Lighthouse drilling - all holes intersect sulphide

RNS Number : 0449R

Papua Mining Plc

12 June 2018

 

12 June 2018

Papua Mining plc

("PML" or "the Company")

Lighthouse drilling - all holes intersect sulphide

Papua Mining (LON: PML), the gold and copper exploration company, is pleased to inform shareholders that it has completed its first phase of RC drilling at the Double Event Prospect, part of the Lighthouse Gold Project in Queensland, Australia.

·     All drill holes intersected narrow quartz veins (1-2 m) and in a number of instances, several quartz veins;

·     Most veins have been intersected within the top 35 m from the surface;

·     All holes intersected at least one vein with varying amounts of visible, fresh sulphides including pyrite, arsenopyrite, galena (lead) and very rare chalcopyrite (copper);

·     Assays are pending for all 14 holes which tested a 400 m section of a 3 km long trend at Double Event, hosting quartz veins, historical workings and very high-grade rock assays.

Chief Executive Officer of Papua Mining, David Price commented: "We are pleased to have our first drilling campaign at Double Event completed in scheduled time and within budget. It is particularly encouraging that each hole intersected sulphides, as well as quartz veining within the top 35 m from surface, with many veins occurring within the top 25 m. We will be informing the market as results are received from the laboratory."

Fourteen (14) reverse circulation drill holes have been drilled for a total of 714 metres and to a maximum downhole depth of 78 m from surface.

Geological logging of the drilling chips has recorded observations of quartz veins and in some instances, multiple quartz veins in each hole. Veining is narrow (1-2 m) but most veins have been intersected within the top 35 m from the surface. Sulphides including pyrite, arsenopyrite, galena and very rare chalcopyrite have been observed in all holes in at least one of the multiple quartz vein intercepts. No visible gold has been observed in the drill chips.

The most dominant rock type encountered in the drilling is granite, which is markedly altered in a number of the holes, particularly in the western-most holes. Alteration types include sericite, haematite and silica as a broad alteration halo around sheared zones, with epidote proximal to fractures and veins.

Drill samples have been submitted to the laboratory and assay results are pending.  A full list of completed drill holes is provided in the table below.

Hole ID	MGA E	MGA N	Zone	RL m	Azi mag	Dip	EOH m
BDE001	442327	7757866	55K	368	008	-55	27
BDE002	442368	7757851	55K	369	008	-55	78
BDE003	442410	7757853	55K	370	008	-55	33
BDE004	442433	7757844	55K	371	008	-55	42
BDE005	442467	7757830	55K	371	008	-60	54
BDE006	442482	7757825	55K	369	008	-60	50
BDE007	442501	7757822	55K	369	008	-60	60
BDE008	442524	7757817	55K	368	008	-55	57
BDE009	442543	7757816	55K	367	008	-60	70
BDE010	442559	7757813	55K	365	008	-60	70
BDE011	442585	7757817	55K	365	008	-60	60
BDE012	442620	7757806	55K	363	008	-60	37
BDE013	442659	7757788	55K	360	018	-60	40
BDE014	442698	7757775	55K	358	008	-60	36
						Total	714

About the Double Event Prospect:

Earlier this year (see RNS dated 12^th March 2018), Papua Mining collected forty-nine (49) rock samples from Double Event and undertook structural mapping. Abundant quartz veining was recorded and subsequent sampling of the veins returned high grade gold assays in excess of 1 ounce/tonne gold including; 37.7g/t, 33.3g/t, 33.1 g/t, 25.9 g/t, 24.3 g/t, 23.5 g/t Au. Rocks at Double Event are also strongly anomalous in Lead with values of 4.46%, 3.64% and 3.29% Pb being returned from the rock samples. Just over 50% of rocks returned assays above 3 g/t Au.

Government mining records from the early 1900's indicate that 1,744 ounces of gold were won from mining 1,889 tons of ore, giving an average mined head grade of 28.7 g/t Au.

Battle Mountain (Australia) Inc. and Newcrest Mining Limited have both conducted drilling at Double Event. In 1987, Battle Mountain drilled 25 holes, totalling 798 m, with an average depth of just 31 m. Newcrest drilled 2 holes in 1998 to a maximum of 150 m.

The historic drilling completed by Battle Mountain in 1987 was considered to be successful, with 72% of holes intersecting gold values within the top 20 m vertically from surface. Subsequent drilling of only 2 holes along the entire 3 km strike by Newcrest in 1998 targeted the deep sulphide potential (+80 m) at Double Event. This drilling, (deemed insufficient to adequately test a 3 km long mineralised trend) hit 2 m @ 0.55 g/t Au and Newcrest concluded that significant gold potential beneath the oxide zone was downgraded.

Competent Person Statement:

Information in this announcement that relates to exploration results is based on information compiled by Mr David Price, a Director of Papua Mining plc, who is a Fellow of the Australasian Institute of Mining and Metallurgy (FAusIMM). Mr Price has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which has been undertaken to qualify as a Competent Person as defined by the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code) and under the AIM Rules - Note for Mining and Oil & Gas Companies. Mr Price consents to the inclusion in the announcement of the matters based on their information in the form and context in which it appears.

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

Papua Mining plc David Price, Chief Executive Officer Cenkos Securities plc Nominated Adviser & Broker, Derrick Lee/Beth McKiernan	[e-mail] [phone]

 

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