Kainantu Resources Provides Update on Kili Teke Copper-Gold Project Acquisition
Kainantu Resources Provides Update on Kili
Teke Copper-Gold Project Acquisition
VANCOUVER, BC
,
Sept. 8, 2022
/CNW/ - Kainantu Resources Ltd. (TSXV: KRL) (FSE: 6J0) ("KRL"
or the "Company"), the
Asia-Pacific
focused gold mining company, is pleased to provide an update
on its progress towards the Company's 100% acquisition of the advanced development Kili Teke
Copper-Gold Project ("Kili Teke").
Highlights
The Kili Teke acquisition remains on track with KRL and Harmony Gold Exploration Limited
("Harmony") working through conditions precedent for closing, including:
finalising an NI43-101 Technical Report;
obtaining local regulatory licencing approvals in
Papua New Guinea
("PNG"); and
KRL, at its discretion, obtaining funding for closing, being
US$400,000
;
TSX-V has indicated the transaction can progress as an expedited acquisition, subject to
closing;
As an advanced development project, Kili Teke is a transformational opportunity for KRL:
inferred resource (to SAMRAC standard) of
237Mt
@ 0.34% Cu (=0.8Mt Cu), 0.24g/t Au
(=1.8Moz Au) and 168ppm Mo (=0.04Mt Mo);
near surface high grade skarn mineralisation not yet included in the defined mineral
resource;
over 36,000 metres of drilling completed with significant Au-Cu intercepts reported,
including hole KTDD013 with 524 metres for 0.58% Cu and 0.41 g/t Au from
90m
(including
186 metres at 1.02% Cu and 0.72 g/t Au); and
highly prospective adjacent exploration targets to add further value, including
Ridge Gold
anomaly, reporting maximum soil values of 9.4 g/t Au and 1% Cu.
Community and stakeholder engagement underway at both local and national levels.
Matthew Salthouse
, CEO of KRL, commented:
"KRL remains on track to complete the acquisition of the advanced stage Kili Teke copper-gold
project.
With an inferred resource, 36,000 metres of drilling and exceptional gold-copper intercepts
reported, there is significant scope to re-optimize Kili Teke that will drive material value for KRL.
Kili Teke will be a core focus for KRL into the future."
Update on the acquisition of Kili Teke
A definitive agreement between KRL and Harmony to acquire Kili Teke was executed and
announced on
April 6, 2022
. Terms of the deal are set out in that announcement.
Closing requires satisfaction of a number of conditions precedent, as customary for a transaction of
this nature. These are on track, with the TSX-V indicating the transaction can progress as an
expedited transaction, subject to closing.
An independent technical report is currently being finalised for Kili Teke in accordance with NI 43-101
requirements. It is expected the current SAMRAC inferred resource estimate will be substantially
adopted by the Qualified Person in accordance with NI 43-101 requirements.
Regulatory approvals have been sought from the PNG Mineral Resources Authority to enable the
transfer and renewal of Kili Teke's tenement (EL 2310) from Harmony to KRL. These are currently
being processed and no delays are envisaged.
Closing remains subject to KRL, at its discretion, sourcing funding of up to
US$1 million
(with
alternatives currently being assessed by KRL). Of this, only
US$500,000
is required to make
payment to Harmony for 100% of Kili Teke and close the transaction, of which a
US$100,000
deposit has been paid.
Transformational nature of Kili Teke for KRL
Kili Teke is highly transformational for KRL, with this advanced stage development opportunity
adding considerable intrinsic value to the current portfolio of quality projects.
The acquisition of Kili Teke achieves a core listing objective for KRL upon inclusion of a mineral
resource (with a pre-existing SAMRAC compliant defined Inferred Mineral Resource of
237Mt
@
0.34% Cu (=0.8Mt Cu), 0.24g/t Au (=1.8Moz Au) and 168ppm Mo (=0.04Mt Mo), with an effective
date of
June 30, 2021
). On a total resource in situ value, the Kili Teke deposit is worth a cumulative
US$10.64 billion
, equivalent to 3.08 billion pounds of copper or 6.20 million ounces of gold (using
prevailing spot prices as of
September 8, 2022
-
$3.45
/lb Cu,
$1,717.68
/Oz Au and
$16.34
/lb Mo).
Comparative analysis of similar copper-gold projects supports a robust valuation for Kili Teke.
Near surface high-grade Au skarn mineralisation has been identified but not yet included in the
defined mineral resource; meaning there is a strong likelihood of expansion of the mineral resource in
the near term.
Significant drilling of over
36,000m
has already occurred at Kili Teke, with a number of exceptional
results reported: such as hole KTDD013 with 524 metres for 0.58% Cu and 0.41 g/t Au from
90m
(including 186 metres at 1.02% Cu and 0.72 g/t Au), see Figures 1 and 2 below.
Figure 1: Kili Teke Significant Au-Cu Drill Intercepts
Reference:
Length (m):
Cu Grade (%):
Au Grade (g/t):
Depth (m):
KTDD013
524m
0.58 %
0.41 g/t
90m
Including:
319m
0.79 %
0.57 g/t
166m
Including:
186m
1.02 %
0.72 g/t
252m
KTDD014
509m
0.38 %
0.2 g/t
358m
Including:
144m
0.53 %
0.23 g/t
610m
KTDD015
466m
0.34 %
0.25 g/t
128m
Including:
290m
0.44 %
0.34 g/t
129m
KTDD017
482m
0.45 %
0.24 g/t
317m
Including:
374m
0.51 %
0.27 g/t
391m
Figure 2: Kili Teke Deposit Significant Drilling (CNW Group/Kainantu Resources Ltd.)
On closing, KRL will acquire all drill core and modelling data supporting the mineral resource model.
With a change of emphasis as a smaller company, Kili Teke presents significant opportunities to
reoptimize the project with a focus on higher grades and lower through-puts (with an open pit
approach as one way to enhance economic returns).
Next steps
KRL will continue to advance activities to close the acquisition, with 100% of Kili Teke expected to
be incorporated into the Company's portfolio in the near term.
The recent formation of a government post national elections is expected to enhance long term
stability in PNG. A number of infrastructure and road projects are planned for the Hela province,
where Kili Teke is located. KRL will continue to work with key stakeholders in PNG, with strong
support for the mining sector evident.
On closing, KRL expects to accelerate steps towards re-optimization of Kili Teke and is currently in
discussion with technical consultancies who may support this initiative. KRL foresees Kili Teke being
a major focus for the Company, given its advanced status and significant potential for development.
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 Limited (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
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 & Commercial Associate (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 07:40e 08-SEP-22