Q2 2018 Highlights include:
- Production of 10,485 ozs of gold and 128,634 lbs copper in Q2 2018
- The average grade treated through the Process Plant for Q2 2018 was 20.40 g/t Au and 0.36% Cu
- Reported updated resource for the Kora North deposit comprising a Measured Resource of 242,900 tonnes @ 13.9 g/t Au, 19 g/t Ag and 1.0% Cu; an Indicated Resource of 442,800 tonnes @ 11.8 g/t Au, 21 g/t Ag and 1.2% Cu and an Inferred Resources of 1,084,400 tonnes @ 13.6 g/t Au, 15 g/t Ag and 1.0% Cu.
- Exploration drilling commenced on Yanabo/Yompossa porphyry target
- No Lost Time Injuries (LTIs) recorded during Q2 2018 and none recorded for the entire 2017
VANCOUVER, British Columbia, July 25, 2018 (GLOBE NEWSWIRE) -- K92 Mining Inc. (TSX-V:KNT) (OTCQX:KNTNF) (“K92”) is pleased to provide an update on operations during Q2 2018 (“Q2”) at its Kainantu Gold Mine in Papua New Guinea.
During Q2, K92 produced 10,485 ounces of gold, 128,634 pounds of copper and 1,671 ozs of silver or 10,800 AuEq ozs (based on a Gold price of US$1,300/oz; Silver US$16.5/oz; Copper US$2.90/lb).
Mining operations focused on Kora North, comprising cut and fill stope mining from the K2 vein over a 200-metre strike length and cut and fill stope mining on the K1 vein over a 250 metre strike length.
The blend of primarily K1 material with some and K2 material provided an average grade treated through the Process Plant for Q2 of 20.4 g/t Au and 0.36% Cu. Recoveries for the quarter averaged 93.5% for both gold and copper.
Grade control drilling from the third drill cuddy DDC3 located approximately 100 metres to the south of DDC2, commenced during the quarter, while exploration drilling continued from DDC2. A fourth drill cuddy, DDC4 was commenced during the quarter and it is anticipated that exploration drilling from this cuddy will commence early in Q3.
John Lewins, K92 Chief Executive Officer and Director, states, “This quarter has seen our company build on the success of first quarter, increasing gold production by over 10%, with the company well on track to meet our guidance of 42,000 to 46,000 ozs AuEq for the year. During the quarter, we were also able to declare more than a fivefold increased Kora North resource to a Measured + Indicated resource of 685,700 tonnes at an AuEq grade of 14.5 g/t containing 320,500 ozs of AuEq, plus an Inferred resource of 1,084,000 tonnes at an AuEq grade of 15.2 g/t containing 571,000 ozs of AuEq. In addition, we have commenced our first surface exploration drilling program at the highly prospective Yanabo/Yompossa Porphyry target.”
Further financial details regarding Q2 production will be available within the upcoming quarterly financial filing. Based on budget, K92 anticipates operations achieved positive cash flow in each month of the quarter.
Table 1 below provides a summary of the Kora North mineral resource.
Table 1 Kora North Mineral Resource – Effective Date June 25, 2018
|Total M & I||685,700||12.5||276,500||20||450,000||1.1||17,200||14.5||320,500|
- Gold Equivalent (Au Eq) g/t was calculated using the formula Au g/t + (Cu% x 1.53) + Ag g/t x 0.0127.
- Gold price US$1,300/oz; Silver US$16.5/oz; Copper US$2.90/lb.
- A top cut of 100 g/t was applied to the gold assays for the K1, K2 KL lodes.
- Mineral resources which are not mineral reserves do not have demonstrated economic viability.
- The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
- The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.
- All material mined from within the resource envelope up to the effective date of the resource have been removed from the model.
- Wireframes were constructed to constrain lode positions based on geological mapping and logging of workings and diamond core coupled with the use of face and drill core assay results using a nominal +1 g/t Au cut-off to define the lode boundary.
- Equal length composites of 0.5m were extracted from the database for each lode. A top cut to gold grade was applied to K2, K1 and KL1 of 100g/t. The ordinary kriging modelling estimation method was then used with search radii of 35m and 130m for Au, Ag and Cu. At least 3 informing values with a maximum of 12 were used to estimate each model block.
- The Resource was classified as measured if both drilling at 25m centres and workings were present, as indicated if only drilling or workings were presented and inferred for material 15m past the last drill hole or working.
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.
Kora remains open for expansion in every direction and strongly mineralized at the extent of all drilling. 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. The resource estimate used within this PEA has not incorporated the updated mineral resource estimate. The results and conclusions of any updated PEA incorporating the revised mineral resource, if completed, will be materially different than those previously disclosed.
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 K92,
Chief Executive Officer and Director
For further information, please contact the Company at +1-604-687-7130.
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 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. Cash flow estimations for Q1 2018 are subject to change and subject to the finalization of financial 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.