Kainantu Resources Ltd (TSX-V:KRL) has said an airborne geophysical survey was successfully carried out in January this year at its KRL North and KRL South projects in the Kainantu gold district of Papua New Guinea (PNG) ahead of a potential drilling program.
The final results are pending but preliminary findings were positive, the explorer told investors, adding that the survey had been carried out in co-ordination with other successful mining operators in the Kainantu region.
"This is the first time in over 10 years that an airborne geophysical survey has been done in the Kainantu gold belt," said Matthew Salthouse, the company's CEO, in a statement.
"While our teams are assessing the data, preliminary trends look positive and support a view that KRL North is highly prospective, especially given its location adjacent to other successful miners, some of which has notably expanded resources and signified gold and resource extensions near KRL properties."
At KRL North, historic aeromagnetic data showed proximity and structural similarities between this project and the Bilimoia Mineral Field hosting the K92 mine, and the latest survey has increased confidence of the extension of high-grade mineralization extending from Bilimoia, said the firm.
There is also an increased likelihood of a buried porphyry system at depth at KRL North, which is likely to be associated with a geological feature on the southern border with K92, it added.
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The airborne geophysics program was flown over all of KRL North and key areas of interest in and around the Tirokave area of KRL South, including the East Avaninofi and Yaoro Ridge prospects. The total area covered was 186 kilometres, involving 1,000 line-kilometres of survey.
The company said it will continue field programs at both KRL North and KRL South to define drilling targets.
Further updates will be provided in due course, including the outcome of final analysis from the aerial geophysical survey.
KRL boasts three highly-prospective gold projects - KRL South, KRL North and the May River project - all in premier mining districts of PNG.
Both KRL North and KRL South show potential to host high-grade epithermal and porphyry mineralization, as seen elsewhere in the high-grade Kainantu gold district. The May River asset is close to the world-renowned Frieda River copper-gold project.
Contact the author at giles@proactiveinvestors.com