K92 Mining is focused on operating and expanding the Kainantu Gold Mine, located in Eastern Highlands province, Papua New Guinea. Since acquiring the project from Barrick Gold in 2014 and restarting in late-2016, K92 has transformed Kainantu into a rapidly expanding both producer and mineral resources. Production has also been low cost, which is a testament to the high grade, continuity, solid thickness, geotechnical and metallurgical characteristics of the deposit. The transformation was driven by a series of near-mine infrastructure exploration discoveries.
In May 2017, a near-mine infrastructure discovery of Kora North was made. This discovery ultimately combined the Kora, Eutompi and Kora North deposits into what is now known as the Kora deposit. In February 2022, following extensive underground drilling focused on upgrading Inferred resources to Measured & Indicated, K92 announced its updated Kora Resource of 2.1moz at 9.2g/t AuEq Measured and Indicated and 2.5moz at 9.5g/t AuEq Inferred. In addition, a maiden Judd Resource was announced just over a year after the discovery of high-grade underground mineralization in Q4 of 2020. The Judd main resource currently stands at 0.13moz at 11.0g/t AuEq Measured and Indicated and 0.18moz at 5.7g/t AuEq Inferred. In December 2023 K92 Mining announced yet another resource update for the Kora and Judd deposits which was achieved over a period of less than two years and at a discovery cost of less than US$7.5 per ounce gold equivalent. The combined Kora and Judd Measured and Indicated resource increased +13%, net of depletion, to 8.1 million tonnes at 10.00 g/t AuEq for 2.6 million ounces AuEq, and the Inferred resource increased +70%, net of depletion, to 16.5 million tonnes at 8.48 g/t AuEq for 4.5 million ounces AuEq.
Operations are undertaking multiple stages of expansion, with Stage 2 Expansion run-rate achieved in late-2021, Stage 2A Expansion final commissioning completed in May 2023 to increase throughput 25% to 500,000 tpa, Stage 3 Expansion targeting commissioning in early-2025 that is expected to increase throughput to 1.2 mtpa, and a Stage 4 Expansion scheduled for commissioning in the second half of 2026 bringing throughput to 1.7 mtpa. As outlined in the September 2022 Stage 3 Expansion DFS study, Stage 3 is expected to achieve Tier 1 production (290,000koz gold equivalent per annum run-rate, <$550/oz (net of by-products) or <$735/oz (co-product) life of mine average all-in sustaining costs with significant upside potential). The Stage 4 Expansion PEA study outlines a 470,000koz gold equivalent per annum run-rate, <$450/oz (net of by-products) or <$690/oz (coproduct) life of mine average all-in sustaining costs (please refer to the January 2022 effective date technical report)(1).
Exploration is self-funded and is a major focus, with up to 11 drill rigs operating on both vein and porphyry targets. In August 2022, K92 announced at 10.8 moz Inferred resource or 4.7 blbs CuEq at its Blue Lake Porphyry. Blue Lake is a discovery by K92, with nearly every hole intersecting mineralization and at a discovery cost of <$1/oz. Additionally, exploration is advancing at the A1 Porphyry Target, our highest priority porphyry target after completing advanced MobileMT airborne geophysics in late-2021.
Kainantu has a large ~830km2 land package in the land of large Tier 1 Gold Assets. The property hosts many highly prospective vein field and porphyry targets. Multiple targets are being drill tested concurrently.
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.
Kainantu Achievements and Milestones
May 2017
Kora North DiscoveryJan 2018
Commercial Production DeclaredMar 2019
400ktpa, Stage 2 Expansion AnnouncedMay 2020
Resource Update - 1.3 Moz AuEq Measured & Indicated, 3.9 Moz AuEq InferredJuly 2020
1mtpa, Stage 3 Expansion PEASep 2020
Stage 2 Expansion CommissionedSep 2021
400ktpa, Stage 2 Expansion AchievedOct 2021
500ktpa, Stage 2A Expansion AnnouncedFeb 2022
Kora Resource Update and Maiden Judd Resource - 2.3 Moz AuEq M&I, 2.6 Moz AuEq InferredAug 2022
Blue Lake Maiden Resource – 10.8 Moz AuEq or 4.7 Blb CuEq InferredSept 2022
Kainantu Integrated Development Plan (Stage 3 DFS and Stage 4 PEA)Dec 2022
Extension to Mining Lease 150 to June 2034May 2023
500ktpa, Stage 2A Expansion AchievedDec 2023
Kora and Judd Resource Update – 2.6 Moz AuEq M&I, 4.5 Moz AuEq InferredSTAGE 3 & 4 EXPANSION SUMMARY (JANUARY 1, 2022 EFFECTIVE DATE)(1)
MINE LIFE & MATERIAL MOVEMENTS | Stage 3 DFS | Stage 4 PEA |
Effective Date: January 1, 2023(1) | ||
Mine Life | 7 Years | 11 Years |
Throughput - Stage 3 Run-Rate | 1.2 mtpa | 1.7 mtpa |
Total Ore Mined | 6.1 mt | 12.2 mt |
LOM AVERAGE GRADES | ||
Gold Grade | 6.7 g/t | 7.03 g/t |
Copper Grade | 0.9% | 1.2% |
Silver Grade | 18 g/t | 23 g/t |
AuEq Grade | 8.4 g/t | 9.34 g/t |
AVERAGE RECOVERIES | ||
Gold Recovery | 93% | 93% |
Copper Recovery | 95% | 95% |
PRODUCTION | ||
Stage 3 Run-Rate | 291 kozAuEq | 470 kozAuEq |
LOM Avg | 221 kozAuEq | 309 kozAuEq |
COSTINGS | ||
Expansion Capex | $178M | $187M |
Sustaining Capex | $218M | $429M |
Avg Unit Costs | $116/t | $118/t |
LOM Avg Cash Cost (co-product) |
$579/oz | $552/oz |
LOM Avg Cash Cost (net of by-product) |
$366/oz |
$275/oz |
LOM Avg AISC (co-product) |
$732/oz | $687/oz |
LOM Avg AISC (net of by-product) |
$545/oz |
$444/oz |
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.