Papuan Precious Metals (PPM) has sold a 90% stake in its Mount Suckling project in PNG’s central range to Suckling Minerals, a new company established by the former chief operating officer and a Board director of PPM. The company will maintain a 10% carried interest and retain a 2% net smelter royalty.
Suckling Minerals was formed by David Lindley and Tony Kelly, and they have agreed to deliver 5,344,791 PPM shares to the company for cancellation.
“Suckling Minerals may purchase the 2% net smelter royalty at any time with a cash payment of Can$2 million and may purchase the 10% carried interest for a payment of $4.7 million subject to maintaining the property in good standing,” says PPM chairman Dev Randhawa.
The Mount Suckling site is within one of the world’s premier porphyry copper belts, which hosts several major porphyry systems including Grasberg, Ok Tedi, Frieda, Porgera and Wafi/Golpu.
The region has largely been by-passed by modern porphyry exploration, however PPM has identified three prospects in a linear belt about 19km-long, the flagship deposit being Urua Creek gold-copper prospect.
Best gold-copper mineralization results from this deposit include trench samples of up to 33 metres @ 0.17% copper, 0.27 grams/tonne gold and 36 metres @ 0.72% copper and 0.97 grams/tonne gold including 12 metres @ 1.13% copper and 2.03 grams/tonne gold.