Papuan Precious Metals (CVE:PAU)(OTCQX:PAUFF) said Monday it has received the final report from a commissioned study of the Doriri Creek Nickel-palladium-platinum prospect at the Mount Suckling project in Papua New Guinea.
The report from the Commonwealth Scientific and Industrial Research Organization (CSIRO) concluded that mineralization formed as a result of episodic hydrothermal fluids rising through a prominent near-vertical structure, with fluid circulation resulting in Nickel concentration.
Nickel grades as high as 1.55% in a spot sample from a zone up to around 15 metres wide and and about 500 metres long were concentrated in chlorite mica and serpentine group minerals and iron oxide mineralogies, the company said.
The Nickel mineralogy is also accompanied by high concentrations of phosphorous minerals, palladium and platinum, Papuan added.
Ground held by the company to the northeast of Doriri Creek is considered prospective for additional Doriri Creek-type mineral prospects.
The company said it believes the style of mineralization at the prospect is similar to that of the Avebury Nickel deposit in Tasmania, which hosts 172,000 tonnes of Nickel at a 1.02% global grade, one of the few recognized hydrothermal Nickel deposits in the world.
During 2007 and 2008, Papuan re-opened or completed 16 trenches across the 500 metre strike of the Doriri Creek prospect. The best result from sampling was a composite 15 metre grading 1.39% Nickel and 1.22 g/t palladium plus platinum.
The company is planning to complete at least four drill holes at Doriri Creek, scheduled to start once drilling is finished at the nearby Urua Creek gold-copper prospect.
The Mt Suckling project comprises a cluster of recently discovered targets, including Urua Creek, Araboro Creek, and Ioleu Creek, Dimidi Creek and the unique Doriri Creek hydrothermal prospect. It covers two exploration licenses over 316 square kilometres at the eastern end of the Central New Guinea Range, a porphyry copper and precious metals belt.