K92 Mining Inc. (“
K92” or the
“
Company”) (TSX-V
: KNT;
OTCQX
: KNTNF) is pleased to announce preliminary
underground bulk sample results from the Judd Vein System at the
Kainantu Gold Mine in Papua New Guinea. The Judd Vein System is
located near-mine infrastructure, ~100-150m North-East from the
producing Kora deposit and consists of four known veins, with the
bulk sample from Judd #1 Vein. The Judd Vein System has seen very
limited exploration, has four known veins and has a target strike
length of approximately 2.5 km sub-parallel to Kora. Historical
drilling results from previous owners include 3m at 278.2 g/t Au
and 0.21% Cu, 9m at 8.32 g/t Au and 1.11% Cu (core length), and K92
intersected Judd in a surface drill hole targeting Kora, ~500m to
the South of those historical holes 4.7m at 4.98 g/t Au, 0.02% Cu
and 17 g/t Ag (5.22 g/t AuEq, 4.2m true thickness) – see September
9, 2019 press release K92 Mining Announces Latest High-Grade Drill
Results from Kora. The results mark the first significant
exploration activity undertaken on Judd by K92.
See Figure 1 for location map of Judd Vein
target and other proximal interpreted vein targets.
The bulk sample was completed on the 1235 mRL
level as multi-purpose, mine infrastructure development drive with
oversized ventilation return airway dimensions of 5.5m x 5.5m.
Approximately 109 metres of development was completed and from
grade control channel sampling, an estimated 6,200 tonnes at 5.5
g/t gold equivalent or 3.6g/t gold, 1.11% copper and 19 g/t silver
with an average thickness of 3.4 metres was extracted from Judd #1
Vein. Incorporating excess dilution from the oversized 5.5m x 5.5m
return airway drive, an estimated 10,130 tonnes at 3.6 g/t AuEq or
2.40 g/t Au, 0.70% Cu and 12 g/t Ag was extracted.
A majority of the bulk sample has been
stockpiled, with earlier mined material processed through the
Kainantu processing plant. The remaining bulk sample and additional
material mined will be processed separately through the Kainantu
plant once the Stage 2 Process Plant Expansion commissioning is
completed. Ground conditions are competent and are expected to be
amenable to mining widths similar to the average Judd #1 Vein
thickness and those currently mined at Kora, which is a minimum of
2 metres wide for long hole stoping and minimum 3 metres wide for
cut and fill.
See Figure 2 for a plan view of the underground
channel sampling and Judd #1 Vein interpretation.
As a result of the promising results to date, an
underground diamond drill rig has been mobilized for a Phase 1 Judd
Vein system drilling program. The initial drill program planned is
a 33-hole program, targeting strike extensions from the development
drive of approximately 250 metres in addition to up-dip and
down-dip step-out drilling. The bulk sample development drive will
also be extended.
See Figure 3 for a plan view of the Phase 1 Judd
Vein System drill program.
(Gold Equivalent (AuEq) is calculated
using copper price of US$3.05/lb, silver price of US$16.05/oz and
gold price of US$1,400/oz.)
John Lewins, K92 Chief Executive Officer and
Director, stated, “We are certainly excited by these initial
results from the bulk sampling of the Judd #1 Vein. The results
mark the first significant exploration program on the Judd target
by K92. With a potential strike length of ~2.5km, a known vertical
extent of over 700 metres that remains open at depth, similar
gold-copper-silver mineralization to Kora and encouraging grades,
we are very encouraged about its potential. As a result, we have
mobilized a drill rig to commence the Phase 1 Judd Exploration
program and will continue to extend the development drive.
Exploration activities are also significantly
increasing property wide. An additional drill rig has arrived on
site this past week, increasing our total to eight, and we expect
to have nine rigs on site by the end of the third quarter and ten
by the end of the year. The additional drill rigs have meaningfully
increased our rate of exploration and capacity to drill multiple
targets concurrently. By the end of the year, we expect to have
drills operating on Kora, Kora South, Judd, Karempe and Blue Lake.
Approximately ~20% of the known vein field strike has been drill
tested and Kora remains open at depth.”
Qualified Person
K92 mine geology manager and mine exploration
manager, Andrew Kohler, PGeo, a qualified person under the meaning
of Canadian National Instrument 43-101 – Standards of Disclosure
for Mineral Projects, 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 deposit at 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 is in a strong
financial position.
The Company commenced an expansion of the mine
based on an updated Preliminary Economic Assessment on the property
which was published in January 2019 and updated in July 2020. 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, P.Eng., CFA 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 Kainantu
Project, expectations of future cash flows, the planned plant
expansion, production results, cost of sales, sales of production,
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 in PNG, mitigation of the Covid-19 pandemic,
continuation of the lifted state of emergency, 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 – Location of Near-Mine Vein
Targets is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/11f2dfdc-e3e0-4a07-884b-7de8f8baa695
Figure 2 – Judd #1 Vein Plan View
Channel Samples is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/452ff5f5-8619-49c7-a700-e41578df8bfc
Figure 3 – Plan View of Phase 1 Judd
Exploration Drilling Plan is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/3c3c835c-fb7f-4d2b-b38f-c7127296a6b1
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