Papuan Precious Metals Corp.
TSX VENTURE : PAU

Papuan Precious Metals Corp.

February 22, 2011 10:21 ET

Papuan Precious Metals Corp.: Sampling at New Hanover Trenches Yield 39m Grading 3.89 g/t Au Including 3m of 31.64 g/t

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 22, 2011) - PAPUAN PRECIOUS METALS CORPORATION (TSX VENTURE:PAU) ("PPM" or the "Company") announces that it has received geochemical results from 207 continuous channel samples, cumulatively totalling 621 m from 16 trenches, taken at its 100% owned Kuliuta gold prospect, New Hanover island, Papua New Guinea. Highlights of the best sampling results are as follows:

Trench 12: 39 m grading 3.89 g/t Au, including 21m of 6.54 g/t Au, including 3 m of 31.64 g/t Au;

Trench 2 (500 m SE of Trench 12): 27 m grading 3.58 g/t Au, including 12 m of 7.64 g/t Au, including 3 m of 23.43 g/t Au;

Trench 11: 51 m grading 0.90 g/t Au including 9 m of 1.56 g/t Au and 6 m of 2.08 g/t Au

Trench 4: 33 m grading 0.90 g/t Au, including 6 m grading 1.83 g/t Au and 3 m grading 3.05 g/t Au

Trenches 4, 11 and 12 are located in the Le'mu'sing area, within the 1,400 m x 600 m zone of elevated soil anomaly and at the centre of Kennecott's (1989) trenching (see http://www.ppmpng.com/project-newhanover.html#fig5). It is of particular interest as consecutive 25 m spaced soil samples adjacent to Trenches 11 and 12 contained some of the highest gold values recorded from PPM's grid sampling programme (see news release dated January 4, 2011), viz. 3.2 g/t Au, 2.62 g/t Au, 0.97 g/t Au and 0.68 g/t Au. Kennecott's single previous drill hole DDH NH1, completed in 1989, intersected only 2 m of 1.68 g/t Au from 41 m downhole, and it is the Company's opinion that this drill hole failed to intersect the gold mineralization identified by PPM's sampling programme in and around Trenches 11 and 12. PPM's first drill holes at Kuliuta will be collared at Le'mu'sing in the immediate vicinity of Trench 12. Detailed plans for a drill program at Kuliuta to commence in late March or early April are currently under preparation.

Full results of all 16 trenches are presented in the table below and map (see http://www.ppmpng.com/Kuliuta_prospect.pdf). PPM's sampling has expanded on Kennecott's historical results, but more importantly has identified broader mineralised zones with higher gold grades in resampled trenches. In addition, high-grade gold intercepts within these broad gold mineralised zones have been identified. A comparison with Kennecott's historical results is provided.

Kuliuta Trench Sampling Results, February, 2011

TRENCH LENGTH PPM RESULTS (2011) KENNECOTT RESULTS (1989)
2 36 m 27 m @ 3.58 g/t Au
incl. 12 m @ 7.64 g/t Au
incl. 3 m @ 23.43 g/t Au
30 m @ 1.25 g/t Au
3 63 m 63 m @ 0.64 g/t Au (open ended)
incl. 9 m @ 1.49 g/t Au
3 m @ 1.33 g/t Au
3 m @ 1.52 g/t Au
30 m @ 1.11 g/t Au
4
Le'mu'sing area
33 m 33 m @ 0.90 g/t Au (open ended)
incl. 6 m @ 1.83 g/t Au
3 m @ 3.05 g/t Au
20 m @ 2.46 g/t Au
5 9 m NSR 10 m @ 3.4 g/t Au
6 27 m 6 m @ 0.26 g/t Au
9 m @ 0.18 g/t Au
 
7 15 m 3 m @ 0.22 g/t Au  
8 21 m 18 m @ 0.30g/t Au 10 m @ 1.99 g/t Au
9A 12 m 12 m @ 0.39g/t Au  
9B 54 m 15 m @ 0.24 g/t Au
3 m @ 0.25 g/t Au
27 m @ 0.46 g/t Au
incl. 9 m @ 1.03 g/t Au
50 m @ 0.61 g/t Au
10 27 m 3 m @ 0.17 g/t Au  
11
Le'mu'sing area
51 m 51 m @ 0.90 g/t Au (open ended)
incl. 6 m @ 2.08 g/t Au
3 m @ 1.07 g/t Au
9 m @ 1.56 g/t Au
30 m @ 0.59 g/t Au
12
Le'mu'sing area
45 m 39 m @ 3.89 g/t Au
incl. 21 m @ 6.54 g/t Au
incl. 3 m @ 31.64 g/t Au
30 m @ 4.1 g/t Au
13 24 m 24 m @ 0.55 g/t Au
incl. 3m @ 1.52g/t Au
10 m @ 1.0 g/t Au
14 12 m 12 m @ 0.49 g/t Au
incl. 3 m @ 1.34 g/t Au
 
15


42 m 9 m @ 0.36 g/t Au
3 m @ 0.18 g/t Au
6 m @ 0.50 g/t Au
3 m @ 0.30 g/t Au
3 m @ 8.54 g/t Au
0.2 m @ 28 g/t Au
1 24 m NSR  

Cutoff - 0.10 g/t Au; NSR – No significant results

Each of the 208 trench samples represents a continuous channel sample over a 3 m interval. Samples were sent to the Genalysis Laboratory in Lae, PNG, for sample preparation prior to pulps being sent to their lab in Townsville, Australia for analysis. Gold analyses were completed by standard 25g lead collection Fire Assay followed by Flame Atomic Absorption Spectrometry.

The New Hanover Project

New Hanover is an outstanding opportunity for the discovery of Lihir-style gold mineralisation 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.

The previously announced (Jan 4, 2011) detailed low-level airborne geophysical survey undertaken by Fugro Airborne Surveys for both EL 1566 and ELA 1856 was completed on January 25th, 2011 with results of the survey currently being interpreted by the Company's consulting geophysicist. A total of 3,160 line km at a flight line spacing of 200 m was flown.

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 member 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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