Might be something to take a peek at. It hasn't got the proven goods like K92, but it's got good relationships with the locals and the gov't, an experienced mgmt team, very low float, and say they have some similarities to K92's lease.
This news release only refers to their KRL North field work. They will also be working on KRL South, which is (obviously) to the south of K92's lease.
Might be fun to take a kick at the can, if you have some spare change in your piggy bank. I've got a modest "starter's position", since I figure it'll move up once K92 starts to resume it's upwards trajectory, and I'm sure that K92 will do exactly that one of these days.
Kainantu Resources continues exploration at KRL North
2021-04-19 12:32 ET - News Release
Mr. Matthew Salthouse reports
Kainantu Resources Ltd. has provided an update on exploration activities at KRL North, the company's highly prospective tenements located in the northeast of the Kainantu region, Papua New Guinea.
Highlights
- Adjacent to the Bilimoia mineral field, KRL North borders on and shares similar geological attributes to the high-grade gold deposits currently being mined by K92 Mining Inc.
- The company has embarked on a comprehensive stream sediment and soil sampling program to identify further potential porphyry-related alteration and mineralization targets within KRL North.
- On strike and along trend of the world-renowned Kainantu transfer structure, two identified significant mineralized vein systems (Manipoe and Arakompa) are two to four kilometres southeast of KRL North (with a conceptual mineralizing porphyry source underlying the ground between Arakompa and the southwest corner of KRL North).
- After an extensive community awareness program resulting in strong community support, the company has successfully established long-term access arrangements with local landholders, as a key milestone event in the field activities at KRL North.
Matthew Salthouse, chief executive officer of Kainantu Resources, commented: "The proximity and central location of KRL North to known high-grade mining activities makes the project highly prospective for ongoing investigation. Concluding access arrangements with the communities of KRL North is a key milestone event ahead of fieldwork. We foresee encouraging results in coming months to add to the company's pipeline of activities and news flow."
Background
Approximately 20 kilometres northeast of Kainantu town, KRL North is 88.65 square kilometres in size, comprising two tenements: EL 2558 and EL 2655. The company's announcement of March 24, 2021, contains further particulars.
As with K92, KRL North is located along the world-renowned Kainantu transfer structure, associated with successful gold, silver and copper mining across the Kainantu mining district. Aeromagnetic data sourced from the PNG Mineral Resource Authority library indicate proximity and certain similarities, notably structure, between KRL North and the Bilimoia mineral field which host the K92 mine.
KRL North's geological setting in relation to the Bilimoia mineral field
As noted, KRL North borders K92's current tenement package and sits along strike, north-northeast, on the mineralized corridor representing a portion of the Kainantu transfer structure.
Among other features, this structure appears to control two significant mineralized vein systems within the tenement package of K92, both within three to four kilometres of the southwest corner of KRL North. Drilled by a former miner in the 1980s and 1990s, and while non-JORC compliant (or subject to a National Instrument 43-101 technical report), historic data are reported to indicate a resource of 560,000 ounces gold at 2.2 grams per tonne at Maniope and 798,000 oz Au at nine g/t at Arakompa. (NOTE: I "think" he's saying that this "historic resource" relates to a former mine on the K92 lease, near their northern border (adjacent to KRL North).
Given their proximity to the company's tenements, both the Maniope and Arakompa vein systems are relevant to KRL North. A 1994 paper by Corbett et al examined attributes of both prospects and concluded:
- "Fluid inclusion, gold fineness, vein paragenesis and mineral distribution indicate that the Arakompa vein system is proximal to a porphyry source at depth...A fluid flow pattern is defined from the mineral zonation...the mineralizing fluids flowed southward along the Maniape vein systems."
- "...It is suggested that the mineralizing porphyry has possibly been emplaced at the intersection of the Arakompa structures and the contact between the Akuna granodiorite and Bena-Bena Metamorphics."
- "An extensive programme of ridge and spur auger sampling identified soil anomalies at Arakompa...Mesothermal veins were identified in outcrop at Maniape and exposed in trenching at Arakompa."
The research infers a mineralizing porphyry source underlying the ground between the Arakompa prospect and the southwest corner of EL 2558. This warranted the company originally making application for a tenement over the area, with the potential for high-grade mineralization extending into KRL North.
Given these evident characteristics, the company has developed a program to identify potential porphyry-related alteration and mineralization within KRL North.
2020/2021 program at KRL North
Access
Throughout 2020, the company actively engaged with the communities located in KRL North to develop mining awareness and support for Kainantu Resources, with the aim of ensuring appropriate local consent arrangements could be agreed in accordance with PNG law before starting fieldwork.
This has resulted in the recent signing of an access agreement between Kainantu Resources and seven clans/community groups with cultural and customary links to EL 2558/KRL North.
The agreement confirms the communities' strong support for the company's continuing rights to access and explore KRL North, with the company committing to engage local labour for fieldwork and undertake other activities in line with its broader environmental, social and governance strategy. The agreement does not involve the payment of any further consideration. The company is grateful for the support of the local community for reaching accord.
Fieldwork
With the agreement securing access, the company is now undertaking a comprehensive stream sediment and soil sampling program covering the eastern, central and western stream systems forming the major drainage pattern within EL 2558/KRL North. Assessment of outcrops and field observation work are also under way. The intention will be to identify areas for ridge-and-spur and/or gridded soil sampling, potentially leading to a costean sampling program later in the year.
To date, 155 samples comprising 127 rock outcrop and float, 20 stream sediments, and four pan concentrates (inclusive of four quality assurance/quality control) samples have been taken and dispatched for multielement analysis, with field reports being encouraging.
Lithologies mainly consist of basement phyllites overlain by siltstone with the identification and sampling of mineralized chlorite altered microdiorite dikes, believed affiliated with the Elandora porphyry and small quartz veins hosted in intensely chloritized phyllites. Steeply dipping north-to-north-northeast structures have been mapped hosting mineralization consisting of disseminated and fracture fill/veinlets of pyrite, chalcopyrite and bornite.
Developing KRL North
Establishing long-term community support and progressing access arrangements will enable the company to accelerate exploration activities across KRL North (in addition to KRL South) over the coming six to 12 months. The company will continue to provide updates on the project.
Qualified person
The scientific and technical information disclosed in this release has been reviewed and approved by Graeme Fleming, BAppSc, MAIG, an independent qualified person as defined under National Instrument 43-101, Standards of Disclosure for Mineral Projects.
About Kainantu Resources Ltd.
Kainantu Resources 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 Papua New Guinea. Both of Kainantu Resources' projects show potential to host high-grade epithermal and porphyry mineralization, as seen elsewhere in the district. Kainantu Resources has a highly experienced board and management team with a proven record of working together in the region, and an established in-country partner.
We seek Safe Harbor.
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