Initial Drilling Results at Lighthouse

RNS Number : 4590B

Papua Mining Plc

10 January 2018

This announcement contains inside information

Papua Mining plc

("Papua" or "the Company")

Drilling intersects wide zones of near-surface gold and silver at Lighthouse, Australia

Papua Mining (LON: PML), the gold and copper exploration company, is pleased to update shareholders with the initial results from the recent drilling program at its 100%-owned 'Lighthouse Gold Project' in Queensland, Australia.

Highlights:

· Wide zones of near-surface gold and silver intersected

· Hole BPL002 - 22m @ 1.86g/t Au + 22g/t Ag (from 39m downhole) including 12m @ 2.45g/t Au and including 2m @ 8.87g/t Au;

· The same hole (BPL002) also intersected 16m @ 10,945ppm Zn (1.1% Zn) from 129m downhole;

· Hole BPL003 - 40m @ 3g/t Ag (from 55m downhole);

· Hole BPL004 - 10m @ 1.37g/t Au + 12.4g/t Ag (from 129m downhole), including 2m @ 4.43g/t Au. These results occur within a wider, mineralised envelope of 18m @ 1.0g/t Au + 10.5g/t Ag from 119m downhole;

· Assay results are still awaited from other holes drilled during November/December 2017.

Reverse Circulation drilling undertaken in December 2017 at the Plateau Prospect within the Lighthouse tenement, Queensland has returned wide intercepts of gold and silver mineralisation. Results from the first 4 holes have been received from ALS Laboratories in Townsville.

Two RC holes (BPL002 and BPL004) were drilled into the main line of mineralisation with the aim of increasing the depth and strike extension of gold/silver mineralisation which was identified from historical drilling. These holes have confirmed the validity of historical drilling results (from 30 years ago) and have also successfully increased the lateral and vertical extensions to the mineralisation.

Two holes (BPL001 and BPL003) were drilled off the line of mineralisation with the aim of definitively testing the east and west margins of a rhyolite dome which were previously thought to be unmineralised. Hole BPL001 intersected another gold lode (2m @ 0.83g/t Au + 9.2g/t Ag from 28m downhole) which now expands the exploration potential on the western side of the rhyolite dome.

Hole BPL003 intersected a very broad zone of previously unknown silver (145m @ 1.2g/t Ag) starting at 16m downhole, which includes a strong zone of 40m @ 3.0g/t Ag from 55m downhole. This hole was drilled on the eastern margin of the rhyolite dome which was previously thought to be unmineralised. This provides an exciting new exploration zone to be followed up in further drilling.

An image showing a plan of these drilling results, together with historical drilling results is available at the link below;

http://www.rns-pdf.londonstockexchange.com/rns/4590B_-2018-1-10.pdf

Chief Executive Officer of Papua Mining, David Price commented: "We are delighted with this initial round of drilling which has confirmed that the Plateau Prospect hosts gold grades and mineralisation widths which could potentially meet near-surface, open cut criteria. In addition to this, the initial drilling results highlight the high-grade potential for longer-term, underground mining possibilities (eg. 2m @ 8.87g/t Au in hole BPL002 and 2m @ 4.43g/t Au in hole BPL004). The Pajingo Gold Mine operates less than 20km from Plateau and provides a potentially viable option for future processing.

In historical drilling at Plateau, gold has been encountered 500m beneath the levels which are currently being explored. Although our exploration is early-stage, Plateau is showing encouraging signs that further drilling may delineate a potentially large mineralised system."

More assay results are awaited from the December 2017 drilling program which was designed to validate historical drilling results, extend mineralisation and to test a number of conceptual targets.

Drill hole collar statistics 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	Conceptual target only. Parallel zone to north.
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. 250m south.
BPL010	459548	7739894	293	250	-60	135	Conceptual target only. 650m south.
BPL011	460221	7740601	326	250	-70	190	Conceptual target only. Northern parallel lode.
				2111

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

	From	To	Interval	Average grade
Number	(m)	(m)	(m)	Au (g/t)	Ag (g/t)	Zn (%)
BPL001	28	30	2	0.83	9.2

BPL002	39	61	22	1.86	22.3
includes	42	54	12	2.45	17.6
includes	42	44	2	4.71	64.0
includes	52	54	2	8.87	5.1
includes	129	145	16	0.21	3.2	1.1

BPL003	58	59	1	0.90	1.3
includes	32	95	63		2.3
includes	55	95	40		3.0

BPL004	119	137	18	1.00	10.5
includes	129	139	10	1.37	12.4
includes	134	136	2	4.43	13.3

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.

The potential quantity and grade of the exploration target is conceptual in nature, and there has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource."

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