Papuan Precious Metals Corp.
TSX VENTURE : PAU

Papuan Precious Metals Corp.

December 03, 2010 08:00 ET

Papuan Precious Metals Discovers a Third Large Diatreme Porphyry at Mt. Suckling

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 3, 2010) - Papuan Precious Metals Corporation (TSX VENTURE:PAU) ("PPM" or the "Company") is pleased to update exploration activities at its Mt. Suckling project where two field teams have been operating since late October. PPM's President and lead geologist, Dr. David Lindley, has been supervising exploration activities at the Araboro Creek prospect, in addition to the Ioleu Creek Au-Cu prospect, located approximately 8 km to the east. Results achieved to date have confirmed the region's significant porphyry potential. Mt. Suckling hosts multiple porphyries with at least two new large highly prospective porphyry bodies identified by this season's mapping and follow-up field work: Araboro Creek and Ioleu Creek. A third porphyry body at Urua was identified by earlier field work.

Dr. Lindley commented, "The findings in this season's field work are significant. The delineation of extensive porphyry-style alteration underlying the prominent circular feature at Araboro Creek is confirmation that the Mt. Suckling cluster of prospects (Araboro, Ioleu and Urua) represents a significant previously unrecognised porphyry district. All are localised along the Keveri Fault Zone, the once active plate boundary between the Australian and Pacific Plates."

Most notably, porphyry centres at each of the three prospects exhibit the following characteristics:

  • young gabbroic intrusive activity, which may be from the Early Pliocene period
  • diatreme association for all 3 porphyries
  • high grade copper-quartz veining has been observed (sample assays are pending.)
  • hosted in Late Oligocene-Early Miocene basalts
  • the three prospects are clustered in a linear zone in the fundamental through-going Keveri Fault Zone.

A total of 84 rock, 225 soil and 11 panned concentrate samples were collected from Araboro Creek and Ioleu Creek and have been sent to Genalysis Labs in Lae, PNG for sample preparation prior to pulps being sent to Indonesia/ Australia for analysis. Panned concentrates will be analysed for precious metals (Au, Pt, Pd) in Townsville, Australia by ALS-Chemex Labs. Assay results are pending and will be released when they are received.

Araboro Creek

The field work carried out at Araboro Creek has confirmed a porphyry centre. Typical porphyry style alteration, brecciation and quartz-pyrite-covellite veining was observed. A high-standing circular rim of fractured and weakly veined basalt surrounds a semi-circular depression of several square kilometers of intense argillisation and a large 1,000m x 900m diatreme breccia body. The diatreme is open to the east. Additional work will be required to determine the eastern extent of the boundary.

Ioleu Creek

The Ioleu Creek prospect consists of two intensely argillised gabbroic intrusives. The Eastern Gabbro measures 1,000m x 500m wide and the Western Gabbro measures 1,500m x 500-600m wide. Basalt is wallrock to these intrusions. The previously reported high-grade (>1% Cu) copper (chalcopyrite-bornite) float appears to be sourced from wallrock surrounding the Eastern Gabbro, suggesting the stock is copper fertile. Additional float boulders containing coarse blebs of chalcopyite-bornite were collected during the present field programme. Several narrow chalcopyrite-bearing silicified structures in basalt wallrock to the Eastern Gabbro were located and sampled. A diatreme breccia body similar to those found at Araboro and Urua Creek was identified between the gabbro intrusives. Earlier soil sampling indentified anomalous copper as high as 582 ppm Cu.

Airborne Geophysical Program

Fugro Airborne Surveys Pty Ltd, has been contracted to complete a high resolution magnetic and radiometric geophysical survey on the Company's Mt. Suckling, Waria River and New Hanover projects. (See press release dated October 13, 2010). This survey is set to commence this week.

The Mt. Suckling property is located in Northern and Central Provinces, Papua New Guinea. It is located at the relatively under-explored eastern end of the Central New Guinea Range, host to some of the world's largest Au-Cu porphyry deposits, including Grasberg, Ok Tedi, Frieda, Porgera and Wafi-Golpu, Mt. Suckling is owned 100% by PPM. Details of the Mt. Suckling project are available at www.ppmpng.com. Refer to http://www.papuanpreciousmetals.com - projects, Mt. Suckling, Figure 5.

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, 33 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

Dr. David Lindley, President & COO

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