Kainantu Resources Identified Three Prospects in Successful Exploration Campaign: High-Grade 40 g/t Au Sample Result
Kainantu Resources Identified Three
Prospects in Successful Exploration
Campaign: High-Grade 40 g/t Au Sample
Result
VANCOUVER, BC
,
May 5, 2021
/CNW/ - Kainantu Resources Ltd. (TSXV: KRL) ("KRL" or the
"Company"), the
Asia-Pacific
focused gold mining company, is pleased to provide an update on the
exploration outcomes at KRL South, its highly prospective project located in the Kainantu region of
Papua New Guinea
("PNG").
Highlights
Successful outcomes from ridge-and-spur auger sampling in the Tirokave area of KRL South;
Definition of three distinct gold prospects (epithermal, skarn and porphyry style mineralisation):
East Avaninofi Prospect, Yaoro Ridge Prospect and Kerefa Prospect;
High-grade 40.13 g/t Au rock sampling results at East Avaninofi Prospect:
40.13ppm Au, 492ppm Cu, 131ppm Mo, 134ppm Bi and 29.3ppm Te;
Detailed mapping and sampling shows strong similarities between KRL South and other
successful Kainantu mines (ie: lithologies, geological cross structures and geochemical data);
and
Further focused exploration activities ongoing at each prospect, with updates to be provided.
Matthew Salthouse
, CEO of KRL, commented:
"Building on earlier work, I am pleased to report that KRL's focused exploration programme has
resulted in us defining three prospects in a relatively short period of time. Located in the Tirokave
area at the centre of our KRL South project, all prospects display widespread epithermal
mineralisation and will remain a key focus for the Company; with further progress to be reported in
coming months. On meeting this initial milestone, KRL's focus remains on identifying drilling
targets in these areas in the near term."
Background
The Company's KRL South project (comprising EL 2559, EL 2650, EL 2652 and EL 2660 and
596.75 km
²
in size) is a high-quality exploration target located in the world renowned Kainantu mining
district. Further background on KRL South is contained in the Company's release of
April 9
, 2021.
The Company's prior exploration activities at KRL South indicate multiple epithermal, skarn and
porphyry style mineralisation. Ring features have been observed at KRL South, associated with
shallow-buried to emergent mineralising igneous complexes. This is especially apparent on and
about the rim of the Tirokave and Tebeo rings (located in the centre of KRL South); with petrology
analysis supporting the Company's plan of concentrating exploration efforts in these areas.
In line with KRL's 2020/2021 program, the Company recently completed a focused multi-element
ridge-and-spur soil sampling programme centred on the Tirokave area (in combination with rock
outcrop, float, stream sediment, and pan concentrate sampling). In excess of 2,000 samples were
taken. A key objective was to identify gold prospects for further intensified exploration efforts, with
a view to developing a drilling programme in the near term.
KRL South Prospects
The Company is now pleased to report encouraging outcomes from the ridge and spur sampling.
Three distinct prospects have been identified on or proximal to the rims of the Tirokave and Tebeo
Ring Features. From west to east, these are termed: (i) East Avaninofi Prospect (ii) Yaoro Ridge
Prospect, and (iii) Kerefa Prospect. Figure 1 sets out the location of these prospects and
associated soil samples.
Figure 1: KRL South Prospects in Tirokave Area (CNW Group/Kainantu Resources Ltd.)
Figure 2 sets out anomalous geochemistry highlights for these prospects. (CNW Group/Kainantu
Resources Ltd.)
Further petrology analysis from the prospects noted copper mineralisation, high temperature
alteration in diorite porphyries and hornfelses; and the presence of a brecciated limestone, raising
the possibility of skarn and porphyry style mineralisation (especially at the East Avaninofi and Yaoro
Ridge Prospects). Analysis also indicated alteration trending towards lower temperature epithermal
style mineralisation, especially in the Kerefa Prospect. Further details on each of the prospects
follows.
East Avaninofi Prospect
Geological mapping covering approximately
650m
along the topographically highest portion of the
east Avaninofi ridge, the East Avaninofi Prospect is defined by a cluster of 14 samples of soils (from
20-100 ppb Au), outcrops (including 0.94ppm Au, and 1,212ppm Cu) and 12 float (including A0115:
40.13ppm Au, 492 ppm Cu, 131ppm Mo, 134ppm Bi and 29.3ppm Te) samples.
Sample A01155 (see Figure 3) is particularly encouraging at 40.13ppm Au (or 40.13 g/t Au) and
hosted by intensely silicified hornfels strongly fractured and infilled by fine sulphides (including
covellite and bornite). Quartz-sericite altered siltstone, exhibiting strong blocky fractures, was also
observed in close proximity and adjacent to the intrusive rocks
150m
laterally upslope of this
sample.
Figure 3: Sample A01155: 40.13ppm Au, 492 Cu, 131ppm Mo, 134ppm Bi, 29.3ppm Te (CNW
Group/Kainantu Resources Ltd.)
The location of this sample confirms the Company's current geological modelling of the East
Avaninofi Prospect, being a complex contact zone between the relatively thin carapace and roof
pendants of the Omaura Formation hornfelsed, partly calc-silicate siltstone and several intruding
phases of the Elandora Porphyry, with hydrothermal alteration and mineralisation events observed in
addition to skarn affiliated mineral assemblages.
A late stage porphyritic diorite phase, believed to be the prime mineralising agent and referred to by
the Company as the Avani Porphyry, crops out prominently as a moderately altered plug-like body
along the ridgeline (see Figure 4). In addition to other nearby outcrops, this has formed an
immediate focus for further sampling and excavation work.
Figure 4: Small weathered plug of Avani Porphyry (CNW Group/Kainantu Resources Ltd.)
Yaoro Ridge Prospect
The Yaoro Ridge Prospect is defined by various clusters of Au anomalous soil samples extending
over
800m
and peaking at 129ppb Au, correlating high As values, plus the Cu bearing skarn
occurrences south of the centre of the target area. Fault breccias, variably hydrothermally altered,
have been mapped south of the ridge and appear to partially underlie the north trending ridge.
Following the positive resolution of inter-clan matters in this area, further work over the northern
section of the Yaoro Ridge Prospect is being undertaken; to establish a likely extension to the
nearby Tebeo Prospect and confirm and expand on the widespread Au anomalies reported by
previous prospectors in the location.
Kerefa Prospect
The Kerefa Prospect is defined by two apparent trends: (i) extending over
2,600m
in a NNE
direction, encompassing 6 widely separated points of anomalous Au-in-soil values between 19ppb
Au and 102ppb Au; and (ii) a smaller NNW trend of outcrops bearing up to 1.92ppm Au and
1,245ppm Cu. Samples taken demonstrate an epithermal quartz matrix in a hydrothermal breccia.
The southern cluster of highly elevated Au-in-soil is currently being investigated in relation to possible
influence of a recently identified thin colluvial layer observed in the topographically lower sections.
The location on the fringe of the ring feature, geochemistry (with primarily only anomalous Au
reported) and rock textures indicate a likely epithermal environment at the Kerefa Prospect (see
Figure 5).
Figure 5: Quartz-sulphide vein and colloform banded quartz matrix breccia float from Kerefa
Prospect (CNW Group/Kainantu Resources Ltd.)
Figure 5: Quartz-sulphide vein and colloform banded quartz matrix breccia float from Kerefa
Prospect (CNW Group/Kainantu Resources Ltd.)
Excavation work has also uncovered strongly sheared mineralised hornfelsed sediments (with
disseminated sulphides) hosting quartz-sulphide veinlets; aligned along the shear directions. These
are intruded by mineralised mafic dykes. The dominant structural directions mapped are NW through
N to NE. Samples are currently being processed.
Similarities between KRL South and Successful Miners in Kainantu region
In addition to definition of prospects, structural mapping over recent months around the Tirokave and
Tebeo Ring Features indicates the strong presence of the primary structures associated with
mineralisation in the Kainantu region, trending in NW and NNE to NE directions (which is a similar
feature of geology at the Bilimoria mineral field, hosting the operations of K92 Mining Inc.).
Northerly structures are also common, partially as extensions of arcuate structures, and appear to
be largely tensional. E-W structures in the centre of the ring features appear compressional in
nature: see Figure 6.
Figure 6: Initial structural mapping of Tirokave area (CNW Group/Kainantu Resources Ltd.)
These cross-structures provide further evidence of the prospective nature of KRL South and the
geological similarities between it and other successful high-grade miners in the Kainantu region.
Other parallels include the observable association of mineralisation with multiple phases of the
Elandora Porphyry and the correlation of trace elements such as molybdenum, bismuth, tellurium,
and tungsten with gold, silver and copper.
Next Steps and focus
The success of the Company's ridge-and-spur auger soil sampling programme and the identification
of clear prospects at KRL South supports further concentrated exploration efforts in the Tirokave
area.
Recent mapping in some of the costeans excavated over the Kerefa Prospect has revealed strongly
mineralised quartz-bearing shear zones of varying orientations, some visibly associated with
mineralised (Cu & Fe sulphides) mafic dykes. Further mapping and excavation work will be justified
here on receipt of satisfactory results.
Mapping in the triple junction area of East Avaninofi-North Yaoro-Tebeo Ridges has uncovered
strongly fractured quartz-sericite altered quartz diorite porphyry hosting disseminated and fracture-fill
pyrite, copper sulphides and molybdenite. The ridge-and-spur soil sampling team is currently
completing work in this area. At the East Avaninofi Prospect, a continuous chip sampling
programme is underway along the faces of previously mapped altered and mineralised outcrops;
with excavating where necessary. This programme will likely extend into the triple junction area
mentioned above.
While observing a number of prospective targets across the KRL South project, the Company's
focus remains on delineating drill targets in the near term around the Tirokave area, as part of the
broader objective of defining a resource at KRL South. The definition of the three prospects
achieves an early stage milestone towards this objective, with further news-flow expected in coming
months.
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/
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:
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 09:00e 05-MAY-21