Tuesday 1 May 2012

Papuan Precious Metals shares rise 9% on positive drill results

Papuan Precious Metals (CVE:PAU) saw its shares rise 9.09 percent on Tuesday, after it released complete drill results for two drill holes at its Urua Creek prospect, part of the company's Mt Suckling project in Papua New Guinea.

The miner, which reported partial results in February from the uppermost 79 metres of the discovery hole at the Urua Creek prospect, said complete results from hole URD002 and hole URD003 have now been received.

Hole D002 at the Urua Creek prospect in the company’s Mt. Suckling project area tested gold and copper soil anomalies and gold and copper trench values found in Trenches 1 and 2, Line 10 of the Urua Creek grid.

Papuan reported that D002 encountered several types of gold and copper mineralization throughout its 302.60-metre length.

As previously reported, a near surface 70-metre wide interval of low-grade copper mineralization assayed 0.10 percent copper.

The company also said previously that massive magnetite-sulphide and stockwork mineralization was encountered between 208.55 metres and 215.50 metres, containing 6.65 metres grading 0.77 percent copper and 1.84 grams per tonne (g/t) gold, including a 1.10 metre interval grading 9.60 g/t gold, 2.16 percent copper.

Papuan said the latest results showed a broad 12.30-metre quartz stockwork zone, at depth (264.60-276.90 metres), grading 0.13 percent copper, including 0.70 metres of 1.12 percent copper and 1.16g/t gold.

The company reported that hole URD003 intersected 4.0 metres grading 0.71 percent copper, and 0.25g/t gold and 12.00 metres of 0.20 percent copper, including 4.00 metres of 0.84 percent copper.

Hole 003 tested both gold and copper soil anomalies and long intervals of gold and copper trench values in Trench 1, Line 10 of the Urua Creek grid, said Papuan.

The holes are the first to intersect the Urua Creek diatreme breccia, as part of a three hole drill program designed to test a significant chargeability anomaly identified by a 3D-induced polarization ground geophysical survey completed last fall.

The chargeability anomaly is found within the 1,700 by 900 metre breccia, which hosts the gold and copper mineralization.

Papuan has interests in four copper-gold, nickel, and platinum group metals exploration projects in the region, including Mt. Suckling, New Hanover, Waria River and Bewani Mountains.

Early last month, the company announced the start of a 150 metre drill program on its Doriri Creek hydrothermal prospect on its Mt. Suckling project, and then expanded the campaign by two holes for a total of four.

The company said the move was based on initial positive observations from core.

The Mt. Suckling project is situated in one of the world’s most prolific porphyry copper belts. It consists of the Urua Creek, Araboro Creek and loleu Creek porphyries and includes the Dimidi Creek potassium anomaly and the Doriri Creek hydrothermal prospect.

Papuan's share price advanced more than nine percent to six cents on Tuesday afternoon.

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