VANCOUVER, BC, May 30, 2023
/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
interim results for the 3 months ending March 31, 2023, 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 Update and
Highlights
- ongoing prudent management of capital resources continued in Q1
2023, during the 3 months ended March
31;
- capitalised expenditure on exploration and evaluation
activities totalled $0.32 million,
compared to $0.72 million for the
period in 2022, with the generally less field activity for the
period;
- subsequent to the reporting date on May
30, 2023, KRL announced of the placement of a Senior
Convertible Debenture securing commitments of C$1.40 million, maintaining funding for the
Company's projects and operations (to supplement cash and
receivables reported at March 31 of
$0.35 million (or C$ 0.48 million) with $0.17 million of non-trade receivables);
- cash used in operating activities was $0.32 million and $0.31
million for investing activities and net inflows from
financing of $0.52 million; and
- the operating loss for the period was $0.31 million largely in line with $0.26 million in 2022 with small increases in
travel costs and professional fees relating to fundraising.
Operational Update and
Highlights
The focus for Q1 2023 was on priority projects at Kili Teke and
Ontenu/KRL South, including:
- ongoing work to define drill targets at the Ontenu Prospect,
with a high degree of consistency reported from samples, within a
narrow range of up to 1.55ppm Au; 3,893ppm Cu and 20.8ppp Ag;
- issuance of an NI43-101 Technical Report for the Kili Teke
project, with an estimated inferred mineral resource of
237Mt @ 0.34% Cu, 0.24g/t Au and
168ppm Mo, for a total of 802kt of Cu, 1.81Moz of Au and 40kt Mo
(at a 0.2% Cu cut-off); and
- completion of a highly successful study at the Mountain Gate
Prospect at the May River Project, with geochemical analysis
identifying a likely shallow buried Au and Cu rich porphyry
target.
Matthew
Salthouse, CEO of KRL, commented:
"KRL is pleased to provide this update for Q1 2023. During
the quarter, considerable focus was applied towards funding
initiatives to enable the consolidation and development of our
foundation assets; providing a platform to preserve and build upon
our blue chip portfolio at Kainantu, May River and Kili
Teke.
The recently announced convertible debenture supports this
strategy, providing funding to lock in value generating
initiatives; primarily at Kili Teke and Ontenu/KRL South.
KRL looks forward to updating stakeholders on further
initiatives at these projects and other locations in the near
future."
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.
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.
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.