K92 Announces Further High-Grade Kora Drill Results from Kora Northern Extension

 In News Releases
  • Drill Hole KMDD0090 records multiple intersections including:
    • K1 intersection of 7.72 m at 25.60 g/t Au, 3 g/t Ag and 0.45% Cu (26.33 g/t AuEq)
    • KL intersection of 11.00 m at 10.46 g/t Au, 20 g/t Ag and 0.43% Cu (11.36 g/t AuEq)
    • K2 intersection of 9.35 m at 11.70 g/t Au, 24 g/t Ag and 3.59% Cu (17.50 g/t AuEq)

VANCOUVER, British Columbia, June 04, 2018 (GLOBE NEWSWIRE) — K92 Mining Inc. (TSX-V:KNT) (OTCQX:KNTNF) (“K92” or the “Company”) is pleased to announce results from the continuing grade control drilling of the Kora North Extension.

Results from Hole KMDD0090 included 7.72 m at 25.60 g/t Au, 3 g/t Ag and 0.45% Cu (26.33 g/t AuEq), 11.00 m at 10.46 g/t Au, 20 g/t Ag and 0.43% Cu (11.36 g/t AuEq) and 9.35 m at 11.70 g/t Au, 24 g/t Ag and 3.59% Cu (17.50 g/t AuEq). See Table 1 below for a summary of drill results including true widths.

The results from DDC3 continue to extend both the K1 and K2 lodes to the south while also further delineating the KL structure and confirming its continuity. A plan showing the location of KMDD0090 relative to the Kora North development and diamond drill cuddy three (“DDC3”) is provided below.

John Lewins, K92 Chief Executive Officer and Director, states, 

“The K1 intersection in hole KMDD0090 provides further confirmation of the continuity of the very high grades which we are currently mining from the K1 lode to the south and up dip. The K2 intersection likewise shows the continuity of the K2 lode and a general trend of increasing copper grades to the south. The K2 intersection recorded in this hole is now under 150 metres along strike from the deepest hole drilled from surface by Barrick”.

Table 1 below provides a summary of the results from KMDD0090 diamond grade control drill hole drilled from DDC3. Table 2 provides details of collar location and hole orientation.

Table 1.0 Kainantu Gold Mine – Significant Intercepts from Kora Diamond Drill Cuddy 3

Hole_id From
(m)
To (m) Interval
(m)
True
width
(m)
Gold
g/t
Silver
g/t
Copper
%
Gold
equivalent
Comment
 KMDD0090 74.00 81.72 7.72 3.85 25.60 3 0.45 26.33  K1
 Including 74.00 75.00 1.00 0.50 9.00 1 0.14 9.23
 Including 75.53 76.12 0.59 0.29 2.15 1 0.79 3.36
 Including 76.12 76.40 0.28 0.14 6.40 1 1.53 8.75
 Including 76.40 77.05 0.65 0.32 2.82 2 1.01 4.38
 Including 77.05 78.04 0.99 0.49 94.80 13 0.22 95.30
 Including 78.04 78.95 0.91 0.45 22.60 4 0.65 23.64
 Including 78.95 79.30 0.35 0.17 19.24 2 0.41 19.90
 Including 79.30 79.60 0.30 0.15 5.08 1 0.04 5.15
 Including 79.60 80.35 0.75 0.37 50.12 3 0.33 50.66
 Including 80.35 81.30 0.95 0.47 2.12 1 0.16 2.38
 Including 81.30 81.72 0.42 0.21 51.01 5 0.48 51.81
 KMDD0090 91.00 102.00 11.00 5.48 10.46 20 0.43 11.36  KL
 Including 91.00 92.10 1.10 0.55 2.44 3 0.32 2.96
 Including 92.10 93.40 1.30 0.65 3.26 1 0.13 3.47
 Including 93.40 94.20 0.80 0.40 4.47 5 0.18 4.81
 Including 94.20 95.00 0.80 0.40 1.45 11 0.46 2.29
 Including 95.00 96.00 1.00 0.50 15.62 59 0.68 17.41
 Including 96.00 96.80 0.80 0.40 5.48 31 0.74 7.00
 Including 96.80 97.30 0.50 0.25 1.82 30 0.62 3.16
 Including 97.30 97.80 0.50 0.25 1.13 31 1.31 3.53
 Including 97.80 98.70 0.90 0.45 7.86 13 0.32 8.52
 Including 98.70 99.70 1.00 0.50 14.31 32 0.33 15.23
 Including 99.70 100.40 0.70 0.35 17.89 11 0.46 18.73
 Including 100.40 102.00 1.60 0.80 30.04 20 0.30 30.76
 KMDD0090 105.00 114.35 9.35 6.85 11.70 24 3.59 17.50  K2
 Including 105.00 105.36 0.36 0.26 20.87 89 14.82 44.68
 Including 105.36 105.70 0.34 0.25 0.74 1 1.12 2.47
 Including 105.70 106.27 0.57 0.42 0.41 36 11.71 18.78
 Including 106.27 106.80 0.53 0.39 0.11 28 5.29 8.56
 Including 106.80 107.70 0.90 0.66 1.25 32 6.62 11.79
 Including 107.70 108.25 0.55 0.40 11.62 8 0.13 11.91
 Including 108.25 109.30 1.05 0.77 0.97 41 5.29 9.58
 Including 109.30 110.10 0.80 0.59 0.90 38 3.20 6.28
 Including 110.10 111.40 1.30 0.95 0.96 16 1.14 2.90
 Including 111.40 112.70 1.30 0.95 68.33 15 0.45 69.21  
 Including 112.70 113.10 0.40 0.29 2.03 13 1.54 4.55  
 Including 113.10 114.35 1.25 0.92 0.93 7 1.25 2.93  

Notes
Gold Equivalent uses Copper price – US$2.90/lb; Silver price US$16.5/oz and Gold price of US$1300/oz

Table 2.0 Kainantu Gold Mine – Collar Locations for Kora Underground Diamond Drilling

Hole_id Collar location Collar orientation EOH
depth (m)
Lode
Local
north
Local
East
mRL Dip Local
azimuth
KMDD0090 58899.60 29868.47 1191.61 22.8 220.9 139.2 Kora

The current Kora/Eutompi inferred resource, as defined by previous drilling and prior to the discovery of the northern extension of Kora by K92, is 4.36 million tonnes at a grade of 7.3 g/t Au, 35 g/t Ag and 2.23 per cent Cu, or 11.2 g/t gold equivalent (see attached table) and is open for expansion at depth and in both directions along strike.

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 the resource estimates.

The PEA estimates for Kora, based on the current resource estimates (4.36 million tonnes of 7.3 g/t Au, 35 g/t Ag and 2.23 per cent Cu):

  • Over a nine-year operating life, the plant would treat 3.2 million tonnes averaging 7.1 g/t Au, 25 g/t Ag and 1.7 per cent Cu (9.3 g/t AuEq (1));
  • This would generate an estimated positive cash flow of $537-million (U.S.) using current metal prices if 15-metre levels are used in mining; if 25-metre levels are used, then net cash flows are estimated as $558-million (U.S.); this cash flow includes conceptual allowances for capital;
  • Production of an estimated average of 108,000 AuEq (1) ounces per annum over an eight-year period from year 2 through to year 9;
  • An estimated pretax net present value (NPV) of $415-million (U.S.) for 25-metre levels, or $397-million (U.S.) for 15-metre levels, using current metal prices, exchange rates and a 5-per-cent discount;
  • An estimated after-tax NPV of $329-million (U.S.) for 25-metre levels, or $316-million (U.S.) for 15-metre levels, using current metal prices, exchange rates and a 5-per-cent discount;
  • Initial capital cost is estimated to be $13.8-million (U.S.), including the $3.3-million (U.S.) for the plant upgrade identified in the Mincore scoping study, but excluding the proposed Kora exploration inclines and diamond drilling; sustaining capital cost is estimated to a further $64-million (U.S.) spent over the life of the Kora mining for 25-metre levels, or $83-million (U.S.) for 15-metre levels;
  • Operating cost per tonne is estimated to be $125 (U.S.) per tonne for 25-metre levels, or $126 (U.S.) per tonne for 15-metre mining levels;
  • Excluding initial capital expenditure of $14-million (U.S.), cash cost is estimated to be $547 (U.S.) per ounce AuEq (inclusive of a 2.5-per-cent net smelter return (NSR) royalty) and all-in sustaining cost (AISC) of $619 (U.S.) per ounce AuEq for 25-metre mining levels, or $549 (U.S.) per ounce (inclusive of a 2.5-per-cent NSR royalty) and AISC of $644 (U.S.) per ounce AuEq for 15-metre mining levels.

Metal prices used were $1,300 per ounce for gold, $18 (U.S.) per ounce for silver and $4,800 per tonne for copper.

(1) Gold equivalent calculated on above metal prices.

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.

Table 3.0 IRUMAFIMPA AND KORA/EUTOMPI RESOURCES

   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  13.4  0.24
 Total Inferred  4.89  7.7  1.21  32  5.06  2.0  218  11.2  1.76

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 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 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

For further information, please contact Investor Relations 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. 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.

A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/335b1a4d-4700-4a6e-878a-a58656cd68a4

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