Kainantu Resources Filing of Q3 2021 Results
Kainantu Resources Filing of Q3 2021 Results
VANCOUVER, BC
,
Nov. 29, 2021
/CNW/ - Kainantu Resources Ltd. (TSXV: KRL) (FSE: 6J0)
("KRL" or the "Company"), the
Asia-Pacific
focused gold mining company, is pleased to report the
filing of its third interim results for the period ending
September 30, 2021
, a copy of which is
available for review on the Company's
website
.
Key aspects to report over the period include:
KRL South:
continued progress during Q3:
At the East Avaninofi Prospect:
strong correlations of Au with Ag, Cu, Mo, and As; plus samples revealing elevated
values of Bi, Te, and W (similar to the geochemistry of the nearby Bilimoia Mineral
Field, renowned for its high-grade gold-copper intrusive style mineralization);
high levels of Fe and S, as key indicators of high-grade Au potential; and
increasing in intensity towards the N of the prospect, a NE trending Cu mineralization-
controlling structure of at least
10m
in width delineated
At the Yaora Ridge Prospect activities returned an Au sample of 4.37 g/t Au from surface,
while further work has shown:
strongly anomalous Cu and associated pathfinder elements; and
lithologies, alteration and mineralization similar to the East Avaninofi Prospect; with the
two prospects appearing to be linked;
Plans for delineation of drill targets in early 2022 remain on track; with excavation/contour
benching at the East Avaninofi Prospect and Yaoro Ridge Prospect underway; and
KRL North:
analysis of initial mapping and sampling revealed:
the strong likelihood of enhanced permeability extending from the mineral rich Bilimora Field
(where successful high-grade miners already operate) into KRL North; and
an interpreted ring feature circa 1.5km in diameter situated on the triple junction of KRL
North's EL2558 and El2665 tenements; and K92 Mining's tenement (see figure 1 below
inclusive of interpreted ring features at KRL North).
Figure 1: KRL North – Interpreted Ring feature and regional setting (CNW Group/Kainantu
Resources Ltd.)
KRL North and KRL South:
an airborne geophysics survey programme is in the advanced
planning stage to leverage off the positive results obtained from the successful exploration
activities during 2021.
May River Project:
ongoing activities continue to further integrate the highly prospective Cu-Au
project into KRL in coming months:
KRL has given notice to Hardrock Limited to exercise its option to be granted 10% of that
entity;
the KRL Field Study has been completed (and is subject to a final peer review), validating
the basis for investment. Initial samples from the Field Study include: up to 2.07ppm
(2.07gt) Au, >100ppm (>100g/t) Ag and up to 1709ppm (0.17%) Cu from the Skiraisa
Prospect;
KRL granted Niuminco Limited an extension to
December 31, 2021
to satisfy conditions
under an SPA, to enable KRL to acquire the Iku Hill Prospect and surrounding area (but
with KRL holding an ELA over the same area in the event of Niuminco being unable to
resolve their outstanding issues with the PNG Mineral Resource Authority); and
plans remain on track to develop a targeted exploration programme for the May River
Project in 2022.
Financial:
prudent management of capital resources is ongoing:
expenditure on exploration and evaluation activities for the 10 months to
September 30,
2021
totalled
$1.16 million
(which has been capitalised), with additions of
$0.40 million
for
the quarter;
closing cash was
$1.07 million
with total cash outflows of
$0.55 million
during the quarter;
a net loss for the 10 months of
$1.11 million
(inclusive of listing and equity compensation
costs), the loss for the quarter was
$0.16 million
similar to the prior interim period; and
given the Company's transition to a calendar reporting cycle, the interim results are
presented for a 10-month period on this occasion.
Matthew Salthouse
, CEO of KRL, commented:
"KRL is pleased to provide this update for Q3 2021, with targeted and disciplined exploration
ongoing at both KRL North and KRL South. Encouraging results support the Company's decision
to expedite a geophysics program to assist with definition of initial drill targets in 2022.
KRL has also advanced the May River Project during the quarter, giving notice to exercise its
option over 10% of Hardrock, following substantial completion of a field study with results
validating the high Cu-Au prospectivity of this area."
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 KRL
KRL is an
Asia-Pacific
focused gold mining company with two highly prospective gold projects, KRL
South and KRL North, in a premier mining region, the high-grade Kainantu Gold District of PNG. Both
of KRL's projects show potential to host high-grade epithermal and porphyry mineralisation, as seen
elsewhere in the district. 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.
For further information please visit
https://kainanturesources.com/
References in this release to $ are stated in USD.
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
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]; IR / Financial PR: Camarco, Gordon Poole / Nick Hennis, Tel:
+44(0) 20 3757 4980
CO: Kainantu Resources Ltd.
CNW 16:15e 29-NOV-21