 1683 and ELA 1943: PPM 100%; and EL 1271 and EL 1732: PPM earning a 50 % interest) covering a 750 km2 area and a 70 km interval along the once active Australian-Pacific plate boundary
The Kuliuta Gold project
Kuliuta Gold Property, New Hanover, Papua New Guinea, May 23, 2011: The Company is pleased to announce it has begun drilling operations at its 100% owned Kuliuta Gold property. The drill program includes 1,500m in six diamond-drill core holes and will test the near surface gold potential, in addition to the deeper porphyry copper potential. The program may be expanded depending on results.
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 1.866. 979.7022
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