K92 Mining Declares Maiden Inferred Resource of 10.8 Million OZ AuEq OR 4.7 Billion Lbs CuEq at the Blue Lake Porphyry
Suite 488 – 1090 West Georgia Street
Vancouver, British Columbia
Canada V6E 3V7
Telephone: +1 (604) 416-4445
Facsimile: +1 (604) 608-9110
NEWS RELEASE
K92 MINING DECLARES MAIDEN INFERRED RESOURCE OF 10.8 MILLION
OZ AUEQ OR 4.7 BILLION LBS CUEQ AT THE BLUE LAKE PORPHYRY
Vancouver, B.C. August 9, 2022 - K92 Mining Inc. (“K92” or the “ Company”) (TSX: KNT;
OTCQB: KNTNF) is pleased to announce a maiden resource estimate at the Blue Lake porphyry
project, located approximately 4 km southwest of the Company’s producing high -grade gold-
copper Kora and Judd intrusion-related deposits at the Kainantu Gold Mine in Papua New Guinea.
Blue Lake was discovered by K92 after mineralized lithocap was identified in 2017. K92 has
completed two diamond drill programs for a total of 26 holes and 16,474.8 metres at the project.
Blue Lake Gold-Copper Porphyry Maiden Mineral Resource Estimate Highlights
• Significant maiden inferred resource estimate declared of 10.8 million ounces gold
equivalent (“AuEq”) at 0.61 g/t AuEq or 4.7 billion lbs CuEq at 0.38% CuEq, based
on 549 million tonnes at 0.21 g/t Au, 0.23% Cu and 2.42 g/t Ag at a 0.4 g/t AuEq cut-
off grade.
• Extensive potential for resource growth as Blue Lake is open at depth, with significant
potential for expansion and delineation of the high-grade potassic core (see Figure 5).
The Blue Lake porphyry has approximately equal ratios of gold and copper.
• Future exploration plans at Blue Lake include drilling to target expanding the higher-
grade core which is open at depth , and exploring for additional mineralized
porphyries beneath an extensive composite lithocap that extends to and includes the
A1 Porphyry Target (See Figure 5 & 6).
• Porphyry exploration is advancing at the A1 Porphyry Target, our highest priority
porphyry target based on geophysics completed in late-2021, with an initial soils, rock
chip sampling and detailed mapping program commencing shortly, followed by
drilling.
Table 1 – Blue Lake Mineral Resource (Effective Date August 1, 2022, 0.4 g/t AuEq cut-off)
AuEq
Cut off Mt Au g/t Cu % Ag g/t AuEq
g/t
CuEq
%
Au
Mozs
Cu
Mt
Ag
Mozs
AuEq
Mozs
CuEq
Blbs
Inferred 549 0.21 0.23 2.42 0.61 0.38 3.7 1.3 43 10.8 4.7
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• Estimates are based on Technical Report titled, “Independent Technical Report, Mineral
Resource Estimate Blue Lake Porphyry, Kainantu Project, Papua New Guinea”.
• The Independent and Qualified Person responsible for the mineral resource estimate is
Simon Tear, P.Geo. of H & S Consultants Pty. Ltd., Sydney, Australia, and the effective
date of the Mineral Resource is August 1, 2022.
• Mineral resources are not mineral reserves and do not have demonstrated economic
viability.
• Resources were compiled at 0.1, 0.2, 0.3, 0.4, 0.5, 0.6 g/t AuEq cut-off grades.
• Density was based on 2,473 measured density data recordings (weighed core trays and
measured core) which were composited and subsequently modelled unconstrained using
Ordinary Kriging. Reported tonnage and grade figures are rounded from raw estimates to
reflect the order of accuracy of the estimate.
• Minor variations may occur during the addition of rounded numbers.
• Estimations used metric units (metres, tonnes and g/t)
• Gold equivalents are calculated as AuEq = Au g/t + Cu%*1.607 + Ag g/t*0.0125.
Copper equivalents are calculated as CuEq = Cu% + Au g/t*0.006222 + Ag g/t*
0.00007778. Gold price US$1,600/oz; Silver US$20/oz; Copper US$3.75/lb.
Table 2 – Blue Lake Porphyry Resource at various cut-off grades.
(Resource Estimate is for 0.4 g/t AuEq cut-off; tabulation of other cut -off values for information
only)
AuEq
Cut off Mt Au
g/t Cu % Ag g/t AuEq
g/t
CuEq
%
Au
Moz
Cu
Mt
Ag
Moz
AuEq
Moz
CuEq
Blbs
0.1 1,247 0.13 0.16 2.17 0.41 0.26 5.2 2.0 87 16.4 7.1
0.2 1,080 0.15 0.17 2.28 0.45 0.28 5.2 1.8 79 15.6 6.6
0.3 808 0.18 0.20 2.43 0.52 0.33 4.7 1.6 63 13.5 5.9
0.4 549 0.21 0.23 2.42 0.61 0.38 3.7 1.3 43 10.8 4.7
0.5 382 0.25 0.25 2.39 0.68 0.42 3.1 1.0 29 8.3 3.7
0.6 233 0.30 0.28 2.43 0.77 0.49 2.2 0.7 18 5.8 2.6
Chris Muller, K92 Vice President Exploration, state d, “We are delighted to announce a maiden
mineral resource for the Blue Lake Porphyry, after the initial discovery by K92 Mining in 2017.
The Blue Lake Porphyry is evidently a very large, well -mineralized system, with a number of
overprinting events that have introduced gold and copper. In particular, those which are
manifested as quartz stockwork veins and bornite mineralization will be the focus of ongoing drill
targeting at Blue Lake. A very expansive silica -clay lithocap connecting Blue Lake with the A1
Prospect is virtually untested by drilling and has the potential to host multiple gold -copper
mineralized porphyries.
This resource declaration is the fifth largest known mineralized porphyry in Papua New Guinea
in terms of pre-mined contained gold equivalent ounces, after the world famous Golpu, Panguna,
Ok Tedi and Frieda River porphyry deposits.
It is truly remarkable to be able to look down upon the Lae-Madang Highway, a major transport
route to the Lae International Port, while standing on an outcropping undeveloped resource
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containing in excess of 10 million gold equivalent ounces, and as much as 15 million ounces using
a lower cut-off grade.”
John Lewins, K92 CEO and Director, add ed, “The maiden resource estimate at Blue Lake is a
major accomplishment , defining a large -scale, potentially commerical gold -copper porphyry
proximal to our high-grade Kainantu underground mine. Blue Lake was also defined efficiently,
leveraging our team’s extensive exploration experience in Papua New Guinea, with nearly all
holes intersecting mineralization and only 16,475 metres of drilling to define 10.8 million ounces
AuEq or 4.7 billion lbs CuEq of inferred resource – implying a n average discovery rate of
aproximately 650 oz AuEq per metre drilled.
Importantly, we believe Blue Lake is only the tip of the porphyr y iceberg at Kainantu and have
gained a tremendous amount of knowledge for our porphyry exploration programs going forward.
In Papua New Guinea, porphyries tend to cluster and there are five other porphyry targets
proximal to Blue Lake, with A1 being of the highest priority. Soil sampling at A1 is expected to
commence imminently, with diamond drilling planned afterwards. Between our intrusion related
gold/copper exploration at Kora, Judd, Kora South and Judd South and our porphyry exploration,
we are very excited about the potential at Kainantu.”
Deposit Geology
The Blue Lake Porphyry Project is located approximately 4 km southwest of the Company’s
producing high-grade Kora and Judd intrusion-related gold-copper deposits at the Kainantu Gold
Mine. Drilling at Blue Lake has defined a large tonalite porphyry stock, comprising multiple
overprinting intrusives, that are variably mineralized with gold and copper. The highest grades are
associated with a potassic alteration core, characterized by biotite, K-feldspar and
chalcopyrite/bornite mineralization, with a propensity of quartz stockwork veins. Cu/Au
mineralization is approximately at a 1:1 ratio, that is open to the south-west.
See Figure 1 – Location of the Blue Lake Porphyry
The mineralized porphyry is concentrically zoned and tilted towards the north-west. This zonation
is apparent both in metal (sulphide) distribution, with bornite grading into chalcopyrite with a
molybdenum periphery, and finally into pyrite, as well as in alte ration mineral assemblages, with
biotite-K feldspar giving way peripherally to epidote-albite through a transitional actinolite zone.
The prograde assemblages have been largely overprinted by intense sericite -pyrite alteration.
There is a prominent silica -clay cap, characterized by dominant pyrophyllite, with alunite feeder
zones.
Blue Lake Exploration Background
The Blue Lake Porphyry Project was initially recognized in early February 2017, when three small
hand specimens were shown by a landowner to K92’s VP Exploration. These comprised intensely
altered breccia and dacite, with pyrophyllite altered clasts or leached phenocrysts, respectively,
and immediately attracted our attention. When questioned as to their origin, the landowner pointed
towards the mountains and said it was from ‘Blue Lake’.
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The Blue Lake Porphyry was later discovered in outcrop, during reconnaissance by K92 in May
2017, after which a large (1.5 x 0.8 km) coincident Au-Cu soil geochemical anomaly was defined
from soil sampling. The maiden drill hole, KTDD0001, drilled in January 2019, intersected
porphyry mineralization, yielding an open -ended 174.6m at 0.64 g/t AuEq (0.28 g/t Au, 0.22 %
Cu), from 259.3m. This hole formed part of an initial six-hole program (excluding three short 50m
holes and a failed hole at 106m), with hole depths of 400 – 600m depth. The holes were drilled as
a fence across the prospect, through the centre of the primary geochemical anomaly, on 200m
centres. This program enabled the compilation of an alteration and grade shell model, together
with intrusive lithologies and structure, to identify vectors towards mineralization and successfully
target the porphyry core.
A second phase of drilling commenced in November 2020, following an eleven -month hiatus
(extended significantly by revised, restricting field protocols associated with COVID-19). During
this campaign, a 200-metre spaced grid was drilled over the Blue Lake Porphyry, with some
additional deeper, targeted holes drilled. 16 holes were drilled in this phase, for a total of 13,048.30
metres, with multiple long intervals of significant gold -copper mineralization yielded, including
200.16m at 1.00 AuEq (0.51 g/t Au, 0.28 % Cu) from 695.84m in hole KTDD0018.
Figure 2 – Blue Lake Hole KTDD0018, 845m.
Figure 3 - Blue Lake Porphyry drill core from KTDD0018
Figure 4 - Blue Lake mineralogy in drill core from holes KTDD0013 and KTDD0018
Key Assumptions and Parameters
K92 engaged independent consulting geologists H&S Consultants Pty Ltd (H&SC) to complete a
resource estimate for the Blue Lake gold-copper deposit. The Blue Lake Porphyry Project estimate
is based on data and assays from 26 diamond core drill holes at Blue Lake, for a total of 16,474.8
metres.
The drillhole assay data comprised 1m sample intervals . For grade interpolation the complete
drilling dataset was composited to 2m for gold, copper silver and a gold equivalent and
subsequently modelled. The unconstrained 2m compositing produced a total of 8,141 composites.
The gold equivalent value was based on K92’s work at the nearby Kora deposit w hich used the
formula:
AuEq = Au g/t + (Cu% * 1.607) + (Ag ppm * 0.0125)
The geological interpretation was supplied by K92 as a series of 3D wireframes created using
Leapfrog software, this included lithologies, faulting, alteration and percentage quartz veining. A
detailed topographic surface was also supplied. All data was converted to an H&SC N -S
orthogonal local grid for ease of working.
The interpreted porphyry body and its associated mineralization has overall dimensions of 1500m
(X) by 1300m (y) by 1100m (Z) with a modest plunge to grid south -east. Mineralization is close
to surface (1950mRL approx.) in the grid west and is open at depth. The Mineral Resource is
terminated by a notional-pit outline down to 500m RL. Drillhole spacing was nominally on 100m
centres in the centre of the deposit extending to 200m in the periphery.
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Grade interpolation used Ordinary Kriging for a block size of 25m by 25m by 25m with no sub -
blocking. The upper (lithocap) and lower (porphyry) mineral zones were treated separately with
regards to the variography, but similar search ellipses were employed with a soft boundary between
the zones. Each element was modelled separately, although there is some form of zoned
correlation between gold and copper for the lower higher grade porphyry zone.
The density data was composited to 4m giving 1,879 data points which were subsequently
modelled unconstrained using Ordinary Kriging, using similar search parameters and rotations to
the global metal grade interpolation. Density showed a marked segregation between the upper
lithocap dominated zone and the lower altered tonalite zone.
See Figure 5 – Blue Lake Porphyry – Section, viewed north -north-east. Drill holes showing
downhole gold and copper grades and distribution of mineralization.
Future program
As with most fertile porphyry environments, e.g., Golpu and Oyu Tolgoi, there is likely a cluster
of porphyries in the Blue Lake prospect area, with our exploration work to date supporting this,
including:
• Advanced argillic alteration covering a vast area over 5 km in length, from Blue Lake to
the A1 target.
• Locally, t he roots of the lithocap remain in situ (dominated by pyrophyllite , typically
present deep in lithocaps and nearest to porphyry minerali zation) at Blue Lake and the
Ayena and A1 targets.
• Advanced Mobile MT (magnetotelluric) geophysics completed in late-2021 has outlined
several high conductivity targets coincident with mapped silicification.
• Evidence of a much larger paleo-lithocap, likely formed by copious porphyry activity, is
presented in the high propo rtion of ubiquitous silicified float (boulders) that fills the
drainages and colluvium deposits for 20 km all the way to the Markham River.
Based on the exploration work to date, Blue Lake is proximal to five other porphyry exploration
targets: A1, Kokofi mpa, Ayena, Timpa and Tankaunan. After the completion of the advanced
Mobile MT geophysics in late-2021, A1 is our top porphyry exploration target, driven by having
the strongest geophysical conductivity signature , preserved lithocap and situated in a highly
prospective environment, at the confluence of the Kora -Kora South, Judd -Judd South structures
and the Maniape and Arakompa structures, which both host high -grade intrusion related
gold/copper deposits. With the latest program at Blue Lake completed, exploration work on A1 is
commencing shortly, including a soil sampling program, detailed mapping and trenching, followed
by diamond drilling.
Blue Lake remains open along strike and down plunge. Additionally, with a higher grade core, it
is possible that the mineralization is much more extensive than we currently understand and higher
grades may be expected in the deeper parts of the system. Drilling plans to target the definition
and expansion of the zone of quartz stockwork veins and bornite mineralization within the potassic
core.
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Figure 6: Airborne Geophysics Mobile MT (apparent conductivity) geophysics plan map proximal
to the Blue Lake Porphyry outlining a cluster of nearby porphyry targets and an extensive argillic
lithocap with additional porphyry potential underneath.
Qualified Persons
K92 Vice President Exploration, Mr. Chris Muller, PGeo, a Qualified Person under the meaning
of National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101"), has
reviewed and is responsible for the technical content of this news release. Data verification by Mr.
Muller includes significant time on site reviewing drill core, soil and outcrop sampling, artisanal
workings, as well as d iscussing work programs and results with geology personnel and external
consultants.
Simon Tear, P.Geo EurGeol of H & S Consultants Pty. Ltd. of Sydney, Australia, is the Qualified
Person as defined under NI 43 -101 for the Blue Lake maiden Mineral Resource. Mr. Tear has
reviewed and approved the contents of this press release.
About K92 Mining
K92 Mining Inc. is engaged in the production of gold, copper and silve r 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 Kaina ntu 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 +1-604-416-4445
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news
release includes certain “forward -looking statements” under applicable Canadian securities
legislation. 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, identified by words such as
“expect”, “plan”, “anticipate”, “project”, “target”, “po tential”, “schedule”, “forecast”,
“budget”, “estimate”, “intend” or “believe” and similar expressions or their negative
connotations, or that events or conditions “will”, “would”, “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 assumptions 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
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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 Pandemic; 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; the fact that a feasibility studying
of mineral reserves demonstrating economic and technical viability has not been prepared for the
Kainantu Mine; 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 de velopment and exploration activities; 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 price and market for outputs, including gold, silver and
copper; inability of the Company to identify appropriate acquisition targets or complete desirable
acquisitions; 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 conf lict in Ukraine; 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, including relationship with the communities in 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”. 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 production,
should mining occur. 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 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 an ticipated, 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.
CAUTIONARY NOTE TO U.S. READERS CONCERNING ESTIMATES OF MINERAL
RESERVES AND MINERAL RESOURCES
Information concerning the properties and operations of K92 has been prepared in accordance
with Canadian standards under applicable Canadian securities laws and may not be comparable
to similar information for United States companies. The terms “Mineral Resource”, “Measured
Mineral Resource”, “Indicated Mineral Resource” and “Inferred Mineral Resource” used in this
news releas e are Canadian mining terms as defined in the Definition Standards for Mineral
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Resources and Mineral Reserves adopted by the Canadian Institute of Mining, Metallurgy and
Petroleum (“CIM”) on May 10, 2014 and incorporated by reference in National Instrument 43 -
101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). While the terms “Mineral
Resource”, “Measured Mineral Resource”, “Indicated Mineral Resource” and “Inferred Mineral
Resource” are recognized and required by Canadian securities regulations, they are not defined
terms under standards of the United States Securities and Exchange Commission (“ SEC”). As
such, certain information contained in this news release concerning descriptions of mineralization
and resources under Canadian standards is not comparable to similar information made pub lic
by United States companies subject to the reporting and disclosure requirements of the SEC. An
“Inferred Mineral Resource” has a great amount of uncertainty as to its existence and as to its
economic and legal feasibility. Under Canadian rules, estimat es of Inferred Mineral Resources
may not form the basis of feasibility or pre-feasibility studies. It cannot be assumed that all or any
part of an “Inferred Mineral Resource” will ever be upgraded to a higher confidence category
through additional explorat ion drilling and technical evaluation. Readers are cautioned not to
assume that all or any part of an “Inferred Mineral Resource” exists or is economically or legally
mineable. Under United States standards, mineralization may not be classified as a “Reser ve”
unless the determination has been made that the mineralization could be economically and legally
produced or extracted at the time the Reserve estimation is made. Readers are cautioned not to
assume that all or any part of the Measured or Indicated Mineral Resources will ever be converted
into Mineral Reserves. In addition, the definitions of “Proven Mineral Reserves” and “Probable
Mineral Reserves” under CIM standards differ from the standards of the SEC. Historical results
or feasibility models presented herein are not guarantees or expectations of future performance.