Initial assay results from diamond drilling at PNG Gold’s Imwauna Project on Normanby Island have revealed mineralization at 17.75 grams/tonne gold over 0.6 metres and 5.13 grams/tonne gold over 1.8 metres.

The drill program began in January this year, with 6852 metres across 44 drill holes completed. These holes were designed to in-fill existing shallow drilling and to explore the vein system below the previous 150 metres drill depth. Two geotechnical holes totaling 398 metres have also been drilled horizontally into a rock face to evaluate the suitability for collaring an underground portal with no significant faults intercepted.

The next round of assay results is due for release by the end of October.

The drilling program will be increased to four drill rigs in coming weeks, with one drill designated to test the Kela vein system which is 650 metres west of the Imwauna deposit. A technical report from the company last November described the Kela vein as ‘a stronger and more continuous anomaly’ than Imwauna. Historic sub-outcrop samples from Kela reveal assays including 33.6 grams/tonne gold and 41.52 grams/tonne gold. An initial drill program of 5000 metres is being planned.

The company’s Board of Directors approved a Can$9.3 million budget to spend on the exploration activities at Imwauna during the last calendar months of 2011. This budget will also allow site improvements to proceed and PNG Gold to acquire the remaining 50% ownership of the Normanby property prior to the end of the year.

www.pnggold.com

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