K92 Mining Announces Strong Q1 Production Results – Production of 47,817 OZ AuEq, Significantly Exceeding Budget and Record Monthly Development
Suite 488 - 1090 West Georgia Street
Vancouver, British Columbia
Canada V6E 3V7
Telephone: +1 (604) 416-4445
Facsimile: +1 (604) 608-9110
www.k92mining.com
NEWS RELEASE
K92 MINING ANNOUNCES STRONG Q1 PRODUCTION RESULTS – PRODUCTION OF
47,817 OZ AUEQ, SIGNIFICANTLY EXCEEDING BUDGET AND RECORD MONTHLY
DEVELOPMENT
• Strong quarterly production of 47,817 ounces gold equivalent (“AuEq”) (1) or 45,735 oz
gold, 1,141,379 lbs copper and 34,085 oz silver, second highest on record, exceeding budget
and representing a 74% increase from Q1 202 4. Q uarterly sales of 45,886 oz gold,
1,051,167 lbs copper and 32,439 oz silver.
• Quarterly ore processed of 103, 449 tonnes with a head grade of 14.9 grams per tonne
(“g/t”) AuEq, or 14.3 g/t gold, 0.50% copper and 11.1 g/t silver. The AuEq head grade was
significantly above budget, driven by higher-grade stopes from both Kora and Judd, and
a positive gold grade reconciliation relative to the latest independent mineral resource
estimate (effective September 12, 2023). Throughput was optimally reduced to maximize
recoveries at the elevated feed grade.
• Strong metallurgical recoveries in Q1 of 95. 8% for gold and 95. 1% for copper , both
marking the second -highest quarterly recoveries on record . Recoveries compare
favorably to the recovery parameters from the Updated Definitive Feasibility Study
(“Updated DFS”), of 92.6% and 94.2%, respectively (January 1, 2024 effective date).
• Ore mined of 10 4,052 tonnes and total material movements (ore plus waste) totaling
315,182 tonnes, the second highest on record. Long hole open stoping performed to design.
• New monthly development advance record set in March, of 954 metres, 6% greater than
the previous monthly record set in Q4 2024, and nearing the Stage 3 Expansion run -rate
requirement of 1,000 metres per month. Development in March benefitted from the
installation of the interim ventilation upgrade (commissioned in early January) which has
significantly outperformed design (+50% increase in mine airflow vs +30% planned) and
the Stage 2 Interim Water Upgrade (commissioned in late January). During installation
of these upgrades, planned power disruptions resulted in lower development rates during
the first half of Q1, with the second half of the quarter performing strongly. Ove rall
development in Q1 2025 was 2,49 4 metres. Development rates are well positioned to
continue to increase as the year progresses , driven by: i) the completion of multiple
infrastructure upgrades over the first half of 2025, ii) a major increase in available
headings from the opening of two new mining fronts, i ii) the progressive introduction of
additional equipment already on site as available headings increase, and, iv) the
implementation of an enhanced maintenance program.
Note (1): Gold equivalent production for Q1 2025 is calculated based on : gold $ 2,855 per
ounce; silver $ 31.73 per ounce; and copper $ 4.26 per pound. Gold equivalent grade for Q1
incorporates realized recoveries of 95.8% for Au, 95.1% for Cu and 86.6% for Ag.
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John Lewins, K92 Chief Executive Officer and Director, stated, “We are very pleased with the strong
start to 2025, delivering our strongest Q1 to date, recording quarterly production of 47,817 oz AuEq
in a record gold price environment. This has resulted in yet another consecutive quarter where our net
cash balance has grown, even after investing considerable capital into the Stage 3 Expansion and
making a PNG Corporate Tax payment of US$12 million. As at the end of March, 75% of expansion
capital has been spent or committed and, importantly, the transformation of K92 into a Tier 1 Mid-
Tier producer is nearly upon us, with commissioning of the new 1.2 million tonnes per annum Stage 3
Process Plant set to commence in the second half of this quarter.
We are also very encouraged with the progress in increasing our lateral advance rates, achieving a
new monthly record in March, of 954 metres, nearing the required 1 km per month for the Stage 3
Expansions. In the second half of the quarter, lateral advance benefitted from the interim ventilation
and interim Stage 2 Water Management upgrades completed earlier in the quarter. We look to continue
to ramp up our lateral advance rates as various key enablers come together.
In addition , exploration is rapidly advancing with surface drilling at Arakompa, and underground
drilling at Kora and Judd underway, with plans to drill Maniape and potentially interpreted veins sub-
parallel and proximal to Kora/Judd later in the year. Our new VP Exploration Robert Smillie was
recently on site visiting these targets and is very encouraged by what he has seen to date – we look
forward to providing progress updates in due course.”
Vancouver, British Columbia, April 8, 2025 - K92 Mining Inc. (“K92” or the “Company”) (TSX:
KNT; OTCQX: KNTNF) is pleased to announce production results for the first quarter (“Q1”) of
2025 at its Kainantu Gold Mine in Papua New Guinea, of 47,817 ounces AuEq or 45,735 oz gold,
1,141,379 lbs copper and 34,085 oz silver, a 74% increase from Q1 2024 and significantly
exceeding budget. Sales during the quarter were 45,886 oz gold, 1,051,167 lbs copper and 32,439 oz
silver.
During Q1, the process plant delivered tonnes processed of 103,449 tonnes, with a head grade
averaging 14.9 g/t AuEq, or 14.3 g/t gold, 0.50% copper and 11.1 g/t silver. Gold grades were above
budget, driven by higher grade stopes from Judd and Kora combined with a positive gold grade
reconciliation when compared with the independent mineral resource model. Throughput was
optimally reduced to maximize recoveries at the higher feed grade.
For the quarter, the process plant delivered strong metallurgical recoveries of 95.8% for gold and
95.1% for copper, both representing the second highest quarterly recoveries on record and exceeding
budget. The process plant has delivered strong performance, with recoveries surpassing the
parameters outlined in the Updated DFS, of 92.6% gold and 94.2% copper, benefitting from a
combination of elevated gold head grades and an improved flotation reagent mix.
During the quarter, the mine delivered 104,052 tonnes of ore mined, with mining activity across 12
levels, including the 1090, 1110, 1305, 1345, and 1365 levels at Kora, and the 840, 970, 1170, 1185,
1285, 1325, 1365 and 1385 levels at Judd. Total material movement, including ore and waste,
reached 315,182 tonnes, the second highest on record. Long hole open stoping met design
parameters, supporting strong operational performance.
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In March, a new monthly development advance record of 954 metres was achieved, surpassing the
previous record set in Q4 2024 by 6% and nearing the Stage 3 Expansion requirement of 1,000 metres
per month. This notable achievement was supported by the commissioning of two key infrastructure
upgrades: the interim ventilation system in early January, which has significantly outperformed
expectations with a 50% increase in mine airflow (versus +30% planned), and the Stage 2 Expansion
Interim Water Upgrade in late January. During the installation and commissioning of these upgrades,
planned power disruptions impacted development rates in the first half of Q1, with strong advance rates
achieved in the second half of the quarter. Total development for Q1 2025 was 2,49 4 metres.
Development rates are well positioned to continue to increase as the year progresses, driven by: i) the
completion of multiple infrastructure upgrades over the first half of 2025, ii) a major increase in
available headings from the opening of two new mining fronts, iii) the progressive introduction of
additional equipment already on site as available headings increase, and, iv) the implementation of an
enhanced maintenance program.
See Figure 1: Quarterly Production, Cash Cost and AISC Chart
See Figure 2: Gold and Copper Recoveries Chart
Table 1 – 2025 & 2024 Annual Production Data
Q1 2024 Q2 2024 Q3 2024 Q4 2024 2024 Q1 2025
Tonnes Processed T 130,632 95,582 104,992 96,614 427,821 103,449
Feed Grade Au g/t 6.4 7.5 13.0 17.3 10.7 14.3
Feed Grade Cu % 0.55% 0.62% 0.58% 0.47% 0.55% 0.50%
Recovery (%) Au % 90.7% 93.7% 95.3% 96.4% 94.6% 95.8%
Recovery (%) Cu % 91.9% 95.3% 95.1% 94.7% 94.1% 95.1%
Metal in Conc & Doré Prod Au oz 24,389 21,661 41,702 51,371 139,123 45,735
Metal in Conc Prod Cu T 655 565 580 435 2,235 518
Metal in Conc Prod Ag oz 35,650 26,754 37,613 41,992 142,063 34,085
Gold Equivalent Production oz 27,462 24,347 44,304 53,401 149,515 47,817
Notes – Gold equivalent for Q1 2025 is calculated based on:
gold $2,855 per ounce; silver $31.73 per ounce; and copper $4.26 per pound.
Gold equivalent for Q4 2024 is calculated based on:
gold $2,658 per ounce; silver $31.52 per ounce; and copper $4.25 per pound.
Gold equivalent for Q3 2024 is calculated based on:
gold $2,474 per ounce; silver $29.43 per ounce; and copper $4.17 per pound.
Gold equivalent for Q2 2024 is calculated based on:
gold $2,338 per ounce; silver $28.84 per ounce; and copper $4.42 per pound.
Gold equivalent for Q1 2024 is calculated based on:
gold $2,070 per ounce; silver $23.34 per ounce; and copper $3.83 per pound.
Qualified Person
K92 Mine Chief Geologist, Andrew Kohler, PGeo, 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. 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.
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Technical Report
The Updated DFS and mineral resource estimate for the Kainantu Gold Mine Project in Papua New
Guinea is presented in a technical report, titled, “Independent Technical Report, Kainantu Gold Mine,
Updated Definitive Feasibility Study, Kainantu Project, Papua New Guinea” dated March 21, 2025,
with an effective date of January 1, 2024.
About K92
K92 Mining Inc. is engaged in the production of gold, copper and silver 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, is in a strong financial position, and is working to become a Tier 1
mid-tier producer through ongoing plant expansions. A maiden resource estimate on the Blue Lake
copper-gold porphyry project was completed in August 2022. 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, President and Chief Operating
Officer at +1-604-416-4445
CAUTIONARY STATEMENT REGARDING FORWARD -LOOKING INFORMATION: This news
release includes certain “forward-looking statements” under applicable Canadian securities legislation. Such
forward-looking statements include, without limitation: (i) the results of the Kainantu Mine Definitive Feasibility
Study, including the Stage 3 Expansion, a new standalone 1.2 million tonnes per annum process plant and
supporting infrastructure; (ii) statements regarding the expansion of the mine and development of any of the
deposits; (iii) the Kainantu Stage 4 Expansion, operating two standalone process plants, larger surface
infrastructure and mining throughputs; and (iv) the potential extended life of the Kainantu Mine.
All statements in this news release that address events or developments that we expect to occur in the future are
forward-looking statements. Forward -looking statements are statements that are not historical facts and are
generally, although not always, id entified by words such as “expect”, “plan”, “anticipate”, “project”,
“target”, “potential”, “schedule”, “forecast”, “budget”, “estimate”, “intend” or “believe” and similar
expressions or their negative connotations, or that events or conditions “will”, “wo uld”, “may”, “could”,
“should” or “might” occur. All such forward -looking statements are based on the opinions and estimates of
management as of the date such statements are made. Forward -looking statements are necessarily based on
estimates and assumption s that are inherently subject to known and unknown risks, uncertainties and other
factors, many of which are beyond our ability to control, that may cause our actual results, level of activity,
performance or achievements to be materially different from those expressed or implied by such forward-looking
information. Such factors include, without limitation, Public Health Crises, including the epidemic or pandemic
viruses; changes in the price of gold, silver, copper and other metals in the world markets; fluctuations in the
price and availability of infrastructure and energy and other commodities; fluctuations in foreign currency
exchange rates; volatility in price of our common shares; inherent risks associated with the mining industry,
including problems related to weather and climate in remote areas in which certain of the Company’s operations
are located; failure to achieve production, cost and other estimates; risks and uncertainties associated with
exploration and development; uncertainties relating to estimates of mineral resources including uncertainty that
mineral resources may never be converted into mineral reserves; the Company’s ability to carry on current and
future operations, including development and exploration activities at the Arakompa, Kor a, Judd and other
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projects; the timing, extent, duration and economic viability of such operations, including any mineral resources
or reserves identified thereby; the accuracy and reliability of estimates, projections, forecasts, studies and
assessments; the Company’s ability to meet or achieve estimates, projections and forecasts; the availability and
cost of inputs; the availability and costs of achieving the Stage 3 Expansion or the Stage 4 Expansion; the ability
of the Company to achieve the inputs the price and market for outputs, including gold, silver and copper; failures
of information systems or information security threats; political, economic and other risks associated with the
Company’s foreign operations; geopolitical events and other uncertainties, such as the conflicts in Ukraine,
Israel and Palestine; compliance with various laws and regulatory requirements to which the Company is
subject to, including taxation; the ability to obtain timely financing on reasonable terms when required; the
current and future so cial, economic and political conditions, including relationship with the communities in
Papua New Guinea and other jurisdictions it operates; other assumptions and factors generally associated with
the mining industry; and the risks, uncertainties and othe r factors referred to in the Company’s Annual
Information Form under the heading “Risk Factors”.
Estimates of mineral resources are also forward -looking statements because they constitute projections, based
on certain estimates and assumptions, regarding the amount of minerals that may be encountered in the future
and/or the anticipated economics of p roduction. The estimation of mineral resources and mineral reserves is
inherently uncertain and involves subjective judgments about many relevant factors. Mineral resources that are
not mineral reserves do not have demonstrated economic viability. The accu racy of any such estimates is a
function of the quantity and quality of available data, and of the assumptions made and judgments used in
engineering and geological interpretation, Forward -looking statements are not a guarantee of future
performance, and a ctual results and future events could materially differ from those anticipated in such
statements. Although we have attempted to identify important factors that could cause actual results to differ
materially from those contained in the forward-looking statements, there may be other factors that cause actual
results to differ materially from those that are anticipated, estimated, or intended. 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: Quarterly Production, Cash Cost and AISC Chart
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Figure 2: Gold and Copper Recoveries Chart