Paccom to option interest in Feni from New Guinea Gold
New Guinea Gold Corp NGG
Shares issued 23,167,014 Jan 31 close $0.13
Mon 3 Feb 2003 News Release
See (PCV) News Release
Mr. Dal Brynelsen of Paccom Ventures reports
GOLD PROJECT ACQUIRED IN THE LIHIR CORRIDOR
Paccom Ventures has signed a letter of intent with New Guinea Gold, an
arm's-length company, to option a 75-per-cent undivided interest in the
Feni gold project located in New Ireland province, 160 kilometres east of
Rabaul, Papua New Guinea.
Paccom and New Guinea Gold have agreed to an option, subject to regulatory
acceptance, of 800,000 shares in stages, payable over three years,
including 200,000 shares upon TSX Venture Exchange approval, and minimum
exploration expenditures totalling $2.5-million, staged over three years,
including a minimum expenditure of $500,000 before June 30, 2004. Paccom
Ventures will act as operator.
The Feni Islands lie within an evolving island arc dating from the Tertiary
age. It is a northwesterly trending alkaline structural province extending
from Bougainville through the Green, Feni, Tanga, Lihir and Tabar island
groups. Exploration of the Feni project has identified 40 separate gold
anomalies and gold occurrences yielding widespread low-grade and
intermittent medium-grade results.
Located in the Lihir corridor, the Feni project hosts similar geology,
including widespread gold mineralization, similar alteration styles and
similar alkaline intrusives to the Lihir mine, located along trend about
200 kilometres to the north. The Lihir mine was discovered by Kennecott in
the early 1980s, and has a published resource of more than 42 million
ounces of gold presently producing at an annual rate of more than 600,000
ounces of gold. At an early stage of development, the Feni project is an
attractive project that exhibits all the characteristics necessary for the
possible discovery of a large low-grade multimillion-ounce deposit.
Feni was last explored in 1997, when widespread gold was encountered with
potentially economic results obtained in diamond drilling. DD Mad 001,
drilled 300 metres northeast of the Main zone, intersected 52 metres of two
grams per tonne gold within 188 metres of 1.2 grams per tonne gold
(confirmed by check assaying). This hole terminated in plus one gram per
tonne gold at 256 metres, as deep as the drill could go. Followup of this
zone since that time was not possible, due to a lack of exploration dollars
as a result of low gold prices.
Previous drilling from the Main zone returned gold values of between one
and 10 grams per tonne, such as:
g/t
Metres Au
114 1.12
19.9 2.13
15.25 2.56
16 2.3
52 1.65
10 5.7
3 10
The widespread gold mineralization intersected in drilling at Feni equates
to the lower-grade, interorebody mineralization encountered at the Lihir
mine. Drilling at Lihir into the high-grade feeder zones has recently
returned values as high as 14 metres of 341 grams per tonne gold, including
four metres of 1,162 grams per tonne gold. Further drilling at Feni was
highly recommended by the independent engineer for New Guinea Gold, Peter
Christopher, in his National Instrument 43-101 report dated Nov. 21, 2002.
WARNING: The company relies upon litigation protection for
"forward-looking" statements.
