K92 Mining Inc (KNTNF)

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News out - K92 Mining Announces Latest Drill Results From Kora, Including Multiple Deep High-Grade Intersections

News Link:
http://www.globenewswire.com/news-release/2019/10/07/1925688/0/en/K92-Mining-Announces-Latest-Drill-Results-From-Kora-Including-Multiple-Deep-High-Grade-Intersections.html


October 07, 2019 06:30 ET | Source: K92 Mining Inc.
photo-release
Figure 1
Figure 1
K1 Long Section
K92 Mining Inc.
Figure 2
Figure 2
K2 Long Section
K92 Mining Inc.
Drill Hole KMDD0143 one of the deepest holes drilled to date at Kora/Kora North records multiple intersections including 7.40 m at 23.72 g/t Au, 26g/t Ag and 1.71% Cu (26.67 g/t AuEq) plus 2.00 m at 5.09 g/t Au, 24 g/t Ag and 4.16% Cu (11.77 g/t AuEq) plus 4.3 m at 1.61 g/t Au, 54 g/t Ag and 2.16% Cu (5.61 g/t AuEq)
Drill Hole KMDD0176, which only targeted the K1 vein, records one of the widest K1 intersection yet encountered of 42.5 m at 7.98 g/t Au, 25 g/t Ag and 0.85% Cu (9.61 g/t AuEq)
Drill Hole KMDD0141, the deepest hole drilled to date records multiple intersections including 6.90 m at 3.76 g/t Au, 82 g/t Ag and 2.42% Cu (8.51 g/t AuEq) plus 13.5 m at 3.31 g/t Au, 3 g/t Ag and 0.12% Cu (3.54 g/t AuEq) and 6.85 m at 3.15 g/t Au, 4 g/t Ag and 0.15% Cu (3.43 g/t AuEq)
Drill Hole KMDD0178 records multiple intersections including 5.86 m at 9.30 g/t Au, 8 g/t Ag and 0.20% Cu (9.71 g/t Au Eq) plus 6.80 m at 16.44 g/t Au, 51 g/t Ag and 0.70% Cu (18.16 g/t AuEq)
Drill Hole KMDD0182 records multiple intersections including 11.33 m at 4.29 g/t Au, 2g/t Ag and 0.89% Cu (5.67 g/t AuEq) plus 12.00 m at 5.05 g/t Au, 16 g/t Ag and 0.18% Cu (5.53 g/t AuEq)
VANCOUVER, British Columbia, Oct. 07, 2019 (GLOBE NEWSWIRE) -- K92 Mining Inc. (“K92” or the “Company”) (TSX-V: KNT; OTCQX: KNTNF) is pleased to announce results from the continuing diamond drilling of the Kora North Extension of the Kainantu gold mine in Papua New Guinea.

The results for the latest 11 diamond drill holes completed from both surface and underground into the Kora North deposit are summarized in Table 1 below. The results include two holes, KMDD0141 & KMDD0143, which are the deepest holes drilled to date at Kora/Kora North. KMDD0141 recorded a K2 intersection at approximately 820 mRL of 6.90 m at 3.76 g/t Au, 82 g/t Ag and 2.42% Cu (8.51 g/t gold equivalent (“AuEq”)), as well as a K1 intersection of 13.5 m at 3.31 g/t Au, 3 g/t Ag and 0.12% Cu (3.54 g/t AuEq). KMDD0143 recorded a K2 intersection at approximately 840 mRL of 7.40 m at 23.72 g/t Au, 26g/t Ag and 1.71% Cu (26.67 g/t AuEq), as well as a K1 intersection of 2.00 m at 5.09 g/t Au, 54g/t Ag and 4.16% Cu (11.77 g/t AuEq), 400 metres along strike and to the south of KMDD0141.

(Gold Equivalent (AuEq) is calculated using copper price of US$2.90/lb; silver price of US$16.5/oz and gold price of US$1,300/oz.)

The results from these two holes combined with those previously reported show a vertical extent of the K2 vein system to be over 1,000 metres from surface and still open at a depth. Long sections of K1 and K2 showing the location of the latest drill holes are provided in Figures 1 and 2 respectively.

John Lewins, K92 Chief Executive Officer and Director, stated, “The reported results include the two deepest holes drilled to date at Kora/Kora North. Both of these holes returned K2 intersections below 850 mRL, some 350 metres below our current operating levels and over 1,000 metres below surface where the veins outcrop. The K2 intersection of 6.9 metres at 8.51 g/t AuEq in KMDD0141 is towards the known northern limit of the veins, while the K2 intersection of 7.40 metres at 26.67 g/t AuEq in KMDD0143 is almost 400 metres along strike to the south. Both holes have substantial K1 intersections of 13.5 metres at 3.54 g/t AuEq and 2.0 metres at 11.77 g/t AuEq respectively.

Importantly, the KMDD0143 intersection is located approximately 200 metres below the deepest hole drilled from surface on the Kora deposit, BKDD0023 (drilled by Barrick), which recorded 32 metres of continuous mineralization to the end of hole, including 6.4 metres at 5.52 g/t Au and 8.0 metres at 3.7% Cu.

Other holes include one of the widest intersections reported on K1 of 42.5 metres at 7.98 g/t Au, 25 g/t Ag and 0.85% Cu (9.61 g/t AuEq). All of the results confirm yet again the extremely high continuity of the Kora K1 and K2 vein systems and that the Kora system still remains open both at depth and along strike.”

Key Assumptions and Parameters – Kora North Deposit

Mineralization comprises two parallel, steeply west dipping, N-S striking quartz-sulphide vein systems, K1 & K2, within an encompassing dilatant structural zone hosted by phyllite. An additional structure, the Kora Link, has also been defined and provides a possible link between the two main vein systems.

Underground drilling consists of diamond core for a range of core sizes depending on length of hole and expected ground conditions. Sampling is sawn half core under geological control and generally ranges between 0.5m and 1m. Underground face sampling is completed for every fired round and is to industry standard.

QAQC data indicated no significant issues with the accuracy of the on-site analysis.

Core recovery of the mineral zone was initially 90%, this has improved to >95%. There is no relationship between core recovery and gold grade.

Geological logging is consistent and is based on a full set of logging codes covering lithology, alteration and mineralization.

The geological interpretation of the vein systems is represented as 3D wireframe solids snapped to a combination of diamond drillhole data and underground face sampling. Definition of the wireframes is based on identified gold mineralisation in drill core nominally at a 0.2g/t Au cut off in conjunction with geological control/sense and current mining widths.

Gold equivalent (AuEq) g/t was calculated using the formula Au g/t +(Cu% x 1.53) + Ag g/t x 0.0127. (No account of metal recoveries through the plant have been used in calculating the metal equivalent grade. However, production is currently achieving 93% metal recovery for both gold and copper and gold is currently providing 95% and copper 5% of the total revenue of the mine).

Gold price US$1,300/oz; silver US$16.5/oz; copper US$2.90/lb.

Table 4 – Irumafimpa and Kora/Eutompi Resource Estimates

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 4.0 13.4 0.24
Total Inferred 4.89 7.7 1.21 32 5.06 2.0 288 11.2 1.76
Notes:

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 NI 43-101, has reviewed and is responsible for the technical content of this news release.

About K92

K92 Mining Inc. is engaged in the production of gold, copper and silver from the Kora and Kora North deposits of the Kainantu Gold Mine in the Eastern Highlands province of Papua New Guinea, as well as exploration and development of mineral deposits in the immediate vicinity of the mine. The Company declared commercial production from Kainantu in February 2018 and has commenced an expansion of the mine. An updated Preliminary Economic Assessment on the property was published in January 2019. K92 is operated by a team of mining company professionals with extensive international mine-building and operational experience.

ON BEHALF OF THE COMPANY,

John Lewins, Chief Executive Officer and Director

For further information, please contact David Medilek at [phone].

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 Kainantu Gold Mine, expectations of future cash flows, the ongoing 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, changes in government regulations 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.

Figure 1 - K1 Long Section
?https://www.globenewswire.com/NewsRoom/AttachmentNg/87134512-45c4-4907-86a7-5df50004b907

Figure 2 - K2 Long Section
https://www.globenewswire.com/NewsRoom/AttachmentNg/62449e10-9ee3-4af2-8de7-15287cc000af