Note (1): Gold equivalent for Q3 2024 is calculated based on: gold $2,474 per ounce; silver $29.43 per ounce; and copper $4.17 per pound.
Note (2): Refer to Integrated Development Plan (IDP) DFS Case and PEA Case. IDP effective date is January 1, 2022. IDP has not been updated to reflect the updated Kora and Judd resource (effective date September 12, 2023); however, the Company does not expect the design parameters and conclusions to materially change. The Company expects the potential mine life to be extended for both cases.
John Lewins, K92 Chief Executive Officer and Director, stated, “As we guided to at the beginning of the year, 2H was expected to be the strongest, and it has certainly delivered thus far, with record ounces produced and sold, and record recoveries while benefiting from record gold prices in Q3. Importantly, the results have well positioned the Company to meet its 2024 Operational Guidance, while also delivering a notable strengthening to the Company’s financial position during the Stage 3 Expansion construction, which is very encouraging.
In less than 9 months from now, the new Stage 3 Expansion Standalone Plant is scheduled to commence commissioning, marking a major milestone for K92 that has taken multiple years to reach, and it effectively represents the beginning of the Company becoming a Tier 1 Mid-Tier Producer. We are also excited to host an analyst and investor tour later this month, highlighting our progress across multiple areas, including current operations, the Stage 3 and 4 Expansions and exploration, while also showcasing the advantages of operating in the mining friendly jurisdiction of Papua New Guinea.”
K92 Mining Inc. (TSX: KNT) (OTCQX: KNTNF) is pleased to announce record quarterly production results for the third quarter of 2024 at its Kainantu Gold Mine in Papua New Guinea, of 44,304 ounces AuEq or 41,702 oz gold, 1,278,492 lbs copper and 37,613 oz silver. Sales during the quarter were 45,248 oz gold, 1,615,185 lbs copper and 46,062 oz silver. With over 80% of AuEq production for the lower end of annual guidance delivered in the first 9 months of the year, the Company is well positioned to meet its guidance for 2024 of 120,000-140,000 ounces AuEq.
During the third quarter, the process plant processed 104,992 tonnes, with a head grade averaging 13.8 g/t AuEq or 13.0 g/t gold, 0.58% copper and 13.0 g/t silver. Gold equivalent head grade was the highest since Q4 2020. Gold grades were above budget driven by higher grade stopes previously scheduled for Q2 being mined in Q3, in addition to a moderate positive gold grade reconciliation when compared with the Independent Mineral Resource Model for both gold and copper. Throughput was deliberately reduced to maximize recoveries at the higher feed grade.
Strong metallurgical recoveries were also achieved, with record recoveries for gold, averaging 95.3%, and near-record recoveries of 95.1% for copper during the quarter, and a record monthly gold recovery of 96.5% and copper recovery of 95.9% in September, exceeding the recovery parameters stated in the Integrated Development Plan of 93.0% and 95.0% for gold and copper, respectively (January 2022 effective date)(2).
In the third quarter, the mine delivered 112,333 tonnes of ore mined, with 9 levels mined, including the 1225, 1285, 1305, 1325, and 1345 levels at Kora, and the twin incline level, 950, 1170, 1185, 1205, and 1305 levels at Judd. Long hole open stoping performed to design. Overall mine development achieved a total of 2,190 metres. Development rates are expected to significantly increase near-term driven by: the sequential completion of multiple infrastructure projects over the next 3 quarters (interim ventilation upgrade operational – Q4 2024, Puma ventilation drive for life of mine with two x 2 MW fans operational – Q2 2025, first ore pass/waste pass – early 2025); significant increase to available headings and advance productivities as two mining fronts are opened up (twin incline and front below the main mine); progressive introduction of multiple jumbos and equipment that are already on site as available headings increase, and; the execution of various identified productivity initiatives.
During the quarter, the 5-metre diameter, 221.4-metre-long raise bore for the interim ventilation upgrade was completed. Multiple smaller raises were also completed. Raise bore piloting and reaming advance rates have notably exceeded budget to date.
See Figure 1: Quarterly Production, Cash Cost and AISC Chart
See Figure 2: Gold and Copper Recoveries Chart
Table 1 – 2024 & 2023 Annual Production Data
Q3 2023 | Q4 2023 | 2023 | Q1 2024 | Q2 2024 | Q3 2024 | ||
Tonnes Processed | T | 121,201 | 151,908 | 503,484 | 130,632 | 95,582 | 104,992 |
Feed Grade Au | g/t | 6.2 | 7.4 | 6.8 | 6.4 | 7.5 | 13.0 |
Feed Grade Cu | % | 0.72% | 0.87% | 0.75% | 0.55% | 0.62% | 0.58% |
Recovery (%) Au | % | 92.0% | 91.7% | 91.5% | 90.7% | 93.7% | 95.3% |
Recovery (%) Cu | % | 93.0% | 93.6% | 92.8% | 91.9% | 95.3% | 95.1% |
Metal in Conc & Doré Prod Au | oz | 22,227 | 33,309 | 100,533 | 24,389 | 21,661 | 41,702 |
Metal in Conc Prod Cu | T | 809 | 1,238 | 3,488 | 655 | 565 | 580 |
Metal in Conc & Doré Prod Ag | oz | 40,233 | 56,502 | 160,628 | 35,650 | 26,754 | 37,613 |
Gold Equivalent Production | oz | 26,225 | 39,101 | 117,607 | 27,462 | 24,347 | 44,304 |
Notes – Gold equivalent for Q3 2024 is calculated based on:
gold $2,474 per ounce; silver $29.43 per ounce; and copper $4.17 per pound.
Gold equivalent for Q2 2024 is calculated based on:
gold $2,338 per ounce; silver $28.84 per ounce; and copper $4.42 per pound.
Gold equivalent for Q1 2024 is calculated based on:
gold $2,070 per ounce; silver $23.34 per ounce; and copper $3.83 per pound.
Gold equivalent for Q4 2023 is calculated based on:
gold $1,974 per ounce; silver $23.20 per ounce; and copper $3.71 per pound.
Gold equivalent for Q3 2023 is calculated based on:
gold $1,928 per ounce; silver $23.57 per ounce; and copper $3.79 per pound.
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. Data verification by Mr. Kohler includes significant time onsite reviewing drill core, face sampling, underground workings, and discussing work programs and results with geology and mining personnel.
Technical Report
The Integrated Development Plan for the Kainantu Gold Mine Project in Papua New Guinea that contains information on the Definitive Feasibility Study and Preliminary Economic Assessment is included in a technical report, titled, “Independent Technical Report, Kainantu Gold Mine Integrated Development Plan, Kainantu Project, Papua New Guinea” dated October 26, 2022, with an effective date of January 1, 2022.
About K92
K92 Mining Inc. is engaged in the production of gold, copper and silver 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. A maiden resource estimate on the Blue Lake copper-gold porphyry project was completed in August 2022. K92 is operated by a team of mining company professionals with extensive international mine-building and operational experience.
Figure 1: Quarterly Production, Cash Cost and AISC Chart
Figure 2: Gold and Copper Recoveries Chart
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