• First two holes from K92’s maiden drill program at the Arakompa project, located ~4.5 km from the Kainantu process plant, recorded significant mineralization, with 4 high grade lodes intersected in hole KARDD0002 recording 7.20 m at 24.76 g/t AuEq, 5.70 m at 9.94 g/t AuEq, 5.30 m at 6.06 g/t AuEq and 3.60 m at 3.38 g/t AuEq (See Fig 1), and similar mineralization to the producing high grade Kora and Judd vein systems (See Fig 5-6). Significant chalcopyrite, and also bornite observed in the 5.7 m at 9.94 g/t AuEq intersection, with the copper component grading 1.71%.

• The target size of Arakompa is very large, with mineralization demonstrated from drill holes, rock samples and surface workings for at least 1.7 km of strike, hosted within an approximately 150-225 m wide mineralized intense phyllic altered package, and exhibits a vertical extent of +500 m (see Fig 2-3).

• Between the high grade lodes, the tonalite to dioritic host rock is overprinted with porphyry style mineralization increasing the potential for bulk mining. Hole KARDD0002 recorded a bulk intersection of 219.8 m at 1.59 g/t AuEq with a higher grade core of 149.4m at 2.12 g/t AuEq, starting at 5.2 m from surface (see Fig 1). Importantly, hole KARDD0002 drilled only approximately two-thirds of the width of the mineralized corridor, with the eastern one-third untested (see Fig 2-3).

• Arakompa is sparsely drilled, open along strike, at depth and along its width. K92’s maiden drill results represent the first drilling on the project completed in 32 years. A total of 18 holes were drilled historically, with the vast majority shallow, recording significant high grade, including 15 intersections above 5 g/t AuEq, 8 intersections above 10 g/t AuEq and 3 intersections above 20 g/t AuEq, with highlights including: 4.00 m at 32.03 g/t AuEq, 4.00 m at 20.21 g/t AuEq, 2.00 m at 32.01 g/t AuEq, 2.80 m at 16.18 g/t AuEq and 9.20 m at 10.67 g/t AuEq (see Table 2 for historic drill holes). K92’s hole KARDD0002 is the longest hole drilled to date at Arakompa and plans are already in place to expand exploration activities near-term.

Notes:
(1)  Drill highlights presented above are core lengths (not true widths).
(2) Gold equivalent (AuEq) exploration results are calculated using longer-term commodity prices with a copper price of US$4.00/lb, a silver price of US$22.50/oz and a gold price of US$1,750/oz.

John Lewins, K92 Chief Executive Officer and Director, stated, “We are very excited to be announcing the first two drill hole results from Arakompa, demonstrating very high potential from both the multiple intersections and significant size potential from surface sampling, drill holes and local workings covering a strike of 1.7 km, a mineralized corridor of approximately 150 to 225 metres wide, and a demonstrated vertical extent of over 500 metres.

Arakompa is also near infrastructure, located closer to the process plant than Kora and Judd, with relatively gradual terrain for road access up from the Markham Valley, and importantly, represents a highly prospective opportunity to potentially grow production at Kainantu beyond the Stage 4 Expansion (see Figure 4).

Plans have already been actioned to expand the program at Arakompa in the near-term.”

Chris Muller, K92 Executive Vice President Exploration, stated, “The Arakompa project represents another vein system analogous to the Kora-Judd consolidated corridor, with just as much potential. In addition to the high grade massive sulphide veins, the intervening gold mineralization at Arakompa is well developed and intimately associated with widespread phyllic alteration likely representing the upper expressions of a fertile porphyry at depth.

Almost all of the 18 holes drilled by former operators, Renison Goldfields Consolidated Limited and Highlands Gold Limited, intersected excellent gold-rich intercepts, even with only 1,766 metres drilled historically. Though drill tested over a substantial strike length, drilling by these companies only tested the very shallow parts of the veins. Clear indications of the vein system at surface, around 1000m RL, are a testament to even greater strike potential to the north and exceptional depth extent as well.

The proximity of the Arakompa mineralized corridor to the Kainantu Gold Mine infrastructure, even closer to the Lae-Madang Highway than Kora, is a significant attribute and will enable a major drilling campaign to be carried out cost effectively. We look forward to working with our stakeholders to delineate potentially the next major resource for Papua New Guinea.”

K92 Mining Inc. (TSX: KNT0) (OTCQX: KNTNF) is pleased to announce the results of the first two drill holes completed from its maiden drill program at Arakompa at the Kainantu Gold Mine in Papua New Guinea. Arakompa is near infrastructure, located approximately 4.5 km south-east of the Kainantu Gold Mine’s processing plant, and closer to the process plant than the producing Kora and Judd vein systems, located approximately 3 km south-west of Arakompa.

K92’s recently completed hole KARDD0002 is the longest hole drilled in the history of the project, intersecting significant mineralization including 4 lodes recording 7.20 m at 24.76 g/t AuEq (3.46 m true thickness), 5.70 m at 9.94 g/t AuEq (2.74 m true thickness), 5.30 m at 6.06 g/t AuEq (2.92 m true thickness) and 3.60 m at 3.37 g/t AuEq (1.73 m true thickness). One of the lodes, intersecting 5.70 m at 9.94 g/t AuEq, recorded significant chalcopyrite and bornite mineralization, with the copper component grading 1.7%. High grade lode mineralization appears to have significant similarities to Kora and Judd (see Arakompa Vein System Background below).

Additionally, results from hole KARDD0002 demonstrate potential for bulk mining at Arakompa. Between the lodes, the tonalite to dioritic host rock is mineralized, overprinted with porphyry style gold-copper mineralization. Hole KARDD0002 recorded a bulk intersection of 219.8 m at 1.59 g/t AuEq (112.1 m true thickness) with a higher grade core of 149.4m at 2.12 g/t AuEq (78.4 m true thickness), starting at 5.2 m from surface (see Figure 1). Importantly, hole KARDD0002 drilled approximately only two-thirds of the width of the mineralized corridor, with the eastern one-third untested and prospective as shown via rock samples, including 5.8 g/t Au and 11.6 g/t Au.

The maiden drilling results are the first holes completed in 32 years, with limited and shallow drilling completed historically (18 holes, 1,766 m drilled). Of the 18 holes drilled historically, there were 15 intersections above 5 g/t AuEq, 8 intersections above 10 g/t AuEq and 3 intersections above 20 g/t AuEq, with highlights including:

• 004DA92 – 4.00 m at 32.03 g/t AuEq (3.32 m true thickness)
• 013AD92 – 4.00 m at 20.21 g/t AuEq (3.40 m true thickness)
• 001AD92 – 2.80 m at 16.18 g/t AuEq (2.41 m true thickness)
• 005AD92 – 2.00 m at 32.01 g/t AuEq (1.26 m true thickness)
• 016AD92 – 6.30 m at 14.96 g/t AuEq (2.39 m true thickness)
• 010AD92 – 9.20 m at 10.67 g/t AuEq (4.32 m true thickness)

Surface field work completed historically and by K92 has demonstrated that the target size of Arakompa is significant, with mineralization observed from drill holes, rock samples and surface workings for at least 1.7 km of strike, hosted within an approximately 150 to 225 m wide mineralized intense phyllic altered package, and a vertical extent of over 500 metres.

Plans are already in place to expand exploration activities in the near term.

Arakompa Vein System Background

The Arakompa project is interpreted to be an intrusive related gold-copper-silver epithermal vein system with similarities to the producing Kora and Judd vein systems. A significant difference at Arakompa is that it is hosted in tonalite to dioritic rock, whereas Kora and Judd are hosted predominantly in metasediments (phyllite).

Mineralization at Arakompa is in pronounced vein lodes but is also widespread across a very broad envelope, hosted in strongly altered tonalite and diorite. This has been interpreted to have resulted from collapsing argillic and advanced argillic alteration and the propylitic alteration of the basement tonalite are interpreted to originate from the intrusion of a large magmatic porphyry body. Phyllic alternation appears to be associated with gold mineralization, providing a large halo (at least 100 m wide) around the vein corridor. There has likely been an upwelling of phyllic alteration from the porphyry into the high grade veins. This has resulted in mineralization between the veins, providing the potential for bulk mining.

Multi-stage mineralizing events with several phases of quartz-sulphide development is apparent within the veins themselves. The sequence of early quartz deposited from a mesothermal dilute fluid followed by pyrite-copper-gold ± Bi-Te-Pb-Zn-Sn mineralization at Arakompa has many similarities to the same events encountered at Kora and Judd.

The main sulphides are pyrite, chalcopyrite, bornite and bismuthinite. As at Kora, chalcopyrite forms late, overprinting early phases of pyrite. Gold is documented in petrological reports and shown in photomicrographs as occurring in quartz, or often as inclusions overgrown by chalcopyrite.

Porphyry evidence is widespread at Arakompa. Localised, high level B veins (quartz with centreline pyrite) are present, typical of the upper parts of a porphyry system. Magnetite-epidote alteration represents classic prograde porphyry assemblages, indicative of the inner propylitic shell. Chalcocite is also locally present, suggesting an underlying copper-enriched body.

Table 1

Kainantu Gold Mine – Significant Intercepts from Arakompa Diamond Drilling

Table 2
Kainantu Gold Mine – Historical Intercepts from Arakompa Diamond Drilling

Table 3

Kainantu Gold Mine – Collar Locations for Current K92 Arakompa Drilling

Table 4

Kainantu Gold Mine – Collar Locations for Historical Arakompa Drilling

Drill Hole Sampling Methodology, QA/QC and Qualified Person

The diamond drill hole is first logged to determine the sampling intervals, which range from a minimum of 0.1 metres to generally 1 metre. The drill core is sawn half core cut along a reference line, with the remainder of the core returned to the core tray. Core samples are then placed in numbered calico and plastic bags, with a numbered sample ticket for dispatch to the assay laboratory. Samples are separately assayed for gold, copper and silver. K92’s procedure includes the insertion standards, blanks and duplicates. Gold assays are by the fire assay method. Copper and silver assays are by three-acid-digestion method (nitric, perchloric & hydrochloric mix).

K92 maintains an industry-standard analytical quality assurance and quality control and data verification program to monitor laboratory performance and ensure high quality assays. Results from this program confirm reliability of the assay results. All sampling and analytical work for the mine exploration program is performed by Intertek Testing Services (PNG) Ltd, an independent accredited laboratory that is located on site. External check assays for QA/QC purposes are performed at SGS Australia Pty Ltd in Townsville, Queensland, Australia.

K92 Executive Vice President Exploration, Mr. Chris Muller, PGeo, and K92 Mine Geology Manager and Mine Exploration Manager, Andrew Kohler, MAIG, both Qualified Persons under the meaning of National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”), have reviewed and are responsible for the technical content of this news release. In addition to the analytical QA/QC program outlined above, data verification also includes significant time onsite reviewing drill core, soil and outcrop sampling, artisanal workings, as well as discussing work programs and results with geology personnel and external consultants.

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 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.