VANCOUVER, BC, March 10, 2022 /CNW/ - Kainantu Resources Ltd.
(TSXV: KRL) ("KRL" or the "Company"), the Asia-Pacific focused gold mining company, has
completed an airborne geophysical survey over both its KRL North
and KRL South projects.
Data is currently being analysed. Assuming a positive
assessment and in combination with mapping and geochemical
sampling, this work is a key milestone step for the Company; and
supports the objective of accelerating activities towards a
drilling program.
Whilst being independently reviewed for KRL, mobilisation of the
airborne program was successfully undertaken in co-ordination with
other successful operators in the Kainantu region, Papua New Guinea
("PNG").
Highlights
- Increased confidence of the extension of high-grade
mineralization extending from Bilimoia Mineral Field (K92 area)
into KRL North;
- Increased likelihood of buried porphyry system at depth at KRL
North, likely to be associated with a ring feature located on the
southern border with K92;
- Interpreted related style Au-base metal veins systems located
in the central part of KRL North/EL 2558, associated with a
relatively high density of cross-cutting lineaments and mapped
structures;
- Airborne geophysical survey conducted at both KRL North and KRL
South, in co-ordination with Kainantu district miners:
-
- Accelerates moves to delineate drilling targets in highly cost
effective manner;
- Focuses on delineating the possible extension of mineralization
from K92's project into KRL North, especially in relation to the
Arakompa/Maniape veins along elements of the Kainantu Transfer
Structure;
- Final analysis pending, but delivers encouraging indications;
especially when overlain with other recent published regional
survey results – see Figure 2; and
- Work programme to intensify activities at KRL North during
2022.
Matthew Salthouse, CEO of KRL,
commented:
"This is the first time in over 10 years that an airborne
geophysical survey has been done in Kainantu gold belt. While our
teams are assessing the data, preliminary trends look positive and
support a view that KRL North is highly prospective, especially
given its location adjacent to other successful miners, some of
which has notably expanded resources and signified gold and
resource extensions near KRL properties.
In addition to the cost savings from regional cooperation on
the geophysics program, completing this work means KRL will be in a
strong position to accelerate moves towards drilling at both KRL
North and KRL South."
Background
KRL holds two highly prospective projects in the Kainantu region
of PNG:
- KRL North (88.65 km² in size comprising EL 2558 and EL
2655 and adjacent to K92 Mining's tenements); and
- KRL South (596.75 km² in size comprising EL 2559, EL
2650, EL 2652 and EL 2660 and approximately 25 km SW of K92 mine,
with the Company actively focusing exploration efforts on two
prospects: East Avaninofi and Yaoro Ridge in the Tirokave area
amongst others).
Both projects are located along the world renowned Kainantu
Transfer Structure, associated with highly successful precious
metal mining across the district.
At KRL North, historic aeromagnetic data sourced from the PNG
Mineral Resource Authority library has indicated proximity and
structural similarities between this project and Bilimoia Mineral
Field hosting the K92 mine.
Within 2 to 4 km SE of KRL North and on strike and along trend,
two identified significant mineralised vein systems (Maniape and
Arakompa) have been observed, with a conceptual mineralising
porphyry source underlying the ground between Arakompa and the SW
corner of KRL North (see Figure 1). While non-JORC compliant
(or subject to an NI 43-101 technical report), historic data from
drilling by a former miner in the 1980s and 1990s reported to
indicate a resource of 560,000 oz Au at 2.2 g/t at Maniape; and
798,000 oz Au at 9.0 g/t at Arakompa.
Figure 1: Location of KRL North Relative to Known and
Conceptual Mineralisation
In 2021, the Company conducted a mapping and sampling programme
to identify further porphyry related alteration and mineralisation
targets within KRL North, as potential extensions of Maniape and
Arakompa.
Amongst other objectives, this programme was intended to assess
whether the enhanced structural permeability extends to KRL North
from the adjacent rich Bilimoia Mineral Field (where K92
operates). Assuming positive outcomes, KRL would then be
justified to conduct further investigations (including an airborne
geophysics program).
In this regard, results have been extremely encouraging and do
support a decision to undertake further studies.
Outcomes at KRL North in 2021
As noted above and during 2021, KRL completed 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.
Mapping and sampling was concentrated within the southern half
of KRL North, where several altered and intrusive bodies were
observed and interpreted as associated with the Elandora
Porphyry.
For initial coverage, a total of 741 samples were collected
(including 246 rock outcrop and float chip, 33 stream sediment, 14
pan concentrate and 448 soil samples) – see Attachment 1 below for
details. Results returned a number of high Au spot values in
correlation with anomalous pathfinder elements; in particular
clustered within the central south of EL 2558. In summary,
analysis uncovered an Pb-Zn-Te signature towards the north; and a
Mo-Bi-Sb-As signature towards the south: see Attachment 1 for
further particulars.
Combined with lineament analysis, sampling also indicated the
presence of both Au base metal veins and potential porphyry style
mineralisation at depth, associated with a ring feature of
approximately 1.5km in diameter located on southern boundary of KRL
North (see Figure 2 and further discussion below).
The ring feature may indicate a buried and/or recently emergent
intrusive complex which tends to dome the surrounding host
rocks. In this regard, it is also noted the ring feature lies
close to where an underlying potential mineralised porphyry source
has previously been hypothesized by earlier
explorers.
Further ring features were also verified from dykes mapped and
geochemical analysis undertaken to the N and W of EL 2558/KRL
North; with doming in some areas interpreted as due to the
intrusion of Elandora Porphyry and Akuna Igneous Complex rocks
Overall, the 2021 field work and analysis confirms the Company's
view as to the prospective nature of KRL North the project and the
likely extension of high-grade mineralisation from the adjacent K92
project in the Bilimoia Mineral Field.
Figure 2: KRL North: Structural Features; Published Regional
Airborne Geophysical Survey Mapping – Apparent Conductivity
2022 Field Studies
During H1 2022, KRL will undertake further soil sampling and
mapping adjacent to the ring feature identified at KRL North
(combined with more refined lineament analysis to incorporate SE
aspects of the project in EL 2655).
Airborne Geophysical Survey
Encouraging sampling results and analysis has confirmed the
Company's views on the prospective nature of KRL North, justifying
an immediate airborne geophysical survey of the area. In
combination with ongoing mapping and sampling, such a survey will
enable to Company to accelerate steps to delineate exploration and
drilling targets.
In this regard, KRL co-operated with other miners in the
Kainantu region in Q4 2021/Q1 2022 to share resources to mobilise
for airborne geophysical surveys over respective projects.
While data collected was not pooled and will be independently
assessed by each company (including KRL), the co-operation
arrangements enabled KRL to complete a survey of both KRL North and
KRL South in January 2022.
Airborne survey data was collected under contract for KRL by the
Canadian firm, Expert Geophysics (who operate the Mobile Magneto
Tellurics, or Mobile MT system and have successfully used the
technology internationally).
The airborne geophysics programme was flown over all of KRL
North; and in addition to key areas of interest in and around the
Tirokave area of KRL South (including the East Avaninofi and Yaoro
Ridge prospects). The total area covered was 186
km² (involving 1,000 line-kilometres of
survey).
At KRL North, the area covered was contiguous with the adjacent
K92 project, which has also published positive results from their
recent geophysical survey. In this regard, please refer to
Figure 2 (above), which overlays recently published airborne survey
analysis against KRL's regional lineament map inclusive of KRL
North.
This clearly demonstrates the likely strong NE trending
conductivity towards KRL North, possibly indicating underlaying
sulphide-rich ore bodies. While work in progress, KRL expects
the Company's own survey analysis will further demonstrate such
conductivity.
KRL is analysing the data received and expects to complete a
final report during April, inclusive of recommendations for areas
of further work leading towards defining drilling targets amongst
other positive outcomes. While awaiting further feedback,
preliminary analysis is encouraging and continues to support KRL's
view as the prospective nature of both KRL North and KRL
South.
Completing the geophysics survey is a highly satisfactory
outcome for KRL. It has enabled the collection of data at a
fraction of the cost of mobilising as a single company entity;
potentially also reducing the lead time to commence drilling by up
to 18 months.
Next steps
KRL will continue field programmes at both KRL North and KRL
South to define drilling targets. Further updates will be
provided in due course, including the outcome of final analysis
from the aerial geophysical survey.
Stock Options
The Company also announces the grant of 770,000 stock options
that are exercisable for a period of five years at a price of
C$0.19 per share to various directors
and officers. The options will be subject to vesting over two years
and certain hurdle price conditions. The granting of stock options
is part of KRL's strategy to attract and retain talent, as well as
motivating its team to work towards ensuring the success and value
creation at KRL.
Attachment 1:
EL 2558 - Elevated
Au-in-soil and Associated Pathfinders
|
Au
(ppb)
|
Ag
|
As
|
Sb
|
Cu
|
Mo
|
Pb
|
Zn
|
Bi
|
Te
|
W
|
Sn
|
90
|
0.2
|
28
|
1.5
|
48
|
0.8
|
9
|
207
|
0.9
|
0.4
|
0.1
|
2.7
|
46
|
0.2
|
23
|
1.4
|
57
|
0.3
|
18
|
106
|
5.4
|
1.1
|
0.1
|
1.1
|
38
|
0
|
6
|
0.3
|
32
|
0.6
|
3
|
60
|
0.3
|
0.2
|
0
|
0.6
|
37
|
0.2
|
21
|
2
|
112
|
0.3
|
21
|
366
|
0.4
|
0.3
|
0.2
|
0.8
|
35
|
0
|
6
|
0.5
|
65
|
0.4
|
9
|
111
|
1
|
0.2
|
0
|
0.8
|
30
|
0.2
|
7
|
0.7
|
85
|
0.3
|
12
|
87
|
0.2
|
0
|
0
|
0.4
|
30
|
0
|
5
|
0.4
|
61
|
1
|
11
|
91
|
0.4
|
0.3
|
0.1
|
1.9
|
22
|
0.3
|
9
|
1
|
64
|
0.2
|
146
|
264
|
0.3
|
0.1
|
0.1
|
0.7
|
21
|
0.1
|
3
|
0.5
|
51
|
0.5
|
11
|
188
|
1
|
0.2
|
0.2
|
1.4
|
Note: Covers an area
636m E-W x 115m N-S in the central south half of the EL; all
results in ppm apart from Au in ppb
|
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 Kainantu Resources (KRL)
Kainantu Resources 'KRL' is an Asia-Pacific focused gold mining company with
three highly prospective gold-copper projects, KRL South, KRL North
and the May River Project. All projects are located in premier
mining regions in PNG.
Both KRL North and KRL South show potential to host high-grade
epithermal and porphyry mineralisation, as seen elsewhere in the
high-grade Kainantu Gold District. The May River project is in
close proximity to the world-renowned Frieda River Copper-Gold
Project, with historical drilling indicating the potential for
significant copper-gold projects. 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.
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SOURCE Kainantu Resources Ltd.