Papua Mining Plc Lighthouse drilling - all holes intersect sulphide (0449R)

TIDMPML

RNS Number : 0449R

Papua Mining Plc

12 June 2018

12 June 2018

Papua Mining plc

("PML" or "the Company")

Lighthouse drilling - all holes intersect sulphide

Papua Mining (LON: PML), the gold and copper exploration company, is pleased to inform shareholders that it has completed its first phase of RC drilling at the Double Event Prospect, part of the Lighthouse Gold Project in Queensland, Australia.

-- All drill holes intersected narrow quartz veins (1-2 m) and in a number of instances, several quartz veins;

   --     Most veins have been intersected within the top 35 m from the surface; 

-- All holes intersected at least one vein with varying amounts of visible, fresh sulphides including pyrite, arsenopyrite, galena (lead) and very rare chalcopyrite (copper);

-- Assays are pending for all 14 holes which tested a 400 m section of a 3 km long trend at Double Event, hosting quartz veins, historical workings and very high-grade rock assays.

Chief Executive Officer of Papua Mining, David Price commented: "We are pleased to have our first drilling campaign at Double Event completed in scheduled time and within budget. It is particularly encouraging that each hole intersected sulphides, as well as quartz veining within the top 35 m from surface, with many veins occurring within the top 25 m. We will be informing the market as results are received from the laboratory."

Fourteen (14) reverse circulation drill holes have been drilled for a total of 714 metres and to a maximum downhole depth of 78 m from surface.

Geological logging of the drilling chips has recorded observations of quartz veins and in some instances, multiple quartz veins in each hole. Veining is narrow (1-2 m) but most veins have been intersected within the top 35 m from the surface. Sulphides including pyrite, arsenopyrite, galena and very rare chalcopyrite have been observed in all holes in at least one of the multiple quartz vein intercepts. No visible gold has been observed in the drill chips.

The most dominant rock type encountered in the drilling is granite, which is markedly altered in a number of the holes, particularly in the western-most holes. Alteration types include sericite, haematite and silica as a broad alteration halo around sheared zones, with epidote proximal to fractures and veins.

Drill samples have been submitted to the laboratory and assay results are pending. A full list of completed drill holes is provided in the table below.

 
                                             Azi 
 Hole ID    MGA E    MGA N     Zone   RL m    mag   Dip     EOH m 
           -------  --------  -----  -----  -----  ------ 
 BDE001     442327   7757866   55K    368    008    -55        27 
 BDE002     442368   7757851   55K    369    008    -55        78 
 BDE003     442410   7757853   55K    370    008    -55        33 
 BDE004     442433   7757844   55K    371    008    -55        42 
 BDE005     442467   7757830   55K    371    008    -60        54 
 BDE006     442482   7757825   55K    369    008    -60        50 
 BDE007     442501   7757822   55K    369    008    -60        60 
 BDE008     442524   7757817   55K    368    008    -55        57 
 BDE009     442543   7757816   55K    367    008    -60        70 
 BDE010     442559   7757813   55K    365    008    -60        70 
 BDE011     442585   7757817   55K    365    008    -60        60 
 BDE012     442620   7757806   55K    363    008    -60        37 
 BDE013     442659   7757788   55K    360    018    -60        40 
 BDE014     442698   7757775   55K    358    008    -60        36 
                                                           ====== 
                                                    Total     714 
---------  -------  --------  -----  -----  -----  ------  ------ 
 

About the Double Event Prospect:

Earlier this year (see RNS dated 12(th) March 2018), Papua Mining collected forty-nine (49) rock samples from Double Event and undertook structural mapping. Abundant quartz veining was recorded and subsequent sampling of the veins returned high grade gold assays in excess of 1 ounce/tonne gold including; 37.7g/t, 33.3g/t, 33.1 g/t, 25.9 g/t, 24.3 g/t, 23.5 g/t Au. Rocks at Double Event are also strongly anomalous in Lead with values of 4.46%, 3.64% and 3.29% Pb being returned from the rock samples. Just over 50% of rocks returned assays above 3 g/t Au.

Government mining records from the early 1900's indicate that 1,744 ounces of gold were won from mining 1,889 tons of ore, giving an average mined head grade of 28.7 g/t Au.

Battle Mountain (Australia) Inc. and Newcrest Mining Limited have both conducted drilling at Double Event. In 1987, Battle Mountain drilled 25 holes, totalling 798 m, with an average depth of just 31 m. Newcrest drilled 2 holes in 1998 to a maximum of 150 m.

The historic drilling completed by Battle Mountain in 1987 was considered to be successful, with 72% of holes intersecting gold values within the top 20 m vertically from surface. Subsequent drilling of only 2 holes along the entire 3 km strike by Newcrest in 1998 targeted the deep sulphide potential (+80 m) at Double Event. This drilling, (deemed insufficient to adequately test a 3 km long mineralised trend) hit 2 m @ 0.55 g/t Au and Newcrest concluded that significant gold potential beneath the oxide zone was downgraded.

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.

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

 
 
Papua Mining plc                           [e-mail] 
 David Price, Chief Executive Officer 
 
 Cenkos Securities plc Nominated Adviser    [phone] 
 & Broker, 
 Derrick Lee/Beth McKiernan 
 

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June 12, 2018 02:01 ET (06:01 GMT)