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 2020, K92 announced its updated Kora Resource of 1.1moz at 10.4g/t AuEq Measured and Indicated and 3.7moz at 9.0g/t AuEq Inferred. This is in addition to the Irumafimpa deposit at 0.2moz at 13.4g/t Measured and Indicated and 0.2moz at 11.5g/t AuEq Inferred. In July 2017, based on the updated Kora Resource, K92 announced the Stage 3 Expansion PEA study outlining Tier 1 production (+300,000koz gold equivalent (“AuEq”) per annum run-rate starting in late-2023, <$500/oz AuEq life of mine average all-in sustaining costs and an After-Tax NPV5% of US$1.5 billion at $1,500/oz with significant upside potential).
Kainantu has a large ~725km2 land package (under application to increase to ~925km2 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 and the number of diamond drill rigs has been increasing.
Kainantu Achievements and Milestones
May 2017Kora North Discovery
Jan 2018Commercial Production Declared
Mar 2019Stage 2 Expansion Announced
May 2020Resource Update - 1.3 Moz AuEq Measured & Indicated, 3.9 Moz AuEq Inferred
July 2020400ktpa, Stage 3 Expansion PEA
Sep 2020Stage 2 Expansion Commissioned
Stage 3 Expansion PEA Summary
Mine Life & Material Movements
|Mine Life||12 Years|
|Expansion Year||Q4 2023|
|Throughput - Stage 3 Run-Rate||1.0 mtpa|
|Total Ore Mined||9.8 mt|
LOM Average Grades
|Gold Grade||8.8 g/t|
|Silver Grade||17.5 g/t|
|AuEq Grade||10.4 g/t|
|Stage 3 Run-Rate||318 kozAuEq|
|LOM Avg||258 kozAuEq|
|Avg Unit Costs||$94 ($/t)|
|LOM Avg Cash Cost||$202 ($/ozAu, net of by-product)|
|LOM Avg AISC||$362 ($/ozAu, net of by-product)|
|After-Tax NPV5%||$1.5 B|
|After-Tax LOM CF||$2.0 B|
|Gold Price||$1,500 ($/oz)|
|Silver Price||$18.0 ($/oz)|
|Copper Price||$3.00 ($/lb)|
US$ unless otherwise noted.
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 do not have demonstrated economic viability.