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Kainantu Resources to acquire May River Project

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Global Mining Review,

Kainantu Resources Ltd (KRL), an Asia-Pacific focused gold mining company, has announce the execution of definitive agreements to acquire control of the May River Project (together, the acquisitions) in the world-renowned copper-gold district of Frieda River, Papua New Guinea (PNG).

Matthew Salthouse, CEO, commented: “The May River Project is an exciting acquisition for KRL, given its location in an exceptionally prospective and proven district for significant copper-gold projects.

“May River will give KRL access to a number of highly prospective copper-gold prospects in close proximity to the world-renowned Frieda River Copper-Gold Project.

“The deal also demonstrates KRL’s ability to execute value accretive acquisitions, in line with our broader strategy of developing a portfolio of high-quality gold and copper-gold projects in the Asia-Pacific region; and advancing these through the value curve.

“The May River acquisitions fits KRL’s strategy, and we are excited to access the ground and advance the existing data. KRL looks forward to continuing to work with the key stakeholders of Niuminco and Hardrock in developing both the May River Project and KRL as an emerging mining company.”

Highlights of the project

  • KRL has entered into two definitive agreements to purchase, indirectly through the acquisition of two holding companies, the highly prospective copper-gold mineral concessions, known as the May River Project (project) consolidating three adjoining tenements.
  • The project is less than 15 km from the PanAust owned world-renowned Frieda River Project.
  • Key project prospects (Skiraisa, Foya, Eserebe, Mountain Gate, and Iku Hill) are situated along a 7 km long N-NW trending structural corridor, exhibiting many attributes similar to the extended mineralised system identified at the Frieda River Project (between 10 and 15 km to the east).
  • Soil, rock chip and channel anomalies indicate the existence of porphyry style copper-gold mineralisation in addition to near surface structurally controlled and breccia-hosted epithermal gold veins and berccias.
  • Previous drilling at the Skiraisa prospect has demonstrated significant gold potential: 54 m at 1.83 g/t gold (Au); 109 m at 1.53 g/t Au and 96 m at 0.89 g/t Au.
  • Copper-in-soil anomalies of >2500 ppm have been reported from several areas at the Mountain Gate prospect.
  • At the Iku Hill prospect, airborne geophysical surveys (and reprocessing of data) have identified intense magnetic targets over a 2 km² area; sharing similar structures to the Frieda River Project’s dominant Horse-Ivaal copper-gold deposit (less than 10 km to the east).
  • The project is in ‘good standing’ and the consolidation of the tenements is expected to be well received by local PNG stakeholders and the National government.
  • On closing of the acquisitions, KRL will take full ownership and management of the project.
  • The current owners, Niuminco Group Limited and Hardrock Limited, through wholly-owned subsidiaries, will continue collaborating with the company and will take an equity interest in KRL (on value accretive terms and pricing for KRL).
  • These acquisitions are consistent with KRL’s stated corporate strategy of adding quality regional projects to the company’s portfolio (building on KRL’s current Kainantu projects).

Next steps

KRL will continue to work co-operatively with the management of both Niuminco and Hardrock (and key stakeholders in PNG) to move to obtain all necessary regulatory approvals for the Acquisitions for completion and consolidate the project. KRL is currently conducting the field work necessary for the study under the Hardrock agreement. Initial field work appears positive and KRL will update shareholders on study findings in due course.

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Copper mining news Gold mining news