Rockfire Regulatory News (ROCK)

30 January 2013

Papua Mining plc (PML.L)

Exploration Update

Very encouraging results from geophysical survey

Three new exploration licences granted in West New Britain

Papua Mining plc ("Papua" or "the Company"), a UK company focused on the exploration for and, if commercially feasible, development of gold and copper deposits in Papua New Guinea ("PNG"), presents this update in respect of its exploration activities on its licences.

EM survey confirms IP anomaly at Junction

On 4 December 2012 the Company reported results from the Induced Polarisation (IP) geophysics survey at the Junction target in the Nakru area in licence area EL1462, West New Britain. Those results outlined a resistive, low chargeability core, flanked by an annulus of high chargeability, typical of the response one might expect from a porphyry body. A follow up, ground Electromagnetics survey (EM) was subsequently completed over the same grid at Junction. Preliminary interpretation from this EM data shows a strongly positive correlation with the IP results with a well developed zone of high conductivity quite coincident with the with high chargeability zone delineated by the IP survey. Given that these two geophysical techniques use different methods to evaluate the electrical conductivity and resistivity characteristics of the rocks, to get such a strong, positive correlation consistent with the expected response from a porphyry body is a very encouraging result. We are now preparing to mobilise a drilling rig onto EL1462 for initial drill testing of this target.

Our geophysical surveys are ongoing in the Nakru area. Following the completion of the EM survey at Junction, the geophysics team returned to the nearby Flying Fox target where an IP survey had been completed in early December. Results from both the IP and EM surveys at Flying Fox will be reported together on completion of the EM survey.

Drilling schedule

We anticipate an initial drilling programme at Junction of three or four diamond core drill holes to test the chargeability/conductivity target. Tenders have been received from a number of drilling companies. A contractor has been selected and has travelled to the site last week for access and logistics planning purposes. We are aiming to have the first rig on site during the week beginning 11 March.

Strongly Anomalous Geochemistry at Flying Fox

Geological mapping and soil sampling has been continuing in the Flying Fox target area for some months now. The geological mapping has delineated a very positive zone underlain by dioritic rocks with extensive, disseminated and massive copper mineralization, including native copper, recorded in outcrop, confirming a very favourable geological setting here. Laboratory assays for previously reported copper-bearing hydrothermal breccia at Flying Fox have returned copper values up to a maximum of 29.5% Cu. The breccia appears to be associated with a northwest-southeast fault structure marking the edge of a major diorite intrusive body. Following the extension of the initial soil geochemical sampling grid, a potentially very significant copper in soil anomaly has now been delineated straddling the structure. The anomaly has a general northwest-southeast trend over a length of some 3 kilometres. Values range up to 1,269ppm copper. While the anomaly remains open to the west and north, at its currently delineated broadest point a 100ppm copper contour has a breadth of approximately 1,000 metres and the core of the anomaly covers a surface area of some 2.6 square kilometres (2,600,000 square metres). Modelling of the geological data is ongoing, concurrent with the completion of the geophysical survey.

Issue to the Company of three new Exploration Licences in West New Britain

Aries Mining Limited, a wholly owned subsidiary of Papua Mining plc, has been granted three new exploration licences by the Minister for Mining in PNG. The three licences, ELs 1802, 2145 and 2146 lie in the province of West New Britain and cover a total area of 630 square kilometres. These three licences lie within a strongly prospective zone which is underlain by volcanic and intrusive rocks which are known to host extensive mineralized systems within the West New Britain area. The issue of these three new licences brings our total holding in Papua New Guinea to nine licences covering a total area of 2,694 square kilometres.

Hugh McCullough, Chief Executive Officer, commented: "The results of our geophysics survey in the Nakru area of West New Britain are very encouraging. The coincidence of the EM anomaly at the Junction target with the earlier IP anomaly there is particularly positive. We are now planning to drill this target at Junction at the earliest opportunity." 

Hugh McCullough, EurGeol., PGeo, Chief Executive Officer of Papua, is a member of the Institute of Geologists of Ireland. He is a qualified person as defined in the Guidance Note for Mining, Oil and Gas Companies, March 2006, of the London Stock Exchange. He has reviewed and approved the technical information contained in this announcement.

Ends