VANCOUVER, BC, Aug. 30, 2021 /CNW/ - Kainantu Resources Ltd.
(TSXV: KRL) (FSE: 6J0) ("KRL" or the "Company"), the Asia-Pacific focused gold mining company, is
pleased to report the filing of its second interim results for the
period ending June 30, 2021, a copy
of which is available for review on the Company's
website.
Given the Company's transition to a calendar reporting cycle,
the interim results are presented for a 7 month period on this
occasion.
Key aspects to report over the period include:
- Ongoing exploration success at the Company's projects in
Kainantu:
-
- KRL South: successful outcomes from ridge-and-spur auger
sampling in the Tirokave area, leading to the definition of three
gold prospects (East Avaninofi Prospect, Yaoro Ridge Prospect and
Kerefa Prospect) and a series of encouraging sampling results
(including the high-grade 40.13 g/t Au rock sample result at the
East Avaninofi Prospect);
- KRL North: commencement of a comprehensive mapping and sampling
programme to build on historic evidence of porphyry related
alteration and mineralisation in the area; and
- the collection of 2,628 samples over the period, in addition to
earlier analysis (with results currently being processed).
- Execution of a value accretive corporate initiative for the May
River Copper-Gold Project, with KRL entered into two definitive
agreements to acquire mineral concessions in highly prospective
ground:
-
- previous drilling has demonstrated significant gold potential:
54m at 1.83g/t Au; 109m at 1.53g/t Au and 96m at 0.89g/t Au; and
- copper-in-soil anomalies of > 2,500ppm have been reported
from several areas.
- Commencement of trading on the FSE, in addition to the TSX-V,
providing increased exposure to European capital markets.
- The appointment of Mr. Graeme
Duncan as Chief Operating Officer, bringing 45 years of
experience leading mining project development in the Asia-Pacific region.
- Ongoing community support as evidenced by the signing of a
long-term access agreement with key stakeholders at KRL North, in
addition to continued engagement with the national level government
(with the expansion and consolidation of exploration tenements at
Kainantu reported during the period).
- A net loss for the 7 months of $0.94
million (inclusive of listing and equity compensation costs)
and a significantly lower loss for the 4 months to June 30, 2021 of $0.15
million.
- Exploration and evaluation activities for the 7 months to
June 30, 2021 of $0.76 million (which has been capitalised).
- A sound closing cash position of $1.64
million: during the 7 month period to June 30, 2021 after raising $2.94 million, cash used in operating activities
was $0.68 million (inclusive of
transaction costs and the repayment of earlier working capital
loans) and net investing cash outflows (inclusive of exploration
expenditure) were $0.61 million.
Matthew Salthouse, CEO of KRL,
commented:
"KRL is pleased to report further progress during the period
and has delivered against the early stage milestones set on listing
in December 2021; with the
consolidation of rights to explore in the world renowned Kainantu
region and definition of three clear gold prospects at KRL South
(with high-grade gold sample results reported at East
Avaninofi).
The signing of definitive agreements to acquire the highly
prospective May River Copper-Gold Project also demonstrated KRL's
ability to develop and execute value accretive corporate
initiatives.
The Company expects to provide further updates on exploration
efforts in the near future."
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/
References in this release to $ are stated in USD.
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
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.