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K92 Mining (TSX-V: KNT) President Bryan Slusarchuk on Impressive Results from First Underground Exploration Drill Hole at Kora North

March 29, 2018

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

Bryan Slusarchuk: Doing really well, Gerardo. Thanks.

Gerardo Del Real: Thanks for coming on on such short notice. The last time we spoke, we talked about K92's strategy, the multi-prong strategy, of not only providing leverage to the gold price via production, but also the frankly fantastic exploration upside that this project has. Today, you had some news. Let me just summarize some of the results briefly. 3.7 meters of 6.94 g/t gold, 13 g/t silver, and 0.56% copper. You had another intersection of 3.7 meters of 10.79 g/t gold, and you had a 2.85 meter intercept at 53.39 g/t gold. Impressive stuff, Bryan. Can we talk about it?

Bryan Slusarchuk: Absolutely, Gerardo. These numbers are impressive in terms of grade and in terms of width, but what's also very important for listeners to understand is that these are exploration holes. They're exploration holes from an underground setup in the Kora North area. A big focus of K92, as you know, over the past several months has been production. In January of this year, we achieved commercial production. We've now been in commercial production in this Kora North area for the past three months. With commercial production really forming a foundation, a base, we can now start to look at the bigger picture, which is expansion and exploration of the Kora resource.

Just to recap, Gerardo, if you'll remember, Kora Main, the originally discovered Kora deposit was a Barrick deposit in the neighborhood of 1.6 million ounces in inferred category, very high grade, north of 10 g/t gold equivalent. We, in May of 2017, announced a discovery of a northern extension of that Kora deposit. The discovery was made 500 meters along strike, and 150 meters down dip from the closest point of the inferred resource. Well, since that discovery was made, the CEO John Lewins and the rest of the K92 team onsite have been drilling off an area around the discovery hole with a target to build up minable inventory. Well, they've moved at light speed there from discovery through to bulk sampling, through to the build up of an original resource in Kora North, and now, as I mentioned, through to commercial production. Well, with commercial production now achieved, the goal is to expand further. Today's hole is the first exploration hole in that area from Diamond Drill Cuddy Two. The exploration program is set to target an area immediately up dip and down dip from the recently reported resource, and this first hole really generated some spectacular results.

What I'll note, Gerardo, because I think it's very important for listeners to understand, we intersected the K1 vein, nice wide cut of high grade. We intersected the K2 vein, nice wide cut of high grade. But also very importantly, the results also included a significant Hanging Wall vein which was intersected just 4 meters from the K2 vein, and that Hanging Wall intersection, 3.7 meters at 15.44 g/t gold equivalent, and this was not previously identified. What we've seen in today's news is we've got remarkable consistency shaping up at Kora, at Kora North. When you look at the grade control intersections at Kora North, they're very similar in terms of width, grade, and mineralogy to Kora Main. Now, stepping outside and exploring outside the grade control area at Kora North, again we're seeing very similar widths, grades, and mineralogies. So Kora, the continuity is shaping up just spectacularly well, and again I think it's important to point out the identification of this Hanging Wall vein. Very exciting news on multiple fronts.

Gerardo Del Real: Now, I understand, Bryan, that you're going to be providing an updated resource here later on this year. What's the timeline look like for that?

Bryan Slusarchuk: That's right. If you'll remember, we declared commercial production in Kora North, and it was based on an initial resource. We then updated and quite significantly improved that resource, and this remains open in every direction. What the team has laid out today is that by the end of June, so just a few months down the road, we'll be providing another updated resource. And this will cover an area up to 600 meters on strike, and between 350 meters to 500 meters on dip between the Irumafimpa deposit and the known Kora deposit. Again, with commercial production now achieved, we can start to target the big expansion and exploration potential that exists at Kora. We discovered the Kora North extension in May, we're in production there now. So it has moved quickly, and now it's a matter of filling in the gap between Kora North where we are now, and that originally discovered Kora deposit that we purchased from Barrick as regular listeners will know.

Gerardo Del Real: Wonderful. Bryan, I wanted to touch on one last aspect of the news release. I know you're currently President and Director. You're now going to be Advisor as of March 31, 2018. Would you like to touch on that for a second?

Bryan Slusarchuk: Absolutely. I think it's just a great transition for the company. We've achieved commercial production, we're now targeting aggressive expansion and exploration. We're in a great position because of the vision of the K92 CEO John Lewins and the excellent execution that his team has performed in Papua New Guinea. Now, I'm just really excited to be communicating that progress on an ongoing basis to the market. With the company in great shape, with no need to go back to the equity markets, with production occurring daily, my role will really become capital markets focused, getting out there, marketing, telling the story, and not in day-to-day management of operations, because to be frank, the company just doesn't need me in that role. Because of the fact that John has executed so well on site, I think I can best serve the company by being out there and really telling the story to the capital markets, making sure that people understand just how big this opportunity can be, both in terms of production and of course in terms of exploration and expansion of the high-grade resource.

Gerardo Del Real: Well, it's a fun story to tell, Bryan. It gets funner every news release. Again, congratulations on the execution, and thank you so much for your time today. I appreciate it.

Bryan Slusarchuk: Thank you, Gerardo.

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MARKET SUMMARY

INDICES

Name Last Change
DOW 24388.90 2.29%
S&P 500 2633.08 2.39%
NASDAQ 6969.25 3.14%
TSX 14795.13 0.96%
TSX-V 572.38 0.00%

Resource Commodities

Name Last Change
Gold 1249.17 0.02%
Silver 14.61 0.14%
Copper 2.76 0.000
Platinum 793.50 0.02%
Oil 52.61 2.13%
Natural Gas 4.49 3.59%
Uranium 29.00 0.00%
Zinc 1.22 0.00%

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