TIDMPML
RNS Number : 3718H
Papua Mining Plc
12 March 2018
12 March 2018
This announcement contains inside information
Papua Mining plc
("Papua" or "the Company")
Rock samples return over 1 ounce/tonne gold
The Board of Papua Mining (LON: PML), is pleased to announce
high grade gold-in-rock samples from its Lighthouse Gold Project in
Queensland and provides an update to shareholders on exploration
activities at its 100%-owned projects in Australia and Papua New
Guinea.
Highlights:
-- Rock sampling completed at the Double Event Prospect, part of the Lighthouse Project;
-- Results include high grade gold and silver from most rock samples;
-- 25% of all rock samples assay above 10g/t Au;
-- Reverse circulation ("RC") drilling planned at Double Event;
-- Papua field team currently in PNG to assess core from previous drilling;
-- Review of drilling from the Nov/Dec 2017 program at Plateau
Prospect now complete, placing Plateau in the distal zones (upper
levels) of a large, mafic mineralising system.
DOUBLE EVENT
Papua Mining has completed rock sampling and structural mapping
at the Double Event Prospect which forms part of the Lighthouse
Project. Forty-nine (49) surface rock samples have been collected
from along the mapped strike of the Double Event Prospect.
Whilst sampling and mapping, the PML geologists have reported
abundant quartz veining and subsequent sampling of the veins has
returned some gold assays in excess of 1 ounce/tonne gold
including; 37.7g/t, 33.3g/t, 33.1g/t, 25.9g/t, 24.3g/t, 23.5g/t and
a number of additional high-grade gold results. Silver results
include 56.8g/t, 54.0g/t, 52.7g/t, 46.7g/t, 38.7g/t and 37.1g/t and
other high-grade silver values. High lead values include 4.46%,
3.64% and 3.29% Pb. A full list of results is provided in the table
below.
The average of all rock samples collected by the Company was
8.45g/t Au, with 76% of results over 1g/t Au and just over 50% of
rocks returning assays above 3g/t Au. A quarter of all samples
(25%) returned gold in excess of 10g/t Au. These results validate
and in-fill historical rock sampling data at Double Event from
1987, which also returned high grade gold assays up to 87g/t Au and
400g/t Ag.
The rock sampling at Double Event was aimed at validating rock
sampling information collected in 1987, as well as refining the
position and orientation of gold lodes within the limits of and
beyond the mapped historical workings. The historic mine workings
and anomalous rock samples extend for over 3km in length. Only the
eastern and central parts of the lode were sampled by Papua during
the February 2018 campaign, however it is intended that the entire
3km strike will be sampled in up-coming field programs.
The rock sampling, geological and structural mapping carried out
by the Company has helped to refine the orientation of the lodes.
Previously, the strike of mineralisation was thought to be
east-west, however the true orientation of the lodes is now
understood to be 115deg. With this new orientation being clarified,
the interpretation is of multiple, parallel lodes, which provides a
more specific target for future RC drilling at Double Event to
delineate a near-surface, high-grade gold resource. The map below
shows the historic workings and rock sampling carried out at Double
Event:
http://www.rns-pdf.londonstockexchange.com/rns/3718H_-2018-3-12.pdf
Table showing all rock samples collected at Double Event
Prospect, February 2018
Papua Mining plc
Lighthouse Project, Double
Event Prospect
Rock sampling February
2018
------------------------------ ------ ------- -----
Sample Au Ag Pb Pb
Number ppm ppm ppm %
------------------- --------- ------ ------- -----
BDERS001 19.15 52.70 13,750 1.38
BDERS002 2.33 54.00 8,070 0.81
BDERS003 2.89 33.60 18,400 1.84
BDERS004 <0.01 0.14 61 0.01
BDERS005 7.85 14.55 4,570 0.46
BDERS006 0.28 1.43 340 0.03
BDERS007 2.76 2.62 665 0.07
BDERS008 21.50 23.90 18,500 1.85
BDERS009 2.84 10.25 7,270 0.73
BDERS010 0.49 4.28 284 0.03
BDERS011 0.32 0.20 79 0.01
BDERS012 <0.01 0.01 21 0.00
BDERS013 0.18 0.34 369 0.04
BDERS014 13.80 24.30 12,300 1.23
BDERS015 0.99 3.81 2,180 0.22
BDERS016 0.22 0.50 1,200 0.12
BDERS017 6.25 12.05 1,035 0.10
BDERS018 37.70 46.70 18,250 1.83
BDERS019 2.87 1.92 1,015 0.10
BDERS020 3.30 1.40 1,315 0.13
BDERS021 21.90 26.10 8,940 0.89
BDERS022 33.30 32.20 17,150 1.72
BDERS023 7.11 19.40 4,260 0.43
BDERS024 2.84 1.36 1,640 0.16
BDERS025 1.38 2.70 681 0.07
BDERS026 1.13 3.56 1,230 0.12
BDERS027 9.41 17.45 7,030 0.70
BDERS028 2.33 3.15 1,070 0.11
BDERS029 5.55 6.65 2,450 0.25
BDERS030 15.80 7.70 6,700 0.67
BDERS031 0.45 0.95 90 0.01
BDERS032 0.15 0.73 131 0.01
BDERS033 3.62 29.10 209 0.02
BDERS034 1.32 5.70 236 0.02
BDERS035 2.21 7.27 1,750 0.18
BDERS036 3.08 2.49 2,490 0.25
BDERS037 33.10 13.95 3,910 0.39
BDERS038 7.54 9.21 15,650 1.57
BDERS039 7.22 12.85 2,160 0.22
BDERS040 0.27 2.03 294 0.03
BDERS041 23.10 56.80 44,600 4.46
BDERS042 24.30 17.20 16,000 1.60
BDERS043 1.24 5.76 1,540 0.15
BDERS044 2.16 2.72 4,080 0.41
BDERS045 8.77 37.10 32,900 3.29
BDERS046 2.09 2.31 5,310 0.53
BDERS047 0.53 1.37 3,080 0.31
BDERS048 25.90 38.70 36,400 3.64
BDERS049 23.50 17.30 1,480 0.15
------------------- --------- ------ ------- -----
BACKGROUND AND HISTORY AT DOUBLE EVENT
Hand-held mining of quartz lodes occurred at Double Event in
1900 and only remnant, shallow workings remain. Government mining
records from this time indicate that 1,744 ounces of gold were won
from mining 1,889 tons of ore, giving an average mined head grade
of 28.7g/t Au.
Battle Mountain (Australia) Inc. ("Battle Mountain") and
Newcrest Mining Limited ("Newcrest") have both conducted drilling
at Double Event. In 1987, Battle Mountain drilled 25 holes,
totalling 798m with an average depth of just 31m. Newcrest drilled
2 holes in 1998 to a maximum of 150m.
Drilling by Battle Mountain to a vertical depth of only 20m on
several sections of the 3km long line-of-lode identified a section
with an average grade quoted in Battle Mountain's 1987 Annual
Report of 3.25g/t Au.**
** This quoted grade is an historical average and does not
comply with the guidelines as established by the Joint Ore Resource
Committee for the Reporting of Mineral Resources and Ore Reserves
(2012). The potential grade quoted is conceptual in nature, and
there has been insufficient exploration to estimate a Mineral
Resource and it is uncertain if further exploration will result in
the determination of a Mineral Resource.
The historic drilling completed by Battle Mountain in 1987 was
considered to be successful, with 72% of holes intersecting gold
values within the top 20m vertically from surface. The results from
this drilling was reported by Battle Mountain in 1987 and further
details are set out in the table below. Battle Mountain withdrew
from the project citing that their corporate target of a minimum of
+2 million ounces gold reserve was unlikely to be identified at
Double Event. At the time of drilling, Battle Mountain was amongst
the top gold mining companies globally, with gold sales topping
US$300 million annually.
Subsequent drilling of only 2 holes along the entire 3km strike
by Newcrest in 1998 targeted the deep sulphide potential (+80m) at
Double Event. This drilling hit 2m @ 0.55g/t Au and Newcrest
concluded that significant gold beneath the oxide zone was
downgraded. The Newcrest 1989 Annual Technical Report states that
"...smaller companies may be interested in farming into the narrow,
surface-enriched structures".
The Board of Papua is of the opinion that 2 deep drill holes
into a 3 kilometre long mineralised structure is not adequate
exploration and considers the prospect under-explored.The Board
views Double Event as opportunity for a smaller company, such as
Papua, to identify material, near-surface oxide ounces which could
potentially prove highly profitable for a company with lower
operational and administrative overheads.
Table 2: Double Event Drilling results from 1987 (Battle
Mountain (Australia) Inc)
Lighthouse Project, Double Event
Prospect
Battle Mountain RC drilling
results 1987
Hole From To Interval Gold Silver
Number (m) (m) (m) g/t g/t
----------- ------- ------ ---------- ------ -------
LTR0001 30.00 31.00 1.00 0.66 2.0
LTR0002 no significant assays
LTR0003 no significant assays
LTR0004 24.00 25.00 1.00 0.62 0.5
LTR0005 no significant assays
LTR0006 29.00 30.00 1.00 1.04 0.5
LTR0007 28.00 29.00 1.00 7.40 24.0
LTR0008 24.00 26.00 2.00 13.19 10.0
LTR0009 10.00 12.00 2.00 2.70 2.0
LTR0010 14.00 16.00 2.00 4.14 6.0
LTR0011 10.00 11.00 1.00 3.25 17.0
LTR0012 no significant assays
LTR0013 14.00 15.00 1.00 3.93 18.0
LTR0014 no significant assays
LTR0015 18.00 20.00 2.00 2.11 6.0
LTR0016 no significant assays
LTR0017 20.00 21.00 1.00 0.65 0.5
LTR0018 16.00 17.00 1.00 2.94 3.0
LTR0019 4.00 6.00 2.00 1.00 0.5
LTR0020 18.00 19.00 1.00 0.59 0.5
LTR0021 20.00 21.00 1.00 0.50 12.0
LTR0022 no significant assays
LTR0023 14.00 18.00 4.00 0.67 1.3
LTR0024 31.00 35.00 4.00 4.65 4.3
LTR0025 20.00 22.00 2.00 1.17 0.5
----------- ------- ------ ---------- ------ -------
Chief Executive Officer of Papua Mining, David Price
commented:
"Despite the inclement weather, our field crews are continuing
to work and are identifying some exciting targets. We are preparing
for RC drilling at Double Event, as well as geophysics at Plateau
and Marengo. A PML geological crew is currently in PNG to
re-examine old drill core from Mt Visi and Tripela.
Our current work program is designed as preparatory ground work
prior to geophysics and then drilling, which will commence as soon
as possible and most likely in May/June. In the meantime, we look
forward to providing further updates on our current field
activities and results as they come to hand."
PLATEAU
A thorough review of the drilling completed at Plateau last
November/December has been undertaken, with the review examining
grade, geology and various elemental ratios including Cu (copper),
As (arsenic), Ag (silver), K (potassium), magnetite and pyrite. The
technical analysis has shown that there is an increase in K and
pyrite with depth, as well as sericite/silica alteration below
historical hole PL092.
When compared with other intrusion-related mineralisation
models, Plateau is interpreted to lie within the distal zones
(upper levels) of a large, mafic mineralising system. The upper
levels of mineralisation between PL092 and BPL003 are open to the
north and south and the North Zone remains open at depth. To
enhance our understanding of the potential and to ensure our
exploration strategy targets the highest gold potential, a
geophysical survey involving CSAMT (Controlled Source
Audio-frequency Magnetotellurics) is being planned for Plateau.
MARENGO
A rock sampling program is planned to commence in April which
will be focused on the One Mile Mountain Area. One Mile Mountain
hosts several old workings including Albion, Homeward Bound,
Toomey's, Quartz Blow and Westwood Prospects. Marengo represents
the least advanced project in the PML portfolio but holds real
potential for epithermal and Intrusion-related Gold System (IRGS)
mineralisation.
Competent Person Statement:
Information in this announcement that relates to exploration
results is based on information compiled by Mr David Price, a
Director of Papua Mining plc, who is a Fellow of the Australasian
Institute of Mining and Metallurgy (FAusIMM). Mr Price has
sufficient experience relevant to the style of mineralisation and
type of deposit under consideration and to the activity which has
been undertaken to qualify as a Competent Person as defined by the
2012 Edition of the Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves (the JORC Code) and
under the AIM Rules - Note for Mining and Oil & Gas Companies.
Mr Price consents to the inclusion in the announcement of the
matters based on their information in the form and context in which
it appears.
For further information on the Company please visit
www.papuamining.com or contact the following:
Papua Mining plc david@papuamining.com
David Price, Chief Executive Officer
Cenkos Securities plc +44 131 220 6939
Nominated Adviser & Broker,
Derrick Lee/Beth Kiernan
This information is provided by RNS
The company news service from the London Stock Exchange
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