A recent exploration program at the Metemana-Metekavil area of Papuan Precious Metals’ New Hanover project has resulted in discovery of a new gold-copper porphyry system.

Field work, including mapping, outcrop sampling and a ridge and spur soil sampling program, identified the new system in the 2km x 5km Randei prospect area, which is open to the coast. The company is awaiting the results of geochemical analysis.

There were 32 mineralized samples collected comprising both outcrop grab and 5 metre channel samples. Copper mineralization in the form of covellite, chalcopyrite, bornite, chalcocite and malachite were observed in these samples. There were 61 soil samples collected over ridges and spurs at 50 metre spacing.

Follow-up activity being considering includes a grid-based soil sampling program to define drill targets.

Papuan Precious Metals director Ross McElroy says, “This is encouraging progress and, pending the geochemical results, a detailed soil sample survey is being contemplated with the aim of defining drill targets to determine the potential of this new exciting prospect.”

All samples were sent to Intertek Services Laboratories in Lae, PNG, for preparation and pulps will be sent to Intertek’s facility in Jakarta, Indonesia, for analysis.

The New Hanover project is 60km west of the provincial capital Kavieng in New Ireland Province. Access is by a two-hour boat journey from Kavieng. The project comprises two exploration licences covering 591.6sqkm at the north-western end of the Lihir-Tabar alkaline volcanic belt, host to the giant Lihir gold deposit and the Simberi gold deposit.

The company has increased the financing announced on June 3, 2014 to about $800,000. The financing is a unit private placement at $0.08 per unit. The proceeds of the offering will be used for the advancement of the company’s properties, general working capital and a loan of US$350,000 to the company’s subsidiary pursuant to a plan of arrangement. www.ppmpng.com

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