K92 Operations Update
- Cut and fill stoping has commenced at the Kora North K2 vein
- Head grade of the first 2,000 tonnes of material mined from these stopes averaged 10.5 g/t Au and 0.57% Cu
- Processing of the 2,000 tonnes of material mined generated 126 tonnes of concentrate averaging 276 g/t Au and 16.7% Cu, containing 611 ozs Au and 25,300 lbs Cu.
- Mining of second Kora North vein (K1) has commenced with a first 1,000 tonnes mined from this vein
K92 (TSXV – KNT) is pleased to provide an update on operations at its Kainantu Gold Mine in Papua New Guinea.
Mining of an initial bulk samples from the Kora North vein K2 from a four-metre-by-four-metre horizontal development approximately 200 metres long was completed in November. Using the information obtained from this initial development and the grade control drilling targeting this area from Diamond Drill Cuddy One (DDC1) two initial cut and fill stopes were designed, from which mining commenced in December. Each stope, designated 1185 OS and 1185 ON, is approximately 100 metres long and is being mined in two metre cuts, generating approximately 2,500 tonnes of material per cut per stope.
Material from stope 1185 ON was drilled, blasted and mined in December and approximately 80% of this, comprising 2,000 tonnes was treated through the process plant. The head grade of this material averaged 10.5 g/t Au and 0.57% Cu and processing achieved gold recovery of 91.4% and copper recovery of 92.4%. An estimated of 126 tonnes of concentrate assaying at 276 g/t Au and 16.7% copper and containing 611 ozs of gold and 25,300 lbs copper were produced from treating this material.
The balance of the material from stope 1185 ON as well as the material from 1185 OS, which has now also been mined, estimated at 3,000 tonnes is currently being processed through the plant. Cut and fill mining of these stopes will continue in January and February and material generated will be processed on an ongoing basis.
Development of the footwall drive to the south has continued and this is now over 150 metres from the first cross cut. A second cross cut has been established and mining of the Kora North K1 vein from this cross cut was commenced in December with three metre by four metre horizontal development along strike to the north and south. To date some 1,000 tonnes has been mined from K1 and this material together with ongoing material mined during the month will also be treated through the plant.
Development of an access to the Kora North 1210 mRL level has been commenced from the Puma incline, as has access to the Kora North 1170 mRL level from the main Kora Drive. It is anticipated that these developments will enable long hole stoping of the Kora North K2 vein to commence late March or early April.
Mining from Irumafimpa is also continuing, with mining focused on the 1235 S stope and 1220 flatback stope. It is anticipated that mining of these and associated areas will be completed by the end of the March Quarter although limited mining of selected high grade areas may continue beyond this time.
John Lewins, K92 Chief Executive Officer and Director, states,
“We are extremely pleased with the progress achieved in developing the Kora North vein system. Since drilling the first discovery hole into this area in May 2017, we have developed a major system access into the area, including the establishment of ventilation and services, established drill cuddies and drilled over 30 grade control diamond drill holes, completed the initial mining of an 8,000 tonne bulk sample and have now commenced stoping operations. On the metallurgical front we have consistently achieved above 90% recovery of gold and copper from the treatment of the Kora North material mined which overall has averaged approximately 7.5 g/t Au and 0.7% Cu.
We are now looking forward to the next phase of the development of the Kora North system with the commencement of long hole stoping and the commencement of the planned exploration drilling program targeting an expansion of the known resource, which is currently strongly mineralized at the extent of all drilling.”
K92 has filed and made available for download on the company’s SEDAR profile a technical report titled “Independent Technical Report, Mineral Resource Update and Preliminary Economic Assessment of Irumafimpa and Kora Gold Deposits, Kainantu Project, Papua New Guinea,” with an effective date of March 2, 2017, that provides additional information on the geology of the deposits, drilling and sampling procedures, lab analysis, and quality assurance/quality control for the project, and additional details on resource estimates.
The PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized. The technical report contains a full description of all underlying assumptions relating to the PEA. Mineral resources that are not mineral reserves and do not have demonstrated economic viability.
K92 Mine Geology Manager and Mine Exploration Manager, Mr. Andrew Kohler, PGeo, a qualified person under the meaning of Canadian National Instrument 43-101, has reviewed and is responsible for the technical content of this news release. Data verification by Mr. Kohler includes significant time onsite reviewing drill core, face sampling, underground workings and discussing work programs and results with geology and mining personnel.
On behalf of the company,
Chief Executive Officer and Director
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. All statements that address future plans, activities, events or developments that the Company believes, expects or anticipates will or may occur are forward-looking information, including statements regarding the realization of the preliminary economic analysis for the Project, expectations of future cash flows, the proposed plant expansion, potential expansion of resources and the generation of further drilling results which may or may not occur. Forward-looking statements and information contained herein are based on certain factors and assumptions regarding, among other things, the market price of the Company’s securities, metal prices, exchange rates, taxation, the estimation, timing and amount of future exploration and development, capital and operating costs, the availability of financing, the receipt of regulatory approvals, environmental risks, title disputes, failure of plant, equipment or processes to operate as anticipated, accidents, labour disputes, claims and limitations on insurance coverage and other risks of the mining industry, changes in national and local government regulation of mining operations, and regulations and other matters.. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.