Papuan Discovers New Gold-Copper Porphyry System
PAPUAN PRECIOUS METALS CORP. ("PPM or the "Company") (TSX VENTURE:PAU) is
pleased to announce the results of the recent exploration program at the
Metemana-Metekavil area of its New Hanover project in Papua New Guinea. Field
work, including mapping, outcrop sampling and a ridge and spur soil sampling
program, has identified a new copper/gold porphyry system in the 2km x 5km
Randei prospect area. The company is awaiting the results of geochemical
-- Gold-copper porphyry prospect identified by mapping and sampling over
the 2km x 5km Randei prospect area and open to the coast.
-- 32 mineralized samples comprising both outcrop grab and 5m channel
samples were collected. Copper mineralization in the form of covellite,
chalcopyrite, bornite, chalcosite and malachite were observed in these
-- 61 soil samples were collected over ridges and spurs at 50m spacing
-- Follow-up activity being considering includes a grid-based soil sampling
program to define drill targets
Ross McElroy, Director of Papuan Precious Metals, commented,
"This is encouraging progress and, pending the geochemical results, a detailed
soil sample survey is being contemplated with the aim of defining drill targets
to determine the potential of this new exciting prospect."
Copper minerals observed in rock outcrop samples include covellite,
chalcopyrite, bornite, chalcosite and malachite. In addition, malachite clasts
were mapped and sampled in what is interpreted to be a possible diatreme
breccia. A previous malachite clasts sampled in this area in 2009 assayed 9.67%
Cu. These malachite clasts are interpreted to have been source from Cu porphyry
system located at depth. Diatreme breccias are commonly associated with porphyry
copper gold systems in the SW Pacific.
All samples were sent to Intertek Services Laboratories in Lae, PNG for
preparation, and pulps will be sent to Intertek's facility in Jakarta, Indonesia
for analysis. Results will be provided when received.
The work program was managed by Bernard Kavanamur of Vakamano Ltd. With over 20
years of experience and extensive knowledge of Papua New Guinea gold-copper
porphyry deposits, Mr Kavanamur was part of the exploration team responsible for
increasing the resource at the Wafi-Golpu deposit in Morobe Province to 16
million ounces gold, 4.8 million tonnes copper.
The Company's New Hanover project in Papua New Guinea is located 60 km west of
the Provincial capital Kavieng in New Ireland Province. Access is by a two-hour
boat journey from Kavieng. The project comprises two exploration licences
covering 591.6 km2 at the northwestern end of the Lihir-Tabar alkaline volcanic
belt, host to the giant Lihir gold deposit and the Simberi gold deposit.
The Company is also pleased to announce that it has increased the financing
announced on June 3, 2014 to approximately $800,000. The financing is a Unit
private placement at $0.08 per Unit. Each unit consists of one common share plus
one-half of one common share purchase warrant, with each whole warrant
exercisable to purchase a common share at a price of at $0.12 for a period of
two years ("Unit"). A finder's fee of 7% payable in cash or shares may be paid
upon closing. The proceeds of the offering will be used for the advancement of
the Company's properties, general working capital and a loan of US$350,000 to
the Company's subsidiary pursuant to a plan of arrangement.
The technical information in this news release has been prepared in accordance
with the Canadian regulatory requirements set out in National Instrument 43-101
and reviewed on behalf of the company by Ross McElroy, P.Geol., Director for
Papuan Precious Metals Corp., a qualified person.
This press release contains "forward-looking information" Forward-looking
information is subject to known and unknown risks, uncertainties and other
factors that may cause PPM's actual results, level of activity, performance or
achievements to be materially different from those expressed or implied by such
forward-looking information. Such factors include, but are not limited to:
uncertainties related exploration and development; the ability to raise
sufficient capital to fund exploration and development; changes in economic
conditions or financial markets; increases in input costs; litigation,
legislative, environmental and other judicial, regulatory, political and
competitive developments; technological or operational difficulties or inability
to obtain permits encountered in connection with exploration activities; and
labour relations matters. This list is not exhaustive of the factors that may
affect our forward-looking information. These and other factors should be
considered carefully and readers should not place undue reliance on such
forward-looking information. PPM disclaims any intention or obligation to update
or revise forward-looking information, whether as a result of new information,
future events or otherwise, except as required by law.
ON BEHALF OF THE BOARD
Dev Randhawa, CEO
FOR FURTHER INFORMATION PLEASE CONTACT:
Papuan Precious Metals Corp.