Marengo Geophysical surveys confirm gold targets

RNS Number : 7534Q

Papua Mining Plc

08 June 2018

 

This announcement contains inside information

08 June 2018

Papua Mining plc

("Papua" or "the Company")

Geophysical surveys at Marengo confirm large gold targets

Highlights:

·      An emerging chargeability high at around 80m depth beneath One Mile Mountain may be indicative of the top of a porphyry gold / copper system. The chargeable anomaly is 400 m long and 200m wide;

·      Previous rockchip sampling at One Mile Mountain returned gold assays of 30.4 g/t, 21 g/t and 7.5 g/t and copper assays of 3.99%, 3.15% and 1,52%, suggesting that the chargeability and resistivity patterns potentially highlight a large gold / copper system;

·      A strongly resistive feature which surrounds One Mile Mountain is a possible vein system and perhaps the source of the surface geochemical high grade gold.

The Board of Papua Mining (LON: PML), is pleased to inform shareholders that gradient array and dipole - dipole geophysics recently completed at the Marengo gold/copper project in Queensland, Australia has defined linear and quasi linear IP and resistivity anomalies at One Mile Mountain which may be related to high grade gold zones sitting on the edge of a deeper porphyry system.

The IP chargeability and resistivity anomalies form a classic sigmoidal shape representative of dilation zones or "jogs" along a north-westerly trending structure. Such zones and patterns typically provide a unique space for mineralization to precipitate. Additionally, one line of dipole-dipole IP / resitivity was completed across the gradient array anomalies at One Mile Mountain, which confirmed the zones and highlighted an emerging chargeability high at around 80m depth and may be indicative of the top of a large porphyry gold / copper system.

A total of 20 line km of gradient array and 1.5 line km of dipole-dipole geophysics were completed by geophysical contractor Fender Geophysics with a focus on the One Mile Mountain and Homeward Bound Prospects within the Marengo Project.

The standout anomalies from the survey were at One Mile Mountain, where a significant anomalous zone of 400m x 200m was defined. Previous rockchip sampling at One Mile Mountain returned 30.4 g/t Au, 21 g/t Au and 7.5 g/t Au, suggesting that the chargeability and resistivity patterns potentially highlight a mineralised system. A link to a pdf document is provided which shows the chargeable and resistive responses from One Mile Mountain.

Anomalous resistive responses were also recorded at the Homeward Bound Prospect, however the structure appears less defined. Owing to its proximity to One Mile Mountain, Homeward Bound remains a high-priority target and will be explored in conjunction with One Mile Mountain. An additional resisitive high target has also been identified to the northeast of One Mile Mountain and will also be subject to follow-up exploration.

http://www.rns-pdf.londonstockexchange.com/rns/7534Q_1-2018-6-8.pdf

Ongoing work includes a ground magnetic survey and detailed mapping and geochemical sampling over the IP target zones. Further dipole-dipole may be conducted to provide a detailed 3D model to be later tested by RC / diamond drilling.

Chief Executive Officer of Papua Mining, David Price commented:

"Our PML geologists report that the rocks on the top of One Mile Mountain show little indication of any minerals which would be deemed to indicate high chargeability. The chargeable response beneath One Mile Mountain appears to be blind at surface and may well be a vector towards the source of high-grade gold throughout the Marengo Goldfield. Ground magnetics, along with concentrated geological mapping and sampling is the next logical step to optimise drill targeting. Our field crews are working continuously to advance our understanding of the mineralisation at Marengo and as our understanding increases, the geological potential for a discovery increases accordingly."

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]

 

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