Kainantu Resources Announces Airborne Geophysics Results: Confirms Prospectivity at Key Projects
KAINANTU RESOURCES ANNOUNCES
AIRBORNE GEOPHYSICS RESULTS:
CONFIRMS PROSPECTIVITY AT KEY
PROJECTS
VANCOUVER, BC
,
June 9, 2022
/CNW/ - Kainantu Resources Ltd. (TSXV: KRL) ("KRL" or the
"Company"), the
Asia-Pacific
focused gold mining company, is pleased to announce outcomes from
the recently completed airborne geophysical survey conducted over both its KRL North and KRL
South projects.
The completion of airborne geophysical surveying and analysis over the Kainantu region supports the
highly prospective nature of the KRL tenement portfolio for porphyry Cu-Au and epithermal Au
deposits (which is on trend with the successful K92 mine).
Highlights
Key highlights of the airborne geophysics programme include the following:
total area covered of 186 km
²
(involving over 1,000 line-kilometres) in survey by Expert
Geophysics Ltd. ("EGL");
advanced processing and modelling; with 3D inversion conductivity models, and magnetic
susceptibility and magnetization vector models completed by Computational Geosciences Inc
earlier this month – key findings below;
KRL North
two large magnetic anomalies in highly permeable structural environments identified to the south
west and south east, both have been interpreted as possible porphyries;
the southwest body appears bound by a prominent highly conductive NE trending fault and is
associated with a ring feature (in addition to peripheral precious and base metal mineralisation
to the north and northwest);
the southeast body occupies a complex structural zone of prominent intersecting NE and NW
faults, some highly conductive and appears associated with a recently identified zone of low
temperature hydrothermal alteration and mineralisation in the Young Creek area;
KRL South
magnetic signatures indicate a possible offshoot from the main batholithic Elandora Porphyry
complex occupying the center of the Tirokave ring feature;
appears to underly the largely phyllic altered area immediately west of the East Avaninofi
Prospect and is consistent with skarn mineralisation mapped and sampled;
additional prospect identified at Mt. Yungateia north of the Tirokave area, a coincident
conductivity/magnetic high which includes a strong/extensive conductivity high orientated SE
towards Tebeo Ridge; and
further regional targets of high prospectivity identified at KRL South – further analysis underway.
Matthew Salthouse
, CEO of KRL, commented:
"The KRL airborne geophysics survey and subsequent analysis has proven to be a successful
venture for the Company, confirming the highly prospective nature of both KRL North and KRL
South; supporting ongoing work at the projects. In addition, the survey has also identified other
targets and prospects in the region."
Background
Located along the world renowned Kainantu Transfer Structure, KRL holds two highly prospective
projects, KRL North and KRL South, in a district associated with highly successful mining projects.
KRL North
At KRL North, given proximity to the K92 mine, the Company has continued field work and studies to
build confidence on the structural similarities and potential trend between the project and the Bilimoia
Mineral Field (inclusive of two significant vein systems at Maniape and Arakompa only 2 to 4 km
outside of the SE corner of KRL North).
In 2021, a mapping and sampling programme was conducted with the objective of assessing
whether such enhanced structural permeability extends into KRL North. Results were extremely
encouraging, with several altered and intrusive bodies observed and interpreted as associated with
the Elandora Porphyry. A ring feature observed on the southern border of KRL North was found to
be underlain by an extensive outcrop of phyllic altered intrusive rocks which was considered to
indicate potential porphyry style mineralisation at depth.
Initial analysis from the airborne geophysics program conducted by K92 also appears to
demonstrate a NE linear zone of high conductivity trending towards KRL North, likely indicating
throughgoing structures possibly associated with contained water and/or sulphide-bearing zones.
Further details are contained in KRL's release of
March 10, 2022
.
KRL South
At KRL South, the Company's initial focus has been around the Tirokave area, with three prospects
identified for further investigation: East Avaninofi (where a 40 g/t Au sample was collected), Yaoro
Ridge and Tebeo Ridge.
The area is of interest has extensive outcrops identified within the Akuna Igneous complex, including
scattered dykes and plugs of the Elandora Porphyry and intrusives associated with other successful
projects in the region.
Trenching is currently underway at East Avaninofi and Yaoro Ridge, where the company continues to
collect samples and undertake further mapping in preparation for potential delineation of drill
targets. With the area remaining highly prospective, KRL is also looking more broadly at other
regional targets in KRL South.
Airborne Geophysical Survey
As noted in the Company's release of
March 10, 2022
, encouraging results and analysis have
confirmed the Company's views on the prospective nature of both KRL North and KRL South,
justifying an airborne geophysical survey of the area.
KRL co-operated with other miners in the Kainantu region in Q4 2021/Q1 2022 to share resources
to mobilise for airborne geophysical surveys over respective projects, with KRL having flown its
survey in January-
February 2022
.
Airborne survey data was collected by EGL (who operate the Mobile Magneto Tellurics, or Mobile
MT system). The area surveyed included all prospective areas of KRL North in addition to key areas
of interest in and around the Tirokave area of KRL South (including the East Avaninofi and Yaoro
Ridge prospects). Figure 1 below displays the three blocks covered by the survey, totaling 186
km
²
(involving over 1,000 line-kilometres of survey). The apparent preliminary conductivity analysis
from EGL is also presented in Figure 1.
Figure 1: Preliminary apparent conductivity mapping across the Kainantu Region (CNW
Group/Kainantu Resources Ltd.)
KRL North
North Block
EL2558, EL2655
533 line-km (97sq.km)
KRL South
Tirokave Block
EL2559, EL2650, EL2652
263 line-km (43 sq.km)
KRL South
Ontenu Block
EL2660
259 line-km (46 sq.km)
Survey lines for all three areas were flown in an E-W direction, at
200m
spacing, with tie lines at
right angles (N-S), every
2,000m
. On completion of the survey in
February 2022
, EGL completed
preliminary data processing and a final survey report was delivered in
April 2022
.
This data was then delivered to Computational Geosciences Inc. ("CGI"), of
Vancouver
, who
completed advanced processing and modelling; with 3D inversion conductivity models, and magnetic
susceptibility and magnetization vector models produced, after data clean-up using a proprietary
Power Line Monitor algorithm (which only impacted the eastern part of KRL North). This final work
was completed at the start of June and the Company can now report results through to the
advanced processing and modelling stage.
Geophysics Results
KRL North
Initial mapping of EGL-derived preliminary apparent conductivity at KRL North had identified a
number of high conductivity areas such as the Southern Ring feature, the NE trending Ramu Gorge
Fault, the SE corner of EL2655 (known as the Young Creek area) and several other discrete
conductivity highs in the south of EL 2655. Figure 2 displays the conductivity pattern over the two
exploration licences.
The relative proximity of the Arakompa and Maniape deposits to the apparent conductivity high
underlying the southern ring feature area can be noted.
Figure 2: Initial apparent conductivity mapping of KRL North (CNW Group/Kainantu Resources Ltd.)
The final processed conductivity and magnetization models prepared by CGI are set out in Figure 3
below, together with a brief description of the interpretations of each survey block – features of
interest are annotated for clarity.
Two large, multi-component, magnetic anomalies interpreted as possible intrusive/extrusive
complexes (N1 & N2) – either may be considered a source of mineralising fluids.
The previously identified southern ring feature centred on the triple junction of 3 leases (two held by
KRL and one by K92) appears associated with the N1 anomaly and may represent an apophysy of a
subjacent igneous body. In this regard, zoned hydrothermal alteration and mineralisation mapped
and sampled by KRL to the north and, more recently, northwest of N1 are considered consistent
with peripheral mineralisation commonly associated with porphyry style deposits.
A deep-seated, magnetic and conductive, NE-trending linear structure termed the Ramu Gorge Fault
(N3) is associated with N1, sub-parallel to the main Kainantu Transfer Fault trend, and several NW-
trending magnetic (N4) and conductivity (N5) anomalies are interpreted as permeable structures.
Intersections of these NW-trending structures with the Kainantu Transfer trend represent additional
exploration targets (areas of enhanced hydrothermal fluid flow).
The recently identified Young Ck zone of low temperature alteration and mineralisation appears
associated with the N2 anomaly which is located in a structurally permeable zone of cross-cutting
dominantly NE and NW faults & fractures. Prominent NE to NNE trending lineaments shown
transecting Akuna Igneous Complex rocks to the immediate southeast of this anomaly prompted
KRL to apply for ELA 2755.
Conductive anomalies in the northeast of survey are shallow and interpreted as permeable
sediments.
Figure 3: KRL North: A - Magnetic model (elevation -125m) (CNW Group/Kainantu Resources Ltd.)
Figure 3: B - Conductivity model (elevation 175m) (CNW Group/Kainantu Resources Ltd.)
KRL South
At KRL South, the preliminary analysis by EGL at Yaoro Ridge, and north towards Tebeo, is shown
to be underlain by a strong and extensive conductivity zone. The strong magnetic high in the center
of the Tirokave Ring may indicate several multi-generational magnetic intrusive bodies forming the
core of the complex.
The pattern of high conductivity anomalies adds confidence to the reliability of field data and
processes in KRL's predictions.
A strong and extensive conductivity high orientated NW from Tebeo Ridge to the Mt. Yungateia area
also appears as a prominent feature, potentially indicating further prospects of hydrothermal
alteration and mineralisation in the vicinity of work already underway around Tirokave.
In this regard, the Company has identified Mt. Yungateia as a newly identified prospect which
appears underlain by coincident conductivity and magnetic highs.
Figure 4: Preliminary Apparent Conductivity at KRL South – Tirokave Block (CNW Group/Kainantu
Resources Ltd.)
In relation to the further advanced analysis by CGI at KRL South, an extensive resistive zone (T1)
could represent the batholithic Elandora Porphyry igneous complex largely occupying the center of
the Tirokave ring feature, with a small apophysy on its northern margin (T2) situated on the western
side of East Avaninofi Prospect, an area displaying extensive phyllic alteration. The latter anomaly is
magnetic and may represent a skarn target (small skarn occurrences are commonly noted
throughout the prospect areas) and/or an underlying porphyry.
A resistive zone with a conductive core (T3) underlying Mt. Yungateia represents a possible
porphyry target. A slightly deeper NW-trending linear conductive zone (T4, parallel to the Kora Vein-
trend) is an associated structural target of interest. Hydrothermally-altered porphyritic rocks, with
quartz-sulphide veins, along with skarns, have been observed in this area.
Small magnetic features (T5 & T6) are associated with weak, linear N- to NNW-trending conductors.
Figure 5: Tirokave: A - Magnetic model (1800m) (CNW Group/Kainantu Resources Ltd.)
Figure 5: Tirokave: B - Conductivity model (2000m) (CNW Group/Kainantu Resources Ltd.)
Figure 5: Tirokave C – Conductivity model (elevation 1600m) (CNW Group/Kainantu Resources Ltd.)
Next Steps and Conclusions
KRL will continue analysis of data collected from the airborne geophysics programme, which has
been extremely useful in supporting the Company's views as to the highly prospective nature of KRL
North and KRL South; while also identifying additional prospects and targets for further investigation
at both.
The analysis, combined with ongoing field work, will support the Company's programme to delineate
drilling targets at KRL South; and potentially areas for further intensive efforts at KRL North.
In addition, the Company is currently reviewing the outcomes of the CGI analysis in relation to
regional prospectivity and will provide a further update in the near future.
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.
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:
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 (Gemini Capital): Kevin Shum, Tel: +1 212 219 4670 (702),
Email: [email protected]; For further information please visit https://kainanturesources.com/
CO: Kainantu Resources Ltd.
CNW 07:00e 09-JUN-22