VANCOUVER, BC, April 9, 2021 /CNW/ - Kainantu Resources
Ltd. (TSXV: KRL) ("KRL" or the "Company"), the Asia-Pacific focused gold mining company, is
pleased to provide an update on its exploration strategy at KRL
South, one of the Company's core projects located in the highly
prospective Kainantu region, Papua New Guinea.
Highlights
- Ongoing work continues to support the expectation that KRL
South is a high-quality exploration target, in close proximity to
existing miners and located in the Kainantu mining district;
- Exploration at KRL South continues to indicate the prospect of
multiple epithermal, skarn and porphyry systems;
- Ring features can be observed in KRL South, associated with
shallow-buried to emergent mineralising igneous complexes
especially apparent on or about the rim of Tirokave and Tebeo
Rings;
- A focused multi-element ridge-and-spur auger soil sampling
programme (>2,000 samples to date) is near completion with
approximately 54 line-km sampled so far; and
- Building on KRL's exploration strategy, targets for further
focus are expected to emerge from the ridge-and-spur soil study, to
be reported in coming weeks. Ongoing sampling is extremely
encouraging.
Background
Centred approximately 25 km SW of Kainantu town, KRL South is
596.75 km² in size and comprises four tenements: EL
2559, EL 2650, EL 2660 and EL 2652. Further particulars are
contained in the Company's announcement of March 24, 2021 and below in Figure 1.
Tirokave River passes through the centre of KRL South, being a
major tributary to the Upper Ramu system. Historically,
substantial alluvial gold mining has occurred in the Ramu River
catchment, primarily with a large proportion deriving from both
active drainages and upraised terraces around the Tirokave
village. Prior to the Company be being granted these
tenements, exploration activities were limited. Since grant,
KRL (and its predecessor) has been active on the ground since 2019,
having identified skarn and porphyry style alteration and
mineralisation for further investigation; in addition to the likely
occurrence of epithermal mineralisation.
KRL South's Favourable Geological Setting
Management applied for the KRL South tenements in November 2017, in line with the Company's focus
on identifying highly prospective precious metal targets in
proximity to known quality producers.
Amongst other factors associated with the Kainantu region, the
area was of particular interest given extensive outcrops as mapped
by government geologists, identifying Akuna Igneous Complex rocks
and a large body, including scattered dykes and plugs, of the
Elandora Porphyry; likely to be a major source and driver of
mineralisation occurring throughout the district.
In addition, substantial artisanal mining efforts in the
headwaters of the Tirokave and Parufi river systems supported KRL's
decision to conduct an intensive geological mapping and sampling
programme (pan concentrate, stream sediment, rock outcrop and
float) from Q4 2019 to the end of Q2 2020 ("2019/2020
Programme").
2019/2020 Programme: Ring Features and Early
Petrology
A key outcome of the 2019/2020 Programme was confirmation of
extensive local hydrothermal alternation and at least two skarn
occurrences within KRL South. With a focus on higher quality
topographic maps and imagery, management was also able to recognise
a number of ring features across KRL South, as represented in
Figure 1.
The ring features are of significance for a number of reasons:
the main one being the apparent association with shallow-buried to
emergent mineralising igneous complexes. In particular, two
pronounced ring features were identified in the Tirokave
area. Adjoining each other and termed by KRL as the Tirokave
and Tebeo Ring Features, both encompass several complex intrusive
bodies and are further highlighted in the satellite image in Figure
2.
An initial petrology report was also prepared based on 16
samples taken from within the Tirokave Ring Feature. While
concluding the igneous complex in the centre of the feature was
unlikely to promote moderate to low temperature hydrothermal
alterations, the report indicated concentrating exploration efforts
around the rim of the ring may prove to be more successful; where
KRL expects structural permeability to be enhanced (with lower
temperature alternation accompanied by quartz veining).
The analysis supported setting the objectives for KRL's H2
2020/Q1 2021 programme ("2020/2021 Programme"), with the focus on
Tirokave area as most likely to provide indicators of relatively
shallow hydrothermal and skarn prospects, capable of further
delineation leading towards preparations for drilling.
2020/2021 Programme: Tirokave Focused Ridge and Spur Soil
Sampling Programme
Based on the earlier analysis, the 2020/2021 Programme involved
KRL conducting a ridge-and-spur soil sampling programme (with a
gridded approach not considered appropriate due to the extensive
colluvial cover on the slopes of the ring features). The KRL
team rapidly completed sampling along the rims and selected spurs
of the Tirokave and Tebeo Ring Features.
A 20-metre sample separation was chosen, with an emphasis on
searching for narrow vein styles. Over 2,000 samples were
taken, primarily of soil (combined with rock outcrop and float
sampling) in proximity to the rings. Sample results are
currently being finalised and analysed, in addition to a further
petrology evaluation.
KRL will provide a further update shortly on outcomes from the
programme and next steps in the exploration and development of KRL
South. A clear objective will be identifying gold prospects
in the Tirokave area for further focused exploration efforts.
In the interim, further field work continues; including ongoing
sampling and some manual costeaning over selected gold-anomalous
soil sites.
Results Driving Focus on KRL South
To date, field work and analysis from KRL South sets a clear and
logical baseline for further focused exploration efforts in the
area, supporting plans to intensify work for the remainder of the
year. Work to date remains encouraging and justifies KRL's
focus on this project. The ongoing progress also supports
managements increasing confidence as to the highly prospective
nature of KRL South.
Matthew Salthouse, CEO of KRL,
commented:
"Our targeted exploration programme for the Kainantu projects
continues to yield encouraging results, especially in and around
the Tirokave area. This provides the foundation for further focused
efforts during 2021 and beyond, with the prospective nature of the
tenements becoming increasingly apparent as we build on the early
successes to date at KRL South."
Qualified Person
The scientific and technical information disclosed in this
release has been reviewed and approved by Graeme Fleming, B. App. Sc., MAIG, an
independent "qualified person" as defined under National Instrument
43-101, Standards of Disclosure for Mineral Projects.
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 This release
contains forward-looking statements, which relate to future events
or future performance and reflect management's current expectations
and assumptions. Such forward-looking statements reflect
management's current beliefs and are based on assumptions made by
and information currently available to the Company. All statements,
other than statements of historical fact, are forward-looking
statements or information. Forward-looking statements or
information in this news release relate to, among other things:
formulation of plans for drill testing; and the success related to
any future exploration or development programs.
These forward-looking statements and information reflect the
Company's current views with respect to future events and are
necessarily based upon a number of assumptions that, while
considered reasonable by the Company, are inherently subject to
significant operational, business, economic and regulatory
uncertainties and contingencies. These assumptions include; success
of the Company's projects; prices for gold remaining as estimated;
currency exchange rates remaining as estimated; availability of
funds for the Company's projects; capital, decommissioning and
reclamation estimates; prices for energy inputs, labour, materials,
supplies and services (including transportation); no labour-related
disruptions; no unplanned delays or interruptions in scheduled
construction and production; all necessary permits, licenses and
regulatory approvals are received in a timely manner; and the
ability to comply with environmental, health and safety laws. The
foregoing list of assumptions is not exhaustive.
The Company cautions the reader that forward-looking
statements and information involve known and unknown risks,
uncertainties and other factors that may cause actual results and
developments to differ materially from those expressed or implied
by such forward-looking statements or information contained in this
news release and the Company has made assumptions and estimates
based on or related to many of these factors. Such factors include,
without limitation: fluctuations in gold prices; fluctuations in
prices for energy inputs, labour, materials, supplies and services
(including transportation); fluctuations in currency markets (such
as the Canadian dollar versus the U.S. dollar); operational risks
and hazards inherent with the business of mineral exploration;
inadequate insurance, or inability to obtain insurance, to cover
these risks and hazards; our ability to obtain all necessary
permits, licenses and regulatory approvals in a timely manner;
changes in laws, regulations and government practices, including
environmental, export and import laws and regulations; legal
restrictions relating to mineral exploration; increased competition
in the mining industry for equipment and qualified personnel; the
availability of additional capital; title matters and the
additional risks identified in our filings with Canadian securities
regulators on SEDAR in Canada
(available at www.sedar.com). Although the Company has attempted to
identify important factors that could cause actual results to
differ materially, there may be other factors that cause results
not to be as anticipated, estimated, described, or intended.
Investors are cautioned against undue reliance on forward-looking
statements or information. These forward-looking statements are
made as of the date hereof and, except as required under applicable
securities legislation, the Company does not assume any obligation
to update or revise them to reflect new events or
circumstances.
SOURCE Kainantu Resources Ltd.