K92 Mining owns the Kainantu Gold Mine, a high-grade goldmine in Papua New Guinea (PNG). Located in the Eastern Highlands province, this low-cost underground mine spans ~830 km² in a region renowned for Tier 1 deposits. Following the successful Stage 2 Expansion in 3Q20, doubling throughput to 400ktpa, the Stage 2A Expansion in 2Q23 further increased throughput +25% to +500ktpa (+120koz/year). In December 2022, K92 announced the transformative Stage 3 and 4 Expansions, aimed at establishing a world-class Tier 1 gold mine. The Integrated Development Plan’s Stage 3 DFS Case and Stage 4 PEA Case (as per the Jan 2022 effective date technical report)(1), outlines a World Class Tier 1 gold mine with a Stage 3 Expansion DFS run-rate production of +291koz AuEq pa with an average AISC of $716/oz co-product, and a Stage 4 Expansion PEA run-rate production of +470koz AuEq pa with an average AISC of $674/oz co-product. These expansions position K92 as a leader in low-cost gold production. Construction is underway, with Stage 3 commissioning expected by late-April 2025. Concurrently, there are up to 11 drill rigs to drive potential further gold exploration and resource expansions. Explore K92 Mining for gold investment opportunities and stay updated on K92 stock price and developments.
Note (1): Refer to Integrated Development Plan (IDP) DFS Case and PEA Case. IDP effective date is January 1, 2022. IDP has not been updated to reflect the updated Kora and Judd resource (effective date September 12, 2023); however, the Company does not expect the design parameters and conclusions to materially change. The Company expects the potential mine life to be extended for both cases.
“The Stage 3 Expansion DFS economics are robust, delivering capital expenditures fully funded from mine cash flow, Tier 1 peak production scale of 309 koz AuEq, Tier 1 costs averaging over the life of mine of $366/oz cash costs and all-in sustaining cost of $545/oz net of by-products over a 7-year mine life.
The PEA shows potential for further growth, increasing throughput by 240% from the Stage 2A Expansion for a run-rate for a peak production of 500 koz AuEq, low life of mine average cash costs of $275/oz and all-in sustaining costs of $444/oz net of by-products over an 11-year mine life. PEA capital expenditures are also fully funded from mine cash flow, and it is important to highlight that K92’s financial position has never been stronger than it is today.
It is also important to highlight that we see a tremendous opportunity to enhance the outcomes of the expansion plans through exploration in addition to other regional targets and have placed a major focus on this.”
- CEO and Director, John Lewins
September 12, 2022
Note (1): Refer to Integrated Development Plan (IDP) DFS Case and PEA Case. IDP effective date is January 1, 2022. IDP has not been updated to reflect the updated Kora and Judd resource (effective date September 12, 2023); however, the Company does not expect the design parameters and conclusions to materially change. The Company expects the potential mine life to be extended for both cases.
“We are extremely proud to receive the Thayer Lindsley Award, which we believe recognizes the world-class nature of the Kainantu Gold Mine, the tremendous geologic potential of Papua New Guinea, and the significant value creation from the K92 team. The rapid progress has been truly remarkable, achieving commercial production in late-January 2018, exceeding production guidance in both 2018 and 2019, completing our Stage 2 Process Plant Expansion followed by a Stage 2A Process Plant Expansion underway, while also advancing our next stages of growth through the Stage 3 Expansion DFS and Stage 4 Expansion PEA in announced in 3Q 2022. This would not have been possible if it weren’t for the extraordinary commitment of our team and the strong support of all levels of government in Papua New Guinea.”
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