VANCOUVER, BC, March 24, 2021 /CNW/ - Kainantu Resources
Ltd. (TSXV: KRL) ("KRL" or the "Company"), the Asia-Pacific focused gold exploration company,
is pleased to confirm the extension of rights to explore and
consolidation of its tenements at KRL's core projects in the highly
prospective Kainantu region.
Transfer of Core Tenements to KRL
KRL's principal holding subsidiaries were demerged from Asia
Pacific Energy Ventures Pte Ltd and Pacific Energy Consulting
Limited ("PEC") on June 1, 2020,
prior to listing on the TSX Venture Exchange ("TSX-V").
As part of the demerger, the Company's core project tenements,
EL 2558 (20 kilometres NE of Kainantu town) and EL 2559 (25
kilometres SW of Kainantu town) remained with PEC, pending their
transfer to KRL as required by consent of the Mineral Resource
Authority ("MRA") of Papua New
Guinea ("PNG"); in accordance with the Mining Act 1992
("Act").
Over the interim period, KRL held an exclusive call option and
management rights over both EL 2558 and EL 2559 (exercisable for
nominal consideration). Further particulars are contained in
Section 4 of the NI 43-101 Technical Report, dated June 30, 2020: see https://bit.ly/2PjURGe.
Having exercised the option and obtained consent from the MRA,
the Company is now pleased to confirm the successful transfer of EL
2558 and EL 2559 into KRL's own name and direct control.
KRL's rights to explore in the Kainantu region are confirmed to
be in good standing by the MRA; and guaranteed for a further second
term. KRL continues to conduct exploration work in both
tenements.
Grant of Additional Exploration Licences
Field work in 2019 identified additional prospective ground on
trend and/or adjacent to both EL 2558 and EL 2559.
Applications were made for additional licences over these
areas.
KRL North
In relation to EL 2558 and prior to demerger, PEC applied for
88.66 km2 of additional ground immediately adjacent/boarding EL
2558. KRL now confirms the formal grant of an exploration
licence over this additional area: EL 2655. Together, rights
to explore are in good standing for both EL 2558 and EL 2655; in
combination referred to as KRL North.
Presently, the Company is conducting field work and finalising
access arrangements with local communities at KRL North; with an
operational update to be provided in the near future.
KRL South
In relation to EL 2559 and by way of three separate
applications, prior to demerge PEC sought 371.69 km2 of additional
ground surrounding the central core tenement of EL 2559. In
this regard, KRL notes the formal grants of EL 2650, EL 2660 and EL
2652.
Combined with EL 2559, EL 2650, EL 2660 and EL 2652 are referred
to as KRL South; all in good standing and providing KRL with
unrestricted rights to explore in the area.
The Company has conducted intensive field work in KRL South
throughout 2020 and into 2021 H1. Results and field
observations remain encouraging with the Company focusing on the
Tirokave area, located in the centre of KRL South. In
addition to the likely occurrence of epithermal mineralisation, the
enlarged exploration ground at KRL South likely incorporates skarn
and porphyry style structures for further investigation. As
with KRL North, the Company expects to provide further updates on
KRL South in the near future.
Given that they are in their initial first terms and in
accordance with the Act, PEC will remain the title holder of EL
2650, EL 2660, EL 2652 and EL 2655 (with PEC having made the
initial applications prior to demerger). These remain subject
to an exclusive option and management agreement in favour of KRL;
meaning KRL is able to explore the overall enlarged area without
restriction.
In due course, the Company will apply to transfer these
tenements to KRL on notification to PEC of exercise of the option;
and consent from the MRA.
All of the additional tenements were granted in accordance with
the MRA's strict approval process, including extensive consultation
with local communities by Warden's Hearing in the Kainantu
district. The response from the community has been extremely
positive, facilitating the rapid grant of the applications to full
licence status.
Summary of KRL's Right to Explore
The following table summaries KRL's tenements and rights to
explore in the Kainantu region:
KRL
Reference
|
Exploration
Licence Number
|
Current
Holder*
|
Size
(km ²)
|
Current Term
Ending
|
Term: First or
Second**
|
KRL
North
|
EL 2558
|
KRL
|
40.92
|
Aug 28,
2022
|
Second
|
EL 2655
|
PEC
|
88.66
|
Nov 11,
2022
|
First
|
KRL
South
|
EL 2559
|
KRL
|
225.06
|
Aug 28,
2022
|
Second
|
EL 2650
|
PEC
|
143.22
|
Aug 13,
2022
|
First
|
EL 2660
|
PEC
|
102.3
|
Nov 11,
2022
|
First
|
EL 2652
|
PEC
|
126.17
|
Aug 13,
2022
|
First
|
* = PEC holds
tenements subject to exclusive options agreement in favour of
KRL
|
** = First term is
for 2 years; second term is for 2 years with ongoing rights to
extend under the Act
|
Geographically represented, KRL's overall exploration package is
as follows:
The MRA's official cadastre mapping record can be viewed at
https://portal.mra.gov.pg/Map/.
Benefits for KRL
The transfer of the tenements and formal granting of further
licenced ground streamlines and expands KRL's exploration rights in
the highly prospective Kainantu region.
In combination with the existing core tenements, the additional
grants secure two coherent land packages; incorporating ground
already identified for targeted exploration at both KRL North and
KRL South. Field teams continue to be active on the ground at
both areas.
The expansion of ground enables KRL to enlarge the broader
programme along trend in line with the Company's corporate
objectives. Concurrently, KRL also continues targeted works in
areas of identified mineralisation, especially around Tirokave at
the centre of the KRL South area.
Matthew Salthouse, CEO of KRL,
commented:
"Extending the right to explore and consolidating the
tenement package at Kainantu achieves an early-stage strategic
objective for KRL and supports our plans to accelerate activities
across our highly prospective gold projects during the course of
2021. Ongoing field work remains encouraging, with further updates
expected in the near future.
KRL is grateful for the support of the MRA and local
communities in Kainantu for working with the Company in a timely
way to confirm and expand our exploration ground.
The region is one of the most highly prospective in the
country and we are committed to ensuring best practice operations
and working in partnership with our local stakeholders."
COVID Update
PNG remains subject to a range of restrictions to contain the
spread of the COVID virus. These restrictions are not
currently impacting on the Company's field work or operations (save
for some delays in the dispatch and processing of sample), with
exploration teams already deployed to the Kainantu region ahead of
provincial lockdowns. Additional health and safety practices
have been implemented for our staff, with their well-being assessed
on a constant basis.
About KRL
KRL is an Asia-Pacific focused
gold mining company with two highly prospective gold projects, KRL
South and KRL North, in a premier mining region, the high-grade
Kainantu gold district of PNG. Both of KRL's projects show
potential to host high-grade epithermal and porphyry
mineralization, as seen elsewhere in the district. KRL has a highly
experienced board and management team with a proven track record of
working together in the region; and an established in-country
partner.
For further information please visit
https://kainanturesources.com/
Neither the TSX-V nor its Regulation Services Provider (as
that term is defined in the policies of the TSX-V) accepts
responsibility for the adequacy or accuracy of this release.
Disclaimer and Forward-Looking Information Statements
contained in this release that are not historical facts are
forward-looking statements that involve various risks and
uncertainty affecting the business of KRL. In making the
forward-looking statements, KRL has applied certain assumptions
that are based on information available, including KRL's strategic
plan for the near and mid-term. There can be no assurance that such
information will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
statements. Accordingly, readers should not place undue reliance on
forward-looking information. KRL does not undertake to update any
forward-looking information, except in accordance with applicable
securities laws.
SOURCE Kainantu Resources Ltd.