PNG Gold Corporation
TSX VENTURE : PGK

PNG Gold Corporation

September 12, 2013 13:16 ET

PNG Gold Corporation-29.35 g/tonne Gold and 68.15 g/tonne Silver over 5.20 Metres, Imwauna Main Structure and Completes Geological Mapping, Trenching and Diamond Drilling Program on Sehulea Claim

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 12, 2013) - PNG Gold Corporation ("PNG Gold" or the "Company") (TSX VENTURE:PGK) is pleased to announce final gold and silver assay results from 54 diamond drill holes from Imwauna Main Structure and has completed an exploration program consisting of surface geological mapping, trenching and diamond drilling on the Sehulea Project EL 1069. Table #1 highlights the assay results from hole IMH-275 which hosts extensive episodic quartz veining typical of low sulphidation epithermal mineralization. Final assay results have been received for all of the holes noted in Table # 2.

Table #1 Highlight Hole
From To Drill Length Gold Silver
Hole # (m) (m) (m) (g/tonne) (g/tonne)
IMH275 185.50 190.70 5.20 29.35 68.15

Diamond drilling has now tested the Imwauna Main Structure to over 400 metres below surface. Gold mineralization is directly related to epithermal quartz veining which varies in thickness throughout the structure. Higher-grade, gold mineralization generally occurs in areas of greater quartz vein concentrations and exhibiting multiple pulses of hydraulic brecciation.

One drill rig was mobilized to test epithermal style gold mineralization on PNG Gold's 100% owned EL 1069. The purpose of the program was to undertake a systematic study of the Weioko and Lantaona Hill, low sulphidation epithermal gold systems on PNG Gold's 100% owned Sehulea Project on Normanby Island, Papua New Guinea.

  • Geological mapping of approximately 5.0 square kilometres covered both the Weioko and Lantaona Hill prospects. A total of 364 rock (16 grab and 348 continuous chip) samples were collected during the mapping.
  • Trenching by excavator occurred along the southern extension of the Weioko gold-silver deposit. A total of 250 samples were collected, at an interval of 1.0 metre per sample, along the trench. The trenching program overlays an area where previous drilling encountered gold-silver mineralized with intersections of up to 66 metres of 1.44 g/t Au and 7.48 g/t Ag, starting at surface.
  • Three HQ size diamond drill holes for a total of 558.70 metres tested the 3D-IP anomalies completed at Lantaona Hill prospect by SJ Geophysics Ltd. in late 2011. Lantaona Hill is a low sulphidation, epithermal gold-silver occurrence with disseminated pyrite/arsenopyrite. A positive correlation between sulphide and gold/silver concentrations has been noted from previous work. Disseminated and fracture controlled sulphide mineralization was noted in all three holes. Assays are pending.

Table # 2 Assay results received for Imwauna Main Structure are as follows:

Hole ID From To Core Length (m) Au (g/t) Ag (g/t) Explanation
IMH274 191.00 192.00 1.00 4.46 12.00 Section 5
And 216.50 218.30 1.80 1.93 2.39
including 217.80 218.30 0.50 4.36 3.00
IMH275 170.00 171.00 1.00 0.70 2.00 Section 6
And 174.80 175.90 1.10 0.02 29.00
And 185.50 190.70 5.20 29.35 68.15
including 185.50 188.60 3.10 48.84 97.55
including 185.50 186.00 0.50 140.00 361.00
And 207.00 208.00 1.00 0.51 <1
IMH276 Nil Nil Section 5
IMH277 161.00 161.50 0.50 0.91 <1 Section 6
And 179.50 180.00 0.50 8.57 17.00
And 196.30 197.30 1.00 8.69 12.00
And 199.00 200.70 1.70 1.03 2.00
And 216.30 217.00 0.70 1.10 3.00
IMH278 223.70 225.00 1.30 1.28 2.00 Section 6
And 228.00 229.20 1.20 1.20 1.00
And 250.15 250.80 0.65 1.00 2.00
IMH279 Nil Nil Section 6
IMH280 Nil Nil Section 5
IMH281 Nil Nil Section 6
IMH282 272.30 272.80 0.50 0.54 <1 Section 5
IMH283 78.10 82.70 4.60 2.63 19.04 Section 6
And 91.50 93.70 2.20 0.67 2.55
And 227.80 228.30 0.50 0.75 <1
IMH284 Nil Nil Section 5
IMH285 128.50 130.00 1.50 2.51 3.00 Section 3
And 186.00 189.70 3.70 8.15 16.95
including 186.00 188.50 2.50 11.80 20.00
IMH286 208.20 209.10 0.90 1.41 4.00 Section 5
And 268.80 271.20 2.40 0.91 2.38
And 274.00 275.00 1.00 0.52 <1
IMH287 203.35 205.20 1.85 4.00 4.84 Section 3
including 204.70 205.20 0.50 13.60 11.00
IMH288 217.60 218.20 0.60 1.09 3.00 Section 3
And 235.00 238.00 3.00 3.29 6.00
including 236.50 238.00 1.50 6.10 6.00
IMH289 Nil Nil Section 5
IMH290 229.90 231.00 1.10 10.46 6.36 Section 3
including 229.90 230.50 0.60 18.00 10.00
And 248.00 249.00 1.00 2.25 8.00
IMH291 282.50 283.00 0.50 2.47 2.00 Section 3
And 293.50 294.00 0.50 205.00 43.00
And 304.00 305.00 1.00 1.58 3.00
And 306.50 308.00 1.50 7.90 7.33
including 307.00 308.00 1.00 11.40 9.00
and 311.00 314.00 3.00 0.83 1.33
And 316.00 318.00 2.00 0.69 1.00
IMH292 207.00 208.00 1.00 0.83 3.00 Section 3
And 218.00 219.00 1.00 8.18 24.00
IMH293 136.00 139.00 3.00 1.02 5.00 No section
IMH294 120.00 120.50 0.50 4.03 5.00 Section 4
IMH295 210.20 210.70 0.50 0.16 821.00 Section 7
And 272.00 273.00 1.00 0.72 2.00
And 289.80 292.00 2.20 2.12 1.68
IMH296 166.40 167.00 0.60 1.16 1.00 Section 4
and 193.00 194.00 1.00 0.65 <1
and 198.00 199.00 1.00 9.80 9.00
IMH297 125.00 126.00 1.00 1.45 <1 Section 4
And 235.00 238.00 3.00 2.41 8.00
including 235.00 236.00 1.00 6.06 9.00
IMH298 283.00 283.50 0.50 0.54 1.00 Section 7
And 292.00 294.00 2.00 0.92 4.00
IMH299 241.00 242.00 1.00 0.76 <1 Section 4
And 251.00 254.00 3.00 6.72 26.00
including 251.00 252.00 1.00 10.60 35.00
And 278.00 279.00 1.00 0.98 2.00
IMH300 395.00 396.00 1.00 0.54 <1 Deep Section
IMH301 299.60 300.80 1.20 0.72 2.50 Section 4
And 302.00 303.00 1.00 0.57 <1
IMH302 Nil Nil Section 7
IMH303 352.95 354.70 1.75 1.27 2.00 Section 4
IMH304 203.00 204.50 1.50 1.59 14.00 Section 8 & 9
including 204.00 204.50 0.50 4.52 18.00
and 218.00 219.00 1.00 1.00 2.00
IMH305 318.20 318.75 0.55 1.55 1.00 Section 7
IMH306 237.00 238.00 1.00 3.43 5.00 Section 8 & 9
IMH307 Nil Nil Section 8 & 9
IMH308 103.50 105.40 1.90 0.91 1.53 Section 8 & 9
And 258.30 258.80 0.50 0.96 2.00
And 267.40 268.10 0.70 3.08 9.00
And 276.10 277.50 1.40 0.71 2.00
And 291.00 291.80 0.80 1.58 2.00
and 296.90 297.40 0.50 0.57 1.00
IMH309 205.20 206.00 0.80 1.47 <1 Section 8 & 9
And 252.90 254.10 1.20 0.56 3.00
And 317.00 317.50 0.50 17.60 7.00
IMH310 Nil Nil Deep Section
IMH311 Nil Nil Section 8 & 9
IMH312 61.40 61.90 0.50 0.51 3.00 Section 8 & 9
And 200.30 201.00 0.70 5.60 2.00
And 394.30 395.30 1.00 0.55 <1
IMH313 Nil Nil Deep Section
IMH314 227.00 228.00 1.00 0.51 <1 Section 8 & 9
IMH315 274.00 275.00 1.00 0.60 2.00 Deep Section
IMH316 165.80 166.70 0.90 0.70 3.00 Section 8 & 9
And 244.25 245.30 1.05 1.69 2.00
IMH317 130.00 131.00 1.00 0.64 3.00 Section 8 & 9
And 140.00 140.50 0.50 0.56 3.00
And 287.00 288.00 1.00 0.50 5.00
And 296.00 297.00 1.00 1.77 3.00
IMH318 171.10 171.60 0.50 0.50 3.00 Section 10
And 173.50 174.50 1.00 5.90 10.00
IMH319 135.80 136.40 0.60 0.94 3.00 Section 8 & 9
And 137.35 138.05 0.70 0.55 3.00
And 254.35 254.85 0.50 1.02 3.00
IMH320 188.80 189.50 0.70 1.98 3.00 Section 8 & 9
And 193.60 195.10 1.50 1.52 2.67
And 242.95 244.10 1.15 0.66 3.00
And 282.00 284.00 2.00 0.90 2.00
IMH321 96.00 97.00 1.00 0.58 2.00 Section 10
And 180.00 181.00 1.00 0.97 8.00
And 184.00 185.00 1.00 0.68 5.00
And 188.00 189.00 1.00 6.12 11.00
And 206.00 207.00 1.00 0.74 2.00
IMH322 174.00 174.60 0.60 3.21 13.50 Section 10
And 180.40 181.00 0.60 9.50 8.00
And 200.00 208.00 8.00 5.35 10.60
including 200.00 204.00 4.00 10.16 10.78
And 238.00 239.00 1.00 1.10 6.70
IMH323 255.90 257.00 1.10 0.62 1.20 Section 8 & 9
280.50 282.00 1.50 0.68 3.93
IMH324 107.20 107.70 0.50 0.69 2.50 Section 10
And 197.60 198.95 1.35 26.00 98.60
And 230.85 234.00 3.15 6.68 8.40
including 230.85 232.80 1.95 10.50 12.90
IMH325 No samples Incompleted (at 45m)
IMH326 96.00 98.00 2.00 0.55 3.55 Section 10
And 185.00 188.00 3.00 0.58 0.80
And 198.00 203.00 5.00 20.27 15.70
including 199.00 202.00 3.00 32.97 23.37
including 200.00 201.00 1.00 54.00 35.50
IMH327 94.20 95.20 1.00 1.07 5.30 Section 10
and 137.10 137.70 0.60 0.61 2.70
and 163.00 169.40 6.40 2.63 8.93
including 168.05 169.40 1.35 6.80 19.10
Cut-off grade: 0.5 g/t Au and 10 g/t Ag

Estimated true widths range from 45 to 71 percent of the core lengths provided in Table #2

Qualified Person

Mr. Lorne Warner, P.Geo, Chief Operating Officer of PNG Gold Corporation is a qualified person in accordance with National Instrument 43-101 and has reviewed and approved the technical information contained in this news release.

All core samples are cut in half on-site and sent to our Alotau office for direct shipment to Intertek (ITS (PNG) Limited) laboratory in Lae, Papua New Guinea an ISO/LEC 17025 certified laboratory. Gold analysis is completed by a 50 gram charge, fire assay/AAS and for silver a 50 gram charge using two acide AAS. The company inserts a standard, blank and requests a duplicate sample be run in every batch of 20 samples. In addition, the lab inserts in-house blanks, standards and duplicates with each shipment. Data that fall outside the control limits are checked and repeated as necessary.

Normanby Island Projects

Imwauna

The Imwauna exploration licence -- EL 1091 -- is located on the north side of Normanby Island, approximately 80 kilometres northeast of Alotau, the provincial capital of Milne Bay province, eastern Papua New Guinea. The project consists of two main prospects, Imwauna and Kelas, along with numerous untested prospects. The Imwauna gold deposit is a high grade, near surface, low sulphidation, epithermal vein gold system. Gold mineralization ranges from 0.5 metres to 6.0 metres in the Imwauna Main structure. The Imwauna prospect remains open in the North and South at strike and at depth.

Sehulea

The Sehulea exploration licence - EL 1069 - is located north east of Imwauna on Normanby Island and contains several low sulphidation epithermal gold deposits which require additional drill testing. Previous results indicate the area contains extensive lower grade gold mineralization over intercepts of up to 60 metres core length with grades ranging between 1-2 g/tonne gold. Mineralization is associated with extensive silicification, disseminated, and semi-massive pyrite, with a positive correlation between higher pyrite concentrations and gold.

About PNG Gold Corporation

PNG Gold Corporation is an exploration company with an advanced stage drilling program in Papua New Guinea. PNG Gold holds a 100% interest in the Imwauna and Sehulea properties on Normanby Island, Milne Bay Province, Papua New Guinea, and trades on the TSX Venture Exchange under the symbol PGK. PNG Gold's mission is to become the premier exploration and development company in Papua New Guinea.

FORWARD LOOKING STATEMENTS

Forward Looking Statements - This document contains forward-looking information. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "estimates", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or states that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of PNG Gold Corporation ("PNG" or the "Company") to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information.
Examples of such statements include: statements pertaining to PNG's proposed exploration and development activities and method for funding thereof, timing of development of undeveloped gold resources, gold extraction, processing, recovery and production levels, expectations regarding the ability to raise capital and to continually add to resources through acquisitions/development, treatment under governmental regulatory regimes and tax laws, capital expenditure programs and the timing and method of financing thereof, the development plans and status of assets, future growth and performance.

Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking information contained in this document. Such forward-looking information is based on a number of assumptions which may prove to be incorrect, including, but not limited to: the ability of PNG to obtain necessary financing and adequate insurance; the economy generally; and, current and future stock prices, results of operations and exploitation, exploration and development activities, fluctuations in gold prices and market conditions, the extent of gold resources and future growth and performance, the regulatory and foreign environment, future capital and other expenditures (including the amount, nature and sources of funding thereof), uncertainty of resource estimates, the availability of necessary exploration and development equipment, competitive advantages, fluctuations in foreign currency exchange rates, property title and investments, business prospects and opportunities, transportation and construction delays, possible variations of ore grade or recovery rates, failure of plant, equipment or processes to operate as anticipated, accidents, labor disputes and other risks of the mining industry, political instability, arbitrary changes in law, delays in obtaining governmental approvals and anticipated and unanticipated costs. The factors identified above are not intended to represent a complete list of the factors that could affect PNG. Additional risk factors are noted under the heading "Risk and Uncertainties" in the Company's MD&A for the year ended December 31, 2012 that was filed on SEDAR.

Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward looking information prove incorrect, actual results, performance or achievement may vary materially from those expressed or implied by the forward-looking information contained in this document. These risk factors should be carefully considered and readers are cautioned not to place undue reliance on forward-looking information, which speaks only as of the date of this document. All subsequent forward-looking information attributable to PNG herein is expressly qualified in its entirety by the cautionary statements contained in or referred to herein. PNG does not undertake any obligation to release publicly any revisions to this forward-looking information to reflect events or circumstances that occur after the date of this document or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.

ON BEHALF OF PNG GOLD

Greg Clarkes, CEO and Director

PNG Gold Corporation

Neither the TSX Venture Exchange or its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

The securities have not been registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States absent registration thereunder or an applicable exemption from such registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities in the United States.

Contact Information

  • PNG Gold Corporation
    Greg Clarkes
    CEO and Director
    (604) 669 4899
    (604) 685 2345 (FAX)
    www.pnggold.com