K92 Mining Announces Stage 2A Expansion to Increase Throughput
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 STAGE 2A EXPANSION TO INCREASE THROUGHPUT
+25% TO 500,000 TONNES PER ANNUM AT KAINANTU GOLD MINE
• Stage 2A expansion underway to increase annual throughput by +25% to 500,000
tonnes per annum (“tpa”) or 1,370 tonnes per day (“tpd”) from 400,000 tpa or 1,100
tpd.
• Performance of existing process plant has already shown the ball mill is capable of
well above 400,000 tpa (1,100 tpd). Since Stage 2 Plant commissioning in 3Q 2020, the
mill has consistently demonstrated an ability to deliver a notably finer than required
product size, while also achieving up to 28% higher through put with a single day
record of 1,408 tonnes processed on September 22, 2021.
• Plant expansion involves low capital cost upgrades with an estimated capital cost of
US$2.5 million and full commissioning to commence in 3Q 2022. Several expansion
items have already arrived on site, and the expansion involves the following:
o Additional filter press on site and being commissioned.
o Additional T-1000 crusher expected to be installed in 4Q 2021.
o Additional flotation cells, pipes and pumps expected to be installed in 2Q 2022.
o Underground mobile equipment and development capital expenditures to be
accelerated from Stage 3 Expansion capital and expected to arrive during 1H
2022.
• Stage 2A Expansion decision was also supported by strong exploration and
development results along the Judd Vein System. Judd represents a new mining front,
proximal to existing infrastructure at Kora, and is expected to provide a notable boost
to operational flexibility and mining efficiencies.
• The expansion is expected to further drive economies of scale , increase potential
production, and strengthen K92’s ability to self -fund the Stage 3 Expansion . The
Stage 3 Expansion Definitive Feasibility Study is well underway.
Vancouver, British Columbia, October 7, 2021 - K92 Mining Inc. (“K92” or the “Company”)
(TSX: KNT; OTCQX: KNTNF) is pleased to announce that its Board of Directors has approved
the Stage 2A Expansion, expanding the annual processing throughput to 500,000 tonnes per annum
at its Kainantu Gold Mine in Papua New Guinea. This represents a +25% increase from the Stage
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2 proc essing capacity of 400, 000 tonnes per annum. Full commissioning of the Stage 2A
Expansion is expected to commence in 3Q 2022.
The decision to proceed with the Stage 2A Expansion is based on the strong performance of the
process plant to date. The process plant has strongly demonstrated that it is capable of a throughput
rate well in excess of 400,000 tpa (1,100 tpd), delivering a mill product size that is notably finer
than required while also achieving multiple daily throughput records, including a single day record
of 1,408 tonnes processed on September 22, 2021.
The Stage 2A Expansion decision is further bolstered by the strong exploration and development
results from the Judd Vein System. Judd is located near -mine infrastructure, subparal lel to and
~150-200m east from the producing Kora deposit , within the mining lease and with similar
metallurgical characteristics to Kora. The proximity of Judd to Kora enables Judd to utilize Kora’s
incline and its footwall drive along strike while also being decoupled from Kora’s mining cycle ,
resulting in considerable development , mining and mine planning efficiencies. Judd produc tion
stoping is planned to commence this quarter, providing a near-term boost to mining throughput.
The incremental capital investment to complete the plant expansion is estimated to be US$2.5
million. Several upgrades have already been ordered or installed, with a new filter press being
commissioned and an additional T-1000 crusher to be installed this quarter. Key outstanding items
are additional flotation cells, pipes and pumping , which are expected to be installed in 2Q 2022 .
Mobile equipment and development capital expenditures will be accelerated from Stage 3
Expansion capital, with equipment expect ed to arrive during 1H 2022 . Stage 2A Expansion will
be funded from existing cash flows from the current Kainantu Gold Mine operations.
John Lewins, K92 Chief Executive Officer and Director, stated, “Expanding the existing process
plant to 500,000 tonnes per annum is a major positive development for the Kainantu Gold Mine .
Importantly, at an estimated plant expansion capital cost of US$2 .5 million, the expansion is not
only funded from existing cash flow but is also expected to considerably strengthen our near-term
ability to self-fund the Stage 3 Expansion while continuing to advance our vein field and porphyry
exploration.
In addition to the strong performance of the process plant to date, a notable driver for the Stage
2A Expansion decision has been the significant exploration and development results at Judd. Judd
is near existing Kora infrastructure making it highly efficient to access, while also being essentially
decoupled from Kora and has similar metallurgical characteristics. These attractive features make
mining Judd and its mine planning highly efficient . The first production stope at Judd is planned
to be mined this quarter and is expected to provide a notable boost to the ramp -up of mining
material movements, which were particularly impacted earlier in the year by COVID-19.
Judd is also highly efficient to explore, as it is not only proximal to Kor a but utilizes the same
diamond drill cuddy infrastructure that has been established over the last four years at Kora. With
infill drilling nearly complete at Kora, at least two-thirds of the underground drill rigs are planned
to be allocated to Judd by la te-October, marking the first major exploration program of the vein
system.
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Lastly, we remain on track for the next Kora resource estimate update planned for late -2021 as
well as the release of a maiden resource estimate for Judd . The Stage 3 Expansion Definitive
Feasibility Study is also progressing well and f indings from certain studies and test work have
presented opportunities that will be implemented as part of the Stage 2A Plant Expansion.”
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 company 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 other 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 believes, expects
or anticipates will or may occur are forward-looking information, including statements regarding
the realization of the preliminary economic analysis for the Kainantu Mine, expectations of future
cash flows, the planned plant expansion, production 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 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 a nd 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
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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.