K92 Mining owns the Kainantu Gold Mine located in the Eastern Highlands province of Papua New Guinea. The Kainantu Gold Mine is a high-grade, low cost underground mine within a ~830 km2 land package in a region known for Tier 1 deposits. At the end of 3Q20, K92 commissioned its Stage 2 Expansion to double throughput to 400ktpa (+120koz/year). In 3Q21, the Stage 2A Expansion was approved to increase throughput +25% to 500ktpa (commissioning planned 4Q22). An additional expansion is already planned, with a Stage 3 Expansion PEA completed in 2Q20, outlining a run-rate production of +315koz AuEq pa, average AISC of $486/oz AuEq and After-Tax NPV5% of US$1.5b at $1,500/oz. Drilling to support potential further expansions is also underway with currently up to 11 rigs on site.
"The PEA economics are robust, with run-rate production of ~318,000 oz AuEq per annum; low average all-in sustaining costs net of by-product credits of US$362/oz gold which benefitted from higher copper grades and economies of scale, and; an after-tax NPV5% of US$1.5 billiion at US$1,500/oz. Importantly, the Stage 3 Expansion is a low capital intensity project and within our ability to self-fund from scheduled mine cash flow.
As a result, we are initiating a Definitive Feasibility Study ("DFS") for Stage 3. Work on the new twin incline is underway. "
- CEO and Director, John Lewins
July 27, 2020
“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, and commissioning our Stage 2 Process Plant Expansion and completing the Stage 3 Expansion PEA in 3Q 2020. 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.”