Update of Plateau Project & further drill results

RNS Number : 9005C

Papua Mining Plc

25 January 2018

 

25 January 2018

This announcement contains inside information

Papua Mining plc

("Papua" or "the Company")

Update of the Plateau Project with further drill results

The Board of Papua Mining (LON: PML), is pleased to update shareholders with further encouraging results from the recent drilling program at its 100%-owned Plateau Prospect in north Queensland, Australia.

Highlights:

·      Hole BPL008 - 10m @ 1.9g/t Au and 9g/t Ag (from 18m downhole) including 4m @ 3.65g/t Au and including 2m @ 5.8g/t Au. Additionally, 6m @ 13g/t Ag (from 21m downhole) was also intersected within a broader envelope of 43m @ 4g/t Ag. The same hole also intersected 24m @ 0.5% Zn from 25m downhole;

·      Hole BPL007 - 20m @ 0.50g/t Au (from 16m downhole) including 9m @ 0.9g/t Au. The same hole also intersected 43m @ 2g/t Ag (from surface) and 22m @ 0.4% Zn, also from surface;

·      Hole BPL006 - 20m @ 0.2% Cu (from surface) which represents a copper-enriched zone, 200m further east from all previous drilling. This broad zone of elevated copper in the eastern-most hole sits on the western edge of a surface copper geochemical anomaly which is continuous between Plateau and the Split Rock Prospect (2.5km north of Plateau). At Split Rock, which lies within the Lighthouse tenement, surface rock samples collected in 2011 returned up to 11.36% Cu, 3.5 g/t Au, 38.1 g/t Ag and 0.4% Co;

·      With consistently wide intervals of multi-element mineralisation being encountered at Plateau, the Company's technical team is observing similarities to the operating Mt Wright Gold Mine (+1.5Moz gold), located 50km northeast of Plateau and believes another breccia complex similar to Mt Wright may exist at Plateau; and

·      Zn/Pb +/- Ag ratios at Plateau are similar to the upper levels of Mt Wright (surface down to 160m deep), indicating that the best developed gold mineralisation may potentially be deeper than the current level of drilling.

Chief Executive Officer of Papua Mining, David Price commented:

"Drilling results from this program have returned wide zones of mineralisation. The gold results including 22m @ 1.9g/t Au are very exciting, as are the broad elevated intervals of other elements. The recent intercepts of 43m @ 2.0g/t Ag and 16m @ 1.1% Zn and 20m @ 0.2% Cu add significantly to historical intercepts of 234m @ 2.5g/t Ag. We believe we are starting to see early signs of a significant project.

Management is very encouraged by this first drilling phase, which has increased the potential for the discovery of a large mineralised system. Plateau is in the vicinity of major gold deposits such as Mt Leyshon, Pajingo, Mt Wright and Ravenswood and we are excited about the similar geological, geochemical and geophysical charateristics we are seeing at Plateau."

Reverse Circulation drilling undertaken in November and December 2017 has continued to return broad intercepts of gold and silver mineralisation at the Plateau Prospect within the Lighthouse Project, North Queensland. Results from the final 7 holes (BPL005 - BPL011) have been received from ALS Laboratories in Townsville.

As the Company's's knowledge of the Plateau Prospect increases through drilling, similarities to the operating Mt Wright Gold Mine (50km NE of Plateau) are being observed, which has historical resources of more than 1.5 million ounces. Importantly, the main lode mineralisation at Mt Wright was not intersected until 160m below surface with mineralisation extending down to 1,200m below surface.

Similarities observed are as follows;

ü hosted by Permo-Carboniferous breccia complexes with predominantly polymict breccia;

ü occur in close proximity to an intrusion of rhyolitic composition;

ü contain tuffisite pipes (a fine-grained, milled breccia)

ü approximately similar geometry and size

ü rhyolites comprise flow-banding and breccia phases.

A link is provided below showing the visual similarities between core drilled at Plateau in 2006 and core photographs from Mt Wright.

http://www.rns-pdf.londonstockexchange.com/rns/9005C_-2018-1-25.pdf

Next Steps:

Ø Acquisition of available geophysical data and conducting new surveys where required, such as 3D Induced Polarisation (IP) and magnetics;

Ø Continued interpretation and modelling of the new drilling data to build into planning for the next drilling phase; and

Ø Mapping, sampling and structural analysis.

Discussion of Results:

Hole BPL005 was designed to drill through an interpreted fault zone and to definitively test an area where mineralisation was not anticipated. The hole intersected 2m @ 1.0g/t Au, 7.7g/t Ag and 1.0 % Zn from 139m downhole.

Drill hole BPL006 returned 20m @ 0.2% Cu from surface, which is the broadest elevated copper zone intersected to date at Plateau. This broad zone of elevated copper in the eastern-most hole sits on the western edge of a surface copper geochemical anomaly which is continuous between Plateau and Split Rock (2.5km north of Plateau). At Split Rock, which lies inside the Lighthouse tenement, historical surface rock samples collected in 2011 returned up to 11.36% Cu, 3.5 g/t Au, 38.1 g/t Ag and 0.4% Co.

Split Rock is a significant surface copper anomaly (2km x 1.5km), which represents another prospective target for Papua. This prospect will be included in an Induced Polarisation (IP) geophysical survey being planned. This survey will assist in determining if Plateau and Split Rock form part of a much larger mineralised system, which could potentially be connected at depth.

BPL007 and BPL008 were both drilled into the main line of mineralisation with the aim of filling gaps in the historical drilling pattern, close to surface. These holes have confirmed the validity of historical drilling results (from 30 years ago) and have also successfully filled gaps in the drilling density to assist in the aim of delivering a maiden mineral resource.

http://www.rns-pdf.londonstockexchange.com/rns/9005C_1-2018-1-25.pdf

Two holes (BPL009 and BPL010) were designed as pure exploration holes and were drilled south of the main lode of mineralisation (250m and 650m respectively) with the aim of testing the prospectivity of regional structures. Hole BPL009 drill-tested a NE-striking, semi-regional fault which was barren of mineralisation, as was hole BPL010, which tested a remote, circular magnetic feature.

The final hole (BPL011) was a "scissor hole" drilled north of the main line of mineralisation to test for possible repetitions of mineralisation to the north and to drill back towards the mineralisation and parallel to the mineralisation to ensure holes were targetted in the correct orientation. BPL011 concluded that there is no repetition to the north and confirmed drilling orientation and additionally intersected 1m @ 1g/t Au at 244m downhole.

Drilling program details are provided in the table below which includes the rationale for each hole drilled.

Hole Number	EAST (AGD94)	NORTH (AGD94)	RL (m)	DEPTH (m)	DIP (°)	AZIMUTH (mag)	TARGET
BPL001	459711	7740374	304	250	-60	040	Conceptual target only. Western margin of rhyolite.
BPL002	459841	7740315	312	200	-60	000	Southern margin of breccia. Strike extension.
BPL003	460099	7740435	327	200	-60	330	Conceptual target only. Eastern margin of rhyolite.
BPL004	460297	7740405	329	250	-60	350	South-dipping eastern zone. Depth extension.
BPL005	460425	7740410	316	250	-60	350	South-dipping eastern zone. Depth extension.
BPL006	460634	7740469	305	125	-60	350	Conceptual target only. Eastern step-out.
BPL007	460355	7740502	308	100	-60	350	Conceptual target only. Parallel zone to north.
BPL008	460246	7740511	328	106	-60	350	Conceptual target only. Parallel zone to north.
BPL009	459824	7740177	316	130	-60	330	Conceptual target only. Undrilled NE structures.
BPL010	459548	7739894	293	250	-60	135	Conceptual target only. Southern magnetic low.
BPL011	460221	7740601	326	250	-70	190	Conceptual target only. Southern margin of breccia.
				2111

Drilling results showing significant  intersections of gold, silver, zinc and copper for each hole drilled.

Papua Mining plc
Plateau Prospect, Queensland
Significant RC drilling results Nov/Dec 2017
Hole	From	To	Interval	Au		Ag	Zn	Cu
Number	(m)	(m)	(m)	(g/t)	(g/t)		(%)	(%)
BPL001	28	30	2	0.83	9.2
BPL002	39	61	22	1.86	22.3
BPL002	129	145	16	0.21	3.2		1.1
BPL003	32	95	63		2.3
BPL004	129	139	10	1.37	12.4
BPL005	139	141	2	1.00	7.7		1.0	0.2
BPL006	0	20	20					0.2
BPL007	16	36	20	0.50	2.5
BPL007	0	43	43		2.0
BPL007	0	22	22				0.4
BPL008	18	28	10	1.90	9.0
BPL008	25	49	24				0.5
BPL009	no significant assays
BPL010	no significant assays
BPL011	244	245	1	1.00

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.

In quoting exploration targets, the potential quantity and grade is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource.

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]

 

END

 

 

UPDVELBLVFFFBBD