Papuan Precious Metals Corp.
TSX VENTURE : PAU
OTCQX : PAUFF

Papuan Precious Metals Corp.

September 28, 2011 08:30 ET

Drilling to Commence at Urua Creek Gold-Copper Porphyry Prospect

KELOWNA, BRITISH COLUMBIA--(Marketwire - Sept. 28, 2011) - PAPUAN PRECIOUS METALS CORP (TSX VENTURE:PAU)(OTCQX:PAUFF) ("PPM or the "Company") announces that a minimum of 2,000m of NQ diameter core drilling will commence mid-October at the Mt. Suckling, Urua Creek gold-copper porphyry prospect. Quest Exploration Drilling (PNG) Ltd of Lae, PNG, has been contracted to complete the planned drilling, which will test a significant chargeability anomaly identified by the recently completed 3D-Induced Polarization ground geophysical survey.

Several surface trenches (Trenches 1, 2, 3 and 5; see http://www.ppmpng.com/urua-chargeability.jpg) were completed and sampled within this area of high chargeability by PPM in 2009. Significantly, Trench 5, located closest to the strongest part of the chargeability anomaly yielded 36m @ 0.72% Cu and 0.97 g/t Au, including 12m @ 1.12% Cu and 2.03 g/t Au in phyllic altered breccias, while the remaining three trenches identified wide intercepts of low to moderate grade porphyry-style gold and copper mineralization. It is interpreted that the stronger chargeability results may be reflective of a higher degree of sulphide mineralization, which in the case of many Cu-Au porphyry systems is directly associated with the higher grade mineralized areas within the porphyry.

Urua Creek Chargeability Anomaly

Urua Creek is a very young estimated 2.5 million year old intrusive (diatreme) breccia. The Urua Creek diatreme is so young that it still carries fragments of carbonized wood. Gold and copper mineralization appears to be confined to the 1,700m x 900m breccia. The chargeability anomaly is also confined to the breccia. It measures some 1,200m long with a width varying between 600 to 900m (http://www.ppmpng.com/urua-chargeability.jpg). On Section 11700mE the anomaly extends from 75m below the surface to a depth of approximately 400m (http://www.ppmpng.com/urua-chargeability_section.jpg). An approximate 200m zone, semi-circular in shape, containing chargeabilities in excess of 50ms occurs at the eastern end of the anomaly. Such intense chargeabilities are indicative of disseminated sulphides. Previous PPM sampling completed in 2008 located a zone of gossanous rocks with remnant kernels of coarse sulphides containing up to 37 g/t Au on Line 11,000mE. These gossans, which lie within the chargeability anomaly, will also be drill tested.

The Mt Suckling Project

The Mt Suckling project comprises a cluster of recently PPM-discovered prospects (Urua Creek, Araboro Creek, and Ioleu Creek porphyries; Dimidi Creek-Duna Creek-Muruk platinum-gold prospects which are sourcing alluvial Au and Pt; and the unique Doriri Creek hydrothermal Ni-PGE prospect). It covers two exploration licenses (EL 1424 and EL 1618: PPM 100%) over 316km2 at the eastern end of the Central New Guinea Range, one of the world's premier porphyry copper and precious metals belts.

Further details of the prospects identified to date at the Mt Suckling project are available at (http://www.ppmpng.com/project-mtsuckling.html).

The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and reviewed on behalf of the company by Ian David Lindley, President & Chief Operating Officer of Papuan Precious Metals Corp, a Qualified Person. Dr. Lindley has First Class Honours and Ph.D. degrees in Geology, 34 years mining industry experience, and is a Fellow of the Australian Institute of Geoscientists.

This press release contains "forward-looking information" Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause PPM's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Such factors include, but are not limited to: uncertainties related exploration and development; the ability to raise sufficient capital to fund exploration and development; changes in economic conditions or financial markets; increases in input costs; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological or operational difficulties or inability to obtain permits encountered in connection with exploration activities; and labour relations matters. This list is not exhaustive of the factors that may affect our forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. PPM disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

ON BEHALF OF THE BOARD

David Lindley, President and COO

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