K92 Announces Further High-Grade Kora Drill Results from Kora Northern Extension
Suite 488 – 1090 West Georgia Street
Vancouver, British Columbia
Canada V6E 3V7
Telephone: (604) 687-7130
Facsimile: (604) 608-9110
NEWS RELEASE
January 12, 2018 Vancouver, British Columbia
K92 MINING INC.
K92 Announces Further High-Grade Kora Drill Results from Kora Northern Extension
• Drill Hole KMDD0039 records 4.05 m at 5.00 g/t Au, 2 g/t Ag and 0.22% Cu (5.36 g/t
AuEq) plus 3.6 m at 12.99 g/t Au, 68 g/t Ag and 0.92% Cu (15.27 g/t AuEq) plus 2.6
m at 4.91 g/t Au, 13 g/t Ag and 0.80% Cu (6.30 g/t AuEq)
• Drill Hole KMDD0043 records 7.7 m at 5.84 g/t Au, 4 g/t Ag and 0.14% Cu (6.10 g/t
AuEq) plus 1.8 m at 2.81 g/t Au, 22 g/t Ag and 3.92% Cu (9.09 g/t AuEq) plus 10.1 m
at 3.70 g/t Au, 4 g/t Ag and 0.24% Cu (4.13 g/t AuEq)
• Drill Hole KMDD0041 records 7.7 m at 7.16 g/t Au, 14 g/t Ag and 0.14% Cu (7.55 g/t
AuEq)
• Drill Hole KMDD0045 records 5.26 m at 13.77 g/t Au, 5 g/t Ag an d 0.07% Cu (13.93
g/t AuEq)
K92 Mining Inc. (“K92”) is pleas ed to announce results from the continuing grade control and
exploration drilling of the Kora North Extension.
The results reported include three holes from Diamond Drill Cud dy One (DDC1), and four holes
from Diamond Drill Cuddy Two (DDC2), located approximately 125 metres along strike DDC1.
All holes drilled from DDC2 have recorded wide intersections of the K1 vein in addition to the
main Kora North vein (K2), except KMDD0041 which was stopped short of the K2 vein.
Results have included Hole KMDD0039 which recorded 4.05 m at 5.00 g/t Au, 2 g/t Ag and 0.22%
Cu (5.36 g/t AuEq) plus 3.6 m at 12.99 g/t Au, 68 g/t Ag and 0.92% Cu (15.27 g/t AuEq) plus 2.6
m at 4.91 g/t Au, 13 g/t Ag and 0.80% Cu (6.30 g/t AuEq) and ho le KMDD0043 which recorded
7.7 m at 5.84 g/t Au, 4 g/t Ag and 0.14% Cu (6.10 g/t AuEq) plu s 1.8 m at 2.81 g/t Au, 22 g/t Ag
and 3.92% Cu (9.09 g/t AuEq) plus 10.1 m at 3.70 g/t Au, 4 g/t Ag and 0.24% Cu (4.13 g/t AuEq).
The K1 results are considered particularly significant as all f ive holes drilled to date from DDC2
have recorded consistently wide intersections varying from 4.05 metres to 8.4 metres, while grades
have varied from 5.36 g/t AuEq to 13.93 AuEq. Importantly, the most southerly hole drilled from
DDC1 (KMDD0024) recorded a K1 inte rsection of 11.5 metres at 7. 11 g/t Au, 12 g/t Ag and
0.0.32% Cu (7.76 g/t AuEq).
In addition, in two of the holes drilled from DDC2 a third vein appears to be developing between
K1 and K2 veins with intersections of 3.6 metres at 12.99 g/t Au, 68 g/t Ag and 0.92% Cu (15.27
g/t AuEq) recorded in hole KMDD0039 and 1.8 metres at 2.81 g/t Au, 22 g/t Ag and 3.92% Cu
(9.09 g/t AuEq) recorded in hole KMDD0043. The presence of 3 ve ins is consistent with the
interpreted geology reported in the main Kora deposit to the so uth, which has up to four veins
reported.
John Lewins, K92 Chief Executive Officer and Director, states, “The recent drilling results and
especially those from DDC2 have continued to build our confidence in the continuity of the North
Kora Vein System. The results from the southern holes from DDC1 and all the holes drilled from
DDC2 have identified the K1 vein as having significant potential. The identification of a third vein
further enhances the potential of the system and appears consistent with the geology encountered
in the main Kora deposit to the south which has up to four veins present.
The grade control drilling from DDC 1 has now been successfully completed and this rig is being
relocated to drill a northern target for an exte nsion of the K2 vein parallel to Irumafimpa,
identified in the results previously reported for hole KMDD0035. Following the completion of this
program, drilling is scheduled to commence on the underground diamond drilling exploration
program. This program which is expected to take approximately six months to complete will target
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 l atest diamond grade control drill
holes drilled into the Kora North Vein system. Table 1 provides a summary of the significant
intercepts from the hole, 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
KMDD0039 24.65 28.7 4.05 3.66 5.00 2 0.22 5.36
Including 24.65 25.5 0.85 0.77 17.52 4 0.24 17.94
Including 25.5 26.75 1.25 1.13 3.16 3 0.44 3.88
Including 26.75 28.1 1,35 1,22 0.26 10 0.08 0.50
Including 28.1 28.7 0.6 0.54 1.77 2 0.02 1.83
KMDD0039 43 46.6 3.6 3.25 12.99 68 0.92 15.27
Including 43 44 1 0.90 21.72 100 1.60 25.43
Including 44 44.75 0.75 0.68 5.1 38 0.15 5.81
Including 44.75 45.3 0.55 0.50 10.49 125 1.58 14.50
Including 45.3 45.7 0.4 0.36 13.06 43 0.58 14.50
Including 45.7 46.6 0.9 0.81 11.38 35 0.55 12.66
KMDD0039 72 74.6 2.6 2.35 4.91 13 0.80 6.30
Including 72 73.2 1.2 1.08 7.36 14 0.82 8.80
Including 73.2 74.6 1.4 1.27 2.81 13 0.77 4.15
Hole_id From (m) To (m) Interval (m) True width (m) Gold g/t Silver g/t Copper % Gold
equivalent
KMDD0040 15.7 20 4.3 2.98 1.32 5 0.05 1.46
Including 15.7 16.1 0.4 0.28 1.85 2 0.02 1.90
including 16.1 16.9 0.8 0.55 0.69 2 0.02 0.74
Including 16.9 17.7 0.8 0.55 1.26 4 0.03 1.36
including 17.7 18.7 1 0.69 0.32 9 0.16 0.67
Including 18.7 20 1.3 0.90 2.36 6 0.01 2.45
KMDD0041 38.1 45.65 7.55 4.98 7.16 14 0.14 7.55
Including 38.1 40 1.9 1.25 10.89 5 0.09 11.09
Including 40 41.1 1.1 0.72 0.12 1 0.03 0.17
Including 41.1 42.04 0.94 0.62 0.18 1 0.06 0.28
Including 42.04 42.15 0.11 0.07 37.75 11 0.10 38.05
including 42.15 43.35 1.2 0.79 0.35 1 0.02 0.39
Including 43.35 44.46 2.3 1.52 12.37 39 0.34 13.38
Including 44.46 45.1 0.64 0.42 6.58 19 0.11 6.99
including 45.1 45.65 0.55 0.36 42.43 123 0.37 44.56
KMDD0042 23.5 26.1 2.6 1.59 3.74 21 0.16 4.25
Including 23.5 24.6 1.1 0.67 7.02 28 0.19 7.67
including 24.6 24.8 0.2 0.12 0.38 2 0.01 0.43
Including 24.8 26.1 1.3 0.80 1.48 17 0.16 1.94
KMDD0042 62.7 63.8 1.1 0.67 1.20 1 0.11 1.39
KMDD0043 21.1 28.8 7.7 6.95 5.84 4 0.14 6.10
Including 21.1 22 0.9 0.81 22.77 4 0.21 23.14
Including 22 23 1 0.90 0.00 0 0.12 0.18
Including 23 24.33 1.33 1.20 0.10 0 0.07 0.20
Including 24.33 25.4 1.07 0.97 4.13 2 0.02 4.19
including 25.4 26.2 0.8 0.72 10.15 7 0.20 10.55
Including 26.2 26.5 0.3 0.27 1.80 1 0.04 1.88
Including 26.5 27.5 1.00 0.90 0.26 1 0.03 0.32
including 27.5 28 0.50 0.45 0.34 1 0.06 0.44
including 28 28.8 0.9 0.72 13.18 19 0.54 14.25
KMDD0043 59.4 61.2 1.8 1.67 2.81 22 3.92 9.09
including 59.4 60.4 1 0.93 0.96 5 0.57 1.90
including 60.4 61.2 0.8 0.74 5.13 43 8.10 18.06
KMDD0043 66 76.1 10.1 9.40 3.70 4 0.24 4.13
Including 66 66.9 0.9 0.84 0.43 14 0.64 1.59
Including 66.9 67.6 0.7 0.65 7.86 8 0.11 8.13
Including 67.6 69 1.4 1.30 20.00 3 0.03 20.08
Including 69 70 1 0.93 0.06 1 0.00 0.08
including 70 71 1 0.93 0.05 2 0.01 0.09
Including 71 72 1 0.93 0.08 2 0.10 0.26
Including 72 73 1.00 0.93 0.33 2 0.13 0.55
including 73 74.1 1.10 1.02 0.13 4 0.23 0.53
including 74.1 74.8 0.7 0.65 1.50 14 0.12 1.86
including 74.8 76.1 1.3 1.21 1.31 8 0.15 1.64
KMDD0044 15 19.42 4.42 2.30 3.30 2 0.05 3.41
including 15 15.2 0.20 0.10 2.25 4 0.11 2.46
including 15.2 15.8 0.60 0.31 0.00 1 0.00 0.01
including 15.8 16.8 1.00 0.52 0.17 0 0.00 0.17
including 16.8 17.64 0.84 0.44 0.31 0 0.01 0.32
including 17.64 17.86 0.22 0.11 2.55 1 0.04 2.63
including 18.45 19 0.55 0.29 18.47 9 0.14 18.80
including 19 19.42 0.42 0.22 5.35 3 0.24 5.75
KMDD0044 88.5 92.4 3.90 2.03 1.04 18 2.45 5.02
including 88.5 89.2 0.70 0.36 1.97 68 11.30 20.12
including 89.2 89.85 0.65 0.34 1.42 5 0.59 2.38
including 89.95 90.34 0.39 0.20 0.57 3 0.54 1.44
including 90.34 91 0.66 0.34 1.06 1 0.32 1.55
including 91.9 92.4 0.50 0.26 1.00 31 1.05 3.00
Hole_id From (m) To (m) Interval (m) True width (m) Gold g/t Silver g/t Copper % Gold
equivalent
KMDD0045 31 36.26 5.26 3.61 13.77 5 0.07 13.93
including 31 32.05 1.05 0.72 5.57 3 0.04 5.67
including 32.05 32.73 0.68 0.47 6.27 5 0.09 6.47
including 33.2 34.23 1.03 0.71 3.51 2 0.01 3.55
including 34.23 34.7 0.47 0.32 109.20 23 0.28 109.93
including 34.7 35.42 0.72 0.49 7.65 3 0.04 7.74
including 35.42 36.26 0.84 0.58 1.80 4 0.09 1.98
KMDD0045 44.4 45.1 0.70 0.48 2.71 22 1.02 4.54
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 – Collar Locations for Kora Underground Diamond Drilling
Hole_id Collar location Collar orientation EOH
depth
Local
north Local East mRL Dip Local (m)
KMDD0039 59001.47 29874.55 1189.46 8.7 243.8 108.9
KMDD0040 59128.44 29876.20 1187.64 -12.6 313.6 61.8
KMDD0041 59000.79 29876.12 1189.81 12.4 225.2 53.8
KMDD0042 59124.63 29876.72 1190.39 46.2 241.4 80.0
KMDD0043 59005.75 29874.46 1189.41 9.2 296.4 92.5
KMDD0044 59124.60 29876.48 1187.33 -34.4 242.9 104.3
KMDD0045 59006.42 29876.09 1190.49 25.4 314.5 121.0
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 Re port, Mineral Resource Update a nd 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 in formation 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 estim ates (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 mill ion 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-mil lion (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, exchang e 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 di amond drilling; sustaining capi tal cost is estimated to a
further $64-million (U.S.) spent over the life of the Kora mini ng for 25-metre levels, or
$83-million (U.S.) for 15-metre levels;
• Operating cost per tonne is estim ated to be $125 (U.S.) per ton ne for 25-metre levels, or
$126 (U.S.) per tonne for 15-metre mining levels;
• Excluding initial capital expend iture of $14-million (U.S.), ca sh 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 (AI SC) of $619 (U.S.) per ounce AuEq for 25-metre mining
levels, or $549 (U.S.) per ounc e (inclusive of a 2.5-per-cent N SR 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 ap plied 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
Mt g/t MOz g/t MOz % Mlb g/t MOz
Irumafimpa Indicated 0.56 12.8 0.23 9 0.16 0.28 37 13.4 0.24
Inferred 0.53 10.9 0.19 9 0.16 0.27 74 11.5 0.20
Kora/Eutompi Inferred 4.36 7.3 1.02 35 4.9 2.23 215 11.2 1.57
Total Indicated 0.56 12.8 0.23 9 0.16 0.3 4 13.4 0.24
Total Inferred 4.89 7.7 1.21 32 5.06 2.0 218 11.2 1.76
M in Table is millions. Repor ted 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 Mi ne Exploration Manager, Mr. Andr ew 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, un derground 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 st atements” 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 th e actual results and fu ture events to differ
materially from those expressed or implied by su ch 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-looki ng information, including statements regarding
the realization of the preliminar y 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 regulato ry approvals, environmental risks, title disputes,
failure of plant, equipment or processes to opera te as anticipated, accide nts, 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 stat ements 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 re liance on forward-looking statements. The
Company disclaims any intention or obligati on to update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise, except as required
by law.