VANCOUVER,
BC, April 19, 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 exploration activities
at KRL North, the Company's highly prospective tenements located in
the NE of the Kainantu region, Papua New
Guinea ("PNG").
Highlights
- Adjacent to the Bilimoia Mineral Field, KRL North borders on
and shares similar geological attributes to the high-grade gold
deposits currently being mined by K92 Mining Inc. ("K92");
- The Company has embarked on a comprehensive stream sediment and
soil sampling programme to identify further potential porphyry
related alteration and mineralisation targets within KRL
North;
- On strike and along trend of the world-renowned Kainantu
Transfer Structure, two identified significant mineralised vein
systems (Manipoe and Arakompa) are 2 to 4 km SE of KRL North (with
a conceptual mineralising porphyry source underlying the ground
between Arakompa and the SW corner of KRL North); and
- After an extensive community awareness programme resulting in
strong community support, the Company has successfully established
long term access arrangements with local landholders, as a key
milestone event in the field activities at KRL North.
Matthew
Salthouse, CEO of KRL, commented:
"The proximity and central location of KRL
North to known high-grade mining activities makes the project
highly prospective for ongoing investigation. Concluding
access arrangements with the communities of KRL North is a key
milestone event ahead of field work. We foresee encouraging
results in coming months to add to the Company's pipeline of
activities and news
flow."
Background
Approximately 20 km NE of Kainantu town, KRL
North is 88.65 km² in size, comprising two tenements: EL 2558 and
EL 2655. The Company's announcement of March 24, 2021 contains further
particulars.
As with K92, KRL North is located along the world
renowned Kainantu Transfer Structure, associated with successful
gold, silver and copper mining across the Kainantu Mining District.
Aeromagnetic data sourced from the PNG Mineral Resource Authority
("MRA") library indicates proximity and certain similarities,
notably structure, between KRL North and the Bilimoia Mineral Field
which host the K92 mine (see Figure 1).
KRL North's Geological Setting in Relation to
the Bilimoia Mineral Field
As noted above, KRL North borders K92's current
tenement package and sits along strike, NNE, on the mineralised
corridor representing a portion of the Kainantu Transfer Structure:
see Figure 2.
Amongst other features, this structure appears to
control two significant mineralised vein systems within the
tenement package of K92, both within 3 to 4 km of the SW corner of
KRL North. Drilled by a former miner in the 1980s and 1990s,
and while non-JORC compliant (or subject to an NI 43-101 technical
report), historic data is reported to indicate a resource of
560,000 oz Au at 2.2 g/t at Maniope; and 798,000 oz Au at 9.0 g/t
at Arakompa.1
Given their proximity to the Company's tenements,
both the Maniope and Arakompa vein systems are relevant to KRL
North. A 1994 paper by Corbett et al* examined attributes of
both prospects and concluded:
"Fluid inclusion, gold
fineness, vein paragenesis and mineral distribution indicate that
the Arakompa vein system is proximal to a porphyry source at
depth…..A fluid flow pattern is defined from the mineral
zonation…..the mineralising fluids flowed southward along the
Maniape vein systems."
…It is suggested that the
mineralising porphyry has possibly been emplaced at the
intersection of the Arakompa structures and the contact between the
Akuna granodiorite and Bena-Bena Metamorphics."
"An extensive programme of
ridge and spur auger sampling identified soil anomalies at
Arakompa………Mesothermal veins were identified in outcrop at Maniape
and exposed in trenching at Arakompa."
*Corbett, G.J.,
Leach, T.M., Thirnbeck, M., Sione, T., Koima, H., Digan, K.,
Petrie, P., 1994. The geology of porphyry related mesothermal vein
gold mineralization north of Kainantu, PNG. Geology, Exploration,
and Mining Conference, 1994, Lae. The Australasian Institute of
Mining and Metallurgy, Melbourne.
|
The research infers a mineralizing porphyry
source underlying the ground between the Arakompa Prospect and the
SW corner of EL 2558. This warranted the Company originally making
application for a tenement over the area, with the potential for
high-grade mineralisation extending into KRL North.
Given these evident characteristics, the Company
has developed a programme to identify potential porphyry related
alteration and mineralisation within KRL North.
____________________
|
1 Canaccord Genuity Corp., Research
Report, January 23, 2020.
|
2020/2021 Programme at KRL North
Access: Throughout 2020, the
Company actively engaged with the communities located in KRL North
to develop mining awareness and support for KRL; with the aim of
ensuring appropriate local consent arrangements could be agreed in
accordance with PNG law before starting field
work.
This has resulted in the recent signing of an
access agreement between KRL and seven clans/community groups with
cultural and customary links to EL 2558/KRL North ("the
Agreement").
The Agreement confirms the communities' strong
support for the Company's ongoing rights to access and explore KRL
North; with the Company committing to engage local labour for field
work and undertake other activities in line with its broader ESG
strategy. The Agreement does not involve the payment of any
further consideration. Figure 3 records the signing of the
Agreement and the Company is grateful for the support of the local
community for reaching accord with KRL.
Field Work: With the Agreement
securing access, the Company is now undertaking a comprehensive
stream sediment and soil sampling programme covering the eastern,
central, and western stream systems forming the major drainage
pattern within EL 2558/KRL North. Assessment of outcrops and field
observation work is also underway. The intention will be to
identify areas for ridge-and-spur and/or gridded soil sampling,
potentially leading to a costean sampling programme later in the
year.
To date, 155 samples comprising 127 rock outcrop
and float, 20 stream sediments, and 4 pan concentrates (inclusive
of 4 QA/QC) samples have been taken and dispatched for
multi-element analysis, with field reports being
encouraging.
Lithologies mainly consist of basement phyllites
overlain by siltstone with the identification and sampling of
mineralized chlorite altered microdiorite dykes, believed
affiliated with the Elandora Porphyry and small quartz veins hosted
in intensely chloritized phyllites. Steeply dipping N to NNE
structures have been mapped hosting mineralisation consisting of
disseminated and fracture fill/veinlets of pyrite, chalcopyrite,
and bornite.
Developing KRL North
Establishing long term community support and
progressing access arrangements will enable the Company to
accelerate exploration activities across KRL North (in addition to
KRL South) over the coming 6 to 12 months. The Company will
continue to provide updates on the project.
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
Mineralization hosted on adjacent and/or nearby properties is not
necessarily indicative of mineralization hosted on the Company's
property. The data disclosed in this release relating to drilling
results is historical in nature. Neither the Company nor a
qualified person has yet verified this data and therefore investors
should not place undue reliance on such data, and no representation
or warranty, express or implied, is made by the Company, its
affiliated companies, or any other person as to its fairness,
accuracy, completeness, or correctness. 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.