K92 Announces Updated Resource for Kora North

 In News Releases

HIGHLIGHTS INCLUDE:

  • The updated resource for the Kora North deposit comprises a Measured Resource of 33,200 tonnes @ 10.3 g/t Au, 31 g/t Ag and 1.2% Cu; an Indicated Resource of 103,500 tonnes @12.7 g/t Au, 30 g/t Ag and 1.3% Cu and an Inferred Resources of 183,500 tonnes @ 14.4 g/t Au, 27 g/t Ag and 0.9% Cu.
  • The Total Measured, Indicated and Inferred Resource covers an area of 300 metres on strike by 150 metres vertically, less than 5% of the target area to be drilled over the coming 12 months. 

VANCOUVER, British Columbia, March 01, 2018 (GLOBE NEWSWIRE) — K92 Mining Inc. (“K92”) (TSXV:KNT) is pleased to announce that an updated resource has been defined in Kora North based on results from underground grade control diamond drilling and face sampling. The updated resource comprises a Measured Resource of 33,200 tonnes @ 10.3 g/t Au, 31 g/t Ag and 1.2% Cu; an Indicated Resource of 103,500 tonnes @ 12.7 g/t Au, 30 g/t Ag and 1.3% Cu and an Inferred Resources of 183,500 tonnes @ 14.4 g/t Au, 27 g/t Ag and 0.9% Cu. See Table 1 below.

This updated resource is based on results from 29 diamond drill holes drilled from Diamond Drill Cuddies 1 and 2 (DDC1 & DDC2) and 261 face samples taken from horizontal development along the K1, K2 and KL1 veins. The resource covers an area approximately 300 metres along strike by 150 metres vertically and excludes all tonnages mined from within this area up until 31 January 2018. This area represents just 5% of the target area of 1,000 metres along strike by up to 1,000 metres vertically which the Company plans to drill from underground over the coming 12 months.

The updated resource has been defined after just four months of underground grade control drilling and represents, at the design production levels of 45-50,000 ozs per annum, almost three years of production.

Table 1 Kora North Mineral Resource – Effective Date 1 February 2018

Category Tonnes Gold Silver Copper AuEq
g/t Ozs g/t Ozs % 000’s lb g/t Ozs
Measured   33,200 10.3   10,900 31   33,300 1.2   890 12.5   13,300
Indicated   103,500 12.7   42,200 30   99,800 1.3   3,020 15.1   50,300
Total M & I   136,700 12.1   53,100 30   133,100 1.3   3,910 14.5   63,700
Total Inferred   183,500 14.4   85,000 27   159,300 0.9   3,640 16.1   95,000
  • 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 60 g/t was applied to the gold assays for the K1 and K2 lodes and 80 g/t for the KL1 lode
  • 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 of 60g/t, K1 and KL1 of 80g/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.

John Lewins, K92 Chief Executive Officer and Director, states, “In October 2017, K92 commenced grade control drilling and the mining of a bulk sample from Kora North. Just over four months later, we have announced the achievement of commercial production and defined a Measure + Indicated + Inferred Resource of 320,000 tonnes at an AuEq grade of 15.4 g/t containing almost 160,000 ozs of AuEq, covering an area of just 300 metres along strike by 150 metres vertically – equivalent to less than 5% of the total area of 1,000 metres by 1,000 metres that we plan to drill out from underground over the coming 12 months. This 160,000 ozs is equivalent to almost 3 years production at current design levels.

“The rate at which we have been able to progress our understanding of the Kora North vein system, and utilise this information to achieve commercial production is a testament to the skills, hard work and endeavour of all of our personnel at the Kainantu Gold Mine. We can rightly look forward with increasing confidence to achieving design production in the coming quarter and further developing our knowledge of the Kora system and unlocking its undoubted potential.”

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,

John Lewins
Chief Executive Officer and Director

Suite 488 – 1090 West Georgia Street
Vancouver, British Columbia
Canada V6E 3V7

Telephone: (604) 687-7130
Facsimile: (604) 608-9110

K92 has a standard underground face sampling procedure in place in which face geological mapping and channel samples are taken across the strike, at right angles to the drive walls at intervals of approximately of 1.5m apart coinciding with the development advance of the heading. A geologist determines the interval lengths across the face for each sample depending on the geological character of the material. Two samples are taken per interval at waist and knee height and the corresponding widths recorded. No greater than 1.5m intervals are allowed during sampling. Samples are approximately 3.5kg in size. Assay for Au, Ag and Cu are averaged using length weighting of the sample interval and then, coupled with the orientation of channel and placed in the database. Standard QAQC procedures are used for underground samples as described in the ITR Mineral Resource Estimate and Preliminary Economic Assessment of Irumafimpa and Kora Gold Deposits, Kainantu Project, PNG dated 2 March 2017.

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.

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