VANCOUVER, BC, Nov. 19, 2021 /CNW/ - Kainantu Resources Ltd.
(TSX-V: KRL) ("KRL" or the "Company"), the Asia-Pacific focused gold mining company, is
pleased to provide the following update on its ongoing exploration
programmes at KRL South for Q2 and Q3 2021 ("Period"), its highly
prospective project located in the Kainantu region of Papua New Guinea ("PNG").
Highlights
- At KRL South, mapping, modelling and sampling (1,052 samples
collected) has continued during the Period, with a focus on the
East Avaninofi Prospect and Yaoro Ridge Prospect.
- The East Avaninofi Prospect has delivered encouraging results
demonstrated by:
-
- strong correlations of Au with Ag, Cu, Mo, and As; and
additional samples revealing elevated values of Bi, Te, and W
(similar to the geochemistry observed at the nearby Bilimoia
Mineral Field, known for its high-grade gold-copper intrusive style
mineralization);
- high levels of S and Fe which are key indicators of high-grade
Au potential; and
- a NE trending Cu mineralization-controlling structure of at
least 10m in width delineated;
increasing in intensity towards the N of the Prospect;
- Activities at the Yaora Ridge Prospect have:
-
- revealed strongly anomalous Cu and associated pathfinder
elements;
- returned an Au sample of 4.37 g/t Au; and
- shown lithologies, alteration and mineralization similar to the
East Avaninofi Prospect; with the two prospects appearing to be
linked;
- The Company is accelerating plans for delineation of drill
targets for 2022; and progressing excavation/contour benching at
the East Avaninofi Prospect and Yaoro Ridge Prospect; and
- An airborne geophysics survey programme for KRL South is in the
advanced planning stage to leverage off the positive results
obtained from the successful exploration activities during
2021.
Matthew Salthouse, CEO of KRL,
commented:
"Our targeted exploration programme at KRL South has
accelerated over the last six months, with a number of encouraging
results reported from the East Avaninofi Prospect and Yaoro Ridge
Prospect. All indicators continue to support the likely
widespread intrusive-related gold-copper epithermal mineralization
at this project, with strong copper indicators. The Company
is implementing a number of initiatives to define drilling targets
in early 2022 as the next key milestone for KRL South, including an
airborne geophysics
survey."
Background and KRL South Progress
The Company holds two highly prospective projects in the world
renowned Kainantu mining district, including KRL South (comprising
EL 2559, EL 2650, EL 2652 and EL 2660 and 596.75 km² in
size). KRL South is centrally located on the Kainantu
transfer structure and is approximately 34 km SW of the K92
gold-silver-copper mine. The project evidences multiple
intrusive-related gold-copper styles of mineralization.
Since listing, the Company's immediate focus has been on
exploration activities in the central area of KRL South, primarily
around Tirokave. As reported earlier in the year, following a
comprehensive ridge and spur programme in 2020/early 2021 (with
more than 2,000 samples taken), a number of encouraging outcomes
were reported:
- prospects were identified at East Avaninofi Prospect, Yaoro
Ridge Prospect and Kerefa Prospect;
- high-grade rock sampling results at East Avaninofi Prospect
were reported, including 40.13ppm Au, with coincident 492ppm Cu,
131ppm Mo, 134ppm Bi and 29.3ppm Te; and
- detailed mapping and sampling indicated strong similarities
between KRL South and other successful projects in the Kainantu
district (demonstrated by lithologies, mineral-controlling
structural trends, alteration zonation, mineralogy and geochemical
data).
Building on these outcomes, KRL has continued its focused
sampling programme during the Period; with mapping and manual
excavation work along the dominant structural trends. The
initial focus has been on the East Avaninofi Prospect and moving
onto the Yaoro Ridge Prospect.
Further encouraging results and observations are reported below,
with the Company increasingly confident of delineating drill
targets at these prospects in the near future. Intensive and
focused mapping and sampling over the East Avaninofi Prospect and
further sampling at the Yaoro Ridge Prospect continues to support
the Company's view of the potential of this area for eventual
definition of an Au resource.
East Avaninofi Prospect
Building on the 40.13 g/t Au sample returned from the southern
slopes of the East Avaninofi Prospect (shedding from a zone of
strongly fractured, hydrothermally altered and mineralized
hornfels), an intensive mapping and sampling program was undertaken
during the Period, as noted above.
The primary aim of this was to clearly delineate structural
zones bearing significant mineralization; and then devise a working
model to further progress this prospect towards drilling in
2022. This programme is based on the Company's observations
of the following:
- a 650m long portion of the WNW
trending ridge considered prospective from a scatter of anomalous
(20-100ppb) Au-in-soil samples and local rock outcrop anomalies;
with up to 0.94 g/t Au reported;
- the mineralization style being mainly quartz-sulphide vein and
fracture fill, hosted within hydrothermally altered hornfelsed
metasediments often along the contact zones with 1m to 10m wide late
stage andesitic dykes which appear to form a N to NE trending
swarm. Such dyke swarms with similar orientations have also been
mapped in the SE sector of the Tirokave Ring Feature, with some of
the dykes shown to extend over at least 1km;
- outcrop mapping of at least three distinct phases of intrusive
rocks, including the dykes, associated with the Elandora Porphyry,
all hosting copper sulphides to varying concentrations; and
- the recognition of structurally controlled NW through N to NE
trending hydrothermal altered and mineralized zones of at least
10m in width, as indicated by the
Company's petrological studies.
From the programme over the Period, 126 rock chip (outcrop and
float) samples were taken across the East Avaninofi Prospect and 92
results have been obtained. Selectively tabulated in Figure 1
below, the most recent results returned confirm the likelihood of
intrusive-related Au-Cu mineralization at East Avaninofi Prospect;
and the confidence in the working model being developed to rapidly
delineate drill targets.
Figure 1: Selective Sample Results from East Avaninofi
Prospect
|
(ppb)
|
(ppm)
|
(%)
|
Sample
No.
|
Au
(ppb)
|
Au1
(ppm)
|
Ag
|
Cu
|
Mo
|
As
|
Bi
|
Te
|
W
|
S
|
Fe
|
A06036
|
121
|
0.03
|
<0.5
|
240
|
8
|
<5
|
20
|
14
|
<10
|
15,619
|
3.2
|
A06040
|
7
|
0.01
|
0.6
|
1,950
|
5
|
21
|
<2
|
6
|
21
|
165,100
|
29.29
|
A06043
|
32
|
0.04
|
6.2
|
248
|
46
|
68
|
<2
|
<5
|
<10
|
3,539
|
6.27
|
A06046
|
407
|
0.1
|
3.6
|
3,775
|
18
|
14
|
5
|
<5
|
<10
|
73,000
|
23.64
|
A06048
|
3
|
0.02
|
1.2
|
2,363
|
2
|
10
|
<2
|
9
|
191
|
192,000
|
27.74
|
A06051
|
5
|
<0.01
|
1
|
3,938
|
<1
|
11
|
<2
|
6
|
12
|
245,300
|
34.81
|
A06054
|
462
|
0.32
|
11.9
|
1,222
|
20
|
791
|
<2
|
<5
|
12
|
29,753
|
14.99
|
A06067
|
17
|
0.02
|
<0.5
|
1,177
|
2
|
5
|
20
|
15
|
40
|
73,900
|
7.88
|
Specifically, the results demonstrate a probable nugget effect
on Au values, with the comparison of fire assay (ppm) and ICP (ppb)
methods. This is to be expected, particularly in the surficial
portions of the mineralization. The results also indicate
strong correlations of Au with Ag, Cu, Mo, and As; in addition to
some elevated values of Bi, Te, and W. This supports
observations of geochemical similarity between KRL South and the
nearby Bilimoia Mineral Field; and its intrusive-related
gold-copper mineralization style.
High proportions of S and Fe indicate a substantial sulphide
content; which may also host high-grade Au potential. This aspect
is expected to be an important factor for the airborne geophysical
survey interpretation, with such sulphide-rich zones likely to
impart a high conductivity signature on the electro-magnetic
response. The contrast of mainly strongly conductive linear
structural zones with the generally resistive host rocks should
provide readily identifiable targets for exposure, mapping, and
sampling leading into drill target definition.
Cu results from outcrop samples on the East Avaninofi ridgeline
demonstrate the main mineralization-controlling width and trend
(within the dashed lines) along with a scatter of subsidiary
(possibly parallel/sub-parallel) structures: see Figure 2
below. The locations of anomalous Au, Ag, and As values have
also been added to highlight the association of elements within the
main ridgetop zone, estimated to be a 16m width at this point.
Figure 2: Distribution of anomalous Cu (+Au, Ag, As) samples
at East Avaninofi Prospect
Figure 2 demonstrates a strongly mineralized zone projecting in
a NNE direction, into an area for further planned contour benching
(referred to as the Stage C Area). There is potential for
concentrated and significant Au-Ag-Cu+ mineralization, based on
sampling and mapping to date.
KRL expects to access this area in coming weeks. In
addition, excavation will continue to open up and expose the
northern face of the East Avaninofi Prospect, progressively contour
benching the downward slope towards the N, with related mapping and
sampling expected to extend the strike directions as far as
possible. KRL has planned for circa 2km of excavation and
benching at the East Avaninofi Prospect in order to define initial
drill targets on three different levels nominally spaced
50m vertically and 100m laterally. Further benching will likely
progress northwards as the mineral controlling structures are
exposed.
Yaoro Ridge
Prospect
To the east, the Yaoro Ridge Prospect is a N trending feature
immediately adjacent to the East Avaninofi Prospect (inclusive of
the Tebeo ridge continuing in a further easterly direction for
about 1.75km). High structural permeability was initially observed
in some outcrops and earlier sampling supported further
investigation. Upon resolution of inter-clan matters in this
area in Q1, KRL has been able to conduct further extensive
exploration activities in the area during the Period.
Drainage mapping and sampling has now been completed, with a
total of 926 rock chip (outcrop and float) soil, stream sediment,
and pan concentrate samples taken and all results returned.
Figure 3 below indicates comparative anomalous assay results for
rock chips taken.
Figure 3: Sampling at Yaoro Ridge Prospects During the
Period
These included a sample of 4.37 g/t Au, likely derived from the
convergence area of the eastern flank of the Yaoro Ridge Prospect
with the western Tebeo ridge, as the sample is composed of
fractured, hydrothermally altered and mineralised hornfels (similar
to those found with the highest grades at the East Avaninofi
Prospect).
Some strongly anomalous Cu and other pathfinder elements were
also identified (including a dominant N trending structural zone
hosting up to 0.59% Cu at surface near an old adit area on south
Yaoro Ridge). This appears to be a likely extension of a zone
of Au anomalies identified in hydrothermally altered breccias to
the south; and supported by several clusters of Au-in-soil
anomalies (20 to 129 ppb Au) and associated elevated As results
returned from the southern trending fingers off the main
ridge. Analysis of key sample results is contained in Figure
4.
Figure 4: Anomalous Samples and Correlations from Yaoro Ridge
Prospects
KRL Sth - H1 2021
Exploration Program - Tebeo Drainage Anomalous RC
Results
|
Sample No.
|
Au_ppm
|
Ag_ppm
|
As_ppm
|
Sb_ppm
|
Cu_ppm
|
Pb_ppm
|
Bi_ppm
|
Te_ppm
|
A01362
|
4.37
|
2.5
|
1789
|
8.6
|
134
|
952
|
0.2
|
2.7
|
A01376
|
0.21
|
6.2
|
139
|
1.8
|
2134
|
16
|
4.6
|
1.1
|
A01239
|
0.11
|
3
|
17
|
0.2
|
16
|
105
|
0
|
0
|
A01240
|
0.07
|
2.6
|
45
|
0.8
|
88
|
581
|
0.4
|
0.1
|
A01249
|
0.06
|
0.2
|
9
|
0.1
|
785
|
23
|
192
|
24.9
|
A01363
|
0.04
|
0.3
|
10
|
0.1
|
38
|
4
|
0
|
0
|
A01364
|
0.04
|
0
|
2
|
0
|
161
|
0
|
2.2
|
0.8
|
A01248
|
0.03
|
0
|
32
|
0.6
|
463
|
368
|
17.2
|
3.6
|
A01343
|
0.03
|
0
|
0
|
0
|
22
|
2
|
0.4
|
0.1
|
A01370
|
0.03
|
0.8
|
21
|
0.9
|
2731
|
112
|
1.1
|
0.8
|
A01252
|
0.02
|
0.4
|
5
|
0
|
1870
|
16
|
56.8
|
8.7
|
Note: Red highlights strongly anomalous, orange moderately
anomalous, and yellow weakly anomalous.
In summary, the sampling results in conjunction with recent
mapping indicates lithologies, alteration and mineralization
similar to the East Avaninofi Prospect, meaning it is highly likely
the two prospects are spatially and temporally associated.
Further excavation work is planned in coming months to expose
mineralized zones along the eastern flank of Yaoro Ridge, moving in
a northerly direction towards Tebeo ridge. In conjunction
with an airborne EM and magnetics geophysical survey, the focus
will be on defining drill targets in the area in 2022.
Kerefa Prospect
Further to the E, the Kerefa Prospect was extensively mapped
with sampling of 12 costeans and surrounds in H1 2021.
Initial sample results identified 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. These samples taken demonstrated epithermal quartz in a
hydrothermal breccia. However, a southern cluster of
Au-in-soil samples indicated only weakly anomalous Au and Cu
results. Relative to the other prospects (and the
prospectivity of KRL North), the Company has downgrade work at the
Kerefa Prospect for the time-being; enabling KRL to focus resources
on priority areas.
Next Steps
KRL remains extremely encouraged by exploration activities at
KRL South, especially at the East Avaninofi Prospect and Yaoro
Ridge Prospect.
Notwithstanding COVID related delays, meaningful progress has
been made throughout 2021, in line with KRL's plan to take a
focused approach to identify near term drilling targets at KRL
South. Work continues to increase the Company's confidence on
the highly prospective nature of the project. For the
remainder of the year, the Company will continue to undertake
excavation work for contour benching and exposure of
mineralization; building on sampling data for geochemical analysis
in addition to mapping and modelling.
Given increased confidence, KRL is advancing final planning to
commence an airborne geophysical (EM & magnetics) programme at
KRL South in the near future (likely in during December
2021). This will add a further dimension to KRL's plans to
accelerate activities leading to a drilling programme in
2022. The Company will provide a further update on this
initiative in the near future.
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.
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SOURCE Kainantu Resources Ltd.