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
October 9, 2018 Vancouver, British Columbia
K92 ANNOUNCES FURTHER HIGH-GRADE KORA DRILL RESULTS
FROM KORA NORTHERN EXTENSION
Drill Hole KMDD0 102 records multiple intersections including 9.85 m at 9.12 g/t
Au, 8 g/t Ag and 1.03% Cu (10.8 g/t Au Eq) plus 2.20 m at 31.89 g/t Au, 97 g/t Ag
and 0.05% Cu (33.18 g/t AuEq) plus 3.36 m at 11.37 g/t Au, 85 g/t Ag and 2.72% Cu
(16.61 g/t AuEq)
Drill Hole KMDD0 100 records multiple intersections including 4. 10 m at 8.41 g/t
Au, 7 g/t Ag and 0.65% Cu (9.49 g/t AuEq) plus 6.84 m at 6.91 g/t Au, 6 g/t Ag and
0.16% Cu (7.24 g/t AuEq)
Drill Hole KMDD0101 records 8.58 m at 7.23 g/t Au, 13 g/t Ag and 1.22% Cu (9.27
g/t AuEq) plus 8.25 m at 5.91 g/t Au, 7 g/t Ag and 0.49% Cu (6.76 g/t AuEq)
K92 Mining Inc. (TSX-V: KNT; OTCQX: KNTNF) (“K92” or the “Company” ) is pleased to
announce results from the continuing diamond drilling of the Kora North Extension.
The results from Diamond Drill Cuddies 3 and 4 (DDC3 and DDC4) continue to extend both the
K1 and K2 lodes while also further delineating the KL structure and confirming its continu ity.
See Table 1 below for a summary of drill results including true widths. Long sections showing
all holes drilled to date in both K1 and K2 is provided below.
John Lewins, K92 Chief Executive Officer and Director, states, “These results, which form part
of the database being used for a resource update of the Kora North Deposit currently under way,
have again reinforced the continuity of the strike and vertical extent of both the K1 and K2 vein
systems.”
Table 1 provide s a summary of th e results from KMDD0100, 101, 102 and 104 diamond drill
holes drilled from DDC 3 and 4. Note that KMDD0 101 was terminated prior to the projected
intersection of K2 due to slow penetration rates through wet broken ground . Table 2 provides
details of collar location and hole orientation.
Table 1 Kainantu Gold Mine – Significant Intercepts from Diamond Drill Cuddies 3 and 4
Hole_id From
(m) To (m) Interval
(m)
True
width
(m)
Gold
g/t
Silver
g/t
Copper
%
Gold
equiv
g/t
Comment
KMDD0100 77.00 81.10 4.10 1.86 8.41 7 0.65 9.49 Drilled from DDC3
Including 77.00 77.78 0.78 0.35 30.30 5 0.57 31.23
Including 77.78 78.46 0.68 0.31 1.80 5 0.14 2.08
Including 78.46 78.99 0.53 0.24 0.41 17 0.49 1.38
Including 78.99 79.50 0.51 0.23 9.40 2 0.19 9.71
Including 79.50 79.80 0.30 0.14 7.24 9 0.76 8.52
Including 79.80 80.75 0.95 0.43 0.58 6 0.00 0.66
Including 80.75 81.10 0.35 0.16 5.42 11 4.36 12.23
KMDD0100 88.13 94.97 6.84 2.79 6.91 6 0.16 7.24
Including 88.13 89.26 1.13 0.51 0.66 5 0.30 1.19
Including 89.26 90.15 0.89 0.40 16.15 10 0.28 16.71
Including 90.15 91.15 1.00 0.45 0.72 3 0.01 0.77
Including 91.15 91.90 0.75 0.34 1.40 2 0.01 1.44
Including 91.90 93.00 1.10 0.50 15.32 2 0.03 15.39
Including 93.00 93.50 0.50 0.23 7.46 3 0.37 8.06
Including 93.50 94.00 0.50 0.23 7.64 29 0.12 8.19
Including 94.00 94.97 0.97 0.44 4.48 5 0.42 5.18
KMDD0100 96.75 102.10 5.35 2.42 1.36 4 0.57 2.27
Including 96.75 97.75 1.00 0.45 3.20 3 1.53 5.57
Including 97.75 98.84 1.09 0.49 0.12 1 0.08 0.26
Including 98.84 99.87 1.03 0.47 0.74 6 1.04 2.40
Including 99.87 100.90 1.03 0.47 0.58 8 0.26 1.07
Including 100.90 102.10 1.20 0.54 2.14 1 0.08 2.28
KMDD0101 162.00 170.58 8.58 3.35 7.23 13 1.22 9.27 Drilled from DDC4
Including 162.00 162.28 0.28 0.11 23.00 4 0.36 23.61
Including 162.28 162.53 0.25 0.10 3.28 61 1.98 7.08
Including 162.53 163.00 0.47 0.18 0.14 1 0.35 0.68
Including 163.00 163.80 0.80 0.31 0.30 3 0.92 1.75
Including 163.80 164.22 0.42 0.16 12.87 5 0.41 13.57
Including 164.22 164.87 0.65 0.25 1.30 1 0.14 1.53
Including 164.87 165.30 0.43 0.17 19.60 8 0.75 20.85
Including 165.30 166.10 0.80 0.31 12.19 6 0.61 13.20
Including 166.10 166.40 0.30 0.12 0.36 1 0.10 0.52
Including 166.40 166.60 0.20 0.08 27.60 7 1.14 29.43
Including 166.60 166.88 0.28 0.11 3.25 3 0.69 4.34
Including 166.88 167.43 0.55 0.21 7.03 6 0.91 8.50
Including 167.43 168.28 0.85 0.33 1.78 17 0.82 3.24
Including 168.28 168.63 0.35 0.14 0.93 21 1.65 3.73
Including 168.63 169.00 0.37 0.14 3.75 106 7.67 16.83
Including 169.00 169.35 0.35 0.14 1.55 12 1.03 3.28
Including 169.35 169.92 0.57 0.22 1.72 8 1.60 4.27
Hole_id From
(m) To (m) Interval
(m)
True
width
(m)
Gold
g/t
Silver
g/t
Copper
%
Gold
equiv
g/t
Comment
Including 169.92 170.58 0.66 0.26 22.60 10 2.39 26.38
KMDD0102 51.60 61.45 9.85 6.93 9.12 8 1.03 10.80 Drilled from DDC3
Including 51.60 52.70 1.10 0.77 27.30 17 3.44 32.78
Including 52.70 53.25 0.55 0.39 6.12 8 0.62 7.17
Including 53.25 54.00 0.75 0.53 18.40 13 2.26 22.02
Including 54.00 55.10 1.10 0.77 1.51 4 0.15 1.79
Including 55.10 56.45 1.35 0.95 0.17 2 0.12 0.38
Including 56.45 57.55 1.10 0.77 0.38 5 0.37 1.00
Including 57.55 58.33 0.78 0.55 7.44 7 4.18 13.92
Including 58.33 59.25 0.92 0.65 0.35 11 0.14 0.70
Including 59.25 60.30 1.05 0.74 1.62 7 0.11 1.88
Including 60.30 61.45 1.15 0.81 28.30 9 0.07 28.53
KMDD0102 63.80 66.00 2.20 1.55 31.89 97 0.05 33.18
Including 63.80 64.65 0.85 0.60 20.10 13 0.05 20.34
Including 64.65 65.26 0.61 0.43 38.10 151 0.04 40.07
Including 65.26 66.00 0.74 0.52 40.30 148 0.05 42.26
KMDD0102 72.33 73.60 1.27 0.89 1.58 57 3.51 7.68
Including 72.33 72.75 0.42 0.30 1.89 93 6.25 12.63
Including 72.75 73.60 0.85 0.60 1.43 39 2.16 5.23
KMDD0102 118.64 122.00 3.36 1.73 11.37 85 2.72 16.61
Including 118.64 119.27 0.63 0.32 1.48 8 0.27 1.99
Including 119.27 120.17 0.90 0.46 32.50 302 9.39 50.70
Including 120.17 121.00 0.83 0.43 3.17 6 0.28 3.68
Including 121.00 122.00 1.00 0.51 5.40 4 0.28 5.88
KMDD0104 51.60 52.84 1.24 0.93 8.11 2 0.26 8.54 Drilled from DDC3
Including 51.60 52.36 0.76 0.57 13.16 2 0.39 13.79
Including 52.36 52.84 0.48 0.36 0.12 1 0.06 0.22
KMDD0104 57.20 61.00 3.80 2.84 12.02 4 0.12 12.25
Including 57.20 58.19 0.99 0.74 26.10 7 0.26 26.58
Including 58.19 59.00 0.81 0.61 0.86 2 0.04 0.95
Including 59.00 60.00 1.00 0.75 16.66 4 0.04 16.77
Including 60.00 60.40 0.40 0.30 0.19 1 0.07 0.31
Including 60.40 61.00 0.60 0.45 4.00 3 0.15 4.26
KMDD0104 71.95 78.85 6.90 5.16 5.90 4 0.17 6.21
Including 71.95 72.83 0.88 0.66 1.41 8 0.42 2.16
Including 72.83 74.00 1.17 0.88 0.02 1 0.02 0.06
Including 74.00 75.00 1.00 0.75 0.29 2 0.11 0.48
Including 75.00 76.00 1.00 0.75 0.26 2 0.29 0.72
Including 76.00 76.16 0.16 0.12 0.25 6 0.62 1.27
Including 76.16 76.65 0.49 0.37 0.18 2 0.07 0.32
Including 76.65 77.95 1.30 0.97 13.12 6 0.06 13.28
Including 77.95 78.85 0.90 0.67 24.10 6 0.22 24.52
KMDD0104 82.00 82.40 0.40 0.30 1.95 6 2.00 5.09
Hole_id From
(m) To (m) Interval
(m)
True
width
(m)
Gold
g/t
Silver
g/t
Copper
%
Gold
equiv
g/t
Comment
KMDD0104 86.78 89.43 2.65 2.10 1.25 12 0.59 2.31
Including 86.78 87.48 0.70 0.55 3.08 11 0.32 3.70
Including 87.48 88.40 0.92 0.73 0.11 13 0.12 0.46
Including 88.40 88.70 0.30 0.24 0.47 18 0.96 2.17
Including 88.70 89.43 0.73 0.58 1.25 9.00 1.30 3.36
Notes:
Gold Equivalent uses Copper price of US$2.90/lb; Silver price of US$16.5/oz and Gold price of US$1300/oz
Table 2 Kainantu Gold Mine – Collar Locations for Kora Underground Diamond Drilling
Hole_id
Collar location Collar orientation EOH
depth (m) Lode Local
north
Local
East RL Dip Local
azimuth
KMDD0100 58903.77 29869.15 1188.89 -54.6 317.5 131.5 Kora
KMDD0101 58815.00 29880.45 1196.00 58.4 218.5 221.5 Kora
KMDD0102 58904.00 29868.97 1189.17 -31.0 317.8 150.1 Kora
KMDD0104 58901.86 29868.91 1189.52 -37.0 265.0 122.0 Kora
The current Kora/Eutompi Inferred Resource estimate, 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 percent Cu, or 11.2 g/t gold
equivalent (see Table 3) 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 Ir umafimpa 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 preliminary economic assessment (“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 percent 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 percent 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 percent 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 percent
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; and
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 percent 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 percent 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 underlyin g assumptions relating to
the PEA. Mineral resources that are not mineral reserves and do not have demonstrated
economic viability.
Table 3 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. 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.
In addition to the above Irumafimpa and Kora/Eutompi Resources, K92 has also defined an
additional resource at Kora North comprising a Measured Resource of 242,900 tonnes @ 13.9 g/t
Au, 19 g/t Ag and 1.0% Cu; an Indicated Resource of 442,800 tonnes @ 11.8 g/t Au, 21 g/t Ag
and 1.2% Cu and an Inferred Resources of 1,084,400 tonnes @ 13.2 g/t Au, 15 g/t Ag and 1.0%
Cu. See Table 4 below.
Table 4 - Kora North Mineral Resource – Effective Date June 25, 2018
Category Tonnes Gold Silver Copper AuEq
g/t Ozs g/t Ozs % 000's lb g/t Ozs
Measured 242,900 13.9 108,400 19 151,900 1.0 5,300 15.6 122,200
Indicated 442,800 11.8 168,100 21 298,100 1.2 11,900 13.9 198,300
Total M & I 685,700 12.5 276,500 20 450,000 1.1 17,200 14.5 320,500
Total
Inferred 1,084,400 13.6 509,700 15 569,600 1.0 24,400 15.2 571,000
Gold Equivalent (Au Eq) g/t was calculated using the formula Au g/t + (Cu% x 1.53) + Ag g/t x 0.0127.
Gold Price US$1,300/oz; Silver US$16.5/oz; Copper US$2.90/lb.
A top cut of 100 g/t was applied to the gold assays for the K1, K2 KL lodes.
Mineral Resources which are not Mineral Reserves do not have demonstrated econ omic viability.
The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title,
taxation, socio-political, marketing, or other relevant issues.
The Inferred Mineral Resource in this estimate has a lower level of con fidence than that applied to an Indicated
Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority
of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued
exploration.
All material mined from within the resource envelope up to the effective date of the resource have been
removed from the model.
Wireframes were constructed to constrain lode positions based on geological mapping and logging of workings
and diamond core coupled with the use of face and drill core assay results using a nominal +1 g/t Au cut -off to
define the lode boundary.
Equal length composites of 0.5m were extracted from the database for each lode. A top cut to gold grade was
applied to K2, K1 and KL1 of 100g/t. The ordinary kriging modelling estimation method was then used with
search radii of 35m and 130m for Au, Ag and Cu. At least 3 informing values with a maximum of 12 were
used to estimate each model block.
The Resource was classified as mea sured if both drilling at 25m centres and workings were present, as
indicated if only drilling or workings were presented and inferred for material 15m past the last drill hole or
working.
K92 Mine Geology Manager and Mine Exploration Manager, Mr. Andrew Kohler, PGeo, a
qualified person under the meaning of Canadian National Instrument 43 -101 Standards for
Disclosure of Mineral Projects, 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
for further information, please contact Investor Relations at +1-604-687-7130.
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS
THAT TERM IS DEFINED IN POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS
RESPONSIBILITY 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 num ber 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 f orward-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 i nformation 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 limitati ons 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 act ual 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 f orward-looking statements, whether as a result of new information, future events or
otherwise, except as required by law.
K1 Long Section