VANCOUVER, BC,
Feb. 15,
2023 /CNW/ - Kainantu Resources
Ltd. (TSXV: KRL) ("KRL" or
the "Company"), the Asia-Pacific
focused gold mining company, is pleased to provide an update on the
May River Project ("Project").
In consultation with stakeholders, the Company is considering
options to acquire 100% of the project on favourable terms in the
near term. In the interim, the Company provides an update on
technical work completed at the May River project.
Highlights
- A highly successful study has been completed on the Mountain
Gate Prospect at the Project, with analysis completed on a total of
324 samples taken from surface and trenching;
- Significant Au-Cu assay results were collected at Koras Creek
in the Mountain Gate Prospect, with assay results ranging from
1,342 ppm (0.13%) Cu to 5,222 ppm (0.52%) Cu, covering a distance
of 194 m (with weaker anomalous gold
values ranging from 0.05ppm to 0.23ppm Au also reported);
- The above location is likely a possible upflow zone of a
porphyry and, along with several other outcrops containing Au-Cu
mineralization and alteration distributed within a 700m x 1,400m area,
suggests a shallow Au-rich porphyry copper body(s) underlies the
Mountain Gate Prospect;
- Indications of other satellite porphyry Cu-Au and epithermal Au
deposits have also been identified within the nearby VTEM-ZTEM
anomalies and northern creeks;
- Channel cut samples from trenching by prior holders of the
Project yielded significant Au and Cu assay results intervals;
and
- KRL believes there is a distinct possibility that the entire
Skygate Belt (i.e., all known prospects in the Project) will prove
to be a coherent >5km-long geochemical anomaly.
Matthew
Salthouse, CEO of KRL, commented:
"The Company continues to take incremental steps to
demonstrate the significant potential of May River as a blue-chip
copper-gold project. At Mountain Gate, the surface results of
up to 0.52% copper clearly demonstrate the potential of the overall
May River project. The Company looks forward to providing an
update in the near future on discussions around taking 100%
ownership of the Project."
Background
The May River Project is located in the foothills of the PNG
Highlands, in West Sepik Province, ~10km west of the world-class
Frieda River Cu-Au deposits, containing 12.9Mt Cu and 20Moz Au
(owned by PanAust Ltd).
The key prospects at the May River Project are Iku Hill, Mountain Gate, Eserebe, Foya and the
Skiraisa prospects, which are collectively aligned along an area
known as the "Skygate Belt" (a 10-12km long cluster of
epithermal-porphyry Cu-Au prospects that may replicate the Frieda
River Deposit, which is located just 10km from the Frieda River
Intrusive Complex).
Highlights of historical exploration conducted by Highlands Gold
Ltd (HGL) note drill intercepts from what is believed to be a
lithocap underlying the Skiraisa Prospect, including 109m @ 1.53g/t Au, 44m @ 1.83g/t Au and 96m @ 0.89g/t Au. Further details on the
Project are included in the Company's most recently published
Management Description and Analysis report.
By way of definitive agreements executed 2021, KRL has the right
to manage and take full ownership of the Project. KRL
conducted an initial due diligence study focused on the Skiraisa
prospect in 2021 and exercised an option to acquire 10% of the
Project based on the results and observations. In 2022,
further work was completed, and a study finalised for the Mountain
Gate Prospect (with further analysis reported below).
Mountain Gate Study
The Mountain Gate Prospect was selected for study and further
exploration activities in 2022 due to historical geochemical soil
sampling, suggesting the likelihood of a shallow buried porphyry
Cu-Au deposit in the area.
In summary in 2022, a total of 324 samples were collected during
the second exploration campaign. Seventeen soil samples were taken
along the ridgeline east of Mountain Gate (where a 0.52% Cu rock
chip sample was located). Mapping and sampling of the creeks
surrounding the prospect was conducted over a 9.5km stretch
covering 23 creeks for 112 samples. Au and Mo anomalous
drainage located W-NW of Mountain Gate was inspected with 18
samples taken. Mapping and sampling of historic trenches was
conducted with 154 samples covering 305m across 11 trenches. Twenty-three
samples were taken during the follow up works on a VTEM-ZTEM
anomalism outside the Mountain Gate areas. Figure 1 shows
sampling sites in the Mountain Gate area.
The Au and Cu anomalism at Mountain Gate Prospect recorded from
the historical HGL soil samples (and results taken by KRL in 2022)
were centred on a ~500m x ~500m intensely altered intrusive complex
representing a typical pipe-like porphyry Cu-Au surface signature,
including a central 30mx 100m zone
showing pervasive potassic alteration (magnetite-secondary
biotite-adularia-illite-calcite alteration of late-stage
hornblende-quartz-feldspar andesite porphyry with strong
chalcopyrite-bornite-covellite-malachite disseminations and
fracture fills. A petrology sample taken from this zone
indicated proximity to an upflow zone of likely higher Au-Cu grade.
A series of 8 x nominally 3m
long continuous chip samples taken from a cleaned-up exposure
within this zone, along the upper reaches of Koras Creek, returned
the following values (Figure 2).
Mapping and sampling within the vicinity of this zone revealed a
multi-phase intrusive complex displaying zoned alteration and
strongly anomalous Au-Ag-Cu geochemistry. An initial
geological model was drafted, Figure 3, to help guide further
exploration over the Mountain Gate Prospect. The
association of higher Au-Ag-Cu grades with late-stage altered and
mineralized intrusive rocks is evident.
KRL has identified multiple areas of mineralisation and altered
outcrops (Figures 4 to 6) within the Mountain Gate Prospect area
and surrounds. This includes 2 previously unidentified areas
hosting epithermal style quartz veins peripheral to the porphyry
target:
- Ikeini Creek in the north where local gold panning is being
conducted. A 2.5m width of a vein in
the banks of the creek returned 0.43ppm Au; and
- a quartz vein displaying clear evidence of epithermal texture
(banded and partly chalcedonic) was noted in an area of historic
airborne VTEM/ZTEM anomalism to the WNW of the Mountain Gate
Prospect.
In summary, the 2022 study at Mountain Gate has demonstrated the
highly prospective nature of the Project, as supported by the
strongly anomalous Au and Cu samples reported, outcrops of
mineralization uncovered, and the identification of at least 2
peripheral potential epithermal gold prospects in the area.
Follow-up exploratory work during 2023 over the Mountain Gate
Prospect and surrounds will be geared towards rapidly identifying
drill targets. It is believed that the Koras Creek area, containing
a potential mineralized porphyry apophysy, offers the best target
thus far. However, given the scale of the altered and
mineralized footprint here, it is possible that other similar
shallowly buried apophyses may be present in a complex multi-phase
intrusive environment.
Initial planning involves further mapping and sampling the
prospect, extending the grid SE towards the Eserebe Prospect grid
(Au-Cu anomalous soil open to the north), and including the
peripheral potential epithermals, in conjunction with an IP survey
over the Mountain Gate grid in order to delineate prospective
porphyry targets for diamond drilling.
Commercial
On June 15, 2021, KRL announced
that it had entered into an Option Agreement to acquire all of the
shares of Hardrock Limited ("Hardrock") (being the entity that owns
the principal Project tenements) by way of an issue of script.
Having exercised the first option with Hardrock, KRL currently
holds a 10% shareholding of Hardrock and is in discussions with the
other shareholders to acquire the remaining shares, by the
execution of the option or entering into a comparable
transaction. These discussions are proceeding and KRL expects
to be in a position to finalise them in the near future.
It is anticipated that these discussions will result in KRL
owning 100% of the May River Project on favourable terms for all
parties and eliminating any uncertainty as to deal
completion. The Company will provide a further update in due
course.
Qualified Person
The scientific and technical information disclosed in this
release has been reviewed and approved by Graeme Fleming, M.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.
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.
SOURCE Kainantu Resources Ltd.