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May 07, 2012: Discovery Hole Intersects 12.20m Grading 1.08% Ni, 0.52g/t PGM at Doriri Creek Prospect

2012 News Releases

Discovery Hole Intersects 12.20m Grading 1.08% Ni, 0.52g/t PGM at Doriri Creek Prospect

 

PAPUAN PRECIOUS METALS CORP (“PPM or the “Company”) announces that assay resultshave been received from the first two holes of the recently completed four hole drill program at PPM’s Doriri Creek Nickel-Platinum Group Metals (Ni-PGM) prospect, Mt. Suckling, with discovery hole DOD001 intersecting a significant 12.20m (17.60m-29.80m) intersectionof near surface Ni-PGM mineralization grading 1.08% Ni, 0.52g/t PGM in the 520m+ long Doriri Creek Lode. Hole DOD002 intersected 4.00m grading 0.86% Ni, 0.41g/t PGM, and 4.00m grading 1.28% Ni, 0.53g/t PGM, including 1.00m of 0.65% Ni and 1.19g/t PGM. Both holes were drilled under Costean (surface trench) IV which returned 7.00m grading 0.66% Ni, 1.33g/t PGM, and represent the first successful exploration drill hole intersections in the Doriri Creek Lode.True width of the Doriri Creek Lode is determined to be approximately10m as derived from both surface and drill hole data (http://www.ppmpng.com/DOD001/DOD002_section.pdfandhttp://www.ppmpng.com/Doriri Creek Lode_South.pdf).

 

Both mineralized intersections within the Doriri Creek Lode were below the base of total oxidation and contained significant amounts of stockwork sulphide minerals hosted in massive magnetite-mica rock (http://www.ppmpng.com/DOD001_20.40jpg). Sulphides logged in drill core include pyrrhotite (http://www.ppmpng.com/DOD001_26.60m.jpg), pentlandite and pyrite.  PGM are dominated by palladium and platinum in the ratio >4:1, respectively. In addition, it is significant to note that apatite, a phosphate mineral, is also present (up to 3%) in magnetite-rich sections of the drill core, suggesting potential for the presence of Rare Earth Elements (REE). Both holes were assayed for phosphorous as a proxy for REE, with Hole DOD002 returning 1.00m grading 1.02% P. As a result of this PPM will continue to test for potential REE enrichment.

 

Drill results for holes DOD001 and DOD002 are summarized in Table 2 below.

 

Table 1: Drill Hole Statistics for DOD001 and DOD002

 

 

Drill Hole

        Collar Location

Azimuth

Dip

Total Depth

DOD001

Costean IV

691726mE/8911025mN

227oM

-50o

34.00m

DOD002

Costean IV

691726mE/8911025mN

227oM

-70o

69.20m

 

 

 

Table 2: Drill Hole Results for DOD001 and DOD002

 

Drill Hole

Mineralization

From-To (m)

Width

Grade Ni

Grade PGM

DOD001

17.60 – 29.80m

12.20m

1.08% Ni

0.52g/t PGM

 

Incl. 4.60m

1.69% Ni

0.53g/t PGM

DOD002

 

25.00 – 29.00m

4.00m

0.86% Ni

0.41g/t PGM

33.00 – 37.00m

4.00m

1.28% Ni

0.53g/t PGM

Incl. 1.00m

0.65% Ni

1.19g/t PGM

Cutoffs: Ni - 0.5%; PGM (Pd + Pt) - 0.1g/t

 

The remaining two drill holes, DOD003 and DOD004, (assays pending) were completed under Costean I (approximately 45m SE of Costean IV) which returned 15.00m grading 1.39% Ni, 1.22g/t PGM at surface.Drill hole DOD003 was completed to a depth of 20.00m and intersected a 10.70m width of the Doriri Creek lode. Drill hole DOD004 was completed to a depth of 27.00m and intersected a 16.90m width of the Doriri Creek lode. Mineralized intersections within the Doriri Creek Lode widths will be determined from the pending assay results, which will be announced when available. Further exploration plans will be determined once all data from this program has been obtained and analyzed.

 

Samples were sent to Genalysis Laboratory in Lae, PNG, for sample preparation prior to pulps being sent to Townsville, Australia for analysis. Gold, platinum and palladium analyses were completed by standard 25g lead collection Fire Assay followed by Inductively Coupled Plasma Optical (Atomic) Emission Spectrometry. Nickel, copper, phosphorous and silver analyses involved multi-acid digest including hydrofluoric, nitric, perchloric and hydrochloric acids in Teflon tubes. Analyses were completed by Inductively Coupled Plasma Optical (Atomic) Emission Spectrometry.

 

Doriri Creek hydrothermal Ni-PGM prospect

 

Doriri Creek is a low temperature hydrothermal accumulation of nickel, platinum and palladium. There is no other documented mineral occurrence similar to Doriri Creek. Detailed examination of the Doriri Creek mica-magnetite mineralization by the CSIRO (PPM news release of November 21, 2011) suggested temperatures of formation for mica in the range 100-220oC. The study also indicated an enrichment of REE (in the mineral apatite) in mineralized rock up to 50 times compared with normalized primitive mantle values. The Doriri Creek lode has an average width of 10-15m and a mapped strike length of 520m.

 

Further details of the prospects identified to date at the Mt Suckling project are available at (http://www.ppmpng.com/projects/mt-suckling/).  

 

The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and reviewed on behalf of the company by Ian David Lindley, President & Chief Operating Officer of Papuan Precious Metals Corp, a Qualified Person. Dr. Lindley has First Class Honours and Ph.D. degrees in Geology, 35 years mining industry experience, and is a Fellow of the Australian Institute of Geoscientists.

 

This press release contains "forward-looking information" Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause PPM's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Such factors include, but are not limited to: uncertainties related exploration and development; the ability to raise sufficient capital to fund exploration and development; changes in economic conditions or financial markets; increases in input costs; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological or operational difficulties or inability to obtain permits encountered in connection with exploration activities; and labour relations matters. This list is not exhaustive of the factors that may affect our forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. PPM disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

 

ON BEHALF OF THE BOARD

 

David Lindley

 

David Lindley, President and COO

 

For further information contact:

Greg Downey at 1.866.979.7022

Or email: info@ppmpng.com