TIDMPML
RNS Number : 9005C
Papua Mining Plc
25 January 2018
25 January 2018
This announcement contains inside information
Papua Mining plc
("Papua" or "the Company")
Update of the Plateau Project with further drill results
The Board of Papua Mining (LON: PML), is pleased to update
shareholders with further encouraging results from the recent
drilling program at its 100%-owned Plateau Prospect in north
Queensland, Australia.
Highlights:
-- Hole BPL008 - 10m @ 1.9g/t Au and 9g/t Ag (from 18m downhole)
including 4m @ 3.65g/t Au and including 2m @ 5.8g/t Au.
Additionally, 6m @ 13g/t Ag (from 21m downhole) was also
intersected within a broader envelope of 43m @ 4g/t Ag. The same
hole also intersected 24m @ 0.5% Zn from 25m downhole;
-- Hole BPL007 - 20m @ 0.50g/t Au (from 16m downhole) including
9m @ 0.9g/t Au. The same hole also intersected 43m @ 2g/t Ag (from
surface) and 22m @ 0.4% Zn, also from surface;
-- Hole BPL006 - 20m @ 0.2% Cu (from surface) which represents a
copper-enriched zone, 200m further east from all previous drilling.
This broad zone of elevated copper in the eastern-most hole sits on
the western edge of a surface copper geochemical anomaly which is
continuous between Plateau and the Split Rock Prospect (2.5km north
of Plateau). At Split Rock, which lies within the Lighthouse
tenement, surface rock samples collected in 2011 returned up to
11.36% Cu, 3.5 g/t Au, 38.1 g/t Ag and 0.4% Co;
-- With consistently wide intervals of multi-element
mineralisation being encountered at Plateau, the Company's
technical team is observing similarities to the operating Mt Wright
Gold Mine (+1.5Moz gold), located 50km northeast of Plateau and
believes another breccia complex similar to Mt Wright may exist at
Plateau; and
-- Zn/Pb +/- Ag ratios at Plateau are similar to the upper
levels of Mt Wright (surface down to 160m deep), indicating that
the best developed gold mineralisation may potentially be deeper
than the current level of drilling.
Chief Executive Officer of Papua Mining, David Price
commented:
"Drilling results from this program have returned wide zones of
mineralisation. The gold results including 22m @ 1.9g/t Au are very
exciting, as are the broad elevated intervals of other elements.
The recent intercepts of 43m @ 2.0g/t Ag and 16m @ 1.1% Zn and 20m
@ 0.2% Cu add significantly to historical intercepts of 234m @
2.5g/t Ag. We believe we are starting to see early signs of a
significant project.
Management is very encouraged by this first drilling phase,
which has increased the potential for the discovery of a large
mineralised system. Plateau is in the vicinity of major gold
deposits such as Mt Leyshon, Pajingo, Mt Wright and Ravenswood and
we are excited about the similar geological, geochemical and
geophysical charateristics we are seeing at Plateau."
Reverse Circulation drilling undertaken in November and December
2017 has continued to return broad intercepts of gold and silver
mineralisation at the Plateau Prospect within the Lighthouse
Project, North Queensland. Results from the final 7 holes (BPL005 -
BPL011) have been received from ALS Laboratories in Townsville.
As the Company's's knowledge of the Plateau Prospect increases
through drilling, similarities to the operating Mt Wright Gold Mine
(50km NE of Plateau) are being observed, which has historical
resources of more than 1.5 million ounces. Importantly, the main
lode mineralisation at Mt Wright was not intersected until 160m
below surface with mineralisation extending down to 1,200m below
surface.
Similarities observed are as follows;
ü hosted by Permo-Carboniferous breccia complexes with
predominantly polymict breccia;
ü occur in close proximity to an intrusion of rhyolitic
composition;
ü contain tuffisite pipes (a fine-grained, milled breccia)
ü approximately similar geometry and size
ü rhyolites comprise flow-banding and breccia phases.
A link is provided below showing the visual similarities between
core drilled at Plateau in 2006 and core photographs from Mt
Wright.
http://www.rns-pdf.londonstockexchange.com/rns/9005C_-2018-1-25.pdf
Next Steps:
Ø Acquisition of available geophysical data and conducting new
surveys where required, such as 3D Induced Polarisation (IP) and
magnetics;
Ø Continued interpretation and modelling of the new drilling
data to build into planning for the next drilling phase; and
Ø Mapping, sampling and structural analysis.
Discussion of Results:
Hole BPL005 was designed to drill through an interpreted fault
zone and to definitively test an area where mineralisation was not
anticipated. The hole intersected 2m @ 1.0g/t Au, 7.7g/t Ag and 1.0
% Zn from 139m downhole.
Drill hole BPL006 returned 20m @ 0.2% Cu from surface, which is
the broadest elevated copper zone intersected to date at Plateau.
This broad zone of elevated copper in the eastern-most hole sits on
the western edge of a surface copper geochemical anomaly which is
continuous between Plateau and Split Rock (2.5km north of Plateau).
At Split Rock, which lies inside the Lighthouse tenement,
historical surface rock samples collected in 2011 returned up to
11.36% Cu, 3.5 g/t Au, 38.1 g/t Ag and 0.4% Co.
Split Rock is a significant surface copper anomaly (2km x
1.5km), which represents another prospective target for Papua. This
prospect will be included in an Induced Polarisation (IP)
geophysical survey being planned. This survey will assist in
determining if Plateau and Split Rock form part of a much larger
mineralised system, which could potentially be connected at
depth.
BPL007 and BPL008 were both drilled into the main line of
mineralisation with the aim of filling gaps in the historical
drilling pattern, close to surface. These holes have confirmed the
validity of historical drilling results (from 30 years ago) and
have also successfully filled gaps in the drilling density to
assist in the aim of delivering a maiden mineral resource.
http://www.rns-pdf.londonstockexchange.com/rns/9005C_1-2018-1-25.pdf
Two holes (BPL009 and BPL010) were designed as pure exploration
holes and were drilled south of the main lode of mineralisation
(250m and 650m respectively) with the aim of testing the
prospectivity of regional structures. Hole BPL009 drill-tested a
NE-striking, semi-regional fault which was barren of
mineralisation, as was hole BPL010, which tested a remote, circular
magnetic feature.
The final hole (BPL011) was a "scissor hole" drilled north of
the main line of mineralisation to test for possible repetitions of
mineralisation to the north and to drill back towards the
mineralisation and parallel to the mineralisation to ensure holes
were targetted in the correct orientation. BPL011 concluded that
there is no repetition to the north and confirmed drilling
orientation and additionally intersected 1m @ 1g/t Au at 244m
downhole.
Drilling program details are provided in the table below which
includes the rationale for each hole drilled.
Hole EAST NORTH RL DEPTH DIP AZIMUTH TARGET
Number (AGD94) (AGD94) (m) (m) (deg) (mag)
========= ========= ========= ===== ====== ======= ======== ============================
Conceptual target
only. Western margin
BPL001 459711 7740374 304 250 -60 040 of rhyolite.
Southern margin of
BPL002 459841 7740315 312 200 -60 000 breccia. Strike extension.
Conceptual target
only. Eastern margin
BPL003 460099 7740435 327 200 -60 330 of rhyolite.
South-dipping eastern
BPL004 460297 7740405 329 250 -60 350 zone. Depth extension.
South-dipping eastern
BPL005 460425 7740410 316 250 -60 350 zone. Depth extension.
Conceptual target
BPL006 460634 7740469 305 125 -60 350 only. Eastern step-out.
Conceptual target
only. Parallel zone
BPL007 460355 7740502 308 100 -60 350 to north.
Conceptual target
only. Parallel zone
BPL008 460246 7740511 328 106 -60 350 to north.
Conceptual target
only. Undrilled NE
BPL009 459824 7740177 316 130 -60 330 structures.
Conceptual target
only. Southern magnetic
BPL010 459548 7739894 293 250 -60 135 low.
Conceptual target
only. Southern margin
BPL011 460221 7740601 326 250 -70 190 of breccia.
======
2111
--------- --------- --------- ----- ------ ------- -------- ----------------------------
Drilling results showing significant intersections of gold,
silver, zinc and copper for each hole drilled.
Papua Mining
plc
Plateau Prospect,
Queensland
Significant RC drilling
results Nov/Dec 2017
Hole From To Interval Au Ag Zn Cu
Number (m) (m) (m) (g/t) (g/t) (%) (%)
--------- ----- ---- --------- ------ ------ ---- ----
BPL001 28 30 2 0.83 9.2
--------- ----- ---- --------- ------ ------ ---- ----
BPL002 39 61 22 1.86 22.3
--------- ----- ---- --------- ------ ------ ---- ----
BPL002 129 145 16 0.21 3.2 1.1
--------- ----- ---- --------- ------ ------ ---- ----
BPL003 32 95 63 2.3
--------- ----- ---- --------- ------ ------ ---- ----
BPL004 129 139 10 1.37 12.4
--------- ----- ---- --------- ------ ------ ---- ----
BPL005 139 141 2 1.00 7.7 1.0 0.2
--------- ----- ---- --------- ------ ------ ---- ----
BPL006 0 20 20 0.2
--------- ----- ---- --------- ------ ------ ---- ----
BPL007 16 36 20 0.50 2.5
--------- ----- ---- --------- ------ ------ ---- ----
BPL007 0 43 43 2.0
--------- ----- ---- --------- ------ ------ ---- ----
BPL007 0 22 22 0.4
--------- ----- ---- --------- ------ ------ ---- ----
BPL008 18 28 10 1.90 9.0
--------- ----- ---- --------- ------ ------ ---- ----
BPL008 25 49 24 0.5
--------- ----- ---- --------- ------ ------ ---- ----
BPL009 no significant assays
--------- --------------------------------------------------
BPL010 no significant assays
--------- --------------------------------------------------
BPL011 244 245 1 1.00
--------- ----- ---- --------- ------ ------ ---- ----
Competent Person Statement:
Information in this announcement that relates to exploration
results is based on information compiled by Mr David Price, a
Director of Papua Mining plc, who is a Fellow of the Australasian
Institute of Mining and Metallurgy (FAusIMM). Mr Price has
sufficient experience relevant to the style of mineralisation and
type of deposit under consideration and to the activity which has
been undertaken to qualify as a Competent Person as defined by the
2012 Edition of the Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves (the JORC Code) and
under the AIM Rules - Note for Mining and Oil & Gas Companies.
Mr Price consents to the inclusion in the announcement of the
matters based on their information in the form and context in which
it appears.
In quoting exploration targets, the potential quantity and grade
is conceptual in nature. There has been insufficient exploration to
estimate a Mineral Resource and it is uncertain if further
exploration will result in the estimation of a Mineral
Resource.
For further information on the Company please visit
www.papuamining.com or contact the following:
Papua Mining plc david@papuamining.com
David Price, Chief Executive Officer
Cenkos Securities plc
Nominated Adviser & Broker, +44 131 220 6939
Derrick Lee/Beth McKiernan
This information is provided by RNS
The company news service from the London Stock Exchange
END
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