K92 MINING ANNOUNCES THIRD QUARTER RESULTS FROM THE KAINANTU GOLD MINE WITH GOLD EQUIVALENT PRODUCTION 14% ABOVE BUDGET
Third Quarter (“Q3”) 2019 Production highlights include:
Q3 production of 18,636 oz of gold, 209,287 lbs copper and 5,284 oz silver for a total of 19,170 gold equivalent (“AuEq”) oz.
Tonnage treated through the process plant was 32,094 tonnes, at an average grade of 19.19 g/t gold and 0.32% copper, achieving recoveries of 94.1% for gold and 92.1% for copper.
Kainantu Mine added another quarter without any lost time injuries (LTI’s), increasing the record to 1,216 LTI free days.
Production for the first three quarters of 2019 is a record of 56,741 oz of gold, 735,160 lbs copper and 17,742 oz silver for a total of 58,610 AuEq oz.
Q3 AuEq production exceeded budget by 14% despite a number of interruptions necessary for the completion of key upgrades for the current expansion project. These include mine infrastructure, installation of gravity circuit and the main incline debottlenecking program consisting of three bypasses. These upgrades have well positioned Kainantu through year-end.
Vancouver, BC, October 8, 2019 - K92 Mining Inc. (“K92” or the “Company”) (TSX-V: KNT; OTCQX: KNTNF) is pleased to announce production in the third quarter (“Q3”) exceeded budget by 14%, with 19,170 oz AuEq produced for the quarter at its Kainantu Gold Mine in Papua New Guinea.
During Q3, K92 produced 18,636 oz of gold, 209,287 pounds of copper and 5,284 oz of silver or 19,170 AuEq oz (based on a gold price of US$1,300/oz; silver price of US$16.50/oz; copper price of US$2.90/lb). Production for the first three quarters of 2019 is a record of 56,741 oz of gold or 58,610 AuEq oz, compared to production of 47,237 for the entire year in 2018. Recoveries for the first three quarters of 2019 averaged 93.7% for gold and 92.8% copper.
Mining operations in Q3 continued to focus on Kora North and comprised cut and fill stope mining from the K1 vein at the 1,185 and 1,205 mRL level as well as development tonnes from the K1 vein on the 1,170 mRL level.
The blend of primarily K1 material provided an average head grade to the process plant for Q3 of 19.2 g/t Au and 0.32% Cu. The gold head grade was above and the copper grade below the anticipated long-term average grades. The above average gold grades are the result of a combination of lower dilution being achieved in the stope and development mining combined with a higher proportion of K1 treated during the quarter, while the below budget copper grades are the result of treating a higher proportion of K1.
Importantly, the above budget production was achieved despite a number of interruptions to underground mine operations due to upgrading of underground infrastructure and mining of three bypasses in the main incline associated with the expansion project. Some interruption in plant operations was also experienced during the quarter due to installation and commissioning of the gravity circuit.
Financial details and a potential update of the annual production guidance for 2019 will be available in the Company’s upcoming Q3 Financial Report.
Table 1 – Q3 & YTD 2019 and 2018 Annual Production Data
2018 Total Q1 2019 Q2 2019 Q3 2019 2019 YTD
Tonnes Processed T 79,487 26,846 37,913 32,094 96,854
Feed Grade Au g/t 19.1 23.6 16.7 19.2 19.5
Feed Grade Cu % 0.38% 0.48% 0.34% 0.32% 0.37%
Recovery (%) Au % 93.7% 93.7% 93.2% 94.1% 93.7%
Recovery (%) Cu % 92.9% 93.9% 92.5% 92.1% 92.8%
Metal in Conc Prod Au Oz 45,810 19,125 18,980 18,636 56,741
Metal in Conc Prod Cu T 277.27 119.78 118.73 94.94 333.45
Metal in Conc Prod Ag Oz 10,069 5,564 6,894 5,284 17,742
Gold Equivalent Production* Oz 47,237 19,788 19,652 19,170 58,610
John Lewins, K92 Chief Executive Officer and Director, stated, “The production results for the third quarter reflect the robustness of the Kora North deposit and the ability of the team at Kainantu to deliver on operational performance, while also focusing on major capital and infrastructure projects for the expansion. The plant treated 32,094 tonnes at a head grade of 19.2 g/t Au, resulting in production of 19,170 oz AuEq, which was 14% above budget. The mine has now produced 58,610 oz AuEq in the first three quarters of 2019, surpassing the 47,237 oz AuEq for the entire 2018, and is well on target to meet our increased guidance of 72,000 to 80,000 oz AuEq for 2019.
The Company continued to work on the expansion of the Kora/Kora North Resource, with the two surface and three underground rigs operating on the mine lease and 30 holes completed during the quarter.
I am also extremely pleased to report that there were no lost time injuries during the quarter, extending our period without a lost time injury to 40 months.”
