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K92 Operations Update and Latest Drill Results

K92 Operations Update and Latest Drill Results

Highlights include:

  • Drill intercept of 6.49 m at 23.66 g/t Au, 27 g/t Ag and 0.16% Cu (24.24 g/t AuEq)
  • Face sampling taken while mining the K1 Kora vein reports values of 0.6 m @ 1,126 g/t Au in one face and 0.3 m @ 2,171 g/t Au in another face
  • Process plant feed grade in excess of 40 g/t Au over consecutive days, including a peak of 82.98 g/t Au over a 12 hour period.

VANCOUVER, British Columbia, Feb. 02, 2018 (GLOBE NEWSWIRE) -- K92 (TSX-V:KNT) is pleased to provide an update on operations at its Kainantu Gold Mine in Papua New Guinea.

Mining operations are currently focused on mining from stopes 1185 K2 0N and 1185 K2 0S as well as from the development on 1185 K1 North and South from the second cross cut. All material from the first cut on the stopes was extracted during the month, filling of 1185 K2 0N was completed and drilling and blasting of the second cut commenced. Filling of 1185K2 0S has also commenced. The second Kora North K1 vein has been mined for a strike extent of over 100 metres and has averaged approximately 20 g/t. The 1185 K1 North in particular has returned some extremely high grades including 0.3 m @ 2,171.8 g/t Au in one face and 0.6 me @ 1,126 g/t Au in another face. The results from 10 faces are provided in Table 3 below with the highest uncut face value reported being 157.2 g/t Au and 0.96% Cu over 3.45 m width and the lowest being 12.42 g/t Au and 3.3% Cu over 3.15 m width. This high grade zone is still being mined so it’s full extent along strike and vertically has yet to be determined.

Table 1 1185 K1 North Development Face Sampling Results

Width
Metres
Uncut
Au g/t
Au Cut 60 g/t
Au g/t
Cu %Comments
3.2131.6327.331.55Includes 0.3m at 2,171.8 g/t Au
321.1316.341.51
3.2540.2818.771.24
328.3217.471.02
3.45157.223.820.96Incorporates the 1,126g/t Au
3.1512.4212.083.3
3.0368.0425.831.9
369.94270.92
3.124.6119.731.6
2.7543.428.290.9

Face sampling is carried out on every face and involves sampling two lines across the entire face approximately one metre apart with between 4 and 8 samples taken per line after geological interpretation.

Mining from Irumafimpa is also continuing, with operations focused on the 1235 S stope which was partially drilled out and fired during the month.

The high grade material mined from the 1185 K1 South was blended with lower grade material from 1185 K1 South and the 1185 K2 0S stope, however despite this the plant reported daily feed grades in excess of 40 g/t Au on a number of days, with a peak of 82.15 g/t Au reported over a 12 hour period. The plant throughput has been reduced to maximise recovery when treating these very high grades.

Additional to mining, grade control drilling from the first drill cuddy, DDC1 is now complete, with drilling from the second drill cuddy, DDC2 located 125 metres to the south, ongoing. Drilling from a third cuddy, located 200 metres to the north of DDC1, has also commenced.

The latest results from DDC2 from hole KMDD0047 which include 3.85 m at 2.83 g/t Au, 6 g/t Ag and 1.01% Cu (4.46 g/t AuEq) plus 6.49 m at 23.66 g/t Au, 27 g/t Ag and 0.16% Cu (24.24 g/t AuEq) plus 2.10 m at 9.42 g/t Au, 24 g/t Ag and 3.47 % Cu (15.044.46 g/t AuEq) plus 4.10 m at 2.36 g/t Au, 48 g/t Ag and 1.09 % Cu (4.64 g/t AuEq) confirm the continuity of both the K1 and K2 veins to the south over a strike length of almost 300 metres. The results from this hole have also confirmed the continuity of a high grade third vein designated KL1 running between K1 and K2. The intersection of one of the Kora lodes in KMDD0050, is considered important as it extends the known Kora Vein system north to beyond 59375N.

Tables 2 and 3 below provide a summary of the results from the latest diamond grade control drill holes drilled into the Kora North Vein system. Table 2 provides a summary of the significant intercepts from the hole, while Table 3 provides details of collar location and hole orientation.
Table 2.0 Significant Intercepts from Kora Underground Diamond Drilling

Hole_idFrom (m)To (m)Interval
(m)
True
width (m)
Gold g/tSilver g/tCopper %Gold
equivalent
KMDD004565.6469.33.662.970.9140.291.40
Including65.6466.350.710.581.0510.401.68
Including66.3567.250.900.730.3810.290.84
Including67.2568.050.800.650.5610.040.63
Including68.0568.800.750.612.25150.573.31
Including68.8069.300.500.410.210.150.44
KMDD0045991001.000.811.56301.193.77
Including99.0099.450.450.373.09602.427.57
Including99.45100.000.550.450.3160.180.66
KMDD0046A17.0718.121.050.663.1630.013.22
KMDD0046A20.1324.13.972.491.6830.472.44
Including20.1321.070.940.590.6910.050.78
Including21.0722.020.950.600.7010.000.72
Including22.0222.240.220.140.6310.010.66
Including22.3822.950.570.362.7310.102.90
Including22.9524.101.150.723.17111.535.65
KMDD004740.544.353.852.182.8361.014.46
Including40.541.10.60.3412.19162.3616.01
Including41.141.90.80.451.2651.153.08
Including41.942.910.570.1820.30.67
Including42.943.70.80.452.3750.83.66
Including43.744.350.650.370.7740.982.32
KMDD004748.1654.656.494.4323.66270.1624.25
Including48.1649.110.950.6544.0190.1944.42
Including49.1149.60.490.3320.92130.2321.44
Including49.650.20.60.4144.8430.0744.99
Including50.250.50.30.2034.1180.134.37
Including50.550.80.30.2011.0740.0411.18
Including50.851.70.90.6144.071620.3446.70
Including51.752.91.20.826.4320.066.55
Including52.9541.10.757.3720.067.49
Including5454.650.650.448.4960.319.04
KMDD004757.8580.200.111.46151.544.00
KMDD004783.585.62.101.699.42243.4715.05
Including83.584.851.351.0913.2734.54.9621.31
Including84.8585.10.250.2014.60.561.92
Including85.185.60.50.403.257.40.94.72


Hole_idFrom (m)To (m)Interval
(m)
True
width (m)
Gold g/tSilver g/tCopper %Gold
equivalent
KMDD0047110.6114.74.103.302.36481.094.66
including110.6110.850.250.201.049.20.051.24
including110.85111.40.550.442.4910.90.142.85
including111.4112.20.80.643.0125.30.163.58
including112.2112.60.40.324.45162.62.8710.95
including112.6113.20.60.480.7318.80.211.30
including113.2113.70.50.403.0237.61.065.13
including113.7114.710.801.9375.12.446.64
KMDD0047115.7116.40.700.561.44520.603.04
KMDD0047117.7118.30.600.481.0560.031.18
KMDD004814.921.55.203.174.0320.024.08
including16.3016.550.250.1512.8930.0613.02
including16.5517.71.150.690.210.010.23
including17.718.40.700.420.4110.010.44
including18.4019.501.100.683.1240.033.21
including19.5021.502.001.236.9010.016.93
KMDD004883.986.42.501.202.70523.068.05
including83.9084.270.370.187.90344.9515.92
including84.2785.000.730.350.2140.150.50
including85.0086.401.400.672.62814.089.92
KMDD005019.7522.152.404.882.7410.233.12
including19.7521.401.651.613.8920.104.07
including21.4021.850.450.440.2410.060.34
including21.8522.150.300.2916.2030.6717.27
KMDD005024.0024.760.760.741.9930.072.14
KMDD005028.55290.450.440.3993.045.15
KMDD005032.332.550.250.244.4962.488.37
KMDD005073.475.21.801.753.5070.153.82
including73.474.41.000.971.6470.041.79
including74.474.90.500.498.40110.469.24
including74.975.20.300.291.5230.021.58

Notes
Gold Equivalent uses Copper price – US$2.90/lb; Silver price US$16.5/oz and Gold price of US$1300/oz

Table 3.0 Collar Locations for Kora Underground Diamond Drilling

Hole_idCollar locationCollar orientation
Local
north
Local
East
mRLDipLocal
azimuth
KMDD004559006.4229876.091190.4925.4314.5
KMDD0046A59123.7129876.791187.25-29.9227.7
KMDD004759000.6229876.011188.28-12.3223.6
KMDD004859128.0229876.551187.41-28.4313.0
KMDD005059361.9529897.801206.41-6.4281.7

John Lewins, K92 Chief Executive Officer and Director, states, “The results from our mining, development and grade control drilling at Kora North over the last month have been outstanding and continue to build our knowledge of the deposit and it’s potential. The grades currently being mined from the 1185 K1 South vein are the highest that have ever been achieved from the Kainantu Mine and further reinforces the confidence in our strategy of focusing on the development of the Kora deposit”.

K92 has filed and made available for download on the company's SEDAR profile a technical report titled "Independent Technical Report, Mineral Resource Update and Preliminary Economic Assessment of Irumafimpa and Kora Gold Deposits, Kainantu Project, Papua New Guinea," with an effective date of March 2, 2017, that provides additional information on the geology of the deposits, drilling and sampling procedures, lab analysis, and quality assurance/quality control for the project, and additional details on resource estimates.

The PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized. The technical report contains a full description of all underlying assumptions relating to the PEA. Mineral resources that are not mineral reserves and do not have demonstrated economic viability.

K92 Mine Geology Manager and Mine Exploration Manager, Mr Andrew Kohler, PGeo, a qualified person under the meaning of Canadian National Instrument 43-101, has reviewed and is responsible for the technical content of this news release. Data verification by Mr. Kohler includes significant time onsite reviewing drill core, face sampling, underground workings and discussing work programs and results with geology and mining personnel.

On behalf of the company,

John Lewins
Chief Executive Officer and Director

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. All statements that address future plans, activities, events or developments that the Company believes, expects or anticipates will or may occur are forward-looking information, including statements regarding the realization of the preliminary economic analysis for the Project, expectations of future cash flows, the proposed plant expansion, potential expansion of resources and the generation of further drilling results which may or may not occur. Forward-looking statements and information contained herein are based on certain factors and assumptions regarding, among other things, the market price of the Company’s securities, metal prices, exchange rates, taxation, the estimation, timing and amount of future exploration and development, capital and operating costs, the availability of financing, the receipt of regulatory approvals, environmental risks, title disputes, failure of plant, equipment or processes to operate as anticipated, accidents, labour disputes, claims and limitations on insurance coverage and other risks of the mining industry, changes in national and local government regulation of mining operations, and regulations and other matters.. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Telephone: (604) 687-7130
Facsimile: (604) 608-9110

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