VANCOUVER, BC, Sept. 14,
2022 /CNW/ - Kainantu Resources Ltd. (TSXV: KRL)
("KRL" or the "Company"), the Asia-Pacific focused gold mining company, is
pleased to provide an update on regional exploration progress at
the Ontenu area of interest, KRL South project. Historic
field work in combination with detailed analysis from the Company's
airborne geophysical survey demonstrates the Ontenu area hosting
several highly prospective Cu-Au targets (porphyry-skarn and
associated epithermal Au).
Highlights
Key highlights include the following:
- a cluster of mineralised targets (porphyry-skarn and an
associated epithermal breccia have been identified at Ontenu in the
KRL South project, making this a stand-out priority for further
exploration by KRL;
- Ontenu lies on the world renowned Kainantu Transfer Structure
and is approximately 27 km SW of the K92 Mining Inc. ("K92")
operating mine;
- exploration by prior operators reported extensive soil
anomalies (Barrick Au-Cu-Mo soil geochemical anomaly: 100-375ppb
Au; 300-2,300ppm Cu and 15-237ppm Mo);
- recent geophysical analysis commissioned by KRL identified
several zones of high conductivity and discrete magnetic highs
observed along both NW and NE trends;
-
- a central anomaly coincides with a zone of high Au geochemistry
at the intersection of prominent NW & NE trending structures
reported by Barrick Gold Corp. ("Barrick");
- a further anomaly associated with a coincident NW trending
lineament represents a controlling structure in the same
orientation as the high-grade Kora-Irumafimpa-Judd epithermal vein
system underlaying K92's operations;
- three high priority targets have been identified by KRL for
immediate work; with potential to move towards delineated drilling
targets near term (subject to further analysis, including
geochemistry and geological mapping); and
- community engagement in the area is ongoing and
supportive.
Matthew Salthouse, CEO of KRL,
commented:
"Building on extensive exploration work at KRL South since
listing, the Company has successfully expanded activities in the
broader project; with the Ontenu area identified as highly
prospective for gold and copper. In addition to other
initiatives in Kainantu, KRL will accelerate activities around
Ontenu with three targets already identified for immediate
work. All are on trend and in proximity to other successful
high-grade miners in the region. We are confident Ontenu will
yield further encouraging results, adding value to the portfolio of
high quality KRL projects."
Background
The Company's KRL South project is located along the world
renowned Kainantu Transfer Structure, in a district associated with
highly successful mining projects including K92. The
Company's initial focus has been around the Tirokave area of
interest, with prospects identified for further investigation
(including East Avaninofi where a 40 g/t Au sample was
collected). A further update will be provided on these
activities in the near future.
The Company has also continued exploration activities and
analysis at regional targets across KRL South, combining ongoing
field work, a comprehensive review of the geophysical survey
(announced June 9, 2022) and research
of historic records from the PNG Mineral Resource Authority
("MRA").
From this, the Ontenu area of interest has emerged as a
stand-out prospect and is ranked as a priority for the Company in
the highly prospective KRL South project (with potential to
accelerate a focused drill programme at Ontenu).
Please refer to Figure 1, mapping the Ontenu area of interest,
relative to Tirokave (where KRL is already active, as noted above)
and the broader Kainantu district. Ontenu is approximately 15
kilometres east of Tirokave, and 27 kilometres south-west of the
K92 operations. Ontenu is located in EL2660, part of the KRL
South project with the tenement in good standing.
Ontenu Area of Interest
Ongoing field work and analysis by the Company has identified a
cluster of mineralised porphyry and intrusion related targets
around Ontenu, a highly fertile area, centred on the north-east
trending Kainantu Transfer Structure. Encouraging geophysical
survey results also support the potential of Ontenu for extensive
bulk grade with attendant higher-grade mineralisation, making this
an area of heightened focus for the Company.
Geology and past exploration efforts
Research of historic records held by the MRA confirms Ontenu was
first identified by Renison Gold Corp. ("RGC") in the 1980s, with 3
holes drilled (including 100m @ 0.32
g/t Au and 0.1% Cu from 14m
downhole). Highlands Pacific and Barrick conducted
further exploration activities at Ontenu. Barrick defined a
1.0x0.4km Au-Cu-Mo soil geochemical anomaly (100-375ppb Au;
300-2,300ppm Cu and 15-237ppm Mo) within a soil grid area of more
than 15km2 and completed 7km2 of surface
mapping.
Intrusive lithologies, including diorite, feldspar porphyry and
pyroxene porphyry were observed to be hosted by siltstone (which is
hornfelsed and occasionally skarnified). The most extensive
alteration reported was a moderate to strong phyllic
assemblage. Remnants of potassic alteration and a broad
propylitic halo were also observed. Prior to ceasing
activities across the Kainantu district, Barrick drilled a single
hole (to 530m) to test the prospect;
with the best intercept reported of 37.5m @ 0.15g/t Au and 0.11% Cu from 79.5m downhole.
Geophysical survey
Conducted in H1 2022, the Company's geophysical survey
highlighted the strongly anomalous central areas around
Ontenu. Specifically, several discrete zones of high
conductivity have been observed along both NW and NE trends: see
Figure 2. A central zone at the intersection of the most
prominent NW and NW trending structures coincides with a zone of
highly anomalous Au geochemistry reported by Barrick (see above),
but not drilled as yet; with further zones in both NW and NE
directions appearing to be prospective and underlain by discrete
magnetic highs.
Please also refer to Figure 3, relating the conductivity
anomalies from the MMT survey with historic data from RGC and
Barrick – also noted and KRL targets identified. Two
prominent conductivity anomalies (O5 and O6), in addition to a
curvilinear conductor (O7) all occur in the vicinity of the
prospects defined by both RGC and Barrick. While not recognised by
the previous operators, O5 is the strongest and deepest conductor
in all areas surveyed by the Company and may represent a
significant shallowly buried mineralisation system for further
field investigation.
The O6 anomaly is associated with a coincident NW trending
linear conductivity and magnetic anomaly (O2), which appears to
represent a significant controlling structure.
Coincidentally, this is the same orientation as the
high-grade Kora-Irumafimpa-Judd epithermal vein system underlaying
K92's operations.
Shallow asymmetric conductivity anomalies (O3 and O4) may
represent sediments thickening towards the NE trending structures.
Quartz-limonite stockwork veining hosted by tertiary
conglomerates immediately overlying a regional unconformity with
basal Mesozoic metamorphics support the area around O4, termed the
Onerunka anomaly. This is a location for further field work
investigation (noting artisanal miners are active).
Next steps
KRL is currently conducting social awareness and community
engagement to support field work at Ontenu from H2 2022
onwards. Discussions to date have indicated community
support.
Three high priority targets have been identified (see Figure 3),
based on structural, geochemical and geophysical signatures
discussed above. Over the coming months, a focussed grided soil
sampling programme (circa 1,000 samples in total) will take place
at these targets, in addition to further mapping and rock
sampling.
The intention is to produce zoned geochemical and alteration
mapping to aid in vectoring towards drill targets (with potential
to move towards a focused drill programme in the near
term).
The Company views the Ontenu area as extremely encouraging for
potential economic Cu-Au-Ag±Mo mineralisation at KRL
South.
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.
For further information please visit
https://kainanturesources.com/
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.