New Epithermal Gold Zone Identified at Lighthouse

RNS Number : 1071P

Papua Mining Plc

24 May 2018

 

This announcement contains inside information

24 May 2018

Papua Mining plc

("Papua" or "the Company")

New Epithermal Gold Zone Identified at Lighthouse

The Board of Papua Mining (LON: PML), is pleased to inform shareholders of an operational update on exploration activities in Queensland, Australia.

·     Epithermal quartz veining and associated gold have been discovered during systematic mapping and sampling within the Lighthouse tenement. The area, known as 'Redwing' is located 18 km northeast of the operating Pajingo Epithermal Gold Mine (3.7 Moz gold)

·     Epithermal quartz veining has been mapped for 300 m along strike;

·     Seven (7) continuous rock-chip samples taken across strike at surface at various intervals along the mapped 300 m strike, returned elevated gold assays including;

Ø  10 m @ 1.68 g/t Au;

Ø  8 m @ 1.23 g/t Au;

Ø  5 m @ 1.35 g/t Au;

·     Mineralisation remains open along strike and depth;

·     Samples are now being analysed by Screen Fire Assay to determine the coarse gold fractionation;

·     Geophysical Induced Polarisation (IP) survey is currently underway at the Marengo Project;

·     High-resolution, drone-hosted aerial photography has been completed at Double Event and Marengo, providing exceptionally high-quality imagery for planning, environmental and orientation purposes.

·     RC drilling is expected to commence at the Double Event Prospect within the Lighthouse tenement next week.

Chief Executive Officer of Papua Mining, David Price commented:

"The area known as Redwing had been sampled by previous explorers using inappropriate sampling techniques, which resulted in poor gold results from 4 isolated rock samples. Based on recent mapping, PML's geologists considered that historical work did not adequately test the potential of the veins. Our geologists have since tested the veining with systematic, continuous rock chip sampling. The results are most encouraging and open up a new area for exploration within trucking distance to an operating processing plant. A 10m wide vein at surface, with an average grade of 1.68 g/t Au is an exciting new discovery in a highly-mineralised province.

The Company continues to implement its strategy of systematically testing each of the prospects within our portfolio of tenements in Queensland. At Lighthouse, there are multiple opportunities for identifying significant resources and it is important to test them in a logical and scientific manner.

Our exploration team is busy on a number of simultaneous programs, including mapping and rock sampling, geophysics and preparation for drilling within the week. The Company would like to take this opportunity to thank the Landowners associated with our projects in Queensland, all of whom are particularly cooperative and indeed very helpful"

Lighthouse Project

Chalcedonic epithermal quartz veining at the Redwing Prospect was identified and recorded by previous explorers but was discounted as a result of inappropriate sampling techniques being applied in an epithermal environment. Historically, the best result from four (4) isolated rock samples was 0.10 g/t Au. Previous drilling of three RC holes in the surrounding area were drilled too far from the vein and failed to adequately test the vein.

The systematic sampling recently completed by PML geologists consisted of seven continuous rock-chip samples, sampled across strike, with varying widths of between 3m - 10m over a strike length of 300m. A complete table of results is provided below.

http://www.rns-pdf.londonstockexchange.com/rns/1071P_-2018-5-23.pdf

Table 1: Redwing location and continuous rock chip sample details

MGA E	MGA N	RL m	Direction	Sample ID	Interval	Grade
458799	7738578	290	270	BRWCS001	10 m	1.68 g/t Au
458803	7738553	291	270	BRWCS002	7 m	0.06g/t Au
458806	7738527	292	270	BRWCS003	6 m	0.02g/t Au
458812	7738510	292	270	BRWCS004	8 m	1.23 g/t Au
458793	7738653	290	270	BRWCS005	5 m	1.35 g/t Au
458811	7738759	287	270	BRWCS006	3 m	0.13 g/t Au
458810	7738743	285	270	BRWCS007	5 m	0.25 g/t Au

The epithermal vein is orientated north-south and appears to bisect and strike towards the centre of a circular feature which is clearly visible on aerial photographs. Redwing lies less than 2 km southwest from the Plateau Prospect, also within the Lighthouse tenement.

Sample BRWCS005 (5m @ 1.35g/t Au) also returned 9.90g/t Ag and extremely high barium (370ppm Ba) which is indicative of classic, low sulphidation epithermal environments where the chalcedonic and jasperoidal phases of mineralisation have a strong correlation between gold, silver and barium.

Also, of note is the aqua regia repeat analysis of this sample (BRWCS005), which returned a grade in excess of 25 g/t Au, highlighting the nuggety, coarse gold nature of this particular sample. Owing to this extreme variation in grade, all 7 samples are now being analysed by Screen Fire Assay to determine the coarse gold fractionation.

At the Double Event Prospect, also within the Lighthouse tenement, preparations are nearing completion for the start of RC drilling. Landowner Agreements have been formalised, Heritage surveys have been completed and pads have been built ready for the arrival of the rig. It is expected that drilling will commence next week.

Drilling at Double Event is designed to test a 400 m long strike of outcropping quartz veining which is host to historical workings and very high-grade gold and silver values. Historical drilling of only 6 drill holes returned intersections of 1m @ 3.3 g/t Au, 1m @ 3.9 g/t Au, 2m @ 2.7 g/t Au, 2m @ 4.1 g/t Au and 2m @ 13.2 g/t Au - all from within the top 20m from surface. Fourteen (14) holes have been designed to test the near-surface potential for economic gold along the 400m strike. The proposed holes are between 40m and 70m deep.

Marengo Project

As announced on 16 April 2018, Papua Mining has completed rock sampling and structural mapping at the One Mile Mountain and Homeward Bound Prospects which form part of the Marengo Gold Project, also in Queensland. A geophysical Induced Polarisation (IP) survey has now commenced at the Marengo Project and the geophysical crew from 'Fender Geophysics Australia' arrived on site yesterday (22^nd May 2018) to start the survey. The survey is expected to take approximately 2 weeks to complete and consists of a gradient array program of approx. 20 line-kilometres and is being done to help identify potential drilling targets at depth, beneath bonanza-grade gold up to 149 g/t in surface rock samples.

Geological and structural mapping, along with rock sampling is also underway at Marengo.

Copperhead

Historical exploration work completed at the Copperhead Project in Queensland by previous explorers is currently being extracted from the government database and digitised. An Induced Polarisation (IP) geophysical survey is planned over the main section of the known mineralisation at Julivon Creek. The IP is expected to consist of dipole-dipole to understand the extent of mineralisation at depth. Any future drilling will be based on the results of the IP and will target coincident high-grade copper in soils, extensively mineralised core and any significant IP anomalies generated from the survey once it is undertaken.

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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