- Two highly prospective gold projects in premier mining region
- Both show potential to host high-grade epithermal and porphyry mineralization
- Experienced management team in the region
What Kainantu Resources does:
Kainantu Resources Ltd (CVE:KRL) is an Asia-Pacific focused gold mining company with two highly prospective gold projects in a premier mining region, the high-grade Kainantu gold district of Papua New Guinea (PNG).
Both of the company’s projects - KRL North and KRL South - show potential to host high-grade epithermal and porphyry mineralization, as seen elsewhere in the Kainantu district.
KRL North lies on the boundary of K92 Mining’s five-million-ounce gold mine with some of the highest head-grade being recovered in the world at the moment.
KRL South also lies in close proximity to K92’s acreage, about 25 kilometres to the south-west.
The K92 project continues to produce interesting drill hits, and in 2019 accounted for the fourth richest drill hit of the year, according to a survey conducted by the Mining Journal, and this year it was awarded the 2021 PDAC award for best gold discovery in the world.
As well as high-grade regional geology, Kainantu has local and national support from the government and the Mineral and Resource Authority (MRA) in PNG.
The company is also working with a strong local partner in Asia Pacific Energy Ventures, a successful PNG focused EPC business; with a track record of delivering outcomes for government and institutions.
The company has assembled a highly experienced board and management team with a proven track record of working together in the region.
Kainantu chairman Marcus Engelbrecht has plenty of regional know-how gleaned during his tenure at Archipelago Resources, while CEO Matthew Salthouse is based out of Singapore and has also held executive roles at OceanaGold Corporation, Archipelago and at REA Holdings, a commodities house with Indonesian interests.
The company's shares commenced trading on the TSX Venture Exchange on December 8, 2020, having closed its qualifying transaction with PLB Capital Corp. and a private placement of C$4.1 million. Kainantu said the listing and private placement put it in a strong financial position for a targeted field programme in 2021 and beyond, as the company advances its exploration efforts towards drilling and a potential initial resource.
How is it doing:
The immediate focus for Kainantu is on KRL South, where studies to date indicate mineralisation hosting a range of structures, including skarns, epithermal, and porphyrys.
For now, the potential epithermal systems are getting the attention, and recent fieldwork, has, according to CEO Salthouse, been “highly encouraging.”
In addition to petrology and geochemical work, trenching is ongoing, and when the results are compiled Kainantu will move onto geophysics, after which it expects to progress with a drilling programme.
The company currently has cash in the bank, following the fundraise that took place at the end of last year. It also enjoys the support of a strong base of high-net-worth individuals in Vancouver, as well as some boutique institutions and backing from PI Financial and Haywood Securities.
With one of Kainantu’s key strengths being its regional expertise, the plan over the medium and longer-term is to build up the company with assets in and around Papua New Guinea, as a broader regional play.
Inflection points:
- Newsflow from KRL South project
- Build into broader regional play
What the boss says:
In a recent interview with Proactive’s Alastair Ford, Matthew Salthouse CEO of Kainantu Resources said: “What we’re looking to do is create a platform for a cornerstone business that brings together expertise in the highly prospective Asia-Pacific region.”
He added: “All the data we’ve seen so far makes us more confident in working there. The focus is on the apparent epithermal system at KRL South around the Tirokave area, which we anticipate will yield encouraging early-stage results.
"We expect a consistent flow of news from KRL South as we progress through the year,” Salthouse concluded.
Contact the author at jon.hopkins@proactiveinvestors.com