VANCOUVER, BC, May 5, 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 the exploration outcomes at KRL
South, its highly prospective project located in the Kainantu
region of Papua New Guinea
("PNG").
Highlights
- Successful outcomes from ridge-and-spur auger sampling in the
Tirokave area of KRL South;
- Definition of three distinct gold prospects (epithermal, skarn
and porphyry style mineralisation):
-
- East Avaninofi Prospect, Yaoro Ridge Prospect and Kerefa
Prospect;
- High-grade 40.13 g/t Au rock sampling results at East Avaninofi
Prospect:
-
- 40.13ppm Au, 492ppm Cu, 131ppm Mo, 134ppm Bi and 29.3ppm
Te;
- Detailed mapping and sampling shows strong similarities between
KRL South and other successful Kainantu mines (ie: lithologies,
geological cross structures and geochemical data); and
- Further focused exploration activities ongoing at each
prospect, with updates to be provided.
Matthew Salthouse, CEO of KRL,
commented:
"Building on earlier work, I am pleased to report that KRL's
focused exploration programme has resulted in us defining three
prospects in a relatively short period of time. Located in
the Tirokave area at the centre of our KRL South project, all
prospects display widespread epithermal mineralisation and will
remain a key focus for the Company; with further progress to be
reported in coming months. On meeting this initial milestone,
KRL's focus remains on identifying drilling targets in these areas
in the near
term."
Background
The Company's KRL South project (comprising EL 2559, EL 2650, EL
2652 and EL 2660 and 596.75 km² in size) is a
high-quality exploration target located in the world renowned
Kainantu mining district. Further background on KRL South is
contained in the Company's release of April
9, 2021.
The Company's prior exploration activities at KRL South indicate
multiple epithermal, skarn and porphyry style mineralisation.
Ring features have been observed at KRL South, associated with
shallow-buried to emergent mineralising igneous complexes.
This is especially apparent on and about the rim of the Tirokave
and Tebeo rings (located in the centre of KRL South); with
petrology analysis supporting the Company's plan of concentrating
exploration efforts in these
areas.
In line with KRL's 2020/2021 program, the Company recently
completed a focused multi-element ridge-and-spur soil sampling
programme centred on the Tirokave area (in combination with rock
outcrop, float, stream sediment, and pan concentrate
sampling). In excess of 2,000 samples were taken. A key
objective was to identify gold prospects for further intensified
exploration efforts, with a view to developing a drilling programme
in the near term.
KRL South Prospects
The Company is now pleased to report encouraging outcomes from
the ridge and spur sampling. Three distinct prospects have
been identified on or proximal to the rims of the Tirokave and
Tebeo Ring Features. From west to east, these are termed: (i)
East Avaninofi Prospect (ii) Yaoro Ridge Prospect, and (iii) Kerefa
Prospect. Figure 1 sets out the location of these prospects
and associated soil samples.
Further petrology analysis from the prospects noted copper
mineralisation, high temperature alteration in diorite porphyries
and hornfelses; and the presence of a brecciated limestone, raising
the possibility of skarn and porphyry style mineralisation
(especially at the East Avaninofi and Yaoro Ridge Prospects).
Analysis also indicated alteration trending towards lower
temperature epithermal style mineralisation, especially in the
Kerefa Prospect. Further details on each of the prospects
follows.
East Avaninofi Prospect
Geological mapping covering approximately 650m along the topographically highest portion of
the east Avaninofi ridge, the East Avaninofi Prospect is defined by
a cluster of 14 samples of soils (from 20-100 ppb Au), outcrops
(including 0.94ppm Au, and 1,212ppm Cu) and 12 float (including
A0115: 40.13ppm Au, 492 ppm Cu, 131ppm Mo, 134ppm Bi and 29.3ppm
Te) samples.
Sample A01155 (see Figure 3) is particularly encouraging at
40.13ppm Au (or 40.13 g/t Au) and hosted by intensely silicified
hornfels strongly fractured and infilled by fine sulphides
(including covellite and bornite). Quartz-sericite altered
siltstone, exhibiting strong blocky fractures, was also observed in
close proximity and adjacent to the intrusive rocks 150m laterally upslope of this sample.
The location of this sample confirms the Company's current
geological modelling of the East Avaninofi Prospect, being a
complex contact zone between the relatively thin carapace and roof
pendants of the Omaura Formation hornfelsed, partly calc-silicate
siltstone and several intruding phases of the Elandora Porphyry,
with hydrothermal alteration and mineralisation events observed in
addition to skarn affiliated mineral assemblages.
A late stage porphyritic diorite phase, believed to be the prime
mineralising agent and referred to by the Company as the Avani
Porphyry, crops out prominently as a moderately altered plug-like
body along the ridgeline (see Figure 4). In addition to other
nearby outcrops, this has formed an immediate focus for further
sampling and excavation work.
Yaoro Ridge
Prospect
The Yaoro Ridge Prospect is defined by various clusters of Au
anomalous soil samples extending over 800m and peaking at 129ppb Au, correlating high
As values, plus the Cu bearing skarn occurrences south of the
centre of the target area. Fault breccias, variably
hydrothermally altered, have been mapped south of the ridge and
appear to partially underlie the north trending ridge.
Following the positive resolution of inter-clan matters in this
area, further work over the northern section of the Yaoro Ridge
Prospect is being undertaken; to establish a likely extension to
the nearby Tebeo Prospect and confirm and expand on the widespread
Au anomalies reported by previous prospectors in the
location.
Kerefa Prospect
The Kerefa Prospect is defined by two apparent trends: (i)
extending over 2,600m in a NNE
direction, encompassing 6 widely separated points of anomalous
Au-in-soil values between 19ppb Au and 102ppb Au; and (ii) a
smaller NNW trend of outcrops bearing up to 1.92ppm Au and 1,245ppm
Cu. Samples taken demonstrate an epithermal quartz matrix in
a hydrothermal breccia. The southern cluster of highly
elevated Au-in-soil is currently being investigated in relation to
possible influence of a recently identified thin colluvial layer
observed in the topographically lower sections.
The location on the fringe of the ring feature, geochemistry
(with primarily only anomalous Au reported) and rock textures
indicate a likely epithermal environment at the Kerefa Prospect
(see Figure 5).
Excavation work has also uncovered strongly sheared mineralised
hornfelsed sediments (with disseminated sulphides) hosting
quartz-sulphide veinlets; aligned along the shear directions.
These are intruded by mineralised mafic dykes. The dominant
structural directions mapped are NW through N to NE. Samples
are currently being processed.
Similarities between KRL South and Successful Miners in
Kainantu region
In addition to definition of prospects, structural mapping over
recent months around the Tirokave and Tebeo Ring Features indicates
the strong presence of the primary structures associated with
mineralisation in the Kainantu region, trending in NW and NNE to NE
directions (which is a similar feature of geology at the Bilimoria
mineral field, hosting the operations of K92 Mining Inc.).
Northerly structures are also common, partially as extensions of
arcuate structures, and appear to be largely tensional. E-W
structures in the centre of the ring features appear compressional
in nature: see Figure 6.
These cross-structures provide further evidence of the
prospective nature of KRL South and the geological similarities
between it and other successful high-grade miners in the Kainantu
region. Other parallels include the observable association of
mineralisation with multiple phases of the Elandora Porphyry and
the correlation of trace elements such as molybdenum, bismuth,
tellurium, and tungsten with gold, silver and copper.
Next Steps and focus
The success of the Company's ridge-and-spur auger soil sampling
programme and the identification of clear prospects at KRL South
supports further concentrated exploration efforts in the Tirokave
area.
Recent mapping in some of the costeans excavated over the Kerefa
Prospect has revealed strongly mineralised quartz-bearing shear
zones of varying orientations, some visibly associated with
mineralised (Cu & Fe sulphides) mafic dykes. Further mapping
and excavation work will be justified here on receipt of
satisfactory results.
Mapping in the triple junction area of East Avaninofi-North
Yaoro-Tebeo Ridges has uncovered strongly fractured quartz-sericite
altered quartz diorite porphyry hosting disseminated and
fracture-fill pyrite, copper sulphides and molybdenite. The
ridge-and-spur soil sampling team is currently completing work in
this area. At the East Avaninofi Prospect, a continuous chip
sampling programme is underway along the faces of previously mapped
altered and mineralised outcrops; with excavating where
necessary. This programme will likely extend into the triple
junction area mentioned above.
While observing a number of prospective targets across the KRL
South project, the Company's focus remains on delineating drill
targets in the near term around the Tirokave area, as part of the
broader objective of defining a resource at KRL South. The
definition of the three prospects achieves an early stage milestone
towards this objective, with further news-flow expected in coming
months.
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
mineralisation, 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.
![Kainantu Resources Ltd. Logo (CNW Group/Kainantu Resources Ltd.) Kainantu Resources Ltd. Logo (CNW Group/Kainantu Resources Ltd.)](https://mma.prnewswire.com/media/1503812/Kainantu_Resources_Ltd__Logo_8.jpg)
SOURCE Kainantu Resources Ltd.