Exploration Update

RNS Number : 1413W

Papua Mining Plc

06 February 2017

 

6 February 2017

Papua Mining plc

("Papua" or "the Company")

Exploration Update

Papua Mining plc, a UK company focused on the exploration and development of gold and copper deposits in Papua New Guinea ("PNG"), presents this update in respect of its exploration activities at the Mt. Visi prospect.

Highlights:

·      New rock and soil samples in the Mt. Visi area confirm porphyry target

·      New target discovered approximately 3 kilometres east of drilled area

Background

The Company announced on 7 October 2016 that it was shortly to commence the next stage of exploration at Papua's Mt. Visi target, where Papua had previously completed an initial drilling programme in March 2016. During November and December 2016, the Company completed a rock and soil sampling programme in the vicinity of the Mt. Visi target area, which comprised of three parts:

·      the Southeast Anomaly infill grid;

·      the Mt. Visi Corridor ridge and spur soil sampling and; and

·      the Mt. Visi Corridor float and outcrop sampling.

As shown in Table 1 below, most of the results of this programme are now available.  A small number of samples are still awaiting analysis, due to an equipment malfunction which requires overseas repair.

	Samples Collected	XRF results	Results awaited
Infill Grid soils	99	77	22
Ridge and Spur soils	649*	471	c.50
Rock samples	64	63	1

Table 1: Sample Status                                                           *including duplicates

Infill soil grid

Some 99 soil samples were collected from the southeastern portion of the previously completed soil grid at Mt. Visi.  This southeastern zone had shown some elevated copper values and it was determined that those results warranted follow up sampling.  Whilst some samples from this area (referred to as "the Southeast Anomaly") remain to be analysed, the results so far obtained have confirmed the anomalous nature of this area.  Highest copper values of 697ppm and 408ppm are generally coincident with the originally defined anomaly. Overall, the work confirms that the Southeast Anomaly is indeed anomalous in terms of copper in soil and is worthy of further evaluation. This evaluation will enable the Company to establish the next phase of activity at Mt. Visi and the associated cost.

Ridge & Spur Sampling

The purpose of ridge and spur sampling is to quickly and cost effectively delineate any broadly anomalous zones which may occur in the selected target area. In theory the soil profile along ridgelines is suitable for soil sampling and should produce results that essentially reflect significant underlying bedrock mineralisation. Sampling interval was 50 metres along ridgelines.

In general, the copper in soil values are more consistently anomalous some distance (2-3 kilometres) from the already drilled target at Mt. Visi than they are in the immediate proximity of that target itself or indeed around the Southeast Anomaly zone. In addition to following up the encouraging results from the drilling previously completed at Mt. Visi, these results point to the necessity to carry out further exploration in the area east and south east of Mt. Visi to confirm the source of the anomalism, as these may reflect additional porphyry centres. Some support for this view comes from the rock sampling results given below.

Rock sample results

The rock sampling was carried on a reconnaissance basis to see if any in situ float hosted mineralisation could be identified whilst completing the ridge and spur soil sampling. The key points arising from the analysis of the rock samples are:

·      Copper: 8 values greater than 800ppm, with a maximum value of 36,063ppm; almost all of the significant values occur in a zone between 3,000 and 4,000 metres east of the drilled area at Mt. Visi.

·      Molybdenum: 5 values greater than 15ppm, with a maximum of 1,253ppm; the highest values occur 3,900 metres east of the drilled area.

·      Zinc: 12 values greater than 800ppm, with a maximum value of 8,238ppm; the anomalous values fall within the same zone as the copper mineralisation

·      Silver: 3 values greater than 15ppm, with a maximum value of 100ppm; the peak value occurs 3,000 metres east of the drilled area.

Although most of the rock samples were collected in creek valleys, as this is where the outcrop is exposed, the soil sampling does seem to pick up the anomalism south and west of the copper in rock mineralization.  In summary, the zone 3,000 to 4,000 metres east of the drilled area at Mt Visi appears prospective in terms of hosting a mineralisation centre and warrants follow up work.  Another anomalous zone 1,700 metres north of the drilled target with copper values up to 405ppm may also warrant follow up work once the data have been fully assessed.

Summary

The infill sampling on the Southeast Anomaly has added definition to that anomaly while not yet producing a clearcut, standalone drilling target.

Intriguingly, the ridge and spur sampling suggests that an area 2-3 kilometres southeast of the drilled area at Mt. Visi is more strongly anomalous for copper than the drilled target itself. The rock sampling confirms this area as worthy of follow-up mapping. Anomalous zones north and south of Mt. Visi could also reflect porphyry centres.

This new work expands our area of interest in this highly attractive, mineralised porphyry system with the potential for a number of porphyry centres within the system as a whole. We believe that the exploration results to date clearly support our view that the Mt. Visi area is a prime target for the location of significant, mineralized copper porphyries. 

The data obtained has validated the decision to undertake further work at Mt. Visi and, whilst there can be no guarantee of commercial success, Mt. Visi remains an exciting target. Further exploration work in this area is clearly warranted in order to delineate drill targets and details of such work will be announced in due course.

Hugh McCullough, EurGeol., PGeo, Director of Papua, is a member of the Institute of Geologists of Ireland.  He is a qualified person as defined in the Guidance Note for Mining, Oil and Gas Companies, March 2006, of the London Stock Exchange.  He has reviewed and approved the technical information contained in this announcement.

For further information on the Company please visit www.papuamining.com or contact the following:

Papua Mining plc, Hugh McCullough, Director	[phone]
Cenkos Securities plc - Nominated Adviser & Broker, Derrick Lee/Beth McKiernan	[phone]

 

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