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Thursday, 6 December 2012
Papuan Precious Metals to sell 90% of Mt. Suckling project
Papuan Precious Metals Corp (CVE:PAU)(OTCQX:PAUFF) says it has agreed to sell its 90 per cent interest in its Mount Suckling project in Papua New Guinea to Suckling Minerals.
The company will maintain a 10 per cent carried interest, and retain a 2 per cent net smelter royalty. Suckling will deliver 5.34 million PPM shares to Papuan, with a current value of $106,895.
Under the terms, Suckling Minerals can buy the 2 per cent net smelter royalty at any time with a cash payment of C$2 million.
The deal is still subject to a number of conditions, including approval from the TSX Venture Exchange, Papuan said.
Papuan is focused on the acquisition, exploration and development of mineral properties with a focus on copper-gold porphyries in Papua New Guinea.
In the summer, the company unveiled results from the last two holes of the completed four-hole drill program at the Doriri Creek Nickel-platinum group metals (PGM) prospect, part of the Mt Suckling project.
The company said hole DOD003 returned 10.7 metres of near surface Nickel-platinum group metals mineralization, grading 1.78%Nickel and 0.68 grams per tonne (g/t) of platinum group metals, including 1.20 metres of 5.71% Nickel, 1.03 g/t PGM in the 520 metre long Doriri Creek lode.
Hole DOD004 intersected 3.00 metres grading 1.16% Nickel and 1.12 g/t PGM, and 3.00 metres of 1.15% Nickel and 0.78 g/t PGM, including 1.00 metre grading 1.41% Nickel and 1.68 g/t PGM.
The Mt Suckling project is comprised of the Urua Creek, Araboro Creek, and Ioleu Creek porphyries, as well as the Dimidi Creek potassium anomaly and the Doriri Creek hydrothermal prospect.
It covers two exploration licenses over 316 square kilometres at the eastern end of the Central New Guinea Range, one of the world's most prolific porphyry copper and precious metals belts.