11 March 2013
Star Mountains, PNG - Project Update
Assays from second hole at Kum Kom prospect and Unnamed Intrusive prospect
Highlands Pacific Limited (ASX:HIG) today reports further encouraging assays from its Star Mountains
exploration programme 20km north east from Ok Tedi in Papua New Guinea.
The Kum Kom prospect is the fifth of six prospects (Olgal, Futik, Pad 48, Rattatat, Kum Kom and Tuk)
drilled by Highlands Pacific. To date five prospects have returned primary copper grades greater than
0.2% copper and two prospects (Olgal, Kum Kom) have produced significant grades and widths. Kum
Kom is the first prospect with skarn-style alteration often associated with higher grade copper gold
zones.
The first 354 metre hole drilled at Kum Kom in late 2012 returned assays of 22 metres at 1.42% copper
and 0.57g/t gold from 146 metres down hole and 68 metres at 0.97% copper and 0.37g/t gold from 280
metres down hole intersection of skarn based material at the bottom of the hole (refer ASX
announcement dated 17 January 2013 for full details).
Highlands has now received assays for the second 475 metre hole at Kum Kom which shows anomalous
copper and gold assays with the best intersection of 16 metres of 0.28% copper and 0.10g/t gold from 48
metres down hole, but not the skarns associated with the first hole. Further down the hole an
intersection of 8 metres of 0.40% copper and 0.29g/t gold from 220 metres down hole were recorded.
Kum Kom is another priority prospect and a second drilling pad (250 metres away) has been prepared.
Since late December access to the Ok Tedi supply town of Tabubil has been constrained due to low
seasonal rains and low river levels in the Ok Tedi Fly River system, which has affected fuel availability for
drilling operations.
Highlands also reports today the assay from the ‘Unnamed Intrusive’ (part of the Pad48 prospect). The
326 metre drill hole returned minor intersections of anomalous copper. Currently one drill rig is located
at the Kum Kom prospect and one at the Tuk prospect.
Comment by Highlands Pacific MD & CEO John Gooding, “Kum Kom is a very large magnetic and
geochemical anomaly and a priority target. As we chase the primary source of mineralisation not every
hole will always have high grades, but we remain very encouraged by the district potential.”
For further information, please contact:
John Gooding or Craig Lennon
Highlands Pacific - 07 3239 7800
Media Enquiries to:
Simon Jemison
c/. Collins St Media - 03 9224 5319
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Map 1 – Star Mountains Prospects and District
Map 2 – Kum Kom Prospect (from above)
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TABLE 1 - KUM KOM DRILL HOLES
Hole
001KUM12
002KUM12
TABLE 2 - KUM KOM ASSAYS
North
9444780
9444780
Hole (at 0.2% cutoff)
001KUM12
East
538025
538025
From
Level
2900
2900
To
2
130
140
(including at 0.5% Cu cut off)
146
(including at 0.5% Cu cut off)
222
(including at 0.5% Cu cut off)
214
250
266
280
4
132
170
168
240
232
256
354
10
68
348
24
48
122
220
002KUM12
22
28
64
124
228
Dip
-70
-70
Azimuth
180
0
Interval
(m)
2
2
30
26
6
88
Total Depth (m)
354
476
Cu
(%)
0.21
0.69
1.11
1.42
0.46
0.68
0.22
0.82
0.97
Au
(g/t)
0.03
0.29
0.45
0.57
0.14
0.21
0.07
0.31
0.37
Core
Recovery %
50
85
87
90
95
97
96
97
99
0.24
0.28
0.27
0.40
0.09
0.10
0.02
0.29
74
82
80
69
4
16
2
8
TABLE 3 – UNNAMED TARGET (PAD48) DRILL HOLES
Hole
001UNI12
North
9441700
East
539600
Level
2624
TABLE 4 – UNNAMED TARGET (PAD48) ASSAYS
Hole (at 0.2% cutoff)
001UNI12
From
92
324
To
96
326
Dip
-70
Azimuth
330
Interval
(m)
4
2
Cu
(%)
0.50
0.25
Total Depth (m)
471
Au
(g/t)
0.24
0.05
Core
Recovery %
95
90
TABLE 5 – STAR MOUNTAIN DRILLING PROGRAMME – PAST, CURRENT AND PROPOSED
Prospect
Olgal
Futik
Pad48
Rattatat
Kum Kom
Tuk
Unfin
Bumtin
Status
Drilled
Drilled
Drilled
Drilled
Currently Drilling
Currently Drilling
Planned for 2013
Planned for 2013
Holes Drilled
14
4
3
2
2
1
Comment
Copper porphyry identified
Low grade copper porphyry mineralisation
Low grade mineralisation
Low grade copper porphyry mineralisation
Skarn style mineralisation identified
Drilling incomplete
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The following statements apply to the Star Mountains exploration results and exploration targets: (1) Mineralised
intersections are quoted as down hole widths. The porphyry mineralisation occurs as disseminations and vein stockworks.
Drill intersections described in this report are based on core lengths and may not reflect the true width of mineralisation. (2)
Collar locations are in UTM Zone 54 co-ordinates using the AMG66 horizontal datum. Azimuths are given relative to grid
north. (3) Drill core is PQ, HQ or NQ size. (4) Assays were carried out on half sawn core. The half core is crushed and
pulverized to ~ 180 mesh. 200 gram samples are used for assay. QAQC control samples make up approximately 10% of each
batch sent for analysis. The unused half core is stored on site. (5) Samples were analysed at ALS-Chemex in Townsville. Gold
is by 50g fire assay and copper by ICP-AES on an aqua regia digest. Samples assaying greater than 0.5% Cu are re-assayed
using an ore grade method suitable for higher grade samples. (6) Hole positions are based on surveys of the drill pad. Actual
collars are within 10m of stated locations.
The Potential quantity and grade related to Exploration Targets in this report is conceptual in nature as there has been
insufficient exploration to define a Mineral Resource. It is uncertain if further exploration will result in the determination of a
Mineral Resource. These exploration target tonnes and grade ranges are considered realistic because they are well within
the typical size and grade ranges expected for porphyry copper deposits in this and other south west Pacific island arcs, and
are consistent with data for the known porphyry copper deposits already located in Highlands’ Star Mountains tenements.
Competent Persons Statement: The exploration results and exploration targets reported here are based on information
compiled by Mr L.D. Queen who is a member of the Australasian Institute of Mining and Metallurgy, and who is employed by
Highlands Pacific Limited. Mr Queen has sufficient experience relevant to the style of mineralisation and the type of deposit
under consideration, and to the activity which he is undertaking, to qualify as a Competent Person as defined in the
“Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, The JORC Code 2004 Edition”.
He consents to the inclusion in the report of the matters based on the information compiled by him in the form and context
in which it appears.
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About Highlands Pacific Limited
ASX Code: HIG
PoMSox Code: HIG
Shares on Issue: 789 million
Options on Issue: 16.8 million
Performance Rights: 7.6 million
Market Capitalisation ~ A$105m
Cash on Hand (31/12/12) A$14.5m
Directors
Ken MacDonald, Chairman
John Gooding, Managing Director
Mike Carroll
Dan Wood
Drew Simonsen
Bart Philemon
Management
Craig Lennon, CFO &Co.Sec
Larry Queen, Chief Geologist
Peter Jolly, GM Projects
Ron Gawi, GM Port Moresby
For further information, please
contact:
John Gooding or Craig Lennon
Highlands Pacific - 07 3239 7800
Media Enquiries to:
Simon Jemison
Collins St Media - 03 9224 5319
Highlands Pacific is a PNG incorporated and registered mining and
exploration company listed on the ASX and PoMSoX exchanges. Its
major development assets are the US$1.5bn Ramu nickel cobalt
project and the Frieda copper gold project; with exploration in
progress on the Star Mountains (Nong River, Mt Scorpion, Munbil and
Tifalmin) licenses approximately 20km north of the Ok Tedi mine.
Highlands also has exploration tenements in the Wau/Bulolo area,
close to the new Hidden Valley and Wafi gold projects and Sewa Bay.
Star Mountains Prospects*
The Star Mountains exploration tenements, which include Nong River
EL1312, Mt Scorpion EL1781, Munbil EL2001 and Tifalmin EL1392, are
located approximately 20km north of the Ok Tedi mine, in Western
Province, PNG. They lie within the highly prospective New Guinean
Orogenic Belt, which hosts the Grasberg, Ok Tedi, Porgera and Hidden
Valley mines, as well as the Frieda deposit. An exploratory drilling
program is underway at Star Mountains.
Ramu Nickel Cobalt Mine
The Ramu nickel mine is located 75km west of the provincial capital of
Madang, PNG. The mine is currently being commissioned with the
first shipment of product having been completed in November 2012.
Highlands 8.56% interest in Ramu will increase to 11.3% at no cost to
Highlands after repayment of the project debt (estimated to take 8
years). From commissioning, Highlands has access to its pro-rata
8.56% share of Ramu’s post-debt servicing, net cash flow. Highlands
also has an option to acquire an additional 9.25% interest in Ramu at
fair market value, which could increase the company’s interest in the
mine to 20.55%, if the option is exercised.
Frieda Copper/Gold Project*
The Frieda copper gold project is located 175kms north-west of the
Porgera gold mine and 75km north-east of the Ok Tedi mine. The
project owners are Xstrata (manager) and Highlands.
* Subject to the right of the Independent State of Papua New Guinea to acquire up to a 30% equity interest in
any mining development in the country.
Website:
www.highlandspacific.com
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