K92 Mining Inc (KNTNF)

[Edge83]

The Hunt Is On For Copper… Stunning Ore Found in New Guinea.


Byron KingDear Gold Speculator,


As I mentioned yesterday, I’m in Toronto this week, attending the world’s greatest mining convention. It’s sponsored by the Producers’ & Developers’ Association of Canada (PDAC), and covers every manner of mining and minerals. I’m catching up with many of our Gold Speculator portfolio companies as well.


This is all part of the theme that Jim and I want you to see gold and mining-related articles that relate to larger themes in the wide world of gold and mining. Being in Toronto – Ground Zero of global mining this week – it’s what you need to see, fresh from the front lines. These are part and parcel of ideas that are important to successful investing (and “speculating”) in precious metals and mining shares…


I. K92 Mining Shows Stunning Ore from New Zone at PNG Mine


Here at PDAC, K92 Mining (OTCBB: KNTNF) had a busy booth over the past couple of days. Here’s one particular, eye-catching reason for the crowd.



Phenomenal, massive chalcopyrite-bornite from K92 mine.


This hunk of ore is the size of a soccer ball and tips the scale at over 60-pounds. Just lifting it off the table is a workout. This well-traveled specimen came from the 1,180-level of K92 operations in Papua, New Guinea (PNG). Then it arced across the sky, by airplane to Toronto. During PDAC, that block of rock sat – firmly – on the K92 display stage, showing the world what’s coming from the face of one of the most productive new mines you’ll find anywhere.


We’re looking at a nearly-solid, massive specimen of the minerals chalcopyrite and bornite – meaning that it’s super-rich in copper and gold.


According to K92 CEO John Lewins, with whom I had a good conversation, average head-grades from K92’s mine are about 23 grams gold per tonne, of late – over two-thirds of an ounce of gold for every tonne of rock mined. That’s sweet rock, to be sure.

Indeed, per CEO Lewins, the ore is so rich that K92 engineers have had to slow down the concentration cycle to allow the chemistry to capture as much of the gold as possible while it’s in the mill system. No sense dumping perfectly good grams of gold into the tailings pile, right?


But wait… there’s more! According to Lewins, new drilling is finding stunning zones of new, high-grade ore. And look at this intriguing specimen from a different level of the project.



Copper-gold rich specimen from K92 mine in Papua New Guinea.


As the description spells out, we’re looking at ore from a very rich zone of copper (15.9%), with significant gold (6.87 g/t); plus minor amounts of silver, bismuth and tungsten. Well, okay… If you insist.


Astonishing! And this is “run of the mine,” as the old saying goes. It’s what K92 is currently pulling out of the tunnels. The ore is running well at the mill. Concentrate numbers are simply splendid. I expect to see superb financial numbers when the company issues the next earnings report.


At the level of official paperwork, K92 just issued a press release, describing some of the ore from its new Kora Zone here. This follows another release of much-improved resource numbers which you can view here.

K92’s share price declined in the past couple of months, but has begun to rebound. The share price and the quality of geology are simply not in sync. The company is just not getting the kind of love it deserves from funds and institutions. This cannot last… And with recent results from Kora, and what I foresee coming in terms of earnings numbers, I suspect that we’re at a great entry point to accumulate more shares. There’s more to the company story here.


Kind Regards,

Adam Ross
Skanderbeg Capital Advisors