PAPUA NEW GUINEA - Sampling improves Kuliuta potential

Sampling at the Kuliuta prospect of Papuan Precious Metals' New Hanover Gold Project has identified broader mineralized zones and higher gold grades than previous work.

The company has received geochemical results from 207 continuous channel samples, cumulatively totalling 621 metres from 16 trenches.

The best sampling results are: 39 metres @ 3.89 grams/tonne gold, including 21 metres @ 6.54 grams/tonne, which in turn included 3 metres @ 31.64 grams/tonne; 27 metres @ 3.58 grams/tonne, including 12 metres @ 7.64 grams/tonne and 3 metres @ 23.43 grams/tonne; 51 metres @ 0.90 grams/tonne including 9 metres @ 1.56 grams/tonne and 6 metres @ 2.08 grams/tonne; and 33 metres @ 0.90 grams/tonne, including 6 metres @ 1.83 grams/tonne and 3 metres @ 3.05 grams/tonne.

Three trenches are in the Le'mu'sing area, within the 1400 metre x 600 metre zone of elevated soil anomaly and at the centre of trenching by previous owner Kennecott. It is of particular interest as consecutive 25 metre spaced soil samples adjacent to two of these trenches contained some of the highest gold values recorded from Papuan Precious Metals' grid sampling program.

Kennecott's single previous drill hole, completed in 1989, intersected only 2 metres of 1.68 grams/tonne from 41 metres downhole, and it is the company's opinion that this hole failed to intersect the gold mineralization identified by the latest sampling program.

The first drill holes at Kuliuta will be collared at Le'mu'sing in the immediate vicinity of one of these trenches. Detailed plans for a drill program at Kuliuta to begin in late March or early April are under preparation.

The sampling has expanded on Kennecott's historical results, but more importantly has identified broader mineralized zones with higher gold grades in resampled trenches.

New Hanover is an outstanding opportunity for the discovery of Lihir-style gold mineralization in a geological terrane that has been bypassed by modern mineral exploration for the past 22 years.

Meanwhile, the company has initiated exploration at its Doriri Creek hydrothermal nickel-platinum group elements (PGE) prospect, which is 8km west of its advanced Urua gold-copper porphyry prospect within its Mt Suckling property.

Doriri Creek is a geologically unique prospect, believed to contain the highest PGE known in Papua New Guinea. The patterns and mineralogy of low-temperature hydrothermal wallrock alteration and oxide-dominant/sulphide-poor mineralization are unlike any other example described worldwide.

The company has recently contracted the Commonwealth Scientific & Industrial Research Organisation (CSIRO), Australia's national government sponsored world-class research agency, with the scientific expertise to add considerable knowledge about Doriri that will contribute to the company's evaluation of this prospect. Results from this consulting project, in conjunction with a recently completed airborne geophysical program, will assist in identifying future drill targets.

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