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K92 Mining (TSX-V: KNT) President Bryan Slusarchuk: Initial Bulk Sample Results at Kora Gold Deposit Better than PEA Estimates

October 12, 2017

Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is President of K92 Mining (TSX-V: KNT)(OTC: KNTNF), Mr. Bryan Slusarchuk. Bryan, how are you?

Bryan Slusarchuk: Gerardo, doing great here today after K92's news. We're very excited about the results we put out today.

Gerardo Del Real: Well, let's talk about the results and the news. Pretty important stuff because it was better than anticipated, and more importantly, it was better than the numbers in the PEA, which was already robust. Some of the main highlights, the average feed assay of the material was 7.7 grams per tonne gold and 0.91% copper, and the gold recovery was 92.4%, while the copper recovery was an excellent 95.6%. I'll let you fill in the details, but please explain what that means for the project and the operation there, Bryan.

Bryan Slusarchuk: Sounds good, Gerardo. The reason this is so important is that it was much better than expected versus the numbers that we used in the PEA as far as recoveries go. And keep in mind, these recovery numbers aren't optimized and did not include the use of a gravity circuit within the mill. We believe that through optimization and the use of a gravity circuit, we can improve on these already fantastic numbers even more so.

At the end of the day, Gerardo, when you look at this, this material came from Kora. And Kora is the deposit that we anticipated bringing online sometime near the end of the first half 2018. Here we are, prior to the end of 2017, and we've now produced, we've mined from Kora, processed it through the mill, recovered a greater percentage of gold and copper versus what was anticipated in the PEA. And from the 800 tonne sample that we did process, we ended up with 177 ounces of gold, 6.8 tonnes of copper. Just very impressive recoveries and it shows that this Kora deposit, the mine, the material from Kora, is responding very well to the circuits within the mill.

The implications for this going forward are very significant. One, we are putting material through the mill from Kora much sooner than expected. Number two, the recoveries are better than expected and better than described in the PEA, and from a relatively small amount of material processed in this bulk sample, 800 tonnes, we ended up with 177 ounces of gold, 6.8 tonnes of copper, and I think people are starting to extrapolate what this could mean as we ramp up production from this Kora deposit.

And I can tell you, just anecdotally, our phones are ringing this morning from a variety of offtakers out there, and I think that just offtake material from Kora, given the grade and given the potential size of production, will be very coveted offtake.

Gerardo Del Real: Oh, I absolutely agree, Bryan. I've described K92, and I think somewhat accurately, hopefully, as a company that's got a multiple-front approach. You have, obviously, the production profile, but you also have some very, very good exploration upside. Can we talk a bit about that?

Bryan Slusarchuk: For sure, Gerardo. Remember, Barrick Gold, the world's largest gold mining company, owned this project. They didn't own it for the production profile. That production profile can be very important to us, K92, as a smaller company. We're not the world's largest gold producer, so this production profile can matter a lot. The reason that Barrick owned it was for world-class expansion and exploration potential.

The way that we're tackling that is twofold. The expansion and exploration priority is in this very high-grade intrusive vein environment around Irumafimpa, Kora, et cetera. We're now drilling, as we speak, from underground setups between Irumafimpa and Kora to test just how big the already large Kora can become. At the same time, we're also looking regionally at some of the bigger targets. This is a big 400 square kilometer land package with multiple porphyry-type targets, and that's really phase two.

So, number one, we've concentrated on getting production going. That's been accomplished. Secondarily, and now in full swing, is our expansion mandate, where we're doing exploration and expansion work between Irumafimpa and Kora from underground setups. And then thirdly, over the longer term, we've got what we believe is world-class porphyry potential on this large land package.

Gerardo Del Real: Excellent. Now, obviously I expect assays to follow up on that Kora extension discovery hole. When are you expecting those, Bryan?

Bryan Slusarchuk: Expecting those in very short order. We announced the discovery of the Kora extension at the end of May. We then modified the underground drive to take in account this significant discovery. And, as we've announced over the last couple of weeks, the drill is now turning to follow up on that discovery hole. I would anticipate the first batch of assays out in really short order, Gerardo, likely within the next 10 to 15 days.

Gerardo Del Real: Excellent. Well Bryan, I'd love to have you back to talk about those assays once you get them back in. Thank you today for your time. Is there anything else that you'd like to add?

Bryan Slusarchuk: No. Thanks for your time, Gerardo. I think that we're at a point here where, after a relatively quiet period onsite, things are going to get very exciting with a lot of news flow. We've got production moving. We've got this bulk sample taking place, the first results of which were quite exceptional. And very, very interesting is, of course, the follow-up on the Kora extension discovery and, like I say, that drill is turning as we speak.

Gerardo Del Real: Fantastic. Bryan, thank you again. We'll chat soon.

Bryan Slusarchuk: Thanks, Gerardo.

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