K92 Mining Announces High Grade Judd 1265 Level Development Results – Total Strike Extension of 211 Metres Averaged 21.69 G/T AuEq at 3.9 Metre J1 Vein Width
Suite 488 – 1090 West Georgia Street
Vancouver, British Columbia
Canada V6E 3V7
Telephone: +1 (604) 687-7130
Facsimile: +1 (604) 608-9110
www.k92mining.com
NEWS RELEASE
K92 MINING ANNOUNCES HIGH GRADE JUDD 1265 LEVEL DEVELOPMENT
RESULTS – TOTAL STRIKE EXTENSION OF 211 METRES AVERAGED 21.69 G/T
AUEQ AT 3.9 METRE J1 VEIN WIDTH
• Judd Vein #1 (“J1 Vein”) 1265 Level development encountered significant high-grade
mineralization along both the northern and southern extension drives. Since the
August 23, 2021 press release, the combined extensions totalled 211 metres strike and
recorded an average J1 Vein thickness of 3. 9 metres at 21.69 g/t gold equivalent
(“AuEq”)(1) or 20.36 g/t Au, 0.76% Cu and 24 g/t Ag from channel sampling.
• Northern extension over 97 metres recorded an average vein thickness of 3.8 metres at
18.29 g/t AuEq or 16.85 g/t Au, 0.85% Cu and 24 g/t Ag from channel sampling.
• Southern extension over 114 metres recorded an average vein thickness of 4.0 metres
at 24.44 g/t AuEq or 23.20 g/t Au, 0.69% Cu and 25 g/t Ag from channel sampling.
• The development drive s continue to report solid geotechnical competency , multiple
high-grade faces at significant frequency, with 26% of faces recording average J1 Vein
grades of +10 g/t AuEq from channel sampling. Channel sampling results include:
o 5.2m thickness at 350.52 g/t AuEq or 346.62 g/t Au, 2.01% Cu and 97 g/t Ag
o 2.9m thickness at 152.26 g/t AuEq or 149.47 g/t Au, 0.66% Cu and 150 g/t Ag
o 5.6m thickness at 97.27 g/t AuEq or 95.59 g/t Au, 0.80% Cu and 48 g/t Ag
o 5.7m thickness at 95.57 g/t AuEq or 90.55 g/t Au, 1.54% Cu and 232 g/t Ag
o 2.6m thickness at 49.30 g/t AuEq or 42.89 g/t Au, 4.12% Cu and 74 g/t Ag
o 3.8m thickness at 40.90 g/t AuEq or 39.52 g/t Au, 0.57% Cu and 49 g/t Ag, and
o 5.8m thickness at 22.52 g/t AuEq or 19.65 g/t Au, 1.74% Cu and 44 g/t Ag.
• Mineralization style continues to be intrusive related, Au-Cu-Ag, and similar to Kora.
The results compare favorably with reported drilling and the 1235 Level that recorded
development over 288 metres with an average J1 Vein thickness of 3.7 metres at 11.64
g/t AuEq, including 179 metres at 3.7m vein thickness at 15.39 g/t AuEq.
• Long hole drilling has commenced at the Judd Vein System with the first production
stope on target for Q4, representing an entirely new mining front.
(1) Gold equivalent (AuEq) exploration results is calculated using longer term commodity prices with a copper price
of US$3.30/lb, silver price of US$21/oz and gold price of US$1,600/oz.
2
Vancouver, British Columbia, October 27, 2021 - K92 Mining Inc. (“K92” or the “Company”)
(TSX: KNT; OTCQX: KNTNF) is pleased to announce that it has completed an additional 211
metres of development, extending to both the north and south along the Judd 1265 Level J1 Vein,
within the +2.5km strike, sparsely explored Judd Vein System at the Kainantu Gold Mine in Papua
New Guinea. This is the second sublevel developed on Judd Vein #1. Judd is located near mine
infrastructure, sub -parallel and approximately ~1 50-200 metres west of the producing Kora
deposit.
Since the Company’s August 23, 2021 press release announcing initial development results over
a strike length of 83 metres on the Judd 1265 Level J1 Vein , underground development towards
both the north and south continued to record high grade mineralization. The combined extension
totals 211 metres at an estimated average grade of 21.69 g/t AuEq or 20.36 g/t Au, 0.76% Cu and
24 g/t Ag at an average vein thickness of 3.9 metres from channel sampling . The development
extension to the north recorded a strike l ength of 97 metres with an average grade of 18.29 g/t
AuEq or 16.85 g/t Au, 0.85% Cu and 24 g/t Ag of undiluted J1 Vein extracted at an average vein
thickness of 3.8 metres that ranged from 2.5 metres to near drive width (over 5.5 metres) based on
underground channel sampling. The development extension to the south recorded a strike length
of 114 metres with an average grade of 24.44 g/t AuEq or 23.20 g/t Au, 0.69% Cu and 25 g/t Ag
of undiluted J1 Vein extracted at an average vein thicknes s of 4.0 metres that ranged from 1.7
metres to near drive width (over 5.5 metres) based on underground channel sampling.
Importantly, the development recorded a significant frequency of high grade with 26% of faces
recording J1 Vein average grades greater than 10 g/t AuEq from channel sampling. Some of the
high-grade J1 Vein channel sampling results, include:
- 5.2 m thickness at 350.52 g/t AuEq or 346.62 g/t Au, 2.01% Cu and 97 g/t Ag;
- 2.9 m thickness at 152.26 g/t AuEq or 149.47 g/t Au, 0.66% Cu and 150 g/t Ag;
- 5.6 m thickness at 97.27 g/t AuEq or 95.59 g/t Au, 0.80% Cu and 48 g/t Ag;
- 5.7 m thickness at 95.57 g/t AuEq or 90.55 g/t Au, 1.54% Cu and 232 g/t Ag;
- 2.6 m thickness at 49.30 g/t AuEq or 42.89 g/t Au, 4.12% Cu and 74 g/t Ag;
- 3.8 m thickness at 40.90 g/t AuEq or 39.52 g/t Au, 0.57% Cu and 49 g/t Ag; and
- 5.8 m thickness at 22.52 g/t AuEq or 19.65 g/t Au, 1.74% Cu and 44 g/t Ag.
Several of the higher grade J1 Vein channel samples, including 5.2 m thickness at 350.52 g/t AuEq
or 346.62 g/t Au, 2.01% Cu and 97 g/t Ag and 5.7 m thickness at 95.57 g/t AuEq or 90.55 g/t Au,
1.54% Cu and 232 g/t Ag , were recorded along the southern development drive in an area
approximately 10 metres above hole JDD0006 that recorded 7.25 metres at 256.09 g/t Au, 113 g/t
Ag and 0.42% Cu (258.01 g/t AuEq, 5.30m true width) on the J1 Vein ( see November 9, 2020
press release – K92 Mining Announces Initial Phase 1 High -Grade Judd Vein System Drilling
Results, Including 7.25m at 258.01 g/t AuEq). JDD0006 is one of the highest -grade intersections
drilled by K92 at the Kainantu Mine.
The development drive is designed as a return airway (“RAD”) with dimensions of 5.5 m x 5.5 m,
which is significantly larger than an ore drive or long hole stopes would be. Incorporating excess
dilution from the development drive, the combined northern and southern extensions extr acted
18,454 tonnes at 15.54 g/t gold equivalent AuEq or 14.56 g/t Au, 0.56% Cu and 18 g/t Ag. The
3
Southern drive extension extract ed 10,024 tonnes at 17.77 g/t AuEq or 16.86 g/t Au, 0.51% Cu
and 18 g/t Ag and the northern drive extension extracted 8,430 tonnes at 12.89 g/t AuEq or 11.83
g/t Au, 0.63% Cu and 17 g/t Ag.
Mineralization continues to be intrusive related, gold-copper-silver, and similar to Kora . Ground
conditions are competent and are expected to be amenable to mining widths similar to the average
Judd #1 Vein thickness and those currently mined at Kora, which is a minimum of 2 metres wide
for long hole stoping and minimum 3 metres wide for cut and fill. Towards the south, Judd has
extensive artisanal mine workings at surface in addition to high grade shallow historic intersections
such as BKDD0002 recording 3.0 m at 278.2 g/t Au and 0.21% Cu and 053BD02 recording 9.0 m
at 8.32 g/t Au and 1.11% Cu (See Figure 2). Similar to Kora, the results to date have shown higher
and lower grade areas and importantly, the development results also correspond well with reported
drilling and the 1235 Level that recorded 288 metres of development with an average J1 Vein
thickness of 3.7 m at 11.64 g/t AuEq, including 179 m at 3.7m thickness at 15.39 g/t AuEq (see
January 26, 2021 press release: K92 Mining Announces Judd Underground Development
Extension Results - Average J1 Vein Grade of 18.70 g/t AuEq at 3.8 m Width).
As a result of the promising drilling, underground development and metallurgical results to date,
Judd has become an entirely new mining front and major exploration focus. On mining, long hole
drilling has commenced and first production stoping is on track for the fourth quarter . This is
expected to provide a significant boost to operational flexibility . On exploration, a larger drill
program is planned to start at Judd imminently with at least two thirds of underground drill rigs
allocated to Judd by early November. Exploration and development results will form the basis for
the upcoming maiden Judd resource estimate and geostatistics / top-cuts, targeting Q1 2022.
John Lewins, K92 Chief Executive Officer and Director, stated, “The latest development results
continue to demonstrate the significant potential of the Judd Vein System. Along the 1265 Level,
development to the north and south recorded both high grades and solid thickness. Development
along the level has recorded a total of 294 metres of continuous J1 Vein mineralization, averaging
3.8 metres vein thickness at 20.34 g/t AuEq or 18.60 g/t Au, 1.03% Cu and 26 g/t Ag from channel
sampling. These results are su pported by strong 1235 Level and exploration drilling results to
date.
The results also recorded a solid frequency of high grades, with 26% of faces recording average
J1 Vein grades of +10 g/t AuEq from channel sampling . Encouragingly, several high -grade
channel samples are proximal to , and support previously reported high-grade drilling results,
including hole JDD0006 that recorded 7.25 metres at 256.09 g/t Au, 113 g/t Ag and 0.42% Cu
(258.01 g/t AuEq, 5.30m true width). JDD0006 is located approximately 10 metres below the 1265
Level southern development channel samples 5.2-metre thickness at 350.52 g/t AuEq or 346.62 g/t
Au, 2.01% Cu and 97 g/t Ag and 5.7-metre thickness at 95.57 g/t AuEq or 90.55 g/t Au, 1.54% Cu
and 232 g/t Ag.
While exploration at Judd is still in its early days, it is not only open along strike to the south and
north, up -dip and down -dip, but also has at least four known veins, a known strike length of
+2.5km that is sparsely drilled and similar mineralization to Kora. Importantly , vectors to the
4
south, including extensive artisanal mining on surface and shallow historical high -grade
intersections are very promising.
We are pleased to report that exploration activities at Judd will be rapidly expanding imminently.
By early November, we plan to have at least two -thirds of our underground drill rigs on Judd,
after infill drilling at Kora concludes for its updated resource estimate later this year. Activities
at Judd South are also planned, with surf ace mapping and sampling underway, as part of a
program also targeting Kora South. Drilling at Kora South recently commenced from surface, and
we expect opportunities to target Judd South as well.
Lastly, we are very excited to be commencing production stoping at Judd this quarter. Long-hole
drilling is underway and production stoping at an entirely new mining front is expected to provide
a notable boost to operational flexibility. As Judd is near Kora’s mine infrastructure, we have the
ability to quickly pivot from exploration success to production, which is a major advantage that
we plan to continue to leverage going forward.”
See Figure 1 for location map of the Judd Vein System, 1235 and 1265 Level, surrounding veins
and infrastructure.
See Figure 2 for Judd Vein Long-Section with current Judd Vein interpretations.
See Figure 3 for a plan view of the 1265 Level Judd Vein #1 underground channel sampling.
Face Sampling Methodology, QA/QC and Qualified Person
Face channel samples under geological control, were taken across the full face of both the exposed
lode system and any waste rock, with sample intervals ranging from 0.1 to 1m in width depending
on the geologist’s interpretation. Two samples were taken per interval at waist and knee height
and the corresponding widths recorded. Sample lengths are <1.5m , with samples approximately
3.5 kg in size . Samples were separately assayed for gold, copper and silver , and the results
averaged out using length weighting and channel orientation before entry into the database. K92’s
procedure includes the insertion standards, blanks and duplicates for the face sampling. Gold
assays are by the fire assay method. Copper and silver assay s are by three-acid-digestion method
(nitric, perchloric & hydrochloric mix).
K92 maintains an industry-standard analytical quality assurance and quality control (QA/QC) and
data verification program to monitor laboratory performance and ensure high quality assays.
Results from this program confirm reliability of the assay results. All sampling and analytical work
for the mine exploration program is performed by Intertek Testing Services (PNG) LTD, an
independent accredited laboratory that is located on site. External check assays for QA/QC
purposes are performed at SGS Australia Pty Ltd in Cairns, Queensland, Australia.
The analytical QA/QC program is currently overseen by Andrew Kohler, PGeo, Mine Geology
Manager and Mine Exploration Manager for K92. Andrew Kohler, a qualified person under the
meaning of Canadian National Instrument 43-101 – Standards of Disclosure for Mineral Projects,
has reviewed and is responsible for the technical content of this news release.
5
About K92
K92 Mining Inc. is engaged in the production of gold, copper and silver from the Kora deposit at
the Kainantu Gold Mine in the Eastern Highlands province of Papua New Guinea, as well as
exploration and development of mineral deposits in the immediate vicinity of the mine. The
Company declared commercial production from Kainantu in February 2018 and is in a strong
financial position.
The Company commenced an expansion of the mine based on an updated Preliminary Economic
Assessment on the property which was published in January 2019 and updated in July 2020. K92
is operated by a team of mining professionals with extensive international mine -building and
operational experience.
On Behalf of the Company,
John Lewins, Chief Executive Officer and Director
For further information, please contact David Medilek, P.Eng., CFA at +1-604-687-7130.
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 o ther 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 believ es, expects
or anticipates will or may occur are forward-looking information, including statements regarding
the realization of the preliminary economic analysis for the Kainantu Project, expectations of
future cash flows, the planned plant expansion, prod uction results, cost of sales, sales of
production, 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 ass umptions 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 financin g,
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 in PNG, mitigation of the Covid -19 pandemic,
continuation of the lifted state of emergency, 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.
Figure 1 – Location Map of the Judd Vein System, 1235 and 1265 Level, Surrounding Veins and Infrastructure
7
Figure 2 – Judd Vein System long-section including Judd Vein interpretations (“Interps”) based on sparse drilling
8
Figure 3 – Plan view of the Judd Vein #1 1265 Level underground channel sampling with latest results (face 24 to 80) highlights annotated.