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

Papuan Precious Metals Corp.

August 02, 2011 08:30 ET

PPM Makes Significant New Discovery: KUD007 Intersects 189m with Visible Copper at Kuliuta Gold-Copper Prospect

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 2, 2011) - Papuan Precious Metals Corp. (TSX VENTURE:PAU)(OTCQX:PAUFF) ("PPM" or "the Company") announces that Hole KUD007 drilled at the Kuliuta gold-copper prospect, has intersected a 189m (620') interval of porphyry copper style mineralization with visible copper from 112m (367') downhole. Hole KUD007 tested a conductivity anomaly detected during the recently completed 3D-Induced Polarization ground geophysical survey. Mineralization over this 189m interval is dominated by an unusual primary (hypogene) native copper of hydrothermal origin.

Dr. David Lindley, PPM's President & COO commented, "This exciting discovery hole demonstrates the important role geophysics and the planning efforts of our technical team played in leading us to this drill target."

The PPM Board has approved an expansion of the Kuliuta drilling programme, which is testing both the near surface gold potential and the deeper porphyry copper potential. An additional 2,500m (an estimated 10 holes) of close-spaced step-out drilling is underway to delineate the copper mineralization found in Hole KUD007.

Hole KUD007

Hole KUD007 (azimuth 070°, dip 45°) was drilled on Line 17 and was terminated due to drilling difficulties at a depth of 316.6m (1,039') on July 28, 2011. The hole remained in clay altered hydrothermal breccias with haematite and fine disseminated sulphides at termination. It tested a prominent conductivity anomaly detected during the recently completed 3D-Induced Polarization ground geophysical survey (http://www.ppmpng.com/La'mau'sing_drillholes.pdf). This hole is located 100-150m northeast of the La'mau'sing breccia cluster mapped in Trench 12, which averaged 3.89g/t Au over 39m and Trench 11, which averaged 0.90g/t Au over 51m (see news release dated February 22, 2011), and manganese breccia that assayed 128g/t Au, 184g/t Ag and 1.87% Cu (see news release dated May 2, 2011). The breccia cluster was tested by Holes KUD001, 002, 005 and 006 (http://www.ppmpng.com/La'mau'sing_drillholes.pdf).

Hole KUD007 intersected hydrothermal breccia flooded by intense heamatite and manganese alteration to 48m depth. From 112.2m to 301.1m copper-mineralized pryoclastic breccia and latite intrusive with mineralization consisting predominantly of native copper, was intersected. Native copper occurs as (1) void fillings (up to 3mm width; see photo- http://www.ppmpng.com/KUD007_123.5m.pdf) and rimming clasts in pryoclastic breccia; (2) disseminations in latite (usually within grain boundaries, such as in feldspar crystals); and (3) vein association with quartz+haematite+dickite. Pyrite is typically rare or absent across the entire copper interval.

The La'mau'sing breccias are believed to be a breccia swarm that has streamed off the margins of the porphyry copper/intrusive system intersected in Hole KUD007. The 3D-IP conductivity anomaly measures 400m x 300m and provides excellent potential to expand upon the intersection in Hole KUD007.

Hole KUD001

Hole KUD001 (azimuth 130°, dip 45°) was drilled below Trench 12 to test the near surface gold and copper potential. KUD001 intersected the target hydrothermal breccia from 2.0m to 28.0m down hole, and was drilled to a total depth of 79.60m.

Assay results from Hole KUD001 have been received. Gold and copper results are presented in the following table:

From To Width Result
0.0m 14.0m 14.0m 14.0m @ 0.86 g/t Au
incl. 2.0m @ 1.60 g/t Au, 0.10% Cu
2.0m @ 1.39 g/t Au
20.0m 26.0m 6.0m 6.0m @ 0.17% Cu, 0.31 g/t Au
Cutoffs: 0.5g/t Au; 0.10% Cu

Assays

Drill core from Holes KUD002, 003, 004, 005 and 006 and has been logged and sampled. Logging and sampling of Hole KUD007 is nearing completion. Samples are being sent to Genalysis Laboratory in Lae, PNG, for sample preparation prior to pulps being sent to Townsville, Australia for analysis. Gold analyses will include standard 25g lead collection Fire Assay followed by Flame Atomic Absorption Spectrometry. Assays will be reported when available.

The New Hanover Project

New Hanover is an outstanding opportunity for the discovery of Lihir-style gold mineralization and porphyry copper mineralization 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 gold-copper 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 Fellow 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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