K92 Announces More High Grade Kora Exploration Drill Results Including 2.5m at 68.78 g/t Au, 86 g/t Ag and 0.37% Cu in drill hole KMDD0017
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 1, 2017) -
- 2.5m at 68.78 g/t Au, 86 g/t Ag and 0.37% Cu (70.44 g/t AuEq), including 0.4m at 406.2 g/t Au, 9 g/t Ag and 0.12% Cu in drill hole KMDD0017
- 2.4m at 12.89 g/t Au, 14 g/t Ag and 1.19% Cu (14.90 g/t AuEq), including 0.3m at 108.24 g/t Au, 113 g/t Ag and 9.24% Cu in drill hole KMDD0021
- Holes represent both vertical extension and strike extension of known Kora mineralization
K92 Mining Inc. ("K92") (TSX VENTURE:KNT)(OTCQB:KNTNF) is pleased to announce results from the next five exploration holes drilled from an underground cuddy following on from the first four holes previously reported on October 17, 2017 (see Table 1.0).
The drill results from these first 9 holes drilled to follow up on the initial discovery of the northern extension of the Kora Vein in hole KMDD0009, which recorded an intersection of 5.4 metres at 11.68 g/t gold, 25.5 g/t silver and 1.33 per cent copper, have further confirmed K92's initial interpretation that the Kora Vein extends some 500 metres to the north from the closest point of the currently defined Kora Deposit Inferred Resource (see Table 3.0).
K92 is currently undertaking a program of 24 drill holes from underground drill cuddy DDC1 located approximately 50 metres from the Kora Vein at 59125 North, 29876 East and 1188 mRL (see Figure 1). This program which will be completed in December, is designed to drill out an area of approximately 150 metres by 150 metres on a 25m x 25m "grade control" grid pattern.
The high grade drill results announced today represent both vertical extension and strike extension of known Kora mineralization.
A second underground diamond rig will commence exploration drilling within the next two days, further along strike, approximately 150 metres to the north of the current drill cuddy DDC1 to evaluate extensions of Kora towards the Irumafimpa deposit as this remains open following recent drill results.
K92 also intends to continue driving along the strike of the Kora Vein in a northerly and southerly direction with this material mined from Kora to be processed through the plant.
John Lewins, K92 Chief Executive Officer and Director, states, "These results from the latest five diamond holes drilled from drill cuddy DDC1 have further confirmed our interpretation that the Kora Vein system extends some 500 metres to the north of the existing inferred resource, and potentially further, as we have yet to close off the mineralization in this direction. By December we will have drilled out an area of 150 metres by 150 metres from this one drill cuddy with a program of grade control drilling on a 25m x 25m pattern. The aim of this drilling would be to provide sufficient detail to allow stopes to be designed and developed to enable ongoing mining in this Kora extension area. At the same time, we plan to continue to develop the footwall drive to the south towards the known Kora resource establishing further drill cuddies at approximately 150 metre intervals to allow diamond drilling to continue along strike".
The previously reported Kora extension discovery hole KMDD0009 recorded an intersection of 5.4 metres at 11.68 g/t gold, 25.5 g/t silver and 1.33 per cent copper from 154 metres downhole, (see K92 news release dated May 24, 2017, for details including true thicknesses).
Table 1 and 2 below provides a summary of the results from the five diamond grade control which have been drilled into the Kora Vein. Table 1 provides a summary of the significant intercepts from the holes, while Table 2 provides details of collar location and hole orientation.
Table 1.0 Kainantu Gold Mine – Significant Intercepts from Kora Underground Diamond Drilling
|Hole_id||From (m)||To (m)||Interval (m)||True width (m)||Gold g/t||Silver g/t||Copper %||Gold equivalent|
|Gold Equivalent uses Copper price – US$2.50/lb; Silver price US$16/oz and Gold price of US$1200/oz|
Table 2.0 Kainantu Gold Mine – Collar Locations for Kora Underground Diamond Drilling
|Hole_id||Collar location||Collar orientation||EOH depth
|Local north||Local East||RL||Dip||Local azimuth|
To view "Figure 1 Kora Underground Diamond Drill Program from Drill Cuddy DDC1," please visit the following link: http://media3.marketwire.com/docs/k92mining_nov01_figure01.pdf
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|
|Deposit||Resource Category||Tonnes||Gold||Silver||Copper||Gold Equivalent|
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 Vice President Chris Muller, 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. Muller includes significant time onsite reviewing drill core, surface exposures, underground workings and discussing work programs and results with exploration 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.
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