Confirms 2018 Production Guidance
Suite 488 – 1090 West Georgia Street
Vancouver, British Columbia
Canada V6E 3V7
Telephone: +1 (604) 687-7130
Facsimile: +1 (604) 608-9110
NEWS RELEASE
November 26, 2018 Vancouver, British Columbia
K92 Mining Inc. (“K92”) Releases Third Quarter Financial Results and
Confirms 2018 Production Guidance
Production of 9,549 gold ozs or 9,910 gold equivalent (AuEq) o zs for the Quarter at
a cost of $ 742/gold o z or $ 742/ gold equivalent o z and an all -in sustaining cost of
$899/gold oz or $894/gold equivalent oz1
Revenue less Cost of Sales for the three months ended September 30, 2018 , was
US$1,957,539
Reaffirms production guidance issuance for 2018 expected to be between 4 4,000
(previously 42,000) and 46,000 gold equivalent ozs
Cash cost guidance for 2018 expected to be US$530 to US$560 per gold equivalent
oz, with all-in sustaining costs expected to be US$740 to US$800 per gold equivalent
oz1
Note1 - a non -IFRS measure computed in the Company’s MD&A in the non -IFRS
performance measures section.
K92 Mining Inc. (TSX-V: KNT; OTCQX: KNTNF) (“K92”) is pleased to provide third quarter
financial results and confirm 2018 production guidance.
For complete details of the unaudited condensed consolidated interim financial statements and
associated management's discussion and analysis, please refer to the C ompany's filings on
SEDAR. All amounts are in U.S. dollars unless otherwise indicated.
Other Highlights
An updated resource estimate was completed for Kora North, resulting in an increase of
over 25% in contained gold ozs in Measured and Indicated and Inferred Resource s. The
new resource comprises a Measured Resource of 154,000 tonnes @ 1 8.7 g/t Au, 8.9 g/t
Ag and 0.5% Cu; an Indicated Resource of 690,000 tonnes @ 11.6 g/t Au, 14.1 g/t Ag
and 0.8% Cu and an Inferred Resources of 1 ,920,000 tonnes @ 1 0.7 g/t Au, 13.3 g/t Ag
and 0.7% Cu announced.
No lost time injuries recorded in the three months ended September 30, 2018.
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John Lewins, K92 Chief Executive Officer and Director, states, “The third quarter of 2018 saw
production from the Kora deposit of 9,910 ozs of gold equivalent ozs . This was achieved despite
having a period of 3 weeks in July when ore production was halted to allow remediation and
upgrading of ground support in areas of the main incline to be completed. Due to this reduction
in ore mining operations, reduced ounces for the quarter caused a one -time increase in Cash
Cost of US$ 742/oz and AISC of US$ 899/oz. Following the restart of ore mining operations,
production has continued to ramp up with September and then October setting new production
records. As a result, t he lower end of the range for 2018 guidance issued earlier in the year has
been increased to 44,000 gold equivalent ozs (previously 42,000) with the upper range
unchanged at 46,000 gold equivalent ozs. K92 expects year -end costs to average within
guidance set out earlier this year.
The remediation and replacement of ground support was focused around muck bay 4 where a
fall of ground (“FOG”) necessitated the acceleration of work that had been scheduled to be
undertaken over an extended period to minimize impact on operations. However, as a result of
the FOG it was decided to complete it in a single period of approximately 3 weeks , with the
benefit of reduced impact later in the year.”
MINE OPERATING ACTIVITIES
Three months ended
September 30, 2018
Six months ended
September 30, 2018
Operating data
Head grade (Au g/t) 16.07 18.09
Gold Recovery (%) 94.0% 93.0%
Gold ounces produced 9,549 29,358
Gold ounces equivalent produced (1) 9,910 30,439
Pounds of copper produced 146,315 440,925
Silver ounces produced 2,551 6,974
Financial data (in thousands of dollars)
Revenues -- gold sales $9,390 $31,650
Mine operating expenses ($6,956) ($16,859)
Depreciation and depletion ($476) ($1,621)
Statistics (in dollars)
Average realized selling price (per ounce) $1,199 $1,278
Cash cost (per ounce) (1) $742 $623
All-in sustaining cost (per ounce) (1) $899 $810
Review of financial results
Net income
The Company's net income for the nine-month period ended September 30, 2018, totalled
$5,557,294 or income per share of three cents compared with net loss of $ 10,162,667 or a loss
per share of seven cent for the nine-month period ended September 30, 2017.
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Notes:
(1) The Company provides some non -international financial reporting standard measures
as supplementary information that management believes may be useful to investors to
explain the Company's financial results. Please refer to non -IFRS financial
performance measures of the Company's management's discussion and analysis dated
November 22, 2018, available on SEDAR for reconciliation of these measures.
K92 has not based its production decisions on mineral reserve estimates or feasibility studies,
and historically such projects have increased uncertainty and risk of failure. Mineral resources
that are not mineral reserves do not have demonstrated economic viability.
Qualified person
K92 mine geology manager and mine exploration manager, 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 MD&A. 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.
For further infor mation regarding the Kainantu gold mine, please refer to the technical report
dated March 2, 2017, and entitled "Independent Technical Report, Mineral Resource Update and
Preliminary Economic Assessment of Irumafimpa and Kora Gold Deposits, Kainantu Projec t,
Papua New Guinea," available on SEDAR.
On Behalf of the Company,
John Lewins, Chief Executive Officer and Director
For further information, please contact the Company at +1-604-687-7130.
NEITHER TSX VENTURE EXCHANGE NOR ITS REG ULATION SERVICES PROVIDER
(AS THAT TERM IS DEF INED IN POLICIES OF THE TSX VENTURE EXCH ANGE)
ACCEPTS RESPONSIBILI TY FOR THE ADEQUACY OR ACCURACY OF THIS
RELEASE.
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 f actors 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, ex pects
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 expansio n of resources and the
generation of further drilling results which may or may not occur. Forward -looking statements
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and information contained herein are based on certain factors and assumptions regarding,
among other things, the market price of the Compan y’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 operat ions, 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.