VANCOUVER, BC, Nov. 29, 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 third interim
results for the period ending September 30,
2021, a copy of which is available for review on the
Company's website.
Key aspects to report over the period include:
- KRL South: continued progress during Q3:
-
- At the East Avaninofi Prospect:
-
- strong correlations of Au with Ag, Cu, Mo, and As; plus samples
revealing elevated values of Bi, Te, and W (similar to the
geochemistry of the nearby Bilimoia Mineral Field, renowned for its
high-grade gold-copper intrusive style mineralization);
- high levels of Fe and S, as key indicators of high-grade Au
potential; and
- increasing in intensity towards the N of the prospect, a NE
trending Cu mineralization-controlling structure of at least
10m in width delineated
- At the Yaora Ridge Prospect activities returned an Au sample of
4.37 g/t Au from surface, while further work has shown:
-
- strongly anomalous Cu and associated pathfinder elements;
and
- lithologies, alteration and mineralization similar to the East
Avaninofi Prospect; with the two prospects appearing to be
linked;
- Plans for delineation of drill targets in early 2022 remain on
track; with excavation/contour benching at the East Avaninofi
Prospect and Yaoro Ridge Prospect underway; and
- KRL North: analysis of initial mapping and
sampling revealed:
-
- the strong likelihood of enhanced permeability extending from
the mineral rich Bilimora Field (where successful high-grade miners
already operate) into KRL North; and
- an interpreted ring feature circa 1.5km in diameter situated on
the triple junction of KRL North's EL2558 and El2665 tenements; and
K92 Mining's tenement (see figure 1 below inclusive of interpreted
ring features at KRL North).
![Figure 1: KRL North – Interpreted Ring feature and regional setting (CNW Group/Kainantu Resources Ltd.) Figure 1: KRL North – Interpreted Ring feature and regional setting (CNW Group/Kainantu Resources Ltd.)](https://mma.prnewswire.com/media/1698211/Kainantu_1.jpg)
- KRL North and KRL South: an airborne geophysics survey
programme is in the advanced planning stage to leverage off the
positive results obtained from the successful exploration
activities during 2021.
- May River Project: ongoing activities continue to further
integrate the highly prospective Cu-Au project into KRL in coming
months:
-
- KRL has given notice to Hardrock Limited to exercise its option
to be granted 10% of that entity;
- the KRL Field Study has been completed (and is subject to a
final peer review), validating the basis for investment.
Initial samples from the Field Study include: up to 2.07ppm
(2.07gt) Au, >100ppm (>100g/t) Ag and up to 1709ppm (0.17%)
Cu from the Skiraisa Prospect;
- KRL granted Niuminco Limited an extension to December 31, 2021 to satisfy conditions under an
SPA, to enable KRL to acquire the Iku Hill Prospect and surrounding
area (but with KRL holding an ELA over the same area in the event
of Niuminco being unable to resolve their outstanding issues with
the PNG Mineral Resource Authority); and
- plans remain on track to develop a targeted exploration
programme for the May River Project in 2022.
- Financial: prudent management of capital resources is
ongoing:
-
- expenditure on exploration and evaluation activities for the 10
months to September 30, 2021 totalled
$1.16 million (which has been
capitalised), with additions of $0.40
million for the quarter;
- closing cash was $1.07 million
with total cash outflows of $0.55
million during the quarter;
- a net loss for the 10 months of $1.11
million (inclusive of listing and equity compensation
costs), the loss for the quarter was $0.16
million similar to the prior interim period; and
- given the Company's transition to a calendar reporting cycle,
the interim results are presented for a 10-month period on this
occasion.
Matthew Salthouse, CEO of KRL,
commented:
"KRL is pleased to provide this update for Q3 2021, with
targeted and disciplined exploration ongoing at both KRL North and
KRL South. Encouraging results support the Company's decision
to expedite a geophysics program to assist with definition of
initial drill targets in 2022.
KRL has also advanced the May River Project during the
quarter, giving notice to exercise its option over 10% of Hardrock,
following substantial completion of a field study with results
validating the high Cu-Au prospectivity of this area."
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/
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 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 Logo (CNW Group/Kainantu Resources Ltd.) Kainantu Resources Logo (CNW Group/Kainantu Resources Ltd.)](https://mma.prnewswire.com/media/1698214/KainantuLogo_2.jpg)
SOURCE Kainantu Resources Ltd.