VANCOUVER, BC, Dec. 15,
2022 /CNW/ - Kainantu Resources Ltd. (TSXV: KRL)
(FSE: 6J0) ("KRL" or the "Company"), the Asia-Pacific focused gold mining company, is
pleased to provide an update on its exploration campaign at our KRL
North site adjacent to K92. KRL also provides an update on the
definition of drilling targets at KRL North, anticipated to start
in H1 2023.
Highlights:
Key highlights include the following:
- KRL remains focused on the potential for high-grade Au
mineralisation to extend from the K92 Mining/Bilimoia mine field
into KRL North; with evidence to date supporting this
continuity;
- field work and geophysical analyses continues to support an
extension of the Maniape and Arakompa high-grade Au vein system
across into the southern area of KRL North (with the ring feature
shared with K92 Mining deemed of particular interest);
- field work continues to deliver further Au anomalies at KRL
North in near proximity to the border with K92, including:
-
- rock chip samples contained up to 2.28ppm Au (and associated
9.4ppm Ag, 2,477ppm As, 200ppm Sb, 418ppm Pb and 1,254ppm Zn;
and
- rock float samples returned Cu-anomalous results (356-2,755ppm)
with associated Ag, Pb and Zn highs (6.6ppm, 11,908ppm and 9,993ppm
respectively).
- the 2022 field campaign continues to build confidence towards a
targeted drill programme during H1 2023, and;
- the Company has also identified potential for a larger
additional goldfield at KRL North, inclusive of the Young
Creek/Ramu Gorge areas for focus in 2023.
Matthew Salthouse, CEO of KRL, commented:
"KRL remains encouraged by the prospective nature of our KRL
North project, sitting adjacent to K92. Field work and
geophysics support the potential for the continuity of high-grade
mineralisation extending from the K92 area into KRL North,
especially around the southern boundary of our project. Work
through 2022 has added to the Company view of KRL North as a
high-quality asset in our portfolio, which will be the focus of a
targeted drilling program during 2023."
Background
The Company's KRL North project, comprises EL 2558 and EL 2655,
totalling 88.65 km² in size (along with a recent application
for a licence, ELA 2755, covering 331 km²) and is adjacent to K92's
successful mining tenements, located along the world renowned
Kainantu Transfer Structure.
As detailed in the Company's Management Discussion and Analysis
(published on November 29, 2022)
initial focus has been within EL 2558, where a drainage mapping and
sampling programme was completed and analysed – further details of
results are set out below. This is in addition to the
airborne geophysical survey comprising Mobile MT
electromagnetics/magnetics completed in H1 2022 to cover the
prospective portions of KRL North.
A key focus for KRL has been to determine the potential
continuity of high-grade Au mineralisation from the K92/ Bilimoia
area into KRL North. 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 noted. 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.
With this in mind, the Company's focus has been on conducting
mapping and sampling to identify further epithermal and/or porphyry
related alteration and mineralisation targets within KRL North as
extensions and/or offshoots/parallel elements of the Maniape and
Arakompa trend.
As noted in earlier releases, results from both the drainage,
soil sampling, and airborne geophysical survey have been extremely
encouraging including identifying a ring feature in the SW corner
of KRL North and shared on the boundary with K92.
Overall, the earlier field work and analysis confirmed the
Company's view as to the prospective nature of the KRL North
project and the likely extension of high-grade mineralisation from
the adjacent K92 tenements covering the Bilimoia Mineral Field.
This has supported the decision to undertake further field
work leading into identifying drill targets.
The results of the geophysical survey also supports this
(announced June 9, 2022).
Specifically, advanced processing, inversion, modelling, and
interpretive work of the data revealed several extensive elliptical
and linear magnetic and apparent conductivity anomalies, locally
coincidental, within KRL North (Figure 1). Observations by
the field teams of hydrothermally altered and mineralised rocks on
the northern to northwestern peripheries of N1 (including the
southern ring feature), coupled with anomalous Au±Cu values from
rock and soil samples support the interpretation of the N1 and N2
anomalies representing possible mineralised porphyry complexes.
2022 Field Studies
During 2022 and based in part on geophysical results, KRL
undertook further soil sampling and mapping adjacent to the ring
feature identified on the southern boundary of EL 2558, along with
more detailed mapping and sampling of the Maniape River drainage in
the SW corner of KRL North. Soil sampling at KRL North during
H1 2022 involved taking a total of 693 samples (inclusive of
grid soil sampling over ¾ of the southern ring feature, boundary
shared with K92).
The ridge and spur soil lines across the southern half produced
two coherent clusters of Au anomalies and one spot high. The
western Au anomaly cluster comprises 6 weak to moderately anomalous
values (up to 69ppb Au) along ~300m of a N-S trending ridge centred
less than 2km WNW of the southern ring feature. The eastern
anomaly covers a mainly E-W trending ridge with 3 high values (115
to 329ppb Au) amidst background values, located adjacent to the
eastern border of EL 2558.
Rock samples returned a high of 2.28ppm Au (and associated
9.4ppm Ag, 2,477ppm As, 200ppm Sb, 418ppm Pb, & 1,254ppm Zn)
adjacent to the border with K92's EL 693. This sample was hosted in
a small, oxidized ENE trending vertical fracture in weakly
chlorite-sericite altered phyllite hosting weakly disseminated
py-cpy-aspy.
Rock float samples returned Cu-anomalous results (356-2,755ppm)
with associated Ag, Pb, & Zn highs (6.6ppm, 11,908ppm, &
9,993ppm respectively) again adjacent to K92's EL 693. It is
possible they may have shed from the western portion of the
southern ring feature within KRL's ground. They are hosted in
both phyllite, and a fine-grained quartz veined intrusive, all
displaying significant disseminated py-po-cpy-sphal/gal.
Based on these encouraging results, Q4 2022 field activities
have been focusing on excavating and sampling trenches over Au±Cu
anomalous outcrop and soil sample sites in the SW and SE corners of
KRL North. Assay results from this latest completed
campaign are still pending.
Conclusions from 2022 Field
Work
The location of many of the above anomalous samples supports the
potential that elements of the Maniape/Arakompa structural trend
extend into the SW sector of KRL North. This is further supported
by the relative increase in frequency of quartz veining mapped
within that area. The sample results received so far from EL 2558
appear to build on the geophysical analysis and indicate a noted
zonation of metal content possibly indicative of a potentially
mineralised porphyry with peripheral quartz-base metal-Au-Ag
epithermal veins; with two potential targets providing particularly
encouraging results.
Exposures in cuts along the Highlands Highway in the Young Creek
area displayed low temperature hydrothermal clays hosting abundant
sulphides. The potential of this area was further highlighted by
the underlying strong magnetic high anomaly, N2. Overall, this
suggests the presence of three significant mineralisation
occurrences and controlling structures similar to those seen at
Bilimoia mineral field.
Next Steps and Preliminary Drill
Planning
The work to date at KRL North supports the Company's view of the
prospectivity of the area and the likelihood of a targeted drilling
programme intended to yield high-grade intercepts. Moving towards a
targeted drilling programme at KRL North is an operational priority
for the Company.
In preparation for drill targeting, expected to commence in
2023, preliminary drill plans and sections have been proposed for
certain prospects within KRL North, based predominantly on the
geophysical modelling profiles, mainly in order to gain a sense of
what logistical challenges can be expected, as well as calculating
preliminary budgets and schedules. This is in addition to
potential targeted drilling at KRL South (likely around the Ontenu
area of interest).
For KRL North, 2 to 3 targets have been initially chosen: N1
(including the SW end of N3) and N2. Figure 2 displays the
N1/N3 Section (Ramu Gorge Target) while Figure 3 shows the N2
Section (Young Ck Target). It is envisaged that a
mid-range DDH rig capable of 600m NQ
will be employed with excavator and possible helicopter support for
the more inaccessible drill pads.
It must be emphasized that the above plans and sections are of a
preliminary nature and quite simplified at this stage, and further
fieldwork (including initial drilling) is essential to refine
them.
The Company remains of the view that KRL North is a highly
prospective area, with all work to date supporting the view as to
the continuity of the Au mineralisation from K92/ Bilimoia gold
field into KRL North.
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. KRL recently executed an
agreement to acquire the Kili Teke project in the western highlands
of PNG.
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 Mineralisation hosted on
adjacent and/or nearby properties is not necessarily indicative of
mineralisation 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.
SOURCE Kainantu Resources Ltd.