Kainantu Resources Ltd (TSX-V:KRL), the Papua New Guinea-focused gold explorer, has issued a third-quarter update, which outlined continued progress at its KRL South and KRL North projects and plans on track for its May River asset next year.
As the firm is moving to a calendar cycle, the interim results were stated for the ten months to September, which showed exploration and evaluation expenses coming in at US$1.16 million.
The group's closing cash position at end-September was US$1.07 million with total cash outflows of US$0.55 million during the quarter.
At May River, where prospects Skiraisa, Foya, Eserebe, Mountain Gate and Iku Hill lie along a 7 kilometre (km) long structural corridor, the firm said plans "remain on track to develop a targeted exploration programme" in 2022.
READ: Kainantu Resources poised for airborne survey at its KRL South project as exploration ramps up
The company has granted Niuminco Limited an extension to December 31, 2021 to satisfy conditions under a sales and purchase deal (SPA), to enable the firm to acquire the Iku Hill prospect and surrounding area and it has given notice to Hardrock Limited to exercise its option to be granted 10% of that entity.
"KRL is pleased to provide this update for Q3 2021, with targeted and disciplined exploration ongoing at both KRL North and KRL South. Encouraging results support the company's decision to expedite a geophysics program to assist with definition of initial drill targets in 2022," said Matthew Salthouse, CEO of Kainantu.
"KRL has also advanced the May River Project during the quarter, giving notice to exercise its option over 10% of Hardrock, following substantial completion of a field study with results validating the high Cu-Au prospectivity of this area," he added.
KRL boasts two highly-prospective gold projects - KRL South and KRL North - in a premier mining region, namely the high-grade Kainantu Gold District of PNG. Both projects show potential to host high-grade epithermal and porphyry mineralization, as seen elsewhere in the district.
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