VANCOUVER, BC, Aug. 29,
2022 /CNW/ - Kainantu Resources Ltd. (TSXV: KRL)
(FSE: 6J0) ("KRL" or the "Company"), the Asia-Pacific focused gold mining company, is
pleased to report the filing of its second interim results for the
6 months ending June 30, 2022, a copy
of which is available for review in the "Investors" section of the
Company's website.
Key aspects to report over the period include the following
(with financial analysis stated in USD unless otherwise noted):
Financial
- Ongoing prudent management of capital resources in H1
2022:
-
- capitalised expenditure on exploration and evaluation
activities totalled $1.34 million,
being $0.58 million higher than H1
2021, primarily due to expanded exploration activities, including a
significant airborne geophysical survey over our properties
adjacent to K92 Mining;
- cash and receivables totalled $0.73
million (or C$ 0.93 million)
with cash outflows for exploration of $1.24
million and net inflows from financing of $1.90 million; and
- a net loss for the period was $0.52
million. This is significantly lower than H1 2021 net loss
of $0.94 million which included a
non-recurring listing fee and reduced share-based expenses.
Business Update
- The Company executed a definitive agreement to acquire the
advanced development PNG project, Kili Teke from Harmony Gold:
-
- inclusive of an inferred resource 237
Mt @ 0.34% Copper (=0.8Mt Cu), 0.24g/t Gold (=1.8Moz Au) and
168ppm Molybdenum (=0.04Mt Mo).
- A comprehensive airborne geophysical programme over the KRL
North and KRL South properties, covering a total area of 186 km2
(1,000-line kilometres), KRL North is adjacent to the highly
successful K92 mine. Geophysics has been modelled with analysis
indicating the following results:
-
- KRL North:
-
- two large magnetic anomalies were identified in highly
permeable structural environments both to the southwest and
southeast of the project, and both have been interpreted as
possible porphyry system; and,
- the southwest body appears bound by a prominent highly
conductive NE trending fault; and continue to support the potential
for extension of KRL North from the Bilimoia mineral field within
K92.
- KRL South:
-
- an additional prospect at Mt. Yungateia was identified to the
north of the Tirokave area, reflecting a coincident
conductivity/magnetic high towards the SE; and
- further regional targets deemed highly prospective identified
around the Ontenu area.
- Ongoing field work completed:
-
- KRL North: grid soil samples taken over the central area,
showed metal content and continues to support our search for a
porphyry with peripheral epithermal veins;
- KRL South: trenching was advanced at East Avaninofi and Yaoro
Ridge prospects (with final sampling results and analysis pending)
as part of ongoing work around the Tirokave area of interest;
and
- May River: a focused programme completed at the Mountain Gate
prospect (with initial results and observations indicating the
potential presence of a copper rich porphyry system).
- Some field activities were moderated and/or suspended during
the period, given potential for disruption due to national
elections in PNG.
Matthew
Salthouse, CEO of KRL, commented:
"KRL is pleased to provide this update for H1 2022. Key
highlights for KRL over the period included executing a definitive
agreement to purchase the advanced stage Kili Teke copper-gold
project, which is a transformational opportunity for the
Company.
In addition, the geophysics and field campaigns across KRL
North and KRL South increased the Company's understanding and
confidence in the highly prospective nature of our
projects.
In the second half of 2022, KRL will continued our targeted
and disciplined approach to capital management and exploration and
take further steps to consolidate our portfolio of projects; and a
particular focus on our KRL North project, adjacent to K92, where
exploration results remain extremely encouraging."
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 Limited
(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.
For further information please visit
https://kainanturesources.com/
References in this release to $ are stated in USD.
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 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.