Kainantu Resources Provides Update ON Successful Exploration Activities at Krl North; Developing Plans FOR Drilling Campaign
KAINANTU RESOURCES PROVIDES UPDATE
ON SUCCESSFUL EXPLORATION ACTIVITIES
AT KRL NORTH; DEVELOPING PLANS FOR
DRILLING CAMPAIGN
VANCOUVER, BC
,
Dec. 15, 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 exploration campaign at our KRL North site adjacent to K92. KRL also provides an
update on the definition of drilling targets at KRL North, anticipated to start in H1 2023.
Highlights:
Key highlights include the following:
KRL remains focused on the potential for high-grade Au mineralisation to extend from the K92
Mining/Bilimoia mine field into KRL North; with evidence to date supporting this continuity;
field work and geophysical analyses continues to support an extension of the Maniape and
Arakompa high-grade Au vein system across into the southern area of KRL North (with the ring
feature shared with K92 Mining deemed of particular interest);
field work continues to deliver further Au anomalies at KRL North in near proximity to the border
with K92, including:
rock chip samples contained up to 2.28ppm Au (and associated 9.4ppm Ag, 2,477ppm As,
200ppm Sb, 418ppm Pb and 1,254ppm Zn; and
rock float samples returned Cu-anomalous results (356-2,755ppm) with associated Ag, Pb
and Zn highs (6.6ppm, 11,908ppm and 9,993ppm respectively).
the 2022 field campaign continues to build confidence towards a targeted drill programme
during H1 2023, and;
the Company has also identified potential for a larger additional goldfield at KRL North, inclusive
of the Young Creek/Ramu Gorge areas for focus in 2023.
Matthew Salthouse, CEO of KRL, commented:
"KRL remains encouraged by the prospective nature of our KRL North project, sitting adjacent to
K92. Field work and geophysics support the potential for the continuity of high-grade
mineralisation extending from the K92 area into KRL North, especially around the southern
boundary of our project. Work through 2022 has added to the Company view of KRL North as a
high-quality asset in our portfolio, which will be the focus of a targeted drilling program during
2023."
Background
The Company's KRL North project, comprises EL 2558 and EL 2655, totalling 88.65 km
²
in size
(along with a recent application for a licence, ELA 2755, covering 331 km²) and is adjacent to K92's
successful mining tenements, located along the world renowned Kainantu Transfer Structure.
As detailed in the Company's Management Discussion and Analysis (published on
November 29, 2022
) initial focus has been within EL 2558, where a drainage mapping and sampling
programme was completed and analysed – further details of results are set out below. This is in
addition to the airborne geophysical survey comprising Mobile MT electromagnetics/magnetics
completed in H1 2022 to cover the prospective portions of KRL North.
A key focus for KRL has been to determine the potential continuity of high-grade Au mineralisation
from the K92/ Bilimoia area into KRL North. Within 2 to 4 km SE of KRL North and on strike and
along trend, two identified significant mineralised vein systems (Maniape and Arakompa) have been
noted. While non-JORC compliant (or subject to an NI 43-101 technical report), historic data from
drilling by a former miner in the 1980s and 1990s reported to indicate a resource of 560,000 oz Au
at 2.2 g/t at Maniape; and 798,000 oz Au at 9.0 g/t at Arakompa.
With this in mind, the Company's focus has been on conducting mapping and sampling to identify
further epithermal and/or porphyry related alteration and mineralisation targets within KRL North as
extensions and/or offshoots/parallel elements of the Maniape and Arakompa trend.
As noted in earlier releases, results from both the drainage, soil sampling, and airborne geophysical
survey have been extremely encouraging including identifying a ring feature in the SW corner of KRL
North and shared on the boundary with K92.
Overall, the earlier field work and analysis confirmed the Company's view as to the prospective
nature of the KRL North project and the likely extension of high-grade mineralisation from the
adjacent K92 tenements covering the Bilimoia Mineral Field. This has supported the decision to
undertake further field work leading into identifying drill targets.
The results of the geophysical survey also supports this (announced
June 9, 2022
). Specifically,
advanced processing, inversion, modelling, and interpretive work of the data revealed several
extensive elliptical and linear magnetic and apparent conductivity anomalies, locally coincidental,
within KRL North (Figure 1). Observations by the field teams of hydrothermally altered and
mineralised rocks on the northern to northwestern peripheries of N1 (including the southern ring
feature), coupled with anomalous Au±Cu values from rock and soil samples support the
interpretation of the N1 and N2 anomalies representing possible mineralised porphyry complexes.
Figure 1: KRL North: A - Magnetic model (elevation -125m) (CNW Group/Kainantu Resources Ltd.)
Figure 1: KRL North: B - Conductivity model (elevation 175m) (CNW Group/Kainantu Resources
Ltd.)
2022 Field Studies
During 2022 and based in part on geophysical results, KRL undertook further soil sampling and
mapping adjacent to the ring feature identified on the southern boundary of EL 2558, along with
more detailed mapping and sampling of the Maniape River drainage in the SW corner of KRL North.
Soil sampling at KRL North during H1 2022 involved taking a total of 693 samples (inclusive of grid
soil sampling over ¾ of the southern ring feature, boundary shared with K92).
The ridge and spur soil lines across the southern half produced two coherent clusters of Au
anomalies and one spot high. The western Au anomaly cluster comprises 6 weak to moderately
anomalous values (up to 69ppb Au) along ~300m of a N-S trending ridge centred less than 2km
WNW of the southern ring feature. The eastern anomaly covers a mainly E-W trending ridge with 3
high values (115 to 329ppb Au) amidst background values, located adjacent to the eastern border of
EL 2558.
Rock samples returned a high of 2.28ppm Au (and associated 9.4ppm Ag, 2,477ppm As, 200ppm
Sb, 418ppm Pb, & 1,254ppm Zn) adjacent to the border with K92's EL 693. This sample was hosted
in a small, oxidized ENE trending vertical fracture in weakly chlorite-sericite altered phyllite hosting
weakly disseminated py-cpy-aspy.
Rock float samples returned Cu-anomalous results (356-2,755ppm) with associated Ag, Pb, & Zn
highs (6.6ppm, 11,908ppm, & 9,993ppm respectively) again adjacent to K92's EL 693. It is possible
they may have shed from the western portion of the southern ring feature within KRL's ground. They
are hosted in both phyllite, and a fine-grained quartz veined intrusive, all displaying significant
disseminated py-po-cpy-sphal/gal.
Based on these encouraging results, Q4 2022 field activities have been focusing on excavating and
sampling trenches over Au±Cu anomalous outcrop and soil sample sites in the SW and SE corners
of KRL North. Assay results from this latest completed campaign are still pending.
Conclusions from 2022 Field Work
The location of many of the above anomalous samples supports the potential that elements of the
Maniape/Arakompa structural trend extend into the SW sector of KRL North. This is further
supported by the relative increase in frequency of quartz veining mapped within that area. The
sample results received so far from EL 2558 appear to build on the geophysical analysis and
indicate a noted zonation of metal content possibly indicative of a potentially mineralised porphyry
with peripheral quartz-base metal-Au-Ag epithermal veins; with two potential targets providing
particularly encouraging results.
Exposures in cuts along the Highlands Highway in the Young Creek area displayed low temperature
hydrothermal clays hosting abundant sulphides. The potential of this area was further highlighted by
the underlying strong magnetic high anomaly, N2. Overall, this suggests the presence of three
significant mineralisation occurrences and controlling structures similar to those seen at Bilimoia
mineral field.
Next Steps and Preliminary Drill Planning
The work to date at KRL North supports the Company's view of the prospectivity of the area and the
likelihood of a targeted drilling programme intended to yield high-grade intercepts. Moving towards a
targeted drilling programme at KRL North is an operational priority for the Company.
In preparation for drill targeting, expected to commence in 2023, preliminary drill plans and sections
have been proposed for certain prospects within KRL North, based predominantly on the
geophysical modelling profiles, mainly in order to gain a sense of what logistical challenges can be
expected, as well as calculating preliminary budgets and schedules. This is in addition to potential
targeted drilling at KRL South (likely around the Ontenu area of interest).
For KRL North, 2 to 3 targets have been initially chosen: N1 (including the SW end of N3) and N2.
Figure 2 displays the N1/N3 Section (Ramu Gorge Target) while Figure 3 shows the N2 Section
(Young Ck Target). It is envisaged that a mid-range DDH rig capable of
600m
NQ will be employed
with excavator and possible helicopter support for the more inaccessible drill pads.
Figure 2: N1/N3 Target preliminary plan & cross-section (CNW Group/Kainantu Resources Ltd.)
Figure 3: N2 Target preliminary plan & cross-section (CNW Group/Kainantu Resources Ltd.)
It must be emphasized that the above plans and sections are of a preliminary nature and quite
simplified at this stage, and further fieldwork (including initial drilling) is essential to refine them.
The Company remains of the view that KRL North is a highly prospective area, with all work to date
supporting the view as to the continuity of the Au mineralisation from K92/ Bilimoia gold field into
KRL North.
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.
Disclaimer and Forward-Looking Information
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]; Corporate Advisor (Jemini Capital): Kevin Shum (Tel: + 65 8318 8125), Email:
CO: Kainantu Resources Ltd.
CNW 05:00e 15-DEC-22