K92 Mining Announces Strong Q2 Production Results - Record Quarterly Copper Recoveries and Strong GOLD Recoveries
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 Q2 PRODUCTION RESULTS - RECORD
QUARTERLY COPPER RECOVERIES AND STRONG GOLD RECOVERIES
• Quarterly production of 24,347 ounces gold equivalent (“AuEq”) (1) or 21,661 oz gold,
1,246,639 lbs copper and 26,754 oz silver, and quarterly sales of 19,064 oz gold, 898,578
lbs copper and 18,467 oz silver. As previously announced, production for the quarter was
impacted by the temporary suspension of underground operations for approximately a
month resulting from a Form 29 issued by the Mineral Resources Authority of Papua New
Guinea after a non-industrial fatal incident occurred on site (see March 19 and April 8 ,
2024 press release s), which significantly impacted April production as underground
operations re-ramped up and processing stockpiles were rebuilt.
• K92 expects operations in the second half of the year to be significantly stronger than the
first half, reiterating 2024 operational guidance of 120,000 to 140,000 oz and AuEq at
$820-$880/oz cash costs , and $1,440-$1,540/oz all -in sustaining costs , with production
likely in the lower half of the guidance range.
• Strong metallurgical recoveries in Q2 of 93.7% gold and 95.3% copper, representing the
highest gold recoveries since Q4 2019 and record quarterly recoveries to date for copper.
• Quarterly ore processed of 95,582 tonnes with a head grade of 8.5 grams per tonne (“g/t”)
AuEq or 7.5 g/t gold, 0.62% copper and 10.6 g/t silver. Gold and copper grades were in -
line with budget, and both gold and copper delivered a positive grade reconciliation when
compared with the mineral resource model of 11% and 9%, respectively . Total ore
processed was impacted by the temporary suspension of operations as noted above.
• Ore mined of 99,209 tonnes, with long hole open stoping performing to design, and total
mine development of 1, 938 metres. During the quarter, a m ajor milestone was achieved
with the commencement of vertical development from two raise bore rigs. The larger raise
bore rig is focused on completing a major ventilation upgrade connecting the main mine
to the twin incline in Q3, followed by the development of the ore and waste pass system to
connect the main mine to the highly productive twin incline for material transport.
Note (1): Gold equivalent for Q 2 2024 is calculated based on : gold $2,338 per ounce; silver
$28.84 per ounce; and copper $4.42 per pound.
John Lewins, K92 Chief Executive Officer and Director, stated, “The impact of the Form 29
(temporary suspension of underground operations) on the first and second quarter has, to some extent,
hidden many significant operational bright spots, particularly in terms of plant throughput capabilities,
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metallurgical recoveries , positive grade reconciliation s and strong long hole stoping performance
versus design. As we look forward to the second half of the year, we expect it to be significantly stronger
than the first half, driven by a combination of mining sequence, higher throughput rates, more mining
fronts, progressive productivity increases through the completion of infrastructure upgrades in
addition to ongoing continuous improvement initiatives . As a result, we reiterate our operational
guidance of 120,000 to 140,000 oz AuEq production at $820 to $880/oz Au cash costs and $1,440 to
$1,540/oz Au all-in sustaining costs, with production likely in the lower half of the range.
Concurrent with improved operational performance , we are very excited about our plans for
exploration in H2 2024.”
Vancouver, British Columbia, July 10, 2024 - K92 Mining Inc. (“K92” or the “Company”) (TSX:
KNT; OTCQX: KNTNF) is pleased to announce quarterly production results for the second quarter
(“Q2”) of 2024 at its Kainantu Gold Mine in Papua New Guinea, of 24,347 ounces AuEq or 21,661 oz
gold, 1,246,639 lbs copper and 26,754 oz silver. Sales during the quarter were 19,064 oz gold, 898,578
lbs copper and 18,467 oz silver.
Production for Q2 was impacted by the temporary suspension of underground operations (see March
19 and April 8, 2024 press releases) as a result of a Form 29 issued by the Mineral Resources Authority
of Papua New Guinea due to a non -industrial fatal incident that occurred on site, which significantly
impacted April production as underground operations re -ramped up and processing stockpiles were
rebuilt. K92 expects the second half of 2024 to be significantly stronger and reiterates its 2024
Operational Guidance of 120,000 to 140,000 oz AuEq at cash costs of $820 -$880/oz gold and all -in
sustaining costs of $1 ,440-$1,540/oz gold, with pro duction likely in the lower half of the guidance
range.
During the second quarter, the process plant delivered tonnes processed of 95,582 tonnes, with a head
grade averaging 8.5 g/t AuEq or 7.5 g/t gold, 0.62% copper and 10.6 g/t silver. Both gold and copper
grades were in-line with budget, with gold and copper grades also delivering a positive reconciliation
when compared with the mineral resource model of 11% and 9%, respectively. Metallurgical recoveries
were very strong, with recoveries averaging 93.7% for gold and 95.3% for copper , representing the
highest recoveries since Q4 2019 for gold and record quarterly recoveries to date for copper.
In the second quarter, the mine delivered 99,209 tonnes of ore mined, with 12 levels mined, including
the 1150, 1220, 1305, and 1325 levels at Kora, and the twin incline level, 950, 1170, 1185, 1205, 1305,
1325 and 1345 levels at Judd. Long hole open stoping performed to design. Overall mine development
achieved a total of 1,938 metres and a major milestone was achieved with the commencement of
vertical development from two raise bore rigs . The larger raise bore rig is focused on completing a
major ventilation upgrade connecting the main mine to the twin incline in Q3, followed by developing
the ore and waste pass system to connect the main mine to the highly productive twin incline
infrastructure for material transport. The smaller raise bore rig is completing short raises between levels
for ventilation, escapeways and services infrastructure. Material movements and underground
development were lower than budget during the quarter due to the temporary suspension of
underground operations as noted above.
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See Figure 1: Quarterly Production, Cash Cost and AISC Chart
Table 1 – 2024 & 2023 Annual Production Data
Q2 2023 Q3 2023 Q4 2023 2023 Q1 2024 Q2 2024
Tonnes Processed T 112,471 121,201 151,908 503,484 130,632 95,582
Feed Grade Au g/t 8.2 6.2 7.4 6.8 6.4 7.5
Feed Grade Cu % 0.66% 0.72% 0.87% 0.75% 0.55% 0.62%
Recovery (%) Au % 92.4% 92.0% 91.7% 91.5% 90.7% 93.7%
Recovery (%) Cu % 92.8% 93.0% 93.6% 92.8% 91.9% 95.3%
Metal in Conc & Doré Prod Au oz 27,405 22,227 33,309 100,533 24,389 21,661
Metal in Conc Prod Cu T 692 809 1,238 3,488 655 565
Metal in Conc Prod Ag oz 34,001 40,233 56,502 160,628 35,650 26,754
Gold Equivalent Production oz 30,794 26,225 39,101 117,607 27,462 24,347
Notes – 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.
Gold equivalent for Q4 2023 is calculated based on:
gold $1,974 per ounce; silver $23.20 per ounce; and copper $3.71 per pound.
Gold equivalent for Q3 2023 is calculated based on:
gold $1,928 per ounce; silver $23.57 per ounce; and copper $3.79 per pound.
Gold equivalent for Q2 2023 is calculated based on:
gold $1,976 per ounce; silver $24.13 per ounce; and copper $3.85 per pound.
Qualified Person
K92 Mine Geology Manager and Mine Exploration Manager, 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.
Technical Report
The Integrated Development Plan (“IDP”) for the Kainantu Gold Mine Project in Papua New Guinea
that contains information on the Definitive Feasibility Study and Preliminary Economic Assessment
is included in a technical report, titled, “Independent Technical Report, Kainantu Gold Mine Integrated
Development Plan, Kainantu Project, Papua New Guinea” dated October 26, 2022, with an effective
date of January 1, 2022.
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 and is in a strong financial position. A maiden resource estimate on
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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, and the Kainantu 2022 Preliminary Economic Assessment, including the Stage 3 Expansion, a new
standalone 1.2 mtpa 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 COVID -19 virus;
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 weat her 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, Kora, Judd and ot her
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 conflict s 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 social, economic and political conditions, i ncluding 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 other factors referred to in the Company’s Annual
Information Form under the heading “Risk Factors”.
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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 actual 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 r esults 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