4 December 2012
Papua Mining plc (“Papua” or “the Company”), a UK company focused on the exploration for and, if commercially feasible, development of gold and copper deposits in Papua New Guinea (“PNG”), presents this update in respect of its exploration activities on its licences.
Issue to the Company of three new Exploration Licences in West New Britain
Aries Mining Limited, a wholly owned subsidiary of Papua Mining plc, has been granted three new exploration licences by the Minister for Mining in PNG. The three licences, ELs 2048, 2050 and 2051 lie in the central part of New Britain island and cover a total area of 492 square kilometres. These three licences lie within a strongly prospective zone which is underlain by volcanic and intrusive rocks which are known to host extensive mineralized systems within the West New Britain area.
We are currently conducting a major Induced Polarisation (“IP”) and Electro-Magnetic (“EM”) survey over the first two of our drilling targets near Nakru, on EL 1462, West New Britain. These initial targets are those referred to as “Junction” and “Flying Fox”. The IP survey over Junction has been completed and the IP survey is currently being carried out over the Flying Fox target. EM surveys will then be carried out over both targets. Although both IP and EM survey results must be available to allow a thorough interpretation and evaluation of the targets, a preliminary report on the recently completed IP survey at Junction shows that the target displays a resistive, low chargeability core, flanked by an annulus of high chargeability, typical of the response one might expect from a porphyry body.
Progress on the first phase of the survey has been impeded due primarily to two factors – extreme weather conditions including frequent electrical storms and torrential rain and equipment breakdown resulting in lower productivity than planned. Necessary repairs to equipment now having been completed and the weather having improved, productivity has returned to planned rates.
Recent Exploration Results and New Targets
While the geophysics surveys are being carried out at Junction and Flying Fox, our geologists and field teams have been continuing the geological mapping and sampling programmes over both existing and newly emerging target zones. This work has yielded some very positive and encouraging results and, as well as confirming the potential of the Junction and Flying Fox targets, we are also discovering new targets with strong copper mineralization. One such newly emerging target has yielded a broad mineralized zone with outcrop samples assaying at 6.68 % copper (“Cu”), 6.2% Cu and 4.08% Cu. In the case of at least one of these newly emerging target zones, based on all the available records of previous exploration in the Nakru region, there does not appear to be any report of any previous licencee having discovered or sampled that significant mineralized zone.
It is planned to commence drilling on the targets at Nakru as soon as possible following completion of the IP/EM Surveys at Junction and Flying Fox.
Other field teams have continued the exploration programmes on the Ambunti Licence on the mainland (EL1766) and the Mt. du Faure Licence in West New Britain (EL 1730). Work there will continue through the first half of 2013 before drilling targets are expected to be delineated.
|Papua Mining plc
|Hugh McCullough CEO
|+353 1532 9535
|Cenkos Securities – Nominated Adviser & Broker
|+44 131 220 6939+44 207 397 8900
|Square1 Consulting – Financial Public Relations
|David Bick/Mark Longson
|+44 207 929 5599