In late 1989, first-pass reconnaissance exploration delineated a 4km x 6km geochem- ically anomalous area centred 10km WNW of Kainantu in the Eastern Highlands Province at 613'S and 145047'E. The area, named the Basangka prospect, lies between 2 200 and 2 400m asl. Interest in the area was prompted by a 14ppm Au assay of a silica-pyrite breccia float sample taken near Henkai village. The prospect was defined after several acid-leached silica- pyrite breccia and comb textured quartz float samples returned assays above lppm Au and relatively high Ag. Very encouraging and anomalous Au values were obtained from panned concentrates, despite the absence of visible Au colours. Several pan concentrates returned greater than 1mg Au and it is believed that the Au occurs as inclusions within iron oxides which were originally pyrite. In this early stage of prospect exploration, any Au value above 0.lppm in- 150# fraction stream sediments is treated as anomalous. Rock chips, panned concentrates and -150# fraction geochemistry all vividly define the areas of interest at Basangka.