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

Papuan Precious Metals Corp.

March 07, 2011 08:30 ET

Papuan Precious Metals Corporation: Sampling Returns Copper Values as High as 23.86% from Ioleu Creek Prospect, Mt. Suckling

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 7, 2011) - PAPUAN PRECIOUS METALS CORPORATION ("PPM" or the "Company") (TSX VENTURE:PAU)(OTCQX:PAUFF) announces that it has received geochemical results from 25 rock samples collected at its 100% owned Ioleu Creek copper-gold prospect, Mt Suckling, Papua New Guinea. In addition, platinum group element ("PGE") soil anomalies within the sampling area were obtained. Twenty of the twenty-five rock samples yielded copper values greater than 1%, with the best value returning an assay grade of 23.86% Cu. It is likely that these highly encouraging copper-bearing rocks are derived locally from two recently recognised altered mafic intrusive stocks. All sample results are presented in Table 1.

Table 1: Copper in Rock Results from Ioleu Creek Prospect
Sample Location (Creek) Float/Outcrop Cu % Au g/t
14167 Ioleu F 0.22 -
14168 Ioleu F - -
14170 Iau'don F 3.47 -
14171 Iau'don F - -
14172 Iau'don F 4.41 -
14175 Iau'don F - -
14178 Ioleu F 0.22 -
14179 Ioleu F 8.42 -
14180 Ioleu F 6.78 -
14181 Ioleu F 3.37 0.11
14182 Ioleu F 9.17 0.28
14183 Ioleu F 1.38 -
14184 Ioleu F 8.49 -
14185 Ioleu F 5.42 -
14186 Ioleu F 9.95 0.17
14187 Ioleu F 5.67 0.11
14188 Ioleu F 11.94 0.11
14189 Ioleu O 0.27 -
14190 Ioleu F 8.16 -
14191 Ioleu F 4.60 -
14192 Ioleu F 0.78 1.12
14193 Ioleu F 6.38 0.13
14194 Ioleu F - -
14197 Ioleu F 23.86 -
14198 Ioleu F - -
Cutoffs: Cu – 0.10%; Au – 0.10 g/t. (-) denotes no significant result.

High-grade copper mineralisation occurs as thick (to 10cm) chalcopyrite-bornite-quartz veins occasionally with hornfels selvages, which is often observed surrounding porphyry deposits. To date, the high grade copper mineralisation has been found as float boulders in an approximate 3 km2 section of Ioleu Creek catchment, where two outcropping intensely argillised mafic intrusions, referred to as the "Western Gabbro" and "Eastern Gabbro" have been identified and mapped. (See Figure 4 http://www.ppmpng.com/project-mtsuckling.html#fig4) The Western Gabbro is elongated north-south and is ~1,500m long X 400-600m wide. The Eastern Gabbro is also elongated north-south and is ~1,000m long X~500m wide. In addition, geological mapping has also located a 500m x 300m+ diatreme body, similar to those at Araboro Creek and Urua Creek Prospects, between these mafic intrusives. Ridge and spur soil sampling indicates the diatreme to be copper anomalous (200-582ppm Cu in soils).

The present fieldwork has extended the area of copper float into adjacent Iau'don Creek, 1,500 m southeast of Ioleu Creek. Mafic rocks are exposed in Iau'don Creek. The distribution of copper mineralisation in Ioleu Creek is also coincident with pannable crystalline gold. The crystalline gold occurrence suggests samples have been minimally transported. The relationships of copper mineralisation and alluvial gold further suggest a genetic relationship between mineralisation and mafic intrusive igneous activity. An outcropping quartz-chalcopyrite vein (sample 14189) located at the eastern edge of the anomalous copper float and obtained from hornfels wallrock of the "Eastern Gabbro", was sampled. This sample assayed 0.27% Cu. However, results from ridge and spur soil sampling did not indicate any significant gold or copper soil anomaly over these mafic stocks.

Coincident with the Eastern Gabbro and Western Gabbro stocks, soil anomalies containing platinum group element (PGE) values exceeding 100 ppb PGE, and ranging up to 190 ppb PGE were identified from sampling. These anomalous PGE soil values likely reflects anomalous bedrock PGE located during previous PPM reconnaissance 5m channel sampling of the mafic outcrops (See Figure 4 http://www.ppmpng.com/project-mtsuckling.html#fig4) located in the same area of anomalous copper samples.

Highlights of outcrop PGE sampling results are shown in Table 2.

Table 2: PGE Rock Results Ioleu Creek Prospect
Mafic Stock PGE results
Western Gabbro 20 m @ 110 ppb PGE
Grab – 147 ppb PGE
5 m @ 85 ppb PGE
1 m @ 118 ppb PGE
Eastern Gabbro 10 m @ 106 ppb PGE
5 m @ 331 ppb PGE
Cutoff: 75 ppb 2PGE (platinum + palladium)

The Ioleu Creek anomalies represent early stage exploration activity. However, similar findings led to the discovery of the Company's further advanced Urua Creek Au-Cu porphyry prospect, 18 km to the west.

Three reconnaissance 3D Induced Polarisation survey lines (of 100 m separation) across each of the gabbro stocks and the immediate hornfels country rock are planned to further investigate the potential for high-grade sulphide mineralisation at Ioleu Creek. This survey will be completed during the second quarter, 2011. Targets generated by this geophysical survey will be evaluated for follow-up drilling.

The previously announced detailed low-level airborne geophysical survey undertaken by Fugro Airborne Surveys in both EL 1424 and EL 1618 was completed on December 9th, 2010. A total of 1,248 line km at a flight line spacing of 200 m was flown along the Keveri Fault Zone. Interpretation of the Mt Suckling survey geophysical data is presently underway.

Samples collected from Ioleu Creek were sent to the Genalysis Laboratory in Lae, PNG, for sample preparation prior to pulps being sent to Townsville, Australia for analysis. Gold and PGE (platinum and palladium) analyses were completed by standard 25g lead collection Fire Assay followed by Flame Atomic Absorption Spectrometry. Copper analyses involved multi-acid digest including hydrofluoric, nitric, perchloric and hydrochloric acids in Teflon tubes. Analyses were completed by Inductively Coupled Plasma Optical (Atomic) Emission Spectrometry. 

The Mt Suckling project

The Mt Suckling project is situated at the eastern end of New Guinea's Central Range, one of the world's premier porphyry copper belts. This belt includes several giant porphyries including Grasberg, Ok Tedi, Frieda, Porgera and Wafi/Golpu. Ongoing exploration by PPM has identified a cluster of mineralised prospects (Urua Creek, Araboro Creek and Ioleu Creek) with porphyry copper affinity. The porphyries are localised in an 18 km zone (Keveri Fault Zone) at the intersection of the once active Australian-Pacific plate boundary. 

Further details of the Mt Suckling 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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