Papuan Precious Metals (PPM) has received geochemical results from 71 outcrop and float rock samples collected during follow-up reconnaissance sampling from the Ondowa Creek exploration licence at Waria River project. The best single sample result assayed 69.6 grams/tonne gold, 84.6 grams/tonne silver and 14.5% copper from an outcropping vein.
The licence area is part of the Waria River farm-in agreement with Petromin (PNG) Holdings, which enables PPM to earn a 50% interest by spending Can$1.2 million by July 2012.
PPM’s sampling focused on two areas: Area A - 40 samples were obtained along the streams in the Ondowa Creek area, which drains the mountainous central part of the tenement, and Area B - 31 samples were obtained from the Onepa River area in the western part of the tenement. Visible gold is present in panned concentrates from both areas.
In Area A, 19 of the 40 rock samples collected from the streams are anomalous for gold with 10 samples greater than 0.1 grams/tonne, silver with 6 samples greater than 25 grams/tonne and copper with 19 samples greater than 0.1%. Twelve of these rock samples contained 1% or more copper, including three from outcrop. In addition, 5 of the 20 float samples collected from Area B contained either anomalous gold or copper values, with the best value assaying 1.71% copper. Vein float is locally abundant in streams and will require further prospecting to source.
Preliminary interpretation of the recently completed Fugro Airborne Geological survey data suggests the south flowing Onepa River follows a major fault structure nearly perpendicular to the through-going structures of the Central New Guinea Range.
Follow-up exploration will involve traversing and sampling of the mountainous area east of the Onepa River, believed to be the source of much of the gold and copper-bearing float.
The Waria River project is in the Central New Guinea Range, one of the world’s premier porphyry copper belts, and presents an outstanding opportunity to locate gold/copper porphyry-style mineralization similar to that of the nearby Hidden Valley mine and the giant Wafi-Golpu deposit.
Located along what, at one time, was one of the main overland routes to the early 20th Century gold rushes at Wau, Edie Creek and Bulolo, the presence of abundant alluvial gold in many of the Waria River tributaries has long been known. However, the area has remained relatively untouched by modern exploration.