VANCOUVER, BC, March 3,
2023 /CNW/ - Kainantu Resources Ltd. (TSXV: KRL)
(FSE: 6J0) ("KRL" or the "Company"), the Asia-Pacific focussed gold mining company, is
pleased to announce encouraging initial results from the Ontenu
Prospect at KRL South (including consistently high grade results of
up to 1.55 g/t Au, 0.39% Cu, 20.8 g/t Ag and 460ppm Mo from
surface).
The KRL South claims are located 27 km southwest of the K92
Mining (KNT:TSX) operations and are also situated on the Kainantu
Transfer Structure.
Key Highlights:
- Geochemical analysis completed from H2 2022 initial field work
at the Ontenu Prospect at KRL South;
- Consistent high grades reported from outcrop and trench
exposures over a 2,300m x
900m area:
-
- Gold (Au) results are remarkably consistent; with 63 sample
results recorded over a narrow range of up to 1.55 g/t Au (26
samples exceeded 0.2g/t (ppm)Au, with an average of 0.45g/t (ppm)
Au);
- Copper (Cu) values of up to 0.39% (3,893ppm) with 17/63
returning >0.08% Cu;
- Silver (Ag) values of up to 20.8 g/t, mainly associated with
the highest Au values; and
- Molybdenum (Mo) values of up to 460ppm, with 27of the 63
samples returning >10ppm Mo;
- Two distinct groups of contiguous strongly anomalous Au (up to
0.37 g/t) results from 95 gridded soil samples at 50m spacing from 2 E-W lines 100m apart transecting the centre of KRL's
priority target area:
-
- a 1,000m length averaging 1.01ppb
Au and a 500m length averaging 114
ppb Au; and
- Cu (up to 733ppm) and Mo (up to 310ppm) display a close
correlation with Au values;
- Rigorous analyses of historic results have expanded the
previous priority target areas into 1 contiguous block of 3.8km²
containing strongly anomalous Au and Cu results from surface and
DDH sampling, to be redesignated as "Priority 1";
- Field work focussed on geophysical results demonstrating a high
apparent conductivity target is interpreted as a potential
mineralized (Cu-Au-Ag-Mo) porphyry complex;
- Historic sample results of up to 15.0g/t Au, 3.17% Cu 960g/t
Ag, and 170ppm Mo have been verified; and
- Favourable geology indicative of the edges of porphyry style
mineralization was mapped above and peripheral to the underlying O6
anomaly.
Matthew Salthouse, CEO of KRL, commented:
"KRL is pleased to announce exceptional exploration sampling
from the Ontenu prospect in our KRL South project; including
consistently high grade results of up to 1.55 g/t Au, 0/39% Cu,
20.8 g/t Ag and 460ppm Mo from surface over a 2,300m x 900m
area.
This supports our view that the Ontenu area is highly
prospective area for Au, Cu and Ag mineralization. Further
work is ongoing to move the area towards a targeted drilling
programme in the near term."
Background
As previously announcement by the Company on 14th
September, 2022, KRL has focused exploration activities at the
Ontenu Prospect in KRL South (contained within EL2660). This
area was identified as a priority area of interest following
analysis of geology, historic exploration and the Company's
MobileMT survey results (with further background set out
below). It is located along the world renowned Kainantu
Transfer Structure, in a district associated with highly successful
mining projects, including K92 Mining (KNT: TSX).
The Ontenu Prospect has emerged as a stand-out prospect and is
ranked as a priority for the Company in the highly prospective KRL
South project (with potential to accelerate a focussed drill
programme at Ontenu). Ontenu is approximately 15 kilometres
east of the Tirokave area of interest (where KRL continues
exploration activities) and 27 kilometres south-southwest of the
K92 operations.
Geology and Geophysical Signatures
at the Ontenu Prospect
A work programme was undertaken and completed in H2 2022.
Initial results have now been received and are detailed
below. Ongoing field work and analysis has identified a
cluster of interpreted mineralized porphyry and intrusion related
targets around Ontenu, a highly Au-Cu fertile area demonstrated by
historic exploration results. Encouraging geophysical survey
results also support the potential of Ontenu for extensive bulk
grade with attendant higher-grade mineralization, making this an
area of heightened focus for the Company.
In relation to the Company's geophysical survey, strongly
anomalous areas were highlighted around the Ontenu Prospect.
Specifically, several discrete zones of high apparent
conductivity along both NW and NE trends were apparent, as set out
in Figure 1 below. A central zone at the intersection of the
most prominent NW and NE trending structures coincides with a
stockwork zone in a landslide exposure returning highly anomalous
Au geochemistry; historically reported by Barrick. Further
zones in both NW and NE directions appearing to be prospective and
underlain by discrete magnetic highs.
Figure 1 also demonstrates the apparent conductivity anomalies
from the MMT survey with historic data from past explorers, along
with the outlines of KRL targets identified for more detailed work.
Two prominent apparent conductivity anomalies (O5 and O6, the tops
of both interpreted as ~200m below surface), in addition to a
curvilinear conductor (O7), all occur in the vicinity of the
prospects historically defined. While not the focus of
previous operators' exploration activities, O5 is the strongest and
most depth-persistent conductor in all areas surveyed by the
Company and may represent a significant under-explored shallowly
buried mineralization system.
The O6 anomaly partially underlies the most focussed and
successful exploratory work undertaken by prior explorers and is
associated with a coincident NW trending linear conductivity and
magnetic anomaly (O2), which appears to represent a significant
controlling structure. Coincidentally, this is the same
orientation as the high-grade Kora-Irumafimpa-Judd epithermal vein
system underlaying K92's operations.
The O1 feature in the southern part of the survey area comprises
broken magnetic anomalies interpreted as an intrusive complex, or
volcaniclastic sediments, likely the Yaveufa Formation.
Shallow linear asymmetric conductivity anomalies (O3 and O4)
may represent sediments thickening towards significant NE trending
structures. Quartz-limonite stockwork veining hosted by
Tertiary conglomerates immediately overlying a regional
unconformity with basal Mesozoic metamorphics support the area
around O4, termed the Onerunka anomaly. This is a location
for further field work investigation (noting artisanal miners are
active here).
Field work and analysis
Work focussed on implementing a planned programme over the O6
target and surrounds that included verification of previous
exploration (DDH pads and trench excavations), mapping and
re-sampling selected trenches, gridded soil sampling (14 soil lines
with 100m NS spacing and 50m E-W sampling interval), and
19.5km of creek traversing, mapping, and sampling,
focussing on the identification of lithologies, alteration and
mineralization styles, and controlling structures. The
surface projection of the O6 apparent conductivity high can be
identified in Figure 2 by the pink dashed oval shape towards the
bottom right of the chart area.
Intrusive lithologies, including ultramafics, microdiorite,
andesite, and dacite are hosted by siltstone, likely the Omaura
Formation (which is hornfelsed and occasionally skarnified).
Hydrothermal alteration mapped within the prospect affects
all observed lithologies to some degree.
Mineralization is present in all lithologies, but found to be
more prevalent in the intrusives, particularly within the
microdiorite and andesite, as moderately disseminated
pyrite-chalcocite±bornite±covellite and occasional sheeted and
stockwork quartz-sulphide veins/veinlets. Of particular
interest is one rock float sample (interpreted close to source and
assaying 1.06ppm Au) exhibiting vuggy residual quartz hosting
enargite mineralization, suggesting the remnants of a mineralized
lithocap remaining in some areas.
The structures identified within the prospect indicate a complex
regime comprising NW trending (fault breccias and faults), NE
trending (faults, shear zones) and late NNW-N and NNE-E
trending displacement faults. These faults act as major
controlling structures to alteration and mineralization and as
openings for the emplacement of younger
intermediate and mafic porphyry intrusions and associated contact
brecciation.
During the mapping and sampling programme, a total of two E-W
grid soil lines across the center of the Priority 1 area (Figure
2) were completed with 95 soil samples taken
from the C horizon, varying from 0.8m
to 2.1m depth. Outcrop,
trench, and creek traverse mapping and sampling saw a total of
63 largely mineralized rock chip samples taken.
Rock Geochemistry
Gold results from fire assay, along with ICP results of 52
elements recently became available for the 63 rock chip samples
taken. The Au results of these samples taken over the
Priority 1 target area (3.8km², Figure 1 above) are remarkably
consistent within a narrow range up to 1.55ppm Au, with only 2 of
the samples falling below the detection limit of 0.005ppm Au; of
these, 26 samples above an arbitrary limit of 0.2ppm Au average
0.45ppm Au.
The highest Cu value is 3,893ppm with 17 out of the 63 samples
submitted returning >800ppm Cu; The highest Mo is 460ppm with 27
samples from the 63 returning >10ppm Mo; highest Ag values, up
to 20.8ppm, are mainly associated with the highest Au values.
A 1.2km² area within the middle of the Priority 1 target,
designated "P1 Central", Figure 2, encompasses the western portion
of the surface projection of the O6 apparent conductivity target
and exhibits moderate to strong Au-Ag-Cu-Mo anomalism throughout.
Most of these samples represent channel/continuous chip
samples taken by past explorers over mainly stockwork veined
exposures and/or within trenches with the multi-element tenor
confirmed by KRL's sampling programme, as set out in Figure 3
below. The area is largely underlain by strong to extremely
weathered bedrock and residual soil cover.
Descriptions of sampling and assay procedures by prior
explorers' annual reports of Ontenu and other areas in the Kainantu
District appear to follow industry standards. Based on this,
together with the initial favourable comparison of the geological
descriptions and geochemical results from the P1 area, lead KRL to
view the prior explorers' geochemical results as reliable for the
Company's further work.
The top 10 rock sample results by key commodity are displayed in
Figure 3 below. The table contains results from both KRL's H2
2022 program (samples numbers prefixed by "E") and the prior
explorer's historic sampling programs.
Sample
No
|
Au
(g/t)
|
|
Sample
No
|
Cu
(%)
|
|
Sample
No
|
Ag
(g/t)
|
|
Sample
No
|
Mo
(ppm)
|
19479
|
15.00
|
|
19509
|
3.17
|
|
19479
|
960
|
|
E00031
|
460
|
19586
|
4.38
|
|
19503
|
1.89
|
|
19481
|
167
|
|
19507
|
170
|
19595
|
3.18
|
|
19527
|
0.92
|
|
19503
|
75
|
|
19534
|
154
|
19488
|
2.40
|
|
19514
|
0.43
|
|
19488
|
50
|
|
19484
|
143
|
19560
|
2.15
|
|
E00030
|
0.39
|
|
19586
|
36
|
|
E00036
|
127
|
19220
|
1.91
|
|
E00016
|
0.35
|
|
19511
|
27
|
|
19526
|
117
|
19591
|
1.90
|
|
19484
|
0.29
|
|
19487
|
26
|
|
19643
|
114
|
19481
|
1.88
|
|
E00049
|
0.27
|
|
19658
|
24
|
|
E00046
|
112
|
19216
|
1.81
|
|
19488
|
0.27
|
|
19218
|
22
|
|
E00030
|
99
|
E00010
|
1.55
|
|
19568
|
0.25
|
|
E00047
|
20.8
|
|
19479
|
99
|
Figure 3: KRL and RGS Rock Sample Multi-element
Result Highlights
Soil Geochemistry
Although representing a relatively limited area within P1, the
results from the brief gridded soil sampling programme are
considered highly encouraging.
From a total of 95 samples at 50m
spacing from 2 E-W lines 100m apart
transecting the center of the Priority 1 area, 2 distinct groups of
contiguous strongly anomalous Au (max 369ppb) are revealed: a
1,000m length averaging 101ppb Au and
a 500m length averaging 114ppb Au,
Figure 2, above. Cu (max 733ppm) and Mo (max 310ppm) display a
close correlation with Au values.
The distribution of multi-element anomalous soils samples
indicates at an early stage an association with the altered and
mineralized microdiorite exposed along the northern edge of the
surface projection of the O6 conductivity target, and extending
further WNW, likely influenced by the O2 structural target.
Clearly, further soil sampling may increase confidence on this
observation; in addition to highlighting other prospective targets
in the P1 area.
Interpretation
Based on the results set out above, a preliminary interpretation
incorporating observed geology with the geochemical results (and
spatially relating them to the conductivity model generated by the
MobileMT survey) are set out in Figure 4 above.
The model suggests a large depth-persistent highly conductive
body shallowly underlying widespread relatively consistent
Au-Cu-Ag-Mo mineralization associated with a largely hydrothermally
altered intrusive complex, accompanied by peripheral skarn and
evidence of remnant mineralized lithocap. KRL is of the view
that the O6 anomaly represents the core of a substantial shallowly
buried gold-rich porphyry copper body.
Next Steps
The high priority O6 target has been identified as a possible
mineralized porphyry based on integrated geological, geochemical,
and geophysical signatures discussed above. The intention is to
produce zoned geochemical and alteration maps to aid in vectoring
towards drill targets (with potential to move towards a focussed
drill programme in the near term).
The highly promising O5 target (very similar in character to
O6), along with others identified in the Ontenu area, will also
undergo detailed exploration during 2023. The Company views the
Ontenu area as extremely encouraging for potential economic
Cu-Au-Ag-Mo mineralization at KRL South.
KRL will regularly conduct social awareness and community
engagement to support field work at Ontenu from H1 2023
onwards.
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 focussed 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 mineralization, 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 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.