VANCOUVER, BC, June 9, 2022
/CNW/ - Kainantu Resources Ltd. (TSXV: KRL) ("KRL" or the
"Company"), the Asia-Pacific
focused gold mining company, is pleased to announce outcomes from
the recently completed airborne geophysical survey conducted over
both its KRL North and KRL South projects.
The completion of airborne geophysical surveying and analysis
over the Kainantu region supports the highly prospective nature of
the KRL tenement portfolio for porphyry Cu-Au and epithermal Au
deposits (which is on trend with the successful K92 mine).
Highlights
Key highlights of the airborne geophysics programme include the
following:
- total area covered of 186 km² (involving over 1,000
line-kilometres) in survey by Expert Geophysics Ltd. ("EGL");
- advanced processing and modelling; with 3D inversion
conductivity models, and magnetic susceptibility and magnetization
vector models completed by Computational Geosciences Inc earlier
this month – key findings below;
KRL North
- two large magnetic anomalies in highly permeable structural
environments identified to the south west and south east, both have
been interpreted as possible porphyries;
- the southwest body appears bound by a prominent highly
conductive NE trending fault and is associated with a ring feature
(in addition to peripheral precious and base metal mineralisation
to the north and northwest);
- the southeast body occupies a complex structural zone of
prominent intersecting NE and NW faults, some highly conductive and
appears associated with a recently identified zone of low
temperature hydrothermal alteration and mineralisation in the Young
Creek area;
KRL South
- magnetic signatures indicate a possible offshoot from the main
batholithic Elandora Porphyry complex occupying the center of the
Tirokave ring feature;
-
- appears to underly the largely phyllic altered area immediately
west of the East Avaninofi Prospect and is consistent with skarn
mineralisation mapped and sampled;
- additional prospect identified at Mt. Yungateia north of the
Tirokave area, a coincident conductivity/magnetic high which
includes a strong/extensive conductivity high orientated SE towards
Tebeo Ridge; and
- further regional targets of high prospectivity identified at
KRL South – further analysis underway.
Matthew Salthouse, CEO of KRL,
commented:
"The KRL airborne geophysics survey and subsequent analysis
has proven to be a successful venture for the Company, confirming
the highly prospective nature of both KRL North and KRL South;
supporting ongoing work at the projects. In addition, the survey
has also identified other targets and prospects in the
region."
Background
Located along the world renowned Kainantu Transfer Structure,
KRL holds two highly prospective projects, KRL North and KRL South,
in a district associated with highly successful mining
projects.
KRL North
At KRL North, given proximity to the K92 mine, the Company has
continued field work and studies to build confidence on the
structural similarities and potential trend between the project and
the Bilimoia Mineral Field (inclusive of two significant vein
systems at Maniape and Arakompa only 2 to 4 km outside of the SE
corner of KRL North).
In 2021, a mapping and sampling programme was conducted with the
objective of assessing whether such enhanced structural
permeability extends into KRL North. Results were extremely
encouraging, with several altered and intrusive bodies observed and
interpreted as associated with the Elandora Porphyry. A ring
feature observed on the southern border of KRL North was found to
be underlain by an extensive outcrop of phyllic altered intrusive
rocks which was considered to indicate potential porphyry style
mineralisation at depth.
Initial analysis from the airborne geophysics program conducted
by K92 also appears to demonstrate a NE linear zone of high
conductivity trending towards KRL North, likely indicating
throughgoing structures possibly associated with contained water
and/or sulphide-bearing zones. Further details are contained
in KRL's release of March 10,
2022.
KRL South
At KRL South, the Company's initial focus has been around the
Tirokave area, with three prospects identified for further
investigation: East Avaninofi (where a 40 g/t Au sample was
collected), Yaoro Ridge and Tebeo Ridge.
The area is of interest has extensive outcrops identified within
the Akuna Igneous complex, including scattered dykes and plugs of
the Elandora Porphyry and intrusives associated with other
successful projects in the region.
Trenching is currently underway at East Avaninofi and Yaoro
Ridge, where the company continues to collect samples and undertake
further mapping in preparation for potential delineation of drill
targets. With the area remaining highly prospective, KRL is
also looking more broadly at other regional targets in KRL
South.
Airborne Geophysical Survey
As noted in the Company's release of March 10, 2022, encouraging results and analysis
have confirmed the Company's views on the prospective nature of
both KRL North and KRL South, justifying an airborne geophysical
survey of the area.
KRL co-operated with other miners in the Kainantu region in Q4
2021/Q1 2022 to share resources to mobilise for airborne
geophysical surveys over respective projects, with KRL having flown
its survey in January-February
2022.
Airborne survey data was collected by EGL (who operate the
Mobile Magneto Tellurics, or Mobile MT system). The area surveyed
included all prospective areas of KRL North in addition to key
areas of interest in and around the Tirokave area of KRL South
(including the East Avaninofi and Yaoro Ridge prospects).
Figure 1 below displays the three blocks covered by the survey,
totaling 186 km² (involving over 1,000 line-kilometres
of survey). The apparent preliminary conductivity analysis from EGL
is also presented in Figure 1.
KRL North
|
North Block
|
EL2558,
EL2655
|
533 line-km
(97sq.km)
|
KRL South
|
Tirokave
Block
|
EL2559, EL2650,
EL2652
|
263 line-km (43
sq.km)
|
KRL South
|
Ontenu Block
|
EL2660
|
259 line-km (46
sq.km)
|
Survey lines for all three areas were flown in an E-W direction,
at 200m spacing, with tie lines at
right angles (N-S), every 2,000m. On
completion of the survey in February
2022, EGL completed preliminary data processing and a final
survey report was delivered in April
2022.
This data was then delivered to Computational Geosciences Inc.
("CGI"), of Vancouver, who
completed advanced processing and modelling; with 3D inversion
conductivity models, and magnetic susceptibility and magnetization
vector models produced, after data clean-up using a proprietary
Power Line Monitor algorithm (which only impacted the eastern part
of KRL North). This final work was completed at the start of June
and the Company can now report results through to the advanced
processing and modelling stage.
Geophysics Results
KRL North
Initial mapping of EGL-derived preliminary apparent conductivity
at KRL North had identified a number of high conductivity areas
such as the Southern Ring feature, the NE trending Ramu Gorge
Fault, the SE corner of EL2655 (known as the Young Creek area) and
several other discrete conductivity highs in the south of EL 2655.
Figure 2 displays the conductivity pattern over the two exploration
licences.
The relative proximity of the Arakompa and Maniape deposits to
the apparent conductivity high underlying the southern ring feature
area can be noted.
The final processed conductivity and magnetization models
prepared by CGI are set out in Figure 3 below, together with a
brief description of the interpretations of each survey block –
features of interest are annotated for clarity.
Two large, multi-component, magnetic anomalies interpreted as
possible intrusive/extrusive complexes (N1 & N2) – either may
be considered a source of mineralising fluids.
The previously identified southern ring feature centred on the
triple junction of 3 leases (two held by KRL and one by K92)
appears associated with the N1 anomaly and may represent an
apophysy of a subjacent igneous body. In this regard, zoned
hydrothermal alteration and mineralisation mapped and sampled by
KRL to the north and, more recently, northwest of N1 are considered
consistent with peripheral mineralisation commonly associated with
porphyry style deposits.
A deep-seated, magnetic and conductive, NE-trending linear
structure termed the Ramu Gorge Fault (N3) is associated with N1,
sub-parallel to the main Kainantu Transfer Fault trend, and several
NW-trending magnetic (N4) and conductivity (N5) anomalies are
interpreted as permeable structures. Intersections of these
NW-trending structures with the Kainantu Transfer trend represent
additional exploration targets (areas of enhanced hydrothermal
fluid flow).
The recently identified Young Ck zone of low temperature
alteration and mineralisation appears associated with the N2
anomaly which is located in a structurally permeable zone of
cross-cutting dominantly NE and NW faults & fractures.
Prominent NE to NNE trending lineaments shown transecting Akuna
Igneous Complex rocks to the immediate southeast of this anomaly
prompted KRL to apply for ELA 2755.
Conductive anomalies in the northeast of survey are shallow and
interpreted as permeable sediments.
KRL South
At KRL South, the preliminary analysis by EGL at Yaoro Ridge,
and north towards Tebeo, is shown to be underlain by a strong and
extensive conductivity zone. The strong magnetic high in the center
of the Tirokave Ring may indicate several multi-generational
magnetic intrusive bodies forming the core of the complex.
The pattern of high conductivity anomalies adds confidence to
the reliability of field data and processes in KRL's
predictions.
A strong and extensive conductivity high orientated NW from
Tebeo Ridge to the Mt. Yungateia area also appears as a prominent
feature, potentially indicating further prospects of hydrothermal
alteration and mineralisation in the vicinity of work already
underway around Tirokave.
In this regard, the Company has identified Mt. Yungateia as a
newly identified prospect which appears underlain by coincident
conductivity and magnetic highs.
In relation to the further advanced analysis by CGI at KRL
South, an extensive resistive zone (T1) could represent the
batholithic Elandora Porphyry igneous complex largely occupying the
center of the Tirokave ring feature, with a small apophysy on its
northern margin (T2) situated on the western side of East Avaninofi
Prospect, an area displaying extensive phyllic alteration. The
latter anomaly is magnetic and may represent a skarn target (small
skarn occurrences are commonly noted throughout the prospect areas)
and/or an underlying porphyry.
A resistive zone with a conductive core (T3) underlying Mt.
Yungateia represents a possible porphyry target. A slightly deeper
NW-trending linear conductive zone (T4, parallel to the Kora
Vein-trend) is an associated structural target of interest.
Hydrothermally-altered porphyritic rocks, with quartz-sulphide
veins, along with skarns, have been observed in this area.
Small magnetic features (T5 & T6) are associated with weak,
linear N- to NNW-trending conductors.
Next Steps and
Conclusions
KRL will continue analysis of data collected from the airborne
geophysics programme, which has been extremely useful in supporting
the Company's views as to the highly prospective nature of KRL
North and KRL South; while also identifying additional prospects
and targets for further investigation at both.
The analysis, combined with ongoing field work, will support the
Company's programme to delineate drilling targets at KRL South; and
potentially areas for further intensive efforts at KRL North.
In addition, the Company is currently reviewing the outcomes of
the CGI analysis in relation to regional prospectivity and will
provide a further update in the near future.
Qualified Person
The scientific and technical information disclosed in this
release has been reviewed and approved by Graeme Fleming, B. App. Sc., MAIG, an
independent "qualified person" as defined under National Instrument
43-101, Standards of Disclosure for Mineral Projects.
About Kainantu Resources
(KRL)
Kainantu Resources 'KRL' is an Asia-Pacific focused 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 PNG. Both KRL North and KRL South show potential
to host high-grade epithermal and porphyry mineralisation, 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.
Neither the TSX-V nor its Regulation Services Provider (as
that term is defined in the policies of the TSX-V) accepts
responsibility for the adequacy or accuracy of this release.
Disclaimer and Forward-Looking Information
Mineralisation hosted on adjacent and/or nearby properties is
not necessarily indicative of mineralisation hosted on the
Company's property. The data disclosed in this release
relating to drilling results is historical in nature. Neither the
Company nor a qualified person has yet verified this data and
therefore investors should not place undue reliance on such data,
and no representation or warranty, express or implied, is made by
the Company, its affiliated companies, or any other person as to
its fairness, accuracy, completeness, or correctness. This
release contains forward-looking statements, which relate to future
events or future performance and reflect management's current
expectations and assumptions. Such forward-looking statements
reflect management's current beliefs and are based on assumptions
made by and information currently available to the Company. All
statements, other than statements of historical fact, are
forward-looking statements or information. Forward-looking
statements or information in this news release relate to, among
other things: formulation of plans for drill testing; and the
success related to any future exploration or development programs.
These forward-looking statements and information reflect the
Company's current views with respect to future events and are
necessarily based upon a number of assumptions that, while
considered reasonable by the Company, are inherently subject to
significant operational, business, economic and regulatory
uncertainties and contingencies. These assumptions include; success
of the Company's projects; prices for gold remaining as estimated;
currency exchange rates remaining as estimated; availability of
funds for the Company's projects; capital, decommissioning and
reclamation estimates; prices for energy inputs, labour, materials,
supplies and services (including transportation); no labour-related
disruptions; no unplanned delays or interruptions in scheduled
construction and production; all necessary permits, licenses and
regulatory approvals are received in a timely manner; and the
ability to comply with environmental, health and safety laws. The
foregoing list of assumptions is not exhaustive. The Company
cautions the reader that forward-looking statements and information
involve known and unknown risks, uncertainties and other factors
that may cause actual results and developments to differ materially
from those expressed or implied by such forward-looking statements
or information contained in this news release and the Company has
made assumptions and estimates based on or related to many of these
factors. Such factors include, without limitation: fluctuations in
gold prices; fluctuations in prices for energy inputs, labour,
materials, supplies and services (including transportation);
fluctuations in currency markets (such as the Canadian dollar
versus the U.S. dollar); operational risks and hazards inherent
with the business of mineral exploration; inadequate insurance, or
inability to obtain insurance, to cover these risks and hazards;
our ability to obtain all necessary permits, licenses and
regulatory approvals in a timely manner; changes in laws,
regulations and government practices, including environmental,
export and import laws and regulations; legal restrictions relating
to mineral exploration; increased competition in the mining
industry for equipment and qualified personnel; the availability of
additional capital; title matters and the additional risks
identified in our filings with Canadian securities regulators on
SEDAR in Canada (available at
www.sedar.com). Although the Company has attempted to identify
important factors that could cause actual results to differ
materially, there may be other factors that cause results not to be
as anticipated, estimated, described, or intended. Investors are
cautioned against undue reliance on forward-looking statements or
information. These forward-looking statements are made as of the
date hereof and, except as required under applicable securities
legislation, the Company does not assume any obligation to update
or revise them to reflect new events or circumstances.
SOURCE Kainantu Resources Ltd.