K92 is pleased to announce Q1 2018 production of 9,324 ounces of gold and 165,976 pounds
Suite 488 – 1090 West Georgia Street
Vancouver, British Columbia
Canada V6E 3V7
Telephone: (604) 687-7130
Facsimile: (604) 608-9110
NEWS RELEASE
12 April 2018 Vancouver, British Columbia
K92 MINING INC.
K92 is pleased to announce Q1 2018 production of 9,324 ounces of gold and 165,976 pounds
of copper from the Kainantu Gold Copper Mine
Highlights include:
Production of 9,324 ozs of gold and 165,976 lbs copper in Q1 2018
The average grade treated th rough the Process Plant for Q1 2018 was 16.95 g/t Au
and 0.44% Cu
Grade Control drilling commenced from the third underground diamond drill
cuddy (DDC3)
Exploration drilling from underground is underway up dip and down dip from
current Kora North Resource
No Lost Time Injuries (LTI’s) recorded during Q1 2018 and none recorded for the
entire 2017
K92 Mining Inc. (TSXV - KNT) (“K92”) is pleased to provide an update on operations during
Q1 2018 (“Q1”) at its Kainantu Gold Mine in Papua New Guinea.
During Q1, K92 produced 9,324 ounces of gold , 165,976 pounds of copper and 2,752 ozs of
silver or 9,729 AuEq ozs (based on a Gold Price US$1,300/oz; Silver US$16.5/oz; Copper
US$2.90/lb).
Mining operations focused on Kora North, comprising cut and fill stope mining from the K2 vein
over a 200 metre strike length and development on the K1 vein over a 250 metre strike length.
The blend of K1 and K2 material provided an average grade treated through the Process Plant for
Q1 of 16.95 g/t Au and 0.44% Cu. Recoveries for the quarter averaged 91.7% for gold and
91.5% for copper.
Grade control drilling from the first drill cuddy, DDC1 was completed during the quarter , while
grade control drilling from the second drill cuddy, DDC2 located 125 metres to the south
commenced during the quarter. In March 2018, exploration drilling from DDC2 was commenced
and high grade results from the first exploration hole were reported. The third drill cuddy, DDC3
was completed during the quarter and grade control drilling from this cuddy commenced in early
April.
John Lewins , K92 Chief Executive Officer and Director, states, “This has been a momentous
quarter for our Company with the declaration of Commercial Production on February 1 st,
following the production of ~2, 700 ozs of AuEq in January and 7,000 ozs of additional AuEq
during the balance of the quarter. During the quarter we were also able to declare a n increased
Kora North containing almost 160,000 ozs of AuEq, covering an area of just 300 metres along
strike by 150 metres vertically. In addition we completed our first underground exploration
diamond drill hole, which reported multiple intersections including a K1E intersection of 2.85 m
at 53.39 g/t Au, 3 g/t Ag and 0.13% Cu (53.6 3 g/t AuEq), a K2 intersection of 3.70 m at 6.94 g/t
Au, 13 g/t Ag and 0.56% Cu (7.97 g/t AuEq) and a K2 HW intersection of 3.70 m at 10.79 g/t Au,
25 g/t Ag and 2.83% Cu (15.44 g/t AuEq)”.
Further financial details regarding Q1 production will be available within the upcoming quarterly
financial filing. Based on budget, K92 anticipates operations achieved positive cash flow in each
of January, February and March 2018.
Table 1 below provides a summary of the Kora North Mineral Resource, Table 2 provides a
summary of the results from the first exploration drill hole drilled into the Kora North Vein
system and Table 3 provides details of collar location and hole orientation.
Table 1 Kora North Mineral Resource – Effective Date 1 February 2018
Category Tonnes Gold Silver Copper AuEq
g/t Ozs g/t Ozs % 000's lb g/t Ozs
Measured
33,200 10.3
10,900 31
33,300 1.2
890 12.5
13,300
Indicated
103,500 12.7
42,200 30
99,800 1.3
3,020 15.1
50,300
Total M & I
136,700 12.1
53,100 30
133,100 1.3
3,910 14.5
63,700
Total
Inferred
183,500 14.4
85,000 27
159,300 0.9
3,640 16.1
95,000
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 60 g/t was applied to the gold assays for the K1 and K2 lodes and 80 g/t for the KL1 lode
Mineral Resources which are not Mineral Reserves do not have demonstrated economic 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 confidence than that applied to an
Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably
expected that the majorit y 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 of 60g/t, K1 and KL1 of 80g/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 measured if both drilling at 25m centres and workings were
present, as indicated if only drilling or workings were presented and i nferred for material
15m past the last drill hole or working.
Table 1.0 – Significant Intercepts from Kora Exploration Hole KMDD0087
Hole_id From (m) To (m) Interval
(m)
True
width (m) Gold g/t Silver g/t Copper % Gold
equivalent Comment
KMDD0087 46.50 49.35 2.85 1.56 53.39 3 0.13 53.63 K1E
Including 46.50 47.60 1.10 0.60 135.50 7 0.18 135.87
Including 47.60 48.90 1.30 0.71 1.74 1 0.12 1.93
Including 48.90 49.35 0.45 0.25 1.86 2 0.04 1.95
KMDD0087 51.06 52.00 0.94 0.52 30.49 2 0.07 30.63 K1W
Including 51.06 51.80 0.74 0.41 37.88 2 0.09 38.04
Including 51.80 52.00 0.20 0.11 3.16 1 0.01 3.19
KMDD0087 81.30 85.00 3.70 2.45 6.94 13 0.56 7.97 K2
Including 81.30 82.55 1.25 0.83 2.56 8 0.50 3.43
Including 82.55 83.00 0.45 0.30 5.56 4 0.31 6.08
Including 83.00 83.50 0.50 0.33 0.22 1 0.22 0.58
Including 83.50 84.00 0.50 0.33 9.88 4 0.51 10.72
Including 84.00 84.30 0.30 0.20 3.14 3 0.37 3.75
Including 84.30 85.00 0.70 0.46 19.97 48 1.20 22.42
KMDD0087 89.10 92.80 3.70 2.45 10.79 25 2.83 15.44 K2FW
Including 89.10 90.20 1.10 0.73 10.79 25 2.83 15.44
Including 90.20 91.50 1.30 0.86 0.14 2 0.38 0.74
Including 91.50 92.60 1.10 0.73 0.11 1 0.03 0.17
Including 92.60 92.80 0.20 0.13 1.88 20 2.54 6.03
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 – Collar Locations for Kora Exploration Hole KMDD0087
Hole_id
Collar location Collar orientation
EOH
depth (m) Lode Local
north
Local
East RL Dip Local
azimuth
KMDD0087 59001.93 29876.38 1192.35 55.04 246.7 149.2 Kora
K92 also announce d during the quarter that Bryan Slusarchuk has been appointed Advisor,
Capital Markets while concurrently resigning as President and Director effective March 31,
2018.
John Lewins, K92 Chief Executive Officer and Director, states , “On behalf of the Company I
would like to record our sincere gratitude to Bryan for his very significant contribution to the
establishment and development of our Company. I look forward to working with Bryan in his
new role going forward to continue the successful development of our Company”.
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 resource estimates.
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 minera l 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.
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
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. Cash flow
estimations for Q1 2018 are subject to change and subject to the finalization of financial
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.