K92 Mining Inc. (TSX: KNT) has set a number of production records in results for the first quarter (Q1) of 2023 at its Kainantu Gold Mine in Papua New Guinea.
The mine produced 21,488oz AuEq or 17,593oz gold, 1,651,297lbs copper and 29,859oz silver. Sales during the first quarter were 17,602oz gold, 1,538,590lbs copper and 29,164oz silver.
During the first quarter, the process plant delivered a strong quarterly ore processing rate of 117,903t or 1,310tpd, the third highest quarter on record despite experiencing eight days of combined unplanned maintenance.
After completion of the unplanned maintenance in February, the process plant performed very strongly, setting a new monthly ore processed record of 1,490tpd in March which is nine per cent greater than the Stage 2A Expansion design throughput of 1,370tpd.
Additionally, multiple new daily throughput records were achieved during the quarter including 1,726t processed on February 26, 1,773t processed on February 28, 1,802t processed on March 3 and 1,815t processed on March 11.
Importantly these records were achieved prior to the final major upgrade to the Stage 2A Expansion process plant, the flotation expansion to double rougher capacity, which is planned for commissioning in Q2 and is expected to provide a boost to metallurgical recoveries and flexibility to potentially increase throughput further.
Mine performance during the first quarter recorded 117,865t of ore mined, an 18% increase from Q1 2022, and delivered a total material mined (ore plus waste) of 277,534t mined, representing an increase of 33% from Q1 2022. During the quarter, operations focused on Kora’s K1 and K2 veins, and Judd’s J1 Vein for a total of 8 levels mined. Mining on Kora was conducted on the 1130, 1150, 1170, 1205, 1265 and 1285 levels, and Judd on the 1285 and 1305 levels.
The operation delivered head grades of 5.21g/t gold, 0.70% copper and 10.14g/t silver (6.35g/t AuEq) in Q1. Metallurgical recoveries averaged 89.1% for gold and 91.3% for copper during the quarter, with recoveries expected to improve upon the commissioning of the flotation expansion planned in Q2 2023.
Head grade was notably impacted, during the second half of the quarter, when underground mining encountered an area with more challenging ground conditions than expected, associated with where the K1 and K2 veins almost converge, which impacted our production stoping rates and access to higher grade ore.
Generally, in this situation, mill feed would be supplemented by mining from additional mining fronts as we mine through the impacted area more slowly. However, due to development rates being below budget for several quarters during the COVID-19 pandemic, many of the alternative mining areas were not yet developed, therefore supplementing from our low-grade stockpile was required.
Operationally, K92 expects Q2 production to be moderately below budget, with the second half of 2023 being our strongest in terms of production and 2023 production being within the bottom half of the guidance range.
The anticipated strength of the second half of 2023 is driven by an expected significant increase to our operational flexibility and stope sequencing. In terms of operational flexibility, it is important to highlight the following positive trends:
- Significant increase in development achieved over the last two quarters: Q1 2023 and Q4 2022 both set new quarterly records for development, of 2,278m and 2,221m, respectively. Development for both quarters was also significantly greater than prior quarters, with Q1 2023 development increasing 48% compared to Q1 2022. Strong development rates is a positive leading indicator for operational flexibility, and we note that there are two new sublevels currently being established.
- Multiple equipment recently arrived on site: Recent arrivals include a new loader in Q4 2022, and in Q1 2023 a new jumbo, loader, two integrated tool carriers, Normet explosive charging machine, cement agitator truck and very recently a new long hole drill rig. The arrival of the long hole rig is particularly important as it now doubles our long hole drill fleet, which is expected to drive a notable increase in our drilled stocks (stopes drilled and available for immediate blasting, including more stopes available as “backups” to supplement mill feed if required). The majority of this equipment was originally scheduled to arrive in 2022 and in certain cases was considerably delayed due to the global supply chain. The arrivals of equipment are to both replace existing equipment and expand the fleet. During the remainder of the first half of 2023, two underground trucks and one jumbo are also scheduled for delivery.
- Entirely new mining front to be established in H2 2023: During the second half of the year, we will be accessing the ore body at depth from the twin incline, opening up an entirely new mining front that is serviced by our large and highly productive twin incline infrastructure. As of March 31, 2023, incline #2 (6m x 6.5m) advanced to 2,172m and #3 (5m x 5.5m) advanced to 2,230m, with development advance during Q1 2023 22% ahead of budget.
For further information please visit: https://www.k92mining.com/
