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

Papuan Precious Metals Corp.

September 23, 2011 12:13 ET

Papuan Precious Metals Corp.: Further Analysis of Hole KUD007 Required at Kuliuta

KELOWNA, BRITISH COLUMBIA--(Marketwire - Sept. 23, 2011) - PAPUAN PRECIOUS METALS CORP. ("PPM or the "Company") (TSX VENTURE:PAU)(OTCQX:PAUFF) announces that further analysis is required from Hole KUD007 drilled at the Kuliuta gold-copper prospect, before final assay results can be determined. Issues relating to determining a reliable and accurate method for assaying native copper in drill core samples have arisen, resulting in the need for continued analysis. Discussions are presently underway with PPM's assay laboratory Genalysis Laboratory Services, Townsville, Australia, in order to find an alternative method of analysis to ensure reliable and accurate copper determinations.

Analysis of native copper in Hole KUD007

Elemental copper is malleable and may smear on and adhere to rock crushing and grinding/pulverising surfaces during laboratory preparation of samples, resulting in either under-estimation or over-estimation of copper grades, or cross sample contamination, or both. Analysis for native copper in drill samples forwarded to the lab has proved to be difficult, as initial results received from the analysis of core from the native copper zone in Hole KUD007 did not correlate with visual estimates. This finding has demonstrated the need for further analysis to ensure assays are accurate with a high degree of confidence, before dissemination of the final results.

La'mau'sing Mountain Geophysical Anomaly/Copper Zone

Surface and sub-surface evidence indicates there is excellent potential for a copper mineralised system developed at depth beneath a dome-shaped hill known as La'mau'sing Mountain (http://www.ppmpng.com/La'mau'sing.jpg).

Hole KUD007 tested a conductivity anomaly detected under the southern slopes of La'mau'sing Mountain, identified by a 3D-Induced Polarization ground survey completed earlier this year. After further evaluation it was determined that hole KUD007 intersected a 161m wide native copper zone followed by a deeper 43m wide chalcopyrite (sulphide) zone extending from 273m to the end of the hole (316.6m). A strongly oxidised haematite cap overlies the native copper zone.

Drill investigation of the copper intersection in KUD007 is presently focussed on the completion of a series of off-setting drill holes on the southern flanks of the mountain. To date three PPM drill holes, KUD007, KUD008, and KUD009 have been completed and Hole KUD010 is presently in progress. All four drill holes have intersected a native copper zone, which is associated with the overlying oxidised haematite cap covering the summit of La'mau'sing Mountain. Wide zones of trace native copper mineralisation extend downward to a chalcopyrite (sulphide) zone at depth. Hole KUD010 is presently drilling down through porphyry copper-style fracture-controlled chalcopyrite mineralisation intersected at 273m in Hole KUD007. It is planned that Hole KUD010 will test deeper sulphide levels. It is likely that extensive follow-up drilling may be required to further assess the La'mau'sing copper zone. Additional deep drilling into the sulphide zone is currently under review.

Further updates and results will be provided when available.

The New Hanover project

New Hanover is an outstanding opportunity for the discovery of Lihir-style gold mineralization and porphyry copper mineralization in a geological terrane that has been bypassed by modern mineral exploration for the past 22 years. The project comprises two 100% owned exploration licences (EL 1566 & ELA 1856) covering 591.6 km2 at the northwestern end of the Lihir-Tabar alkaline volcanic belt, host to the giant Lihir and Simberi gold deposits. Andesitic-dacitic volcanic rocks are widespread on New Hanover. They were erupted from a coalesced complex of Late Miocene-Early Pliocene stratovolcanoes that were built upon older Late Eocene-Late Oligocene submarine andesitic and basaltic rocks. Diorite, microdiorite and micromonzonite stocks intrude the younger volcanic rocks. Of particular interest is the presence of alkalic rocks, having relatively low silica content and enriched in sodium and potassium, at the Kuliuta epithermal gold prospect, indicating that New Hanover is geologically related to the Plio- Pleistocene Lihir-Tabar chain of alkaline volcanic islands.

Further details of the New Hanover project are available at www.ppmpng.com.

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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