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

Papuan Precious Metals Corp.

May 02, 2011 08:45 ET

Papuan Precious Metals Corporation: Kuliuta Gold Prospect Grab Sampling Yields 128 g/t Au, 188 g/t Ag, 1.78 % Cu from Outcrop-Drilling to Commence in May

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 2, 2011) - PAPUAN PRECIOUS METALS CORPORATION (TSX VENTURE:PAU)(TSX VENTURE:PAU.WT)(OTCQX:PAUFF) ("PPM" or the "Company") announces that it has received geochemical results from selective grab sampling of various altered outcrops from its highly prospective 100% owned Kuliuta Gold Property, New Hanover, Papua New Guinea. A drill program, to test both the near surface gold potential, in addition to the deeper porphyry copper potential, as indicated by results obtained to date, will commence in mid-May.

Sampling completed earlier this year, and conducted after the trenching program of late 2010, located a narrow (<1m wide) "single event" manganese-sulphide breccia within the Le'mu'sing or "Zone A" gold-in-soil anomaly (and near soil sample 31940 – assay 3.21 g/t Au) that contained 128 g/t Au, 188 g/t Ag, 1.78 % Cu, 18.8 % Mn and 30 ppm Mo (http://www.ppmpng.com/Zone%20A.pdf). Seven other outcrop samples, collected adjacent to the breccia zone, returned anomalous gold contents ranging from 0.1 to 0.5 g/t Au. The high copper and anomalous molybdenum content of the breccia suggest sourcing from a possible porphyry copper at depth below "Zone A". In addition, the recently completed airborne geophysical survey detected a thorium anomaly (http://www.ppmpng.com/thorium.pdf) underlying the coincident large 1,400 m x 600 m >0.1 g/t Au soil anomaly, providing further indication of a possible copper mineralized porphyry at depth below a "gold cap". Thorium anomaly is associated with other porphyry copper deposits in PNG.

SJ Geophysics Ltd, Delta, BC, Canada, has been contracted by the Company to complete a 3D-IP geophysical survey over the area of coincident gold in soil and thorium anomaly. This program is expected to commence during the second week of May, 2011 and will provide additional information to aid in targeting planned deeper drilling of the copper porphyry potential.

Previous reported gold samples from trenching "Zone A" include: Trench 12 – 39 m grading 3.89 g/t Au including 21 m grading 6.54 g/t Au, including 3 m grading 31.64 g/t Au; Trench 11 – 51 m grading 0.90 g/t Au, including 9 m grading 1.56 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; and Trench 4 – 33 m grading 0.90 g/t Au, including 6 m grading 1.83 g/t Au (see press release dated February 22, 2011).

Quest Exploration Drilling (PNG) Ltd of Lae, PNG, has been contracted to complete 1,500m of drilling. A barge transporting drilling equipment, a bulldozer, fuel and drilling supplies is planned to depart the port of Lae for New Hanover on May 4, 2011. It is expected to arrive at New Hanover on May 8, 2011. Kuliuta is 7 km inland from the south coast of New Hanover, and drilling equipment and supplies will be hauled overland to site using a support bulldozer contracted from Garom Ltd, Rabaul. The first two drill holes are planned in the vicinity of Trench 12, to be followed by two holes in the vicinity of Trench 2. At least two deep drill holes of approximately 300 m will test the deeper copper porphyry potential below Kuliuta.

The initial budget, totaling C $600,000, may be expanded depending on results. Core samples will be sent to the Genalysis Laboratory in Lae, PNG, for sample preparation prior to being forwarded to their lab in Townsville, Australia for analysis. Gold analyses will include standard 25g lead collection Fire Assay followed by Flame Atomic Absorption Spectrometry.

Copper and molybdenum analyses involved multi-acid digest including hydrofluoric, nitric, perchloric and hydrochloric acids in Teflon tubes. Analyses will be completed by Inductively Coupled Plasma Optical (Atomic) Emission Spectrometry. Results will be provided when available.

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 north-western 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 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, COO and President

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