Kainantu Resources Advances Exploration at Highly Prospective Regional Targets
KAINANTU RESOURCES ADVANCES
EXPLORATION AT HIGHLY PROSPECTIVE
REGIONAL TARGETS
VANCOUVER, BC
,
Sept. 14, 2022
/CNW/ - Kainantu Resources Ltd. (TSXV: KRL) ("KRL" or the
"Company"), the
Asia-Pacific
focused gold mining company, is pleased to provide an update on
regional exploration progress at the Ontenu area of interest, KRL South project. Historic field work
in combination with detailed analysis from the Company's airborne geophysical survey demonstrates
the Ontenu area hosting several highly prospective Cu-Au targets (porphyry-skarn and associated
epithermal Au).
Highlights
Key highlights include the following:
a cluster of mineralised targets (porphyry-skarn and an associated epithermal breccia have
been identified at Ontenu in the KRL South project, making this a stand-out priority for further
exploration by KRL;
Ontenu lies on the world renowned Kainantu Transfer Structure and is approximately 27 km SW
of the K92 Mining Inc. ("K92") operating mine;
exploration by prior operators reported extensive soil anomalies (Barrick Au-Cu-Mo soil
geochemical anomaly: 100-375ppb Au; 300-2,300ppm Cu and 15-237ppm Mo);
recent geophysical analysis commissioned by KRL identified several zones of high conductivity
and discrete magnetic highs observed along both NW and NE trends;
a central anomaly coincides with a zone of high Au geochemistry at the intersection of
prominent NW & NE trending structures reported by Barrick Gold Corp. ("Barrick");
a further anomaly associated with a coincident NW trending lineament represents a
controlling structure in the same orientation as the high-grade Kora-Irumafimpa-Judd
epithermal vein system underlaying K92's operations;
three high priority targets have been identified by KRL for immediate work; with potential to
move towards delineated drilling targets near term (subject to further analysis, including
geochemistry and geological mapping); and
community engagement in the area is ongoing and supportive.
Matthew Salthouse
, CEO of KRL, commented:
"Building on extensive exploration work at KRL South since listing, the Company has successfully
expanded activities in the broader project; with the Ontenu area identified as highly prospective for
gold and copper. In addition to other initiatives in Kainantu, KRL will accelerate activities around
Ontenu with three targets already identified for immediate work. All are on trend and in proximity
to other successful high-grade miners in the region. We are confident Ontenu will yield further
encouraging results, adding value to the portfolio of high quality KRL projects."
Background
The Company's KRL South project is located along the world renowned Kainantu Transfer Structure,
in a district associated with highly successful mining projects including K92. The Company's initial
focus has been around the Tirokave area of interest, with prospects identified for further
investigation (including East Avaninofi where a 40 g/t Au sample was collected). A further update
will be provided on these activities in the near future.
The Company has also continued exploration activities and analysis at regional targets across KRL
South, combining ongoing field work, a comprehensive review of the geophysical survey (announced
June 9, 2022
) and research of historic records from the PNG Mineral Resource Authority ("MRA").
From this, the Ontenu area of interest has emerged as a stand-out prospect and is ranked as a
priority for the Company in the highly prospective KRL South project (with potential to accelerate a
focused drill programme at Ontenu).
Please refer to Figure 1, mapping the Ontenu area of interest, relative to Tirokave (where KRL is
already active, as noted above) and the broader Kainantu district. Ontenu is approximately 15
kilometres east of Tirokave, and 27 kilometres south-west of the K92 operations. Ontenu is located
in EL2660, part of the KRL South project with the tenement in good standing.
Figure 1: KRL South: Ontenu Area of Interest in Relation to KRL Tenements, Regional Geology,
Structural Trends, and Historic & Current Mines/Prospects (CNW Group/Kainantu Resources Ltd.)
Ontenu Area of Interest
Ongoing field work and analysis by the Company has identified a cluster of mineralised porphyry and
intrusion related targets around Ontenu, a highly fertile area, centred on the north-east trending
Kainantu Transfer Structure. Encouraging geophysical survey results also support the potential of
Ontenu for extensive bulk grade with attendant higher-grade mineralisation, making this an area of
heightened focus for the Company.
Geology and past exploration efforts
Research of historic records held by the MRA confirms Ontenu was first identified by Renison Gold
Corp. ("RGC") in the 1980s, with 3 holes drilled (including
100m
@ 0.32 g/t Au and 0.1% Cu from
14m
downhole). Highlands Pacific and Barrick conducted further exploration activities at Ontenu.
Barrick defined a 1.0x0.4km Au-Cu-Mo soil geochemical anomaly (100-375ppb Au; 300-2,300ppm
Cu and 15-237ppm Mo) within a soil grid area of more than 15km
2
and completed 7km
2
of surface
mapping.
Intrusive lithologies, including diorite, feldspar porphyry and pyroxene porphyry were observed to be
hosted by siltstone (which is hornfelsed and occasionally skarnified). The most extensive alteration
reported was a moderate to strong phyllic assemblage. Remnants of potassic alteration and a
broad propylitic halo were also observed. Prior to ceasing activities across the Kainantu district,
Barrick drilled a single hole (to
530m
) to test the prospect; with the best intercept reported of
37.5m
@ 0.15g/t Au and 0.11% Cu from
79.5m
downhole.
Geophysical survey
Conducted in H1 2022, the Company's geophysical survey highlighted the strongly anomalous central
areas around Ontenu. Specifically, several discrete zones of high conductivity have been observed
along both NW and NE trends: see Figure 2. A central zone at the intersection of the most
prominent NW and NW trending structures coincides with a zone of highly anomalous Au
geochemistry reported by Barrick (see above), but not drilled as yet; with further zones in both NW
and NE directions appearing to be prospective and underlain by discrete magnetic highs.
Figure 2: Conductivity model of the Ontenu Block interpreted from the MT Mobile survey data (CNW
Group/Kainantu Resources Ltd.)
Please also refer to Figure 3, relating the conductivity anomalies from the MMT survey with historic
data from RGC and Barrick – also noted and KRL targets identified. Two prominent conductivity
anomalies (O5 and O6), in addition to a curvilinear conductor (O7) all occur in the vicinity of the
prospects defined by both RGC and Barrick. While not recognised by the previous operators, O5 is
the strongest and deepest conductor in all areas surveyed by the Company and may represent a
significant shallowly buried mineralisation system for further field investigation.
The O6 anomaly is associated with a coincident NW trending linear conductivity and magnetic
anomaly (O2), which appears to represent a significant controlling structure. Coincidentally, this is
the same orientation as the high-grade Kora-Irumafimpa-Judd epithermal vein system underlaying
K92's operations.
Shallow asymmetric conductivity anomalies (O3 and O4) may represent sediments thickening
towards the NE trending structures. Quartz-limonite stockwork veining hosted by tertiary
conglomerates immediately overlying a regional unconformity with basal Mesozoic metamorphics
support the area around O4, termed the Onerunka anomaly. This is a location for further field work
investigation (noting artisanal miners are active).
Figure 3: Ontenu area conductivity model also displaying previous operators’ exploration highlights
and initial KRL work programme (CNW Group/Kainantu Resources Ltd.)
Next steps
KRL is currently conducting social awareness and community engagement to support field work at
Ontenu from H2 2022 onwards. Discussions to date have indicated community support.
Three high priority targets have been identified (see Figure 3), based on structural, geochemical and
geophysical signatures discussed above. Over the coming months, a focussed grided soil sampling
programme (circa 1,000 samples in total) will take place at these targets, in addition to further
mapping and rock sampling.
The intention is to produce zoned geochemical and alteration mapping to aid in vectoring towards
drill targets (with potential to move towards a focused drill programme in the near term).
The Company views the Ontenu area as extremely encouraging for potential economic Cu-Au-
Ag±Mo mineralisation at KRL South.
Qualified Person
The scientific and technical information disclosed in this release has been reviewed and approved by
Graeme Fleming
, B. App. Sc., MAIG, an independent "qualified person" as defined under National
Instrument 43-101,
Standards of Disclosure for Mineral Projects
.
About Kainantu Resources (KRL)
Kainantu Resources ("KRL")' is an
Asia-Pacific
focused gold mining company with three highly
prospective gold-copper projects, KRL South, KRL North and the May River Project. All projects are
located in premier mining regions in PNG. Both KRL North and KRL South show potential to host
high-grade epithermal and porphyry mineralisation, as seen elsewhere in the high-grade Kainantu
Gold District. The May River project is in close proximity to the world-renowned Frieda River
Copper-Gold Project, with historical drilling indicating the potential for significant copper-gold
projects. KRL has a highly experienced board and management team with a proven track record of
working together in the region; and an established in-country partner. KRL recently executed an
agreement to acquire the Kili Teke project in the western highlands of PNG.
For further information please visit
https://kainanturesources.com/
Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of
the TSX-V) accepts responsibility for the adequacy or accuracy of this release.
Disclaimer and
Forward-Looking Information
Mineralisation hosted on adjacent and/or nearby properties is not
necessarily indicative of mineralisation hosted on the Company's property
.
The data disclosed in
this release relating to drilling results is historical in nature. Neither the Company nor a qualified
person has yet verified this data and therefore investors should not place undue reliance on such
data, and no representation or warranty, express or implied, is made by the Company, its affiliated
companies, or any other person as to its fairness, accuracy, completeness, or correctness.
This
release contains forward-looking statements, which relate to future events or future performance
and reflect management's current expectations and assumptions. Such forward-looking statements
reflect management's current beliefs and are based on assumptions made by and information
currently available to the Company. All statements, other than statements of historical fact, are
forward-looking statements or information. Forward-looking statements or information in this news
release relate to, among other things: formulation of plans for drill testing; and the success related
to any future exploration or development programs. These forward-looking statements and
information reflect the Company's current views with respect to future events and are necessarily
based upon a number of assumptions that, while considered reasonable by the Company, are
inherently subject to significant operational, business, economic and regulatory uncertainties and
contingencies. These assumptions include; success of the Company's projects; prices for gold
remaining as estimated; currency exchange rates remaining as estimated; availability of funds for
the Company's projects; capital, decommissioning and reclamation estimates; prices for energy
inputs, labour, materials, supplies and services (including transportation); no labour-related
disruptions; no unplanned delays or interruptions in scheduled construction and production; all
necessary permits, licenses and regulatory approvals are received in a timely manner; and the
ability to comply with environmental, health and safety laws. The foregoing list of assumptions is
not exhaustive. The Company cautions the reader that forward-looking statements and information
involve known and unknown risks, uncertainties and other factors that may cause actual results
and developments to differ materially from those expressed or implied by such forward-looking
statements or information contained in this news release and the Company has made assumptions
and estimates based on or related to many of these factors. Such factors include, without
limitation: fluctuations in gold prices; fluctuations in prices for energy inputs, labour, materials,
supplies and services (including transportation); fluctuations in currency markets (such as the
Canadian dollar versus the U.S. dollar); operational risks and hazards inherent with the business
of mineral exploration; inadequate insurance, or inability to obtain insurance, to cover these risks
and hazards; our ability to obtain all necessary permits, licenses and regulatory approvals in a
timely manner; changes in laws, regulations and government practices, including environmental,
export and import laws and regulations; legal restrictions relating to mineral exploration; increased
competition in the mining industry for equipment and qualified personnel; the availability of
additional capital; title matters and the additional risks identified in our filings with Canadian
securities regulators on SEDAR in
Canada
(available at
www.sedar.com
). Although the Company
has attempted to identify important factors that could cause actual results to differ materially, there
may be other factors that cause results not to be as anticipated, estimated, described, or intended.
Investors are cautioned against undue reliance on forward-looking statements or information.
These forward-looking statements are made as of the date hereof and, except as required under
applicable securities legislation, the Company does not assume any obligation to update or revise
them to reflect new events or circumstances.
SOURCE
Kainantu Resources Ltd.
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For further information:
Enquiries: Kainantu Resources, Matthew Salthouse, Chief Executive
Officer (Tel: + 65 8318 8125); Callum Jones, Corporate Development Co-ordinator (Tel: + 61 450
969 697), Email: [email protected]; Investor Relations (Jemini Capital): Kevin Shum, Tel: +1 212 219
4670 (702), Email: [email protected]
CO: Kainantu Resources Ltd.
CNW 05:56e 14-SEP-22