Exploration Update

RNS Number : 6324J

Papua Mining Plc

16 June 2014

 



16 June 2014

Papua Mining plc

("Papua" or "the Company")

Exploration Update

Highlights:

·      High grade copper association with recently announced gold discovery in EL2051 confirmed by rock sample assay results. Copper values of up to 9% in float and 4% in outcrop in this new target area in New Britain

·      Significant occurrences of alteration mineral dickite also associated with high grade gold and copper samples

·      Deeper drilling programme at Tripela in EL1462 now commencing

Papua Mining plc ("Papua" or "the Company"), a UK company focused on the exploration for and if commercially feasible, development of gold and copper deposits in Papua New Guinea ("PNG") presents this update in respect of recent exploration activities on its licences.

EL2051

On 16 May 2014, we reported the discovery, during focused regional field work, of an extensive zone showing high grade gold in outcrop and float samples on Exploration Licence 2051 ("EL2051").  Laboratory results have now been received for copper on these samples and the assays show that many of the high grade gold samples also have high copper values, with grades ranging up to 9% copper.  Of the 326 samples collected, 44 recorded grades above 0.1% copper while 10 samples returned grades above 1% copper. The assays also show significant silver and zinc anomalism coincident with many of the high gold and copper values.

The table below includes all assay results returned out of the 326 samples collected in which the results show grades above 1 gram per tonne of gold (Au) or are above 1% copper (Cu).

Sample_ID	Type	Au	Ag	Pb	Zn	Cu
		ppm	ppm	ppm	ppm	%
RO51RCH 53 309	FLOAT	2.10	32	23	455	0.1%
RO51RCH 53 310	FLOAT	8.64	388	0	2,483	9.2%
RO51RCH 53 311	FLOAT	6.93	47	46	524	0.8%
RO51RCH 53 352	FLOAT	2.20	79	0	132	0.3%
RO51RCH 53 355	FLOAT	9.54	95	20	536	0.4%
RO51RCH 53 356	FLOAT	3.21	97	12	399	0.1%
RO51RCH 53 359	FLOAT	6.78	92	23	11,700	0.7%
RO51RCH 53 371	FLOAT	3.59	12	20	1,131	0.2%
RO51RCH 53 401	OUTCROP	1.76	41	14	251	0.0%
RO51RCH 53 423	FLOAT	0.88	318	11	548	1.0%
RO51RCH 53 424	OUTCROP	1.91	337	13	1,652	4.0%
RO51RCH 53 425	OUTCROP	35.50	281	54	825	2.4%
RO51RCH 53 433	FLOAT	2.39	5	31	515	0.2%
RO51RCH 53 435	OUTCROP	9.38	203	28	885	1.1%
RO51RCH 53 436	FLOAT	6.65	112	25	295	0.3%
RO51RCH 53 437	OUTCROP	13.05	189	23	334	0.4%
RO51RCH 53 438	FLOAT	1.26	25	22	766	0.2%
RO51RCH 53 439	OUTCROP	21.33	67	20	309	0.3%
RO51RCH 53 440	FLOAT	2.04	44	18	1,010	0.5%
RO51RCH 53 441	FLOAT	5.80	44	16	244	0.3%
RO51RCH 53 443	FLOAT	2.20	127	32	501	0.4%
RO51RCH 53 444	OUTCR0P	4.22	251	28	5,139	3.2%
RO51RCH 53 447	OUTCROP	2.41	340	7	1,092	3.7%
RO51RCH 53 448	OUTCROP	2.04	68	21	564	0.6%
RO51RCH 53 449	OUTCROP	13.75	118	12	277	0.2%
RO51RCH 53 450	FLOAT	1.11	25	28	225	0.3%
RO51RCH 53 529	FLOAT	0.89	63	0	80	1.6%
RO51RCH 53 530	FLOAT	3.84	24	18	242	3.8%
RO51RCH 53 541	FLOAT	9.59	86	14	31	4.1%
RO51RCH 53 547	OUTCR0P	8.61	111	11	167	0.1%

In addition, spectrometer analysis of these samples shows that the alteration mineral dickite is also associated with many of the higher grade samples.  The importance of dickite is as an indicator mineral which commonly occurs in close association with many of the known orebodies in this geological environment.

The presence of high grade gold and copper and other anomalous mineral values, together with the extensive development of associated dickite, marks this zone as one of primary prospectivity.  Follow up work in the form of grid-based soil sampling with  trenching to follow is already underway on this exciting new discovery.

Tripela Drilling

Following the completion in May of the shallow, vectoring drilling programme at Tripela the planned phase of deeper drilling is expected to commence before the end of June and, subject to shareholders approving at the General Meeting the placing of £2.5 million (before expenses), as announced on 10 June 2014, is planned to continue through much of 2014.  This deeper drilling programme has been designed to test for the deeper porphyry bodies interpreted from the shallower vector drilling programme.

Commenting on the results, Hugh McCullough, Chief Executive Officer said,

"The latest assays show that there are high grade copper values associated with the previously reported high grade gold discovery on EL2051.  Additionally, spectrometer analysis of these samples has demonstrated the presence of the important alteration mineral, dickite, which is often found in close proximity to orebodies in this region. These factors combined confirm the prospectivity of this exciting new mineralized zone on EL2051."

Hugh McCullough, EurGeol., PGeo, Chief Executive Officer 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.

Enquiries:

Papua Mining plc
Hugh McCullough, Chief Executive Officer	[phone]
Cenkos Securities - Nominated Adviser & Broker
Beth McKiernan/Alan Stewart	[phone]
Square1 Consulting - Financial Public Relations
David Bick/Mark Longson	[phone]

 

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