Kainantu Resources Ltd (TSX-V:KRL) (KRL) has announced encouraging initial results from the Ontenu Prospect at KRL South, including consistently high-grade results of up to 1.55 grams per ton (g/t) gold (Au), 0.39% copper (Cu), 20.8 g/t silver (Ag) and 460 parts per million (ppm) molybdenum (Mo) from surface.
The KRL South claims are located 27 kilometres (km) southwest of the K92 Mining operations and are also situated on the Kainantu Transfer Structure.
In a statement, 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 2,300 meter x 900 meter (m) 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.”
READ: Kainantu Resources reveals positive update on May River Project in Papua New Guinea
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: 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); Cu values of up to 0.39% (3,893ppm) with 17/63 returning more than 0.08% Cu; Ag values of up to 20.8 g/t, mainly associated with the highest Au values; and Mo values of up to 460ppm, with 27of the 63 samples returning more 10 ppm 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 including a 1,000m length averaging 1.01 parts per billion (ppb) Au and a 500m length averaging 114 ppb Au; and Cu (up to 733 ppm) and Mo (up to 310 ppm) display a close correlation with Au values;
- Rigorous analyses of historic results have expanded the previous priority target areas into 1 contiguous block of 3.8 square kilometres containing strongly anomalous Au and Cu results from surface and DDH sampling, to be redesignated as 'Priority 1';
- Fieldwork 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 15.0 g/t Au, 3.17% Cu 960 g/t Ag, and 170 ppm 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.
Based on the results set out above, KRL said a preliminary interpretation incorporating observed geology with the geochemical results and spatially relating them to the conductivity model generated by the MobileMT survey 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, which is very similar in character to O6, along with others identified in the Ontenu area, will also undergo detailed exploration during 2023.
The company said it 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 fieldwork at Ontenu from H1 2023 onwards.
Kainantu Resources 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 Papua New Guinea (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.
Contact the author at jon.hopkins@proactiveinvestors.com