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Papua Mining PLC RNS Release

Initial Drilling Results at Lighthouse


RNS Number : 4590B
Papua Mining Plc
10 January 2018
 

This announcement contains inside information

 

Papua Mining plc

("Papua" or "the Company")

Drilling intersects wide zones of near-surface gold and silver at Lighthouse, Australia

Papua Mining (LON: PML), the gold and copper exploration company, is pleased to update shareholders with the initial results from the recent drilling program at its 100%-owned 'Lighthouse Gold Project' in Queensland, Australia.

 

Highlights:

·      Wide zones of near-surface gold and silver intersected

 

·      Hole BPL002 - 22m @ 1.86g/t Au + 22g/t Ag (from 39m downhole) including 12m @ 2.45g/t Au and including 2m @ 8.87g/t Au;

 

·      The same hole (BPL002) also intersected 16m @ 10,945ppm Zn (1.1% Zn) from 129m downhole;

 

·      Hole BPL003 - 40m @ 3g/t Ag (from 55m downhole);

 

·      Hole BPL004 - 10m @ 1.37g/t Au + 12.4g/t Ag (from 129m downhole), including 2m @ 4.43g/t Au. These results occur within a wider, mineralised envelope of 18m @ 1.0g/t Au + 10.5g/t Ag from 119m downhole;

 

·      Assay results are still awaited from other holes drilled during November/December 2017.

 

Reverse Circulation drilling undertaken in December 2017 at the Plateau Prospect within the Lighthouse tenement, Queensland has returned wide intercepts of gold and silver mineralisation. Results from the first 4 holes have been received from ALS Laboratories in Townsville.

Two RC holes (BPL002 and BPL004) were drilled into the main line of mineralisation with the aim of increasing the depth and strike extension of gold/silver mineralisation which was identified from historical drilling. These holes have confirmed the validity of historical drilling results (from 30 years ago) and have also successfully increased the lateral and vertical extensions to the mineralisation.

Two holes (BPL001 and BPL003) were drilled off the line of mineralisation with the aim of definitively testing the east and west margins of a rhyolite dome which were previously thought to be unmineralised. Hole BPL001 intersected another gold lode (2m @ 0.83g/t Au + 9.2g/t Ag from 28m downhole) which now expands the exploration potential on the western side of the rhyolite dome.

Hole BPL003 intersected a very broad zone of previously unknown silver (145m @ 1.2g/t Ag) starting at 16m downhole, which includes a strong zone of 40m @ 3.0g/t Ag from 55m downhole. This hole was drilled on the eastern margin of the rhyolite dome which was previously thought to be unmineralised.  This provides an exciting new exploration zone to be followed up in further drilling.

An image showing a plan of these drilling results, together with historical drilling results is available at the link below;

http://www.rns-pdf.londonstockexchange.com/rns/4590B_-2018-1-10.pdf

Chief Executive Officer of Papua Mining, David Price commented : "We are delighted with this initial round of drilling which has confirmed that the Plateau Prospect hosts gold grades and mineralisation widths which could potentially meet near-surface, open cut criteria. In addition to this, the initial drilling results highlight the high-grade potential for longer-term, underground mining possibilities (eg. 2m @ 8.87g/t Au in hole BPL002 and 2m @ 4.43g/t Au in hole BPL004). The Pajingo Gold Mine operates less than 20km from Plateau and provides a potentially viable option for future processing.

In historical drilling at Plateau, gold has been encountered 500m beneath the levels which are currently being explored. Although our exploration is early-stage, Plateau is showing encouraging signs that further drilling may delineate a potentially large mineralised system."

More assay results are awaited from the December 2017 drilling program which was designed to validate historical drilling results, extend mineralisation and to test a number of conceptual targets.

 

Drill hole collar statistics are provided in the table below which includes the rationale for each hole drilled.

Hole Number

EAST (AGD94)

NORTH (AGD94)

RL (m)

DEPTH (m)

DIP (°)

AZIMUTH
(mag)

TARGET

BPL001

459711

7740374

304

250

-60

040

Conceptual target only. Western margin of rhyolite.

BPL002

459841

7740315

312

200

-60

000

Southern margin of breccia. Strike extension.

BPL003

460099

7740435

327

200

-60

330

Conceptual target only. Eastern margin of rhyolite. 

BPL004

460297

7740405

329

250

-60

350

South-dipping eastern zone. Depth extension.

BPL005

460425

7740410

316

250

-60

350

Conceptual target only. Parallel zone to north.

BPL006

460634

7740469

305

125

-60

350

Conceptual target only. Eastern step-out.

BPL007

460355

7740502

308

100

-60

350

Conceptual target only. Parallel zone to north.

BPL008

460246

7740511

328

106

-60

350

Conceptual target only. Parallel zone to north.

BPL009

459824

7740177

316

130

-60

330

Conceptual target only. 250m south.

BPL010

459548

7739894

293

250

-60

135

Conceptual target only. 650m south. 

BPL011

460221

7740601

326

250

-70

190

Conceptual target only. Northern parallel lode.





2111




 

Drilling results showing the intersections of gold, silver and zinc for each hole drilled.


From

To

Interval

Average grade

Number

(m)

(m)

(m)

Au (g/t)

Ag (g/t)

Zn (%)

BPL001

28

30

2

0.83

9.2









BPL002

39

61

22

1.86

22.3


includes

42

54

12

2.45

17.6


includes

42

44

2

4.71

64.0


includes

52

54

2

8.87

5.1


includes

129

145

16

0.21

3.2

1.1








BPL003

58

59

1

0.90

1.3


includes

32

95

63


2.3


includes

55

95

40


3.0









BPL004

119

137

18

1.00

10.5


includes

129

139

10

1.37

12.4


includes

134

136

2

4.43

13.3


 

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.

The potential quantity and grade of the exploration target 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."

 

For further information on the Company please visit www.papuamining.com or contact the following:



Papua Mining plc

David Price, Chief Executive Officer

Cenkos Securities plc

Nominated Adviser & Broker,

Derrick Lee/Beth McKiernan

  [email protected]

 

 

+44 131 220 6939

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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