Papua Mining plc
(“Papua” or “the Company”)
Share Placing and Exploration Update
Papua Mining plc, a UK company focused on the exploration and development of gold and copper deposits in Papua New Guinea (“PNG”), presents this update in respect of its drilling activities at the Mt. Visi Prospect and also announces a share placing.
- The drilling programme at the Mt. Visi Prospect has been completed.
- Five holes totaling 776 meters of drilling were completed to a maximum depth of 211m.
- High temperature, potassic alteration has been encountered in cores from three of the five holes. This style of alteration is classically associated with mineralized copper porphyry bodies.
- Copper mineralisation intersected in drillcore in four of the five drillholes; copper and gold assays are awaited.
- A share placing of 2,000,000 shares in the Company at 3 pence per share (the “Placing Shares”) to raise gross proceeds of £60,000 (the “Placing”).
Commenting on the recent drilling programme, Hugh McCullough , Director, said:
“The recent drilling programme at the Mt Visi Prospect follows upon the very encouraging indications seen at surface in this area. Drilling has shown extensive development of high temperature potassic alteration which is indicative of proximity to mineralized porphyry deposits. The fact that this alteration is seen both at surface and at the shallow depths so far drilled, demonstrates the significant potential of this zone.”
Mt. Visi Drilling
Between December 2015 and March 2016, five holes totaling 776 metres of diamond core drilling have been completed at the Mt. Visi Prospect area which straddles West New Britain and East New Britain Provinces.
Table 1: Diamond drill hole parameters for the Mt. Visi Prospect drilling programme.
The drilling programme was designed to follow up on the initial discovery of surface exposures of high grade gold and copper at the eastern boundary of adjacent licence area EL2051 and additional field work which then discovered an extensive zone of potassic alteration at surface in EL2322, some 1000 metres to the east of the initial discovery.
Further potassic alteration together with visible copper mineralization has been observed at shallow depths in three of the five holes completed. Potassic alteration of the type seen both at surface and in the drill cores, is diagnostic of the central cores of mineralized copper porphyry systems.
To date, approximately US$20 million has been expended on exploration and related activities with the aim of identifying gold and copper deposits and its licence areas in Papua New Guinea and our recent drilling has reinforced our belief in the potential value of our asset. Following our own XRF analysis, we have selected core samples to be submitted for external assay analysis. We await the assay results and a more comprehensive report on the drilling programme will be published when they have been received.
Placing of Shares
The Company is also pleased to announce the completion of a placing of 2,000,000 new shares at 3 pence per share with existing shareholders (the “Placing”). The proceeds of the Placing will be used for working capital purposes.
In addition, a further 666,667 shares are being issued at 3 pence per share to John Benseman (the “Benseman Shares”) in satisfaction of an invoice related to the operational activities of the Company in PNG.
Following completion of the Placing and the issue of the Benseman Shares, the enlarged share capital of the Company will be 84,772,201 (the “Enlarged Share Capital”) and this figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the Company, under the Disclosure and Transparency Rules.
Settlement and Dealings
Application will be made to the London Stock Exchange for the Placing Shares and the Benseman Shares to be admitted to trading on AIM. It is expected that Admission of the Placing Shares and the Benseman Shares will become effective and that dealings will commence at 8.00 a.m. on 20 May 2016.
For further information on the Company please visit www.rockfireresources.com or contact the following:
|Papua Mining plc,Hugh McCullough, Director||+353 1 532 9535|
|Cenkos Securities plc – Nominated Adviser & Broker,Derrick Lee/Beth McKiernan||+44 131 220 6939|
Hugh McCullough, EurGeol., PGeo, Director of Papua, is a member of the Institute of Geologists of Ireland. He is a qualified person as defined in the Guidance Note for Mining, Oil and Gas Companies, March 2006, of the London Stock Exchange. He has reviewed and approved the technical information contained in this announcement.