Papuan Precious Metals Corp.
TSX VENTURE : PAU

Papuan Precious Metals Corp.

February 16, 2011 08:50 ET

Papuan Precious Metals Corp.: Australia's Commonwealth Scientific & Industrial Research Organisation ("CSIRO") Contracted to Help Evaluate Geologically Unique Ni-PGE Prospect

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 16, 2011) - PAPUAN PRECIOUS METALS CORP. (""PPM" or the "Company") (TSX VENTURE:PAU) announces that it has initiated exploration at its Doriri Creek Hydrothermal Nickel-Platinum Group Elements (Ni-PGE) prospect, located approximately 8 km west of the Company's advanced Urua gold-copper porphyry prospect within its Mt. Suckling Property. Doriri Creek is a geologically unique Ni-PGE prospect, believed to contain the highest platinum metals ("PGE") grades known in Papua New Guinea. The patterns and mineralogy of low-temperature hydrothermal wallrock alteration and oxide-dominant/sulphide-poor Ni-PGE mineralisation are unlike any other example described worldwide. PPM has recently contracted the Commonwealth Scientific & Industrial Research Organisation ("CSIRO"), Australia's national government sponsored world-class research agency with the scientific expertise to add considerable knowledge about Doriri that will contribute to the Company's evaluation of this unconventional mineral prospect. Results from this consulting project, in conjunction with the recently completed airborne geophysical programme, will assist in identifying future drill targets.

The Doriri Creek lode represents a prioritized exploration target with a strike length of 520 + m and a mineralised zone averaging 10-15 m wide. Mineralisation is confined to a massive magnetite-mica lode hosted by hydrothermally altered Jurassic-Cretaceous gabbro. Sulphides are rare or absent. Bismuth, antimony and tellurium are associated with the Ni-PGE mineralisation. High Ni-PGE grades from the deepest sections of the deposit are in the order of 10-15 m grading 1.3% Ni, 1-2 g/t PGE. Anomalous gold values from trenching and sampling outcrop as high as 0.13 g/t are present in the stockwork zone overlying the mica-magnetite lode. A table summarizing results to date can be found on the Company's website http://www.ppmpng.com.

Doriri Creek is a unique hydrothermal Ni accumulation with a significant PGE credits. Mining is presently underway in one of the few known hydrothermal Ni deposits, the recently discovered Avebury Ni deposit in Tasmania (discovered 1986, 172 kt Ni metal at 1.02% global Ni grade). PPM looks forward to working with CSIRO in characterizing the alteration fingerprints associated with the Doriri Creek Ni-PGE prospect in the months ahead.

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 member of the Australian Institute of Geoscientists.

This news release may contain forward-looking statements. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

ON BEHALF OF THE BOARD

David Lindley, COO and President

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