QUEENSLAND-based explorer Pacific Niugini has reported another batch of high grade drilling results from its ongoing exploration in Papua New Guinea.
Highlights from recent drilling at the Kusi prospect, within the larger Garaina project, have intersected classic porphyry style mineralisation and alternation and porphyry style veining.
High grade results include 20 metres grading 2.89 grams per tonne gold from 107m including 11m at 14.72gpt from 114; 35m at 3.04 gpt from 136m, including 4m grading 18.75gpt from 160m and including 11m at 8.24 gpt from 160m.
The high-grade intercepts sit within an overall broad alteration zone of 106m at 1.32gpt from 109m.
Importantly, all drill holes have returned zones which include gold-copper-molybdenum mineralisation in quartz-monzodiorite porphyry, intensely potassic Anitua Corporate altered wall rocks adjacent to porphyry dykes, skarn and structurally controlled phyllic alteration zones.
The mineralisation corresponds to clearly defined potassic and phyllic alteration zones within and around porphyry dykes and faults.
The Garaina project, located about 70 kilometres southeast of the Hidden Valley mine, is the subject of a farm-out agreement with MGL Limited, with Pacific Niugini currently undertaking fieldwork on MGL’s behalf.
Under the terms of the agreement, MGL will spend A$6 million to earn a 50.1 per cent stake in the project, with a minimum capital outlay of A$3 million and 2,500 metres of diamond drilling required before MGL can withdraw.
Pacific Niugini’s expects the minimum work commitment is likely to be completed during this drilling campaign.
Once MGL has earned its interest, PNR can elect to either contribute to maintain its 49.9% stake or allow MGL to earn a further 19.9% interest by spending a further $15 million during the following three years.
MGL managing director Mark Lindsay, who has been on the ground at Kusi, said the drill results to date were very exciting.
“Epithermal mineralisation mapped over an area of 1,500m by 300m, a multistage intrusion history with copper clearly associated with each stage, intense porphyry style alteration, and porphyry style veining all highlight the prospectively of the system and re-enforce the potential of a significant porphyry deposit nearby,” he said.
“The prospect clearly hosts a large hydrothermal system and Kusi could well be the next major mineral discovery in PNG.”
Aside from Pacific Niugini’s PNG interests, the company also has a stake in Mexico.
The company added to its portfolio in March after agreeing to acquire up to 80% of the Nicholsons project outside Halls Creek, in Western Australia’s Kimberley Region, for about A$2.8 million in cash and scrip.