Developing PEA For Potential Expansion Phase In PNG
K92 Mining Inc. (TSXV:KNT; OTCQB:KNTNF) has reported a 180% increase in its updated resource estimate on the Kora deposit, at its producing Kainantu Gold Mine in Papua New Guinea.
The resource estimate is based on surface and underground exploration diamond drilling and underground face sampling (grade control).
The Kora deposit Mineral Resource Estimate highlights include:
- Measured and Indicated Resource of 1.1 million ounces at 10.45 g/t gold equivalent (“AuEq”) representing a +180% increase from the previous resource estimate of 0.39 million ounces AuEq in October 2018.
- Inferred Resource of 3.7 million ounces at 9.01 AuEq representing a +50% increase from the previous resource estimate of 2.39 million ounces AuEq in October 2018.
- Significant component of the updated resource is high grade, with only moderate reductions in overall ounces as cut-off grade increases (see Table 2-3 for grade sensitivity table).
- Measured and Indicated Resource of 1.0 million ounces at 12.58 g/t AuEq at a 2 g/t gold cut-off and 0.8 million ounces at 20.51 g/t AuEq at a 5 g/t gold cut off.
- Inferred Resource of 3.3 million ounces at 11.82 g/t AuEq at a 2 g/t gold cut-off and 2.6 million ounces at 19.78 g/t AuEq at a 5 g/t gold cut off.
- Kora North, Kora and Eutompi deposits now combined and shown to be one continuous deposit, open at depth and open along strike to the south.
CEO, John Lewins, said the Kainantu vein field has numerous opportunities to expand resources from near-mine high-priority exploration areas including: Kora strike extension; Kora deeps; Kora and Judd South veins; Judd vein; Karempe vein, and; Arakompa and Maniape.
“In 18 months of underground and surface drilling, K92 has significantly increased our resource at Kora and at a very low discovery cost of less than US$5 per oz.
“The Measured and Indicated Resource now stands at 3.1 million tonnes at 10.45 g/t AuEq for 1.1 million ounces AuEq and Inferred at 12.7 million tonnes at 9.01 g/t AuEq for 3.7 million ounces, confirming that Kora is a very large system.
“The resource estimate has also demonstrated Kora’s significant high-grade operational flexibility going forward, with moderate reductions in overall ounces, and significant increases in grade at increasing cut-off grades.
“Going forward, there remains tremendous potential to increase resources at Kainantu. At Kora, approximately 75% of the originally planned 1,000m by 1,000m target area was drilled for this resource.
“The remaining drill target area is highly prospective and continuing exploration drilling from underground has already shown continuity of mineralization into this area. In addition, there are also multiple high priority near-mine targets that are planned to be drilled this year.
“With the resource significantly increased, we are working on a Preliminary Economic Assessment (PEA) for the next potential production expansion phase – Stage 3. This work had commenced prior to the completion of the updated Kora Resource Estimate and we look forward to announce the results near-term.”