Update on Kainantu Resources Exploration Strategy at KRL South
Vancouver, B.C. – April 9, 2021 - Kainantu Resources Ltd. (TSX-V: KRL) (“KRL” or the “Company”), the Asia-Pacific focused gold mining company, is pleased to provide an update on its exploration strategy at KRL South, one of the Company’s core projects located in the highly prospective Kainantu region, Papua New Guinea.
- Ongoing work continues to support the expectation that KRL South is a high-quality exploration target, in close proximity to existing miners and located in the Kainantu mining district;
- Exploration at KRL South continues to indicate the prospect of multiple epithermal, skarn and porphyry systems;
- Ring features can be observed in KRL South, associated with shallow-buried to emergent mineralising igneous complexes especially apparent on or about the rim of Tirokave and Tebeo Rings;
- A focused multi-element ridge-and-spur auger soil sampling programme (>2,000 samples to date) is near completion with approximately 54 line-km sampled so far; and
- Building on KRL’s exploration strategy, targets for further focus are expected to emerge from the ridge-and-spur soil study, to be reported in coming weeks. Ongoing sampling is extremely encouraging.
Centred approximately 25 km SW of Kainantu town, KRL South is 596.75 km² in size and comprises four tenements: EL 2559, EL 2650, EL 2660 and EL 2652. Further particulars are contained in the Company’s announcement of March 24, 2021 and below in Figure 1.
Tirokave River passes through the centre of KRL South, being a major tributary to the Upper Ramu system. Historically, substantial alluvial gold mining has occurred in the Ramu River catchment, primarily with a large proportion deriving from both active drainages and upraised terraces around the Tirokave village. Prior to the Company be being granted these tenements, exploration activities were limited. Since grant, KRL (and its predecessor) has been active on the ground since 2019, having identified skarn and porphyry style alteration and mineralisation for further investigation; in addition to the likely occurrence of epithermal mineralisation.
KRL South’s Favourable Geological Setting
Management applied for the KRL South tenements in November 2017, in line with the Company’s focus on identifying highly prospective precious metal targets in proximity to known quality producers.
Amongst other factors associated with the Kainantu region, the area was of particular interest given extensive outcrops as mapped by government geologists, identifying Akuna Igneous Complex rocks and a large body, including scattered dykes and plugs, of the Elandora Porphyry; likely to be a major source and driver of mineralisation occurring throughout the district.
In addition, substantial artisanal mining efforts in the headwaters of the Tirokave and Parufi river systems supported KRL’s decision to conduct an intensive geological mapping and sampling programme (pan concentrate, stream sediment, rock outcrop and float) from Q4 2019 to the end of Q2 2020 (“2019/2020 Programme”).
2019/2020 Programme: Ring Features and Early Petrology
A key outcome of the 2019/2020 Programme was confirmation of extensive local hydrothermal alternation and at least two skarn occurrences within KRL South. With a focus on higher quality topographic maps and imagery, management was also able to recognise a number of ring features across KRL South, as represented in Figure 1.
Figure 1: KRL South Ring Features
The ring features are of significance for a number of reasons: the main one being the apparent association with shallow-buried to emergent mineralising igneous complexes. In particular, two pronounced ring features were identified in the Tirokave area. Adjoining each other and termed by KRL as the Tirokave and Tebeo Ring Features, both encompass several complex intrusive bodies and are further highlighted in the satellite image in Figure 2.
Figure 2: Satellite image of Tirokave and Tebeo Ring Features
An initial petrology report was also prepared based on 16 samples taken from within the Tirokave Ring Feature. While concluding the igneous complex in the centre of the feature was unlikely to promote moderate to low temperature hydrothermal alterations, the report indicated concentrating exploration efforts around the rim of the ring may prove to be more successful; where KRL expects structural permeability to be enhanced (with lower temperature alternation accompanied by quartz veining).
The analysis supported setting the objectives for KRL’s H2 2020/Q1 2021 programme (“2020/2021 Programme”), with the focus on Tirokave area as most likely to provide indicators of relatively shallow hydrothermal and skarn prospects, capable of further delineation leading towards preparations for drilling.
2020/2021 Programme: Tirokave Focused Ridge and Spur Soil Sampling Programme
Based on the earlier analysis, the 2020/2021 Programme involved KRL conducting a ridge-and-spur soil sampling programme (with a gridded approach not considered appropriate due to the extensive colluvial cover on the slopes of the ring features). The KRL team rapidly completed sampling along the rims and selected spurs of the Tirokave and Tebeo Ring Features.
A 20-metre sample separation was chosen, with an emphasis on searching for narrow vein styles. Over 2,000 samples were taken, primarily of soil (combined with rock outcrop and float sampling) in proximity to the rings. Sample results are currently being finalised and analysed, in addition to a further petrology evaluation.
KRL will provide a further update shortly on outcomes from the programme and next steps in the exploration and development of KRL South. A clear objective will be identifying gold prospects in the Tirokave area for further focused exploration efforts. In the interim, further field work continues; including ongoing sampling and some manual costeaning over selected gold-anomalous soil sites.
Results Driving Focus on KRL South
To date, field work and analysis from KRL South sets a clear and logical baseline for further focused exploration efforts in the area, supporting plans to intensify work for the remainder of the year.Work to date remains encouraging and justifies KRL’s focus on this project. The ongoing progress also supports managements increasing confidence as to the highly prospective nature of KRL South.
Matthew Salthouse, CEO of KRL, commented:
“Our targeted exploration programme for the Kainantu projects continues to yield encouraging results, especially in and around the Tirokave area. This provides the foundation for further focused efforts during 2021 and beyond, with the prospective nature of the tenements becoming increasingly apparent as we build on the early successes to date at KRL South.”
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.
KRL is an Asia-Pacific focused gold mining company with two highly prospective gold projects, KRL South and KRL North, in a premier mining region, the high-grade Kainantu Gold District of PNG. Both of KRL’s projects show potential to host high-grade epithermal and porphyry mineralization, as seen elsewhere in the district. 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.
Matthew Salthouse, Chief Executive Officer (Tel: + 65 8318 8125)
Callum Jones, Corporate Development Co-ordinator (Tel: + 61 450 969 697)
IR / Financial PR: Camarco
Gordon Poole / Nick Hennis
Tel: +44(0) 20 3757 4980
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.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.