K92 Mining hits mineralization at Blue Lake prospect in PNG

K92 Mining (TSXV: KNT; US-OTC: KNTNF) intersected 175 metres of 0.28 gram gold per tonne and 0.22% copper from 259 metres downhole at its Blue Lake porphyry prospect, 4 km southwest of its Kora deposit, at the Kainantu gold mine in Papua New Guinea.

The hole ended in mineralization.

The company discovered the prospect in 2017, after a surface mapping and sampling program. It completed a soil grid at 50-metre spacing over a 2-sq.-km area, and collected more than 1,000 samples, revealing a large coincident gold and copper anomaly.

Silicified breccias in outcrop were initially encountered in September 2017, with samples assaying up to 20 grams gold per tonne and 15% copper.

K92 plans to complete a 2,400-metre diamond drill program at the porphyry prospect this year. The program will consist of six 400-metre holes.

In March 2019, the company announced its decision to double capacity at its Kainantu gold mine to 400,000 tonnes a year by the end of the fourth quarter, increasing production to an average of 120,000 gold equivalent oz. annually over the next 13 years.

The company expects the mine will produce 68,000 to 75,000 gold equivalent oz. in 2019, and 115,000-125,000 gold equivalent oz. in 2020.

Capital costs for expansion are estimated at US$15 million over a 12-month period.

A preliminary economic assessment (PEA) of the expansion plan of the operation, completed in January, would produce almost 650,000 oz. gold and 10,000 tonnes of copper over the next five years, and over 1.3 million oz. and 60,000 tonnes of copper over a mine life of 13 years. The study estimated cash costs of US$429 per gold equivalent oz., and all-in sustaining costs (AISCs) of US$615 per gold equivalent ounce.

Click here to continue reading...

Subscribe to the RSD email list and get the latest resource stock activity directly to your inbox, for free.

Part of the Stock Digest family of websites

Small Cap Stock Digest

MARKET SUMMARY

INDICES

Name Last Change
DOW 26548.20 0.68%
S&P 500 2917.38 0.96%
NASDAQ 7884.72 1.53%
TSX 16371.28 0.93%
TSX-V 578.99 0.00%

Resource Commodities

Name Last Change
Gold 1405.26 0.91%
Silver 15.28 0.20%
Copper 2.74 2.735
Platinum 901.00 0.67%
Oil 57.83 0.12%
Natural Gas 2.31 0.22%
Uranium 24.65 0.00%
Zinc 1.12 0

@RSDigest ON TWITTER