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K92 Announces Further High-Grade Kora Drill Results from Kora Northern Extension

  • Drill Hole KMDD0057 records 6.95 m at 13.78 g/t Au, 3 g/t Ag and 0.03% Cu (13.86 g/t AuEq) plus 2.65 m @ 14,51 g/t Au, 63 g/t Ag and 2.58% Cu (19.27 g/t AuEq)
  • Drill Hole KMDD0051 records multiple intersections including 3.4 m at 16.84 g/t Au, 23 g/t Ag and 1.35% Cu (19.19 g/t AuEq)
  • Drill Hole KMDD0055 records 3.2 m at 9.83 g/t Au, 52 g/t Ag and 0.33% Cu (10.99 g/t AuEq) plus 4.50 m at 4.68 g/t Au, 14g/t Ag and 2.33% Cu (8.42 g/t AuEq)

VANCOUVER, British Columbia, March 05, 2018 (GLOBE NEWSWIRE) -- K92 Mining Inc. (“K92”) (TSXV:KNT) (OTCQB:KNTNF) is pleased to announce results from the continuing grade control and exploration drilling of the Kora North Extension.

The results reported include four holes from Diamond Drill Cuddy Two (DDC2), and five holes from Diamond Drill Cuddy 1210 located in Irumafimpa and evaluating further northern extensions of the Kora system parallel to the Irumafimpa orebody. All holes drilled from DDC2 have recorded intersections of the K1 and K2 Lodes, while three also intersected the KL1 lode.

Drilling from the 1210 Drill Cuddy located in the Irumafimpa Mine have confirmed that both the K1 and K2 lodes extend up to 200 metres to the north of the recently announced Kora North resource vein in addition to the main Kora North vein (K2), except KMDD0041 which was stopped short of the K2 vein.

Results have included Hole KMDD0051 which recorded 3.4 m at 16.84 g/t Au, 23 g/t Ag and 1.35% Cu (19.19 g/t AuEq) plus 1.4 m at 6.23 g/t Au, 19 g/t Ag and 1.02% Cu (8.03 g/t AuEq), Hole KMDD0055 with 3.2 m at 9.83 g/t Au, 52 g/t Ag and 0.33% Cu (10.99 g/t AuEq) plus 4.50 m at 4.68 g/t Au, 14 g/t Ag and 2.33% Cu (5.69 g/t AuEq) plus 4.05 m at 4.28 g/t Au, 5 g/t Ag and 0.89% Cu (5.69 g/t AuEq) and Hole KMDD0057 records 6.95 m at 13.78 g/t Au, 3 g/t Ag and 0.03% Cu (13.86 g/t AuEq) plus 2.65 m @ 14,51 g/t Au, 63 g/t Ag and 2.58% Cu (19.27 g/t AuEq).

The results from DDC2 continue to confirm the consistency of both the K1 and K2 lodes within this area while also further delineating the KL1 structure and confirming its continuity. The holes drilled from the 1210 drill cuddy have highlighted the potential for a further extension of the Kora lodes to the north of the current resource parallel to the Irumafimpa system.

John Lewins, K92 Chief Executive Officer and Director, states, “These results continue build our knowledge of the Kora – Irumafimpa system, extending the known area of mineralization and confirming the continuity of the Kora lodes.

At the same time with the ongoing mining of the K1 and K2 lodes we are building a detailed understanding of the geological, geotechnical and metallurgical characteristics of these lodes. The grade of material mined from K1 has to date averaged over 20 g/t Au, while K2 has averaged approximately 7 g/t Au and 0.8% copper confirming this as a high grade system with excellent continuity. Metallurgical performance has been excellent with recoveries for both gold and copper well in excess of 90%.

We are currently preparing our third diamond drill cuddy which will then allow the initial underground diamond drilling exploration program to commence, targeting an area of approximately 600 metres on strike by 500 metres on dip between Irumafimpa and the known Kora deposit”.

Table 1 and 2 below provide a summary of the results from the latest diamond grade control drill holes drilled into the Kora North Vein system from DDC2 and the 1210 drill cuddy respectively. Table 3 provides details of collar location and hole orientation.

Table 1.0 Kainantu Gold Mine – Significant Intercepts from Kora Diamond Drill Cuddy 2

Hole_idFrom (m)To (m)Interval (m)True width (m)Gold g/tSilver g/tCopper %Gold equivalentComment
KMDD005127.528.81.301.202.3830.503.18K1E
KMDD005134.536.04.001.393.05140.133.42K1W
including34.535.00.500.462.4720.022.53
including35.036.01.000.923.34200.183.87
KMDD005151.854.02.201.511.1380.361.79KL1
including51.852.81.000.680.48140.731.77
including52.854.01.200.821.6730.061.80
KMDD005160.061.41.401.216.23191.028.03KL2
KMDD005169.072.43.402.9516.84231.3519.19K2
including69.570.20.700.617.17474.1414.10
including70.271.51.301.1339.38240.9341.11
including71.572.40.900.780.73110.301.33
KMDD005326.428.01.601.810.5660.441.31K1E
including26.427.30.900.780.6240.391.27
including27.328.00.700.610.45100.521.37
KMDD005334.536.21.701.655.6840.065.82KL1
including34.535.10.600.5815.5530.0315.63
including35.136.21.101.070.2940.080.46
KMDD005383.990.76.805.900.8630.641.88K2
including83.985.01.100.953.0020.033.08
including85.086.01.000.870.2640.040.37
including86.087.81.801.560.2420.010.28
including87.890.72.902.510.6441.462.93
KMDD0053103.8106.22.402.080.98231.273.21
KMDD005521.0021.400.400.352.6160.072.80
KMDD005525.2029.254.053.564.2840.895.69K1E
including25.2025.700.500.441.1420.191.46
including25.7026.300.600.531.330.632.30
including26.3027.301.000.889.49122.6913.75
including27.9028.650.750.666.430.500.076.55
KMDD005542.3045.503.203.209.83520.3310.99KL1
including42.3043.100.800.801.7090.392.41
including43.1044.501.401.4017.981080.4920.11
including44.5045.501.001.004.9180.065.10
KMDD005556.3060.804.504.374.68142.338.42K2
including56.3057.200.900.878.650.500.028.69
including57.2058.701.501.462.1730.112.38
including58.7059.600.900.870.3830.360.97
including59.6060.801.201.168.05468.3221.37
KMDD005563.0063.400.400.393.2650.263.72
KMDD005720.7527.76.956.4313.7830.0313.86K1E
including20.7521.370.620.576.8120.106.98
including21.3722.30.930.000.2510.030.31
including22.323.00.700.658.1670.028.28
including24.4525.30.850.792.7520.012.79
including25.325.650.350.320.2510.010.28
including25.6526.30.650.6039.5570.1239.82
including26.327.71.41.3040.8330.0140.89
KMDD005776.7579.42.652.2714.51632.5819.27K2
including76.7577.400.650.560.41291.893.67
including77.478.41.000.8536.961445.3146.91
including78.479.41.000.851.2350.311.76

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

Table 2.0 Kainantu Gold Mine – Significant Intercepts from Irumafimpa 1210 Diamond Drill Cuddy

Hole_idFrom (m)To (m)Interval (m)True width (m)Gold g/tSilver g/tCopper %Gold equivalentComment
KMDD005622.823.10.30.282.9630.203.30K1E
KMDD005628.830.31.51.420.6320.291.10K1W
including28.8290.20.191.2431.012.82
including2929.30.30.280.7220.561.60
including29.330.10.80.760.2010.040.27
including30.130.30.20.191.6040.161.89
KMDD005669.3572.63.253.022.8420.333.37K2
including69.3569.830.480.4514.8441.1816.70
including69.83700.170.160.9510.281.39
including707221.860.0410.040.11
including7272.60.60.563.0960.634.13
KMDD005826.82303.182.483.5280.604.54K1
including26.82281.180.925.62161.407.96
including2828.580.580.450.2730.200.61
including28.5828.70.120.090.5330.210.89
including28.7301.31.013.3530.093.53
KMDD0058103105.42.41.586.7120.166.98K2
including103103.630.630.413.5340.504.35
including103.63104.230.60.400.3010.010.33
including104.23104.850.620.410.1810.010.21
including104.85105.10.250.1650.5030.0350.58
including105.1105.40.30.203.2510.133.46
KMDD006014.0714.370.30.2911.06220.1211.52K1E
KMDD006018.3518.550.20.192.0810.052.16K1E
KMDD006026.2281.81.742.6560.132.91K1W
including26.226.960.760.735.13100.135.46
including26.96281.041.000.8330.121.06
KMDD006035.7737.82.031.840.9671.022.61K2
including35.7736.881.111.011.2220.692.30
including36.8837.80.920.830.64141.412.98
KMDD006014.0714.370.30.2911.06220.1211.52K1E
KMDD006018.3518.550.20.192.0810.052.16K1E
KMDD006026.2281.81.742.6560.132.91K1W
including26.226.960.760.735.13100.135.46
including26.96281.041.000.8330.121.06
KMDD006035.7737.82.031.840.9671.022.61M6
including35.7736.881.111.011.2220.692.30
including36.8837.80.920.830.64141.412.98
KMDD006068.8690.20.181.9371.193.84K2
KMDD006071.0571.90.850.770.98100.892.47K2
KMDD006218.3119.120.810.781.606.000.161.92K1E
KMDD006220.7624.333.573.441.561.900.161.83K1E
including20.7621.600.840.815.426.000.586.39
including21.6022.701.101.060.0610.030.12
including22.7024.071.371.320.0610.030.12
including24.0724.330.260.253.352.000.083.49
KMDD006226.0029.003.002.891.011.500.231.38K1E
including26.0027.001.000.961.462.000.382.07
including27.0028.001.000.960.491.000.130.70
including28.0029.001.000.961.092.000.171.37
KMDD006231.2032.521.321.271.285.701.373.44K1W
including31.2031.430.230.221.864.001.263.84
including31.4332.150.720.690.863.000.371.47
including32.1532.520.370.361.7212.003.377.03
KMDD006235.1735.450.280.272.514.000.513.35K1W
KMDD006266.9067.320.420.4211.058.000.8412.44K2
KMDD006278.9680.101.141.132.712.000.193.03K2
Including78.9679.900.940.941.862.000.142.09
Including79.9080.100.200.206.712.000.467.44
KMDD006425.5327.51.971.562.3640.092.55K1E
including25.5326.30.770.612.72100.173.11
including26.326.910.610.483.4910.043.56
including26.9127.50.590.470.7110.030.77
KMDD006438.0740.42.331.850.72200.722.07K1W
including38.0738.40.330.261.7510.071.86
including38.5839.170.590.470.22152.604.39
including39.6640.40.740.591.23490.152.09
KMDD006487.1988.61.411.1510.3720.2010.70K2
including87.1988.060.870.7114.2110.0414.28
Including88.0688.60.540.444.1940.454.92

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 Kainantu Gold Mine – Collar Locations for Kora Underground Diamond Drilling
http://www.globenewswire.com/NewsRoom/AttachmentNg/1842e194-f60f-4d70-bb05-791dc7b80b54

The current Kora/Eutompi inferred resource, as defined by previous drilling to date, is 4.36 million tonnes at a grade of 7.3 g/t Au, 35 g/t Ag and 2.23 per cent Cu, or 11.2 g/t gold equivalent (see attached table) and is open for expansion at depth and in both directions along strike.

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 the resource estimates.

The PEA estimates for Kora, based on the current resource estimates (4.36 million tonnes of 7.3 g/t Au, 35 g/t Ag and 2.23 per cent Cu):

  • Over a nine-year operating life, the plant would treat 3.2 million tonnes averaging 7.1 g/t Au, 25 g/t Ag and 1.7 per cent Cu (9.3 g/t AuEq (1));
  • This would generate an estimated positive cash flow of $537-million (U.S.) using current metal prices if 15-metre levels are used in mining; if 25-metre levels are used, then net cash flows are estimated as $558-million (U.S.); this cash flow includes conceptual allowances for capital;
  • Production of an estimated average of 108,000 AuEq (1) ounces per annum over an eight-year period from year 2 through to year 9;
  • An estimated pretax net present value (NPV) of $415-million (U.S.) for 25-metre levels, or $397-million (U.S.) for 15-metre levels, using current metal prices, exchange rates and a 5-per-cent discount;
  • An estimated after-tax NPV of $329-million (U.S.) for 25-metre levels, or $316-million (U.S.) for 15-metre levels, using current metal prices, exchange rates and a 5-per-cent discount;
  • Initial capital cost is estimated to be $13.8-million (U.S.), including the $3.3-million (U.S.) for the plant upgrade identified in the Mincore scoping study, but excluding the proposed Kora exploration inclines and diamond drilling; sustaining capital cost is estimated to a further $64-million (U.S.) spent over the life of the Kora mining for 25-metre levels, or $83-million (U.S.) for 15-metre levels;
  • Operating cost per tonne is estimated to be $125 (U.S.) per tonne for 25-metre levels, or $126 (U.S.) per tonne for 15-metre mining levels;
  • Excluding initial capital expenditure of $14-million (U.S.), cash cost is estimated to be $547 (U.S.) per ounce AuEq (inclusive of a 2.5-per-cent net smelter return (NSR) royalty) and all-in sustaining cost (AISC) of $619 (U.S.) per ounce AuEq for 25-metre mining levels, or $549 (U.S.) per ounce (inclusive of a 2.5-per-cent NSR royalty) and AISC of $644 (U.S.) per ounce AuEq for 15-metre mining levels.

Metal prices used were $1,300 per ounce for gold, $18 (U.S.) per ounce for silver and $4,800 per tonne for copper.

(1) Gold equivalent calculated on above metal prices.

Kora remains open for expansion in every direction and strongly mineralized at the extent of all drilling.

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.

Table 3.0 IRUMAFIMPA AND KORA/EUTOMPI RESOURCES

Resource by Deposit and Category
DepositResource
Category
TonnesGoldSilverCopperGold Equivalent
Mtg/tMOzg/tMOz%Mlbg/tMOz
IrumafimpaIndicated0.5612.80.2390.160.283713.40.24
Inferred0.5310.90.1990.160.277411.50.20
Kora/EutompiInferred4.367.31.02354.92.2321511.21.57
Total Indicated0.5612.80.2390.160.3413.40.24
Total Inferred4.897.71.21325.062.021811.21.76

M in Table is millions. Reported tonnage and grade figures are rounded from raw estimates to reflect the order of accuracy of the estimate. Minor variations may occur during the addition of rounded numbers. Gold equivalents are calculated as AuEq = Au g/t + Cu%*1.52+ Ag g/t*0.0141.

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

Suite 488 – 1090 West Georgia Street
Vancouver, British Columbia
Canada V6E 3V7

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

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.

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