VANCOUVER, British Columbia, March 29, 2018 (GLOBE
NEWSWIRE) --
- Drill Hole KMDD0087 records multiple high grade
intersections, including:
- K1E intersection of 2.85 m at 53.39 g/t Au, 3 g/t Ag
and 0.13% Cu (53.63 g/t AuEq)
- K2 intersection of 3.70 m at 6.94 g/t Au, 13 g/t Ag and
0.56% Cu (7.97 g/t AuEq)
- K2 HW intersection of 3.70 m at 10.79 g/t Au, 25 g/t Ag
and 2.83% Cu (15.44 g/t AuEq)
K92 Mining Inc. (“K92”) (TSX-V:KNT)
(OTCQB:KNTNF) is pleased to announce the first results from
the exploration drilling of the Kora North Extension.
The results reported are from the first
exploration drill hole drilled from Diamond Drill Cuddy Two (DDC2).
This exploration drilling program is targeting the area immediately
up dip and down dip from the recently reported resource defined by
grade control from DDC1 and DDC2. The K2 intersection reported is
approximately 40 metres above the closest grade control
intersection, while the K1 intersection is approximately 30 metres
above the closest grade control intersection.
The results reported have included a significant Hanging Wall
vein intersected 4 metres from the K2 Vein of 3.70 m at 10.79 g/t
Au, 25 g/t Ag and 2.83% Cu (15.44 g/t AuEq) which has not been
previously identified.
These results have confirmed the consistency of
both the K1 and K2 lodes well outside of the grade control resource
area.
John Lewins, K92 Chief Executive Officer and
Director, states, “The results from our first exploration drill
hole are extremely significant in confirming the continuity of both
the K1 and K2 lodes up dip from the grade control drilling. In
addition, a new Hanging Wall lode has been intersected with
significant grade and thickness further enhancing the potential of
this area.
We anticipate completing this initial
exploration drilling program by the end of June 2018 and providing
an updated resource covering an area up to 600 metres on strike and
between 350 metres to 500 metres on dip between Irumafimpa and the
known Kora deposit.”
Table 1 below provides a summary of the results
from the first exploration drill hole drilled into the Kora North
Vein system and Table 2 provides details of collar location and
hole orientation.
Table 1.0 –
Significant Intercepts from Kora Exploration Hole
KMDD0087
Hole_id |
From (m) |
To (m) |
Interval
(m) |
True
width (m) |
Gold g/t |
Silver g/t |
Copper % |
Gold
equivalent |
Comment |
KMDD0087 |
46.50 |
49.35 |
2.85 |
1.56 |
53.39 |
3 |
0.13 |
53.63 |
K1E |
Including |
46.50 |
47.60 |
1.10 |
0.60 |
135.50 |
7 |
0.18 |
135.87 |
|
Including |
47.60 |
48.90 |
1.30 |
0.71 |
1.74 |
1 |
0.12 |
1.93 |
|
Including |
48.90 |
49.35 |
0.45 |
0.25 |
1.86 |
2 |
0.04 |
1.95 |
|
KMDD0087 |
51.06 |
52.00 |
0.94 |
0.52 |
30.49 |
2 |
0.07 |
30.63 |
K1W |
Including |
51.06 |
51.80 |
0.74 |
0.41 |
37.88 |
2 |
0.09 |
38.04 |
|
Including |
51.80 |
52.00 |
0.20 |
0.11 |
3.16 |
1 |
0.01 |
3.19 |
|
KMDD0087 |
81.30 |
85.00 |
3.70 |
2.45 |
6.94 |
13 |
0.56 |
7.97 |
K2 |
Including |
81.30 |
82.55 |
1.25 |
0.83 |
2.56 |
8 |
0.50 |
3.43 |
|
Including |
82.55 |
83.00 |
0.45 |
0.30 |
5.56 |
4 |
0.31 |
6.08 |
|
Including |
83.00 |
83.50 |
0.50 |
0.33 |
0.22 |
1 |
0.22 |
0.58 |
|
Including |
83.50 |
84.00 |
0.50 |
0.33 |
9.88 |
4 |
0.51 |
10.72 |
|
Including |
84.00 |
84.30 |
0.30 |
0.20 |
3.14 |
3 |
0.37 |
3.75 |
|
Including |
84.30 |
85.00 |
0.70 |
0.46 |
19.97 |
48 |
1.20 |
22.42 |
|
KMDD0087 |
89.10 |
92.80 |
3.70 |
2.45 |
10.79 |
25 |
2.83 |
15.44 |
K2HW |
Including |
89.10 |
90.20 |
1.10 |
0.73 |
10.79 |
25 |
2.83 |
15.44 |
|
Including |
90.20 |
91.50 |
1.30 |
0.86 |
0.14 |
2 |
0.38 |
0.74 |
|
Including |
91.50 |
92.60 |
1.10 |
0.73 |
0.11 |
1 |
0.03 |
0.17 |
|
Including |
92.60 |
92.80 |
0.20 |
0.13 |
1.88 |
20 |
2.54 |
6.03 |
|
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 – Collar Locations
for Kora Exploration Hole KMDD0087
Hole_id |
Collar location |
Collar orientation |
EOH
depth (m) |
Lode |
Local
north |
Local
East |
RL |
Dip |
Local
azimuth |
KMDD0087 |
59001.93 |
29876.38 |
1192.35 |
55.04 |
246.7 |
149.2 |
Kora |
The current Kora/Eutompi inferred resource, as
defined by previous drilling to date, 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 also announces that Bryan Slusarchuk has been appointed
Advisor, Capital Markets while concurrently resigning as President
and Director effective March 31, 2018.
Mr. Slusarchuk states, “I am very pleased with the
transition to this advisory position as it represents a natural
progression for the company. In October 2017, K92 commenced grade
control drilling and the mining of a bulk sample from Kora North.
Just four months afterwards, K92 announced the achievement of
commercial production from the area and published an initial
resource. Now, further to that, K92 has updated the initial
resource and has drilled multiple additional wide intersections of
high grade gold with copper.
K92 is now in an excellent position to target production
growth, resource expansion and exploration and this is due to the
vision of K92 CEO John Lewins and the excellent execution by the
team he has assembled in PNG. I am excited to be tasked with
communicating ongoing progress to the capital markets as we unlock
the potential of Kainantu.”
K92 Vice President Chris Muller, 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. Muller includes
significant time onsite reviewing drill core, surface exposures,
underground workings and discussing work programs and results with
exploration personnel.
On Behalf of the Company,
John Lewins, Chief Executive Officer and Director
Suite 488 – 1090 West Georgia Street
Vancouver, British Columbia
Canada V6E 3V7
Telephone: (604) 687-7130
Facsimile: (604) 608-9110
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.
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