The veins host anomalous gold, copper and silver mineralisation up to 50g/t Au, 4.58% Cu and 297g/t Ag at surface, while geomorphology, geology and mineralogy at Marengo has identified a number of similarities to the Didipo gold mine in the Philippines which yielded 2Moz gold and 260,000t copper.

David Price, chief executive of Papua Mining, said: "Our recent work at Marengo has identified two previously-unidentified intrusion-related gold/copper circular features characterised by porphyritic rocks, high-grade copper/gold mineralisation at surface, strong alteration and geologically-important ring fractures, faults and vein-swarms."

The company intends to utilise gradient array induced polarisation to assist detailed drill targeting at the Marengo project.

Meanwhile, a new copper and silver target has been discovered at the Bee Creek area with high grade copper, silver and gold up to 17.7% Cu, 342g/t Ag and 2.9g/t Au.

"The discovery of high grade copper and silver at Bee Creek is an exciting development which supports our belief that Marengo is showing potential for the discovery of a significant gold/copper/silver mineralising system. Papua now has a second project which provides a pathway for strong, organic-growth for the company," said Price.

As of 1127 BST, Papua Mining’s shares were up 10.91% at 0.92p.