VANCOUVER, BC, Aug. 29,
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 second interim results for
the period ending June 30, 2023, a
copy of which is available for review in the "Investors"
section of the Company's website.
Highlights to report over the period include the following (with
financial analysis stated in USD unless otherwise noted):
Business and Operations
- Adoption of an NI43-101 inferred resource (and publication of a
Technical Report) for the Kili Teke project:
-
- 237Mt @ 0.34% Cu, 0.24 g/t
Au and 168ppm Mo, for a total of 802kt of Cu, 1.8Moz of Au and 40kt
of Mo;
- Progress at the Ontenu prospects in KRL South (the subject of
further activities as the Company moves to delineate drilling
targets), with consistent high grades reported form outcrop and
trench exposures over a 2,300m x
900m area:
-
- Au results being remarkably consistent; with 63 sample results
recorded over a narrow range of up to 1.55 g /t Au (26 samples
exceeded 0.2ppm Au, with an average of 0.45ppm Au);
- Cu values of up to 0.39% (3,893ppm) with 17/63 returning
>800ppm Cu;
- Ag values of up to 20.8 g/t, mostly associated with the
highest Au values;
- Mo values of up to 460ppm, with 27of the 63 samples returning
>10ppm Mo;
- Distinct groups of contiguous strongly anomalous Au (max
369ppb) results from 95 gridded soil samples at 50m spacing from 2 E-W lines 100m apart transecting the centre of KRL's
priority target area:
-
- A 1,000m length averaging 101ppb
Au and a 500m length averaging 114ppb
Au;
- Cu (max 733ppm) and Mo(max 310ppm) display a close
correlation with Au values;
- A highly successful study was completed and reported on the
Mountain Gate Prospect at the May River Project, with analysis
completed on a total of 324 samples taken from surface and
trenching, with analysis indicating:
-
- Significant Au-Cu assay results were collected at Koras
Creek in the Prospect, with assay results ranging from 1342 ppm
(0.13%) Cu to 5222 ppm (0.52%) Cu, covering a distance of
194 m (with weaker anomalous gold
values ranging from 0.047ppm to 0.213ppm Au also reported);
- Possible up flow zones of a porphyry located, along with other
outcrops containing mineralization and alteration, suggests an
Au-rich high-sulfidation deposit which also overlies a buried
porphyry Cu-Au deposit;
- Indications of other satellite porphyry Cu-Au
and epithermal Au deposits have also been identified within
the nearby VTEM-ZTEM anomalies;
- Channel cut samples from trenching by prior holders of the
Project yielded significant Au and Cu assay results intervals;
-
- KRL believing there is a distinct possibility that the entire
Skygate Belt (ie: all known prospects in the Project) will prove to
be a coherent 5km-long geochemical anomaly;
- Completion of the acquisition of the remaining 90% interest in
the May River Project, taking KRL's total ownership to 100%; with
KRL issuing script consideration of 18 million common shares to the
current owners, representing a value of C$1,440,000 (based on the at the closing market
price of KRL shares on March 31,
2023, and viewed at a discount to the intrinsic value);
- Completion of a private placement for C$2,500,000; and the subsequent announcement of
the issuance of convertible notes to raise up to C$1,800,000 (with C$500,000 placed prior to the end of H1).
Financial
- Ongoing prudent management of capital resources in H1
2023:
-
- A net loss of US$0.63 million;
being in line with H1 2022 net loss US$0.52
million;
- Expenditure on exploration and evaluation activities totalled
US$0.44 million (which has
been capitalised), being US$0.78
million lower than H1 2022. The reduction being due to the
focus on maintaining capital while ensuring license commitments are
met; and
- Closing cash and receivables of $0.73
million (or C$1.0 million) with cash outflows from
exploration of $0.46 million and net
inflows from financing of $1.12
million (including a total of $0.6
million from the convertible debenture).
In the current Q3, KRL is advancing steps to close a further
round of funding via the convertible note (as detailed above) and
complete remaining steps to complete the Kili Teke acquisition from
Harmony.
Matthew Salthouse, CEO of KRL,
commented:
"KRL is pleased to provide this update for H1 2023. Key
highlights include advancing corporate activities by moving to 100%
ownership of the May River Project and publishing an NI43-101
compliant inferred resource for the Kili Teke
acquisition.
An immediate focus remains on actions to close the Kili Teke
deal, given progress in advancing regulatory approvals in
Papua New Guinea. In
addition, our field campaign at the Ontenu project in KRL South has
produced some exceptional early-stage results; supporting
activities to move towards a drilling programme in this area.
KRL will continue to preserve cash in capital markets which
remain challenging; while also examining options to ensure KRL's
overall portfolio is adequately valued as we move through the
remainder of 2023. Management acknowledges the ongoing
support of stakeholders in this regard."
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 near 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
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.sedarplus.ca). 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.