K92 Mining Announces Latest Drill Results From Kora, Including Significant Southern Strike Extension

 In 2020, News Releases
  • Drill Hole KMDD0167 records bulk intersection of 30.1 m at 22.7 g/t Au, 5 g/t Ag and 0.54% Cu (23.6 g/t AuEq). The bulk intersection comprises multiple veins, including:
    °  K1 of 10.0 m at 17.6 g/t Au, 1 g/t Ag, 0.10% Cu (17.77 g/t AuEq);
    °  Kora Link of 5.1m at 8.5 g/t Au, 4 g/t Ag, 0.44% Cu (9.24 g/t AuEq);
    °  K2 of 10.1 m at 45.7g/t Au, 12 g/t Ag, 1.29% Cu (47.8 g/t AuEq).
  • Drill Hole KMDD0177 records multiple intersections including 14.60 m at 5.96 g/t Au, 35g/t Ag and 3.32 % Cu (11.48 g/t AuEq).
  • Drill Hole KMDD0175 records multiple intersections including 8.08 m at 20.01 g/t Au, 13 g/t Ag and 0.87% Cu (21.50 g/t AuEq) plus 8.50 m at 10.83 g/t Au, 52 g/t Ag and 3.81% Cu (17.33 g/t AuEq).
  • Drill Hole EKDD0003A records multiple intersections including 8.00 m at 31.74 g/t Au, 7 g/t Ag and 0.52% Cu (32.63 g/t AuEq).
  • Drill Hole KMDD0153 records multiple intersections including 3.70 m at 48.57 g/t Au, 177 g/t Ag and 1.31% Cu (52.82 g/t AuEq) and 5.69 m at 6.62 g/t Au, 6 g/t Ag and 0.14% Cu (6.92 g/t AuEq, 2.67 m true width).
  • Drill Hole KMDD0198 records multiple intersections including 8.74 m at 21.58 g/t Au, 3 g/t Ag and 0.74% Cu (22.74 g/t AuEq).

VANCOUVER, British Columbia, Feb. 20, 2020 (GLOBE NEWSWIRE) — K92 Mining Inc. (“K92” or the “Company”) (TSX-V: KNT; OTCQX: KNTNF) is pleased to announce results from the continuing diamond drilling of the Kora North Extension of the Kainantu gold mine in Papua New Guinea.

The results for the latest 25 diamond drill holes completed from both surface and underground into the Kora North deposit are summarized in Table 1 below. The results include multiple high-grade intersections, with the vast majority reported outside the boundaries of the October/2018 Resource estimate. The intersections demonstrate the high-grade and continuity of known mineralization beyond the resource along strike to the south, up-dip and down-dip.

Step-out drilling to the south has extended the known mineralized southern extents by ~225m, recording multiple high-grade intersections. KMDD0175, drilled ~150m south of the Oct/2018 resource, recorded 8.08 m at 20.01 g/t Au, 13 g/t Ag and 0.87% Cu (21.50 g/t gold equivalent (“AuEq”), 2.86 m true width) and 8.50 m at 10.83 g/t Au, 52 g/t Ag and 3.81% Cu (17.33 g/t AuEq, 2.63 m true width). Step-outs more proximal to the Oct/2018 resource also recorded high-grade intersections including KMDD0198 recording 8.74 m at 21.58 g/t Au, 3 g/t Ag and 0.74% Cu (22.74 g/t AuEq, 6.80 m true width). Our most southern hole to date KMDD0177, ~225m south of the Oct/2018 resource, recorded 14.60 m at 5.96 g/t Au, 35g/t Ag and 3.32% Cu (11.48 g/t AuEq, 6.12 m true width) and importantly, intersected massive bornite mineralization (See Figure 4). The bornite mineralization is indicative of potential increasing proximity to one or multiple heat sources (to the south and/or to depth).

These drill results also continue to demonstrate the potential for high-grade mineralization up-dip and down-dip of the Oct/2018 resource, including a localized improvement in grade from increased drilling density in several areas. KMDD0153, drilled ~75m below the Oct/2018 resource, recorded 5.69 m at 6.62 g/t Au, 6 g/t Ag and 0.14% Cu (6.92 g/t AuEq, 2.67 m true width) and 3.70 m at 48.57 g/t Au, 177 g/t Ag and 1.31% Cu (52.82 g/t AuEq, 1.91 m true width). KMDD0159, ~50-100m below the Oct/2018 resource, recorded 2.73 m at 14.74 g/t Au, 18 g/t Ag and 0.14% Cu (15.18 g/t AuEq, 1.24m true width) and 1.97 m at 6.33 g/t Au, 298 g/t Ag and 3.58% Cu (15.60 g/t AuEq, 1.28m true width). Up-dip of the Oct/2018 resource, surface drill hole EKDD0003A recorded 8.00 m at 31.74 g/t Au, 7 g/t Ag and 0.52% Cu (32.63 g/t AuEq, 4.06 m true width), ~100 m up-dip from the Oct/2018 Resource.

Additionally, the results further demonstrate the potential for bulk mining, with KMDD0167 reporting a bulk intersection of 30.1 m at 22.7 g/t Au, 5 g/t Ag and 0.54% Cu (23.6 g/t AuEq, 29.7m true thickness). The intersection occurred where the Kora Link vein connects the K1 and K2 veins and highlights the potential for larger scale transverse long hole open stopes at Kainantu. Total drill metres after the Oct/2018 resource has increased +240%, which has enhanced K92’s understanding of Kora Link structures, including showing more structural continuity, particularly persistency vertically, than previously known.

Long sections of K1 and K2 showing the location of the latest drill holes are provided in Figures 1 and 2 respectively. Long section showing Kora North drilling to date is provided in Figure 3.


Figure 1 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/57ce7f55-e2e6-4a23-8d5a-820f93347f27

Figure 2 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/e1e980d8-1527-476f-96b7-405d91de1f54

Figure 3 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/015b548d-f53b-4038-bdf9-77f153cfea1c

Figure 4 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/676f99e6-1900-4a54-b138-916a9718d304


(Gold Equivalent (AuEq) is calculated using copper price of US$2.90/lb, silver price of US$16.5/oz and gold price of US$1,300/oz.)

John Lewins, K92 Chief Executive Officer and Director, stated, “The reported results continue to demonstrate the high-grade pedigree, continuity and the strong extensional potential of Kora North. Step-out drilling to the south has extended known Kora North mineralization by over 200 metres below the known Kora resource, with multiple high-grade intersections recorded. One of the most recent holes drilled, KMDD0177, intersected massive bornite mineralization which may be significant in providing a vector towards the potential heat source. Drilling up-dip and down-dip has also been very encouraging with multiple high-grade intersections recorded and increasing drill density.

Since the October 2018 Resource, Kora North drill metres have increased by +240%, which has provided an enhancement to our understanding of the system, including the Kora Link structures. These structures are emerging as being more continuous than previously known, are vertically persistent, and represent a potential opportunity for high productivity, transverse long hole open stoping.

While we are now in the process of updating the Kora North resource to incorporate all of the results reported to date, we continue our drilling program with five diamond drill rigs active on the mining lease. These will shortly be supplemented by three new diamond drill rigs due on site in 2Q 2020. The two surface rigs and one underground rig will not only provide an increase to our rate of exploration but also our capacity to test new targets, some of which we expect to drill in the near term.”

Table 1 – Kainantu Gold Mine – Significant Intercepts from Diamond Drilling

View drill results

The mineral resource estimate (shown in Table 3 and Table 4) for the Kora, Kora North and Irumafimpa deposits is based on the technical report prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”), and titled, “Independent Technical Report, Mineral Resources Estimate Update and Preliminary Economic Assessment of Kora North and Kora Gold Deposits, Kainantu Project, Papua New Guinea” with an effective date of September 30, 2018 (the “Technical Report”) prepared by Anthony Woodward BSc (Hons.), M.Sc., MAIG, Simon Tear BSc (Hons), EurGeol, PGeo IGI, EurGeol, Christopher Desoe BE (Min)(Hons), FAusIMM, RPEQ, MMICA, Lisa J. Park, BEng (Chem), GAICD, FAusIMM.

Table 3 – Kora North Mineral Resource Estimate

Global Mineral Resources Kora North Gold-Copper Mine – September 2018
Category Tonnes Gold Silver Copper AuEq
Mt g/t Mozs g/t Mozs % Mlbs g/t Mozs
Measured 0.15 18.7 0.09 8.9 0.04 0.5 1.6 19.6 0.09
Indicated 0.69 11.6 0.26 14.1 0.31 0.8 11.8 12.9 0.29
Total M & I 0.85 12.9 0.35 13.1 0.36 0.7 13.3 14.1 0.39
Inferred Total 1.92 10.7 0.66 13.3 0.82 0.7 29.5 11.9 0.74

M in table is millions.   

Key Assumptions and Parameters – Kora North Deposit

Mineralization comprises two parallel, steeply west dipping, N-S striking quartz-sulphide vein systems, K1 & K2, within an encompassing dilatant structural zone hosted by phyllite.  An additional structure, the Kora Link, has also been defined and provides a possible link between the two main vein systems.

Underground drilling consists of diamond core for a range of core sizes depending on length of hole and expected ground conditions.  Sampling is sawn half core under geological control and generally ranges between 0.5m and 1m.  Underground face sampling is completed for every fired round and is to industry standard.

QAQC data indicated no significant issues with the accuracy of the on-site analysis.

Core recovery of the mineral zone was initially 90%, this has improved to >95%.  There is no relationship between core recovery and gold grade.

Geological logging is consistent and is based on a full set of logging codes covering lithology, alteration and mineralization.

The geological interpretation of the vein systems is represented as 3D wireframe solids snapped to a combination of diamond drillhole data and underground face sampling.  Definition of the wireframes is based on identified gold mineralisation in drill core nominally at a 0.2g/t Au cut off in conjunction with geological control/sense and current mining widths.

Gold equivalent (AuEq) g/t was calculated using the formula Au g/t +(Cu% x 1.53) + Ag g/t x 0.0127. (No account of metal recoveries through the plant have been used in calculating the metal equivalent grade. However, production is currently achieving 93% metal recovery for both gold and copper and gold is currently providing 95% and copper 5% of the total revenue of the mine).

Gold price US$1,300/oz; silver US$16.5/oz; copper US$2.90/lb.

Table 4 – Irumafimpa and Kora/Eutompi Resource Estimates

Resource by Deposit and Category
Deposit Resource

Category

Tonnes Gold Silver Copper Gold Equivalent
Mt g/t Moz g/t Moz % Mlb g/t Moz
Irumafimpa Indicated 0.56 12.8 0.23   9 0.16 0.28 37 13.4 0.24
Inferred 0.53 10.9 0.19   9 0.16 0.27 74 11.5 0.20
Kora/Eutompi Inferred 4.36   7.3 1.02 35  4.9 2.23 215 11.2 1.57
Total Indicated 0.56 12.8 0.23   9 0.16 0.3 4.0 13.4 0.24
Total Inferred 4.89   7.7 1.21 32 5.06 2.0 288 11.2 1.76

Notes:

  • M in table is millions.
  • Reported tonnage and grade figures are rounded from raw estimates to reflect the order of accuracy of the estimate. Minor variations may occur during the addition of rounded numbers. Gold equivalents in Table 4 are calculated as AuEq = Au g/t + Cu%*1.52+ Ag g/t*0.0141.

K92 Mine Geology Manager and Mine Exploration Manager, Mr. Andrew Kohler, PGeo, a qualified person under the meaning of NI 43-101, has reviewed and is responsible for the technical content of this news release.

About K92

K92 Mining Inc. is engaged in the production of gold, copper and silver from the Kora and Kora North deposits of the Kainantu Gold Mine in the Eastern Highlands province of Papua New Guinea, as well as exploration and development of mineral deposits in the immediate vicinity of the mine.  The Company declared commercial production from Kainantu in February 2018 and has commenced an expansion of the mine.  An updated Preliminary Economic Assessment on the property was published in January 2019. K92 is operated by a team of mining company professionals with extensive international mine-building and operational experience.

 

ON BEHALF OF THE COMPANY,

John Lewins, Chief Executive Officer and Director

For further information, please contact:
David Medilek, P.Eng., CFA at +1-604-687-7130.

www.k92mining.com

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

 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 regarding K92 Mining Inc.’s future financial, and current and projected operating performance 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 forward-looking statements in this news release are based on the opinions and estimates of management as of the date such statements are made and are subject to important risk factors and uncertainties, many of which are beyond the Company’s ability to control or predict. 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 Kainantu Gold Mine; the generation of further drilling results; expectations of future cash flows; expectations of future production results; expected success of the proposed plant expansion; potential expansion of resources; any which may or may not occur. Forward-looking statements and information contained herein are based on certain factors and assumptions regarding, among other things: there being no significant disruptions affecting the Company’s operations; political and legal developments in Papua New Guinea being consistent with the Company’s current expectations; the accuracy of K92’s current mineral reserve and mineral resource estimates; the exchange rate between the Canadian dollar and U.S. dollar, and the Papua New Guinea Kina, being approximately consistent with current levels; prices for fuel,  electricity and other key supplies being approximately consistent with current levels; equipment, labour and materials costs increasing on a basis consistent with K92’s current expectations; all required permits, licenses and authorizations being obtained from the relevant governments and other relevant stakeholders within the expected timelines and the absence of material negative comments during the applicable regulatory processes; the market price of the Company’s securities; metal price; 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.