Kainantu Resources Provides Update ON May River Project
KAINANTU RESOURCES PROVIDES UPDATE
ON MAY RIVER PROJECT
VANCOUVER, BC
,
Feb. 15, 2023
/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
May River Project ("Project").
In consultation with stakeholders, the Company is considering options to acquire 100% of the project
on favourable terms in the near term. In the interim, the Company provides an update on technical
work completed at the May River project.
Highlights
A highly successful study has been completed on the Mountain Gate Prospect at the Project,
with analysis completed on a total of 324 samples taken from surface and trenching;
Significant Au-Cu assay results were collected at Koras Creek in the Mountain Gate Prospect,
with assay results ranging from 1,342 ppm (0.13%) Cu to 5,222 ppm (0.52%) Cu, covering a
distance of
194 m
(with weaker anomalous gold values ranging from 0.05ppm to 0.23ppm Au
also reported);
The above location is likely a possible upflow zone of a porphyry and, along with several other
outcrops containing Au-Cu mineralization and alteration distributed within a
700m
x
1,400m
area, suggests a shallow Au-rich porphyry copper body(s) underlies the Mountain Gate
Prospect;
Indications of other satellite porphyry Cu-Au and epithermal Au deposits have also been
identified within the nearby VTEM-ZTEM anomalies and northern creeks;
Channel cut samples from trenching by prior holders of the Project yielded significant Au and Cu
assay results intervals; and
KRL believes there is a distinct possibility that the entire Skygate Belt (i.e., all known prospects
in the Project) will prove to be a coherent >5km-long geochemical anomaly.
Matthew Salthouse
, CEO of KRL, commented:
"The Company continues to take incremental steps to demonstrate the significant potential of May
River as a blue-chip copper-gold project. At Mountain Gate, the surface results of up to 0.52%
copper clearly demonstrate the potential of the overall May River project. The Company looks
forward to providing an update in the near future on discussions around taking 100% ownership of
the Project."
Background
The May River Project is located in the foothills of the PNG Highlands, in West Sepik Province,
~10km west of the world-class Frieda River Cu-Au deposits, containing 12.9Mt Cu and 20Moz Au
(owned by PanAust Ltd).
The key prospects at the May River Project are
Iku Hill
, Mountain Gate, Eserebe, Foya and the
Skiraisa prospects, which are collectively aligned along an area known as the "Skygate Belt" (a 10-
12km long cluster of epithermal-porphyry Cu-Au prospects that may replicate the Frieda River
Deposit, which is located just 10km from the Frieda River Intrusive Complex).
Highlights of historical exploration conducted by Highlands Gold Ltd (HGL) note drill intercepts from
what is believed to be a lithocap underlying the Skiraisa Prospect, including
109m
@ 1.53g/t Au,
44m
@ 1.83g/t Au and
96m
@ 0.89g/t Au. Further details on the Project are included in the
Company's most recently published Management Description and Analysis report.
By way of definitive agreements executed 2021, KRL has the right to manage and take full
ownership of the Project. KRL conducted an initial due diligence study focused on the Skiraisa
prospect in 2021 and exercised an option to acquire 10% of the Project based on the results and
observations. In 2022, further work was completed, and a study finalised for the Mountain Gate
Prospect (with further analysis reported below).
Mountain Gate Study
The Mountain Gate Prospect was selected for study and further exploration activities in 2022 due to
historical geochemical soil sampling, suggesting the likelihood of a shallow buried porphyry Cu-Au
deposit in the area.
In summary in 2022, a total of 324 samples were collected during the second exploration campaign.
Seventeen soil samples were taken along the ridgeline east of Mountain Gate (where a 0.52% Cu
rock chip sample was located). Mapping and sampling of the creeks surrounding the prospect was
conducted over a 9.5km stretch covering 23 creeks for 112 samples. Au and Mo anomalous
drainage located W-NW of Mountain Gate was inspected with 18 samples taken. Mapping and
sampling of historic trenches was conducted with 154 samples covering
305m
across 11 trenches.
Twenty-three samples were taken during the follow up works on a VTEM-ZTEM anomalism outside
the Mountain Gate areas. Figure 1 shows sampling sites in the Mountain Gate area.
Figure 1: Comparative Au(ppm) Geochemistry from the Mountain Gate Sample Grid (CNW
Group/Kainantu Resources Ltd.)
The Au and Cu anomalism at Mountain Gate Prospect recorded from the historical HGL soil samples
(and results taken by KRL in 2022) were centred on a ~500m x ~500m intensely altered intrusive
complex representing a typical pipe-like porphyry Cu-Au surface signature, including a central 30mx
100m
zone showing pervasive potassic alteration (magnetite-secondary biotite-adularia-illite-calcite
alteration of late-stage hornblende-quartz-feldspar andesite porphyry with strong chalcopyrite-
bornite-covellite-malachite disseminations and fracture fills. A petrology sample taken from this zone
indicated proximity to an upflow zone of likely higher Au-Cu grade. A series of 8 x nominally
3m
long
continuous chip samples taken from a cleaned-up exposure within this zone, along the upper reaches
of Koras Creek, returned the following values (Figure 2).
Figure 2: Koras Creek Au-Ag-Cu values from continuous chip samples (CNW Group/Kainantu
Resources Ltd.)
Mapping and sampling within the vicinity of this zone revealed a multi-phase intrusive complex
displaying zoned alteration and strongly anomalous Au-Ag-Cu geochemistry. An initial geological
model was drafted, Figure 3, to help guide further exploration over the Mountain Gate Prospect.
The association of higher Au-Ag-Cu grades with late-stage altered and mineralized intrusive rocks is
evident.
Figure 3: Mountain Gate Prospect interpreted geology with recorded sample results (CNW
Group/Kainantu Resources Ltd.)
KRL has identified multiple areas of mineralisation and altered outcrops (Figures 4 to 6) within the
Mountain Gate Prospect area and surrounds. This includes 2 previously unidentified areas hosting
epithermal style quartz veins peripheral to the porphyry target:
Ikeini Creek in the north where local gold panning is being conducted. A
2.5m
width of a vein in
the banks of the creek returned 0.43ppm Au; and
a quartz vein displaying clear evidence of epithermal texture (banded and partly chalcedonic)
was noted in an area of historic airborne VTEM/ZTEM anomalism to the WNW of the Mountain
Gate Prospect.
Figure 4: Mineralised outcrop at Koras Creek, Mountain Gate. Pervasive disseminations of cp, bo,
cov, az & mal, hosted by andesite porphyry, intruding metasediments and diorite porphyry. (CNW
Group/Kainantu Resources Ltd.)
Figure 5: Northern creeks, including Ikeini Creek, Mountain Gate. (CNW Group/Kainantu Resources
Ltd.)
Figure 6: Copper mineralisation in trenches and creeks, Mountain Gate. (CNW Group/Kainantu
Resources Ltd.)
Figure 6: Copper mineralisation in trenches and creeks, Mountain Gate. (CNW Group/Kainantu
Resources Ltd.)
In summary, the 2022 study at Mountain Gate has demonstrated the highly prospective nature of the
Project, as supported by the strongly anomalous Au and Cu samples reported, outcrops of
mineralization uncovered, and the identification of at least 2 peripheral potential epithermal gold
prospects in the area.
Follow-up exploratory work during 2023 over the Mountain Gate Prospect and surrounds will be
geared towards rapidly identifying drill targets. It is believed that the Koras Creek area, containing a
potential mineralized porphyry apophysy, offers the best target thus far. However, given the scale
of the altered and mineralized footprint here, it is possible that other similar shallowly buried
apophyses may be present in a complex multi-phase intrusive environment.
Initial planning involves further mapping and sampling the prospect, extending the grid SE towards
the Eserebe Prospect grid (Au-Cu anomalous soil open to the north), and including the peripheral
potential epithermals, in conjunction with an IP survey over the Mountain Gate grid in order to
delineate prospective porphyry targets for diamond drilling.
Commercial
On
June 15, 2021
, KRL announced that it had entered into an Option Agreement to acquire all of the
shares of Hardrock Limited ("Hardrock") (being the entity that owns the principal Project tenements)
by way of an issue of script.
Having exercised the first option with Hardrock, KRL currently holds a 10% shareholding of Hardrock
and is in discussions with the other shareholders to acquire the remaining shares, by the execution of
the option or entering into a comparable transaction. These discussions are proceeding and KRL
expects to be in a position to finalise them in the near future.
It is anticipated that these discussions will result in KRL owning 100% of the May River Project on
favourable terms for all parties and eliminating any uncertainty as to deal completion. The Company
will provide a further update in due course.
Qualified Person
The scientific and technical information disclosed in this release has been reviewed and approved by
Graeme Fleming
, M.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
Mineralization hosted on adjacent and/or nearby properties is not
necessarily indicative of mineralization 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]; Corporate Advisor (Jemini Capital): Kevin Shum, Tel: +1 212 219 4670 (extension
702), Email: [email protected]
CO: Kainantu Resources Ltd.
CNW 07:22e 15-FEB-23