K92 Mining Discovers High Grade Extension of Kora Deposit in First Completed Exploration Hole
305925.00003/90997684.3
Suite 488 – 1090 West Georgia Street
Vancouver, British Columbia
Canada V6E 3V7
Telephone: (604) 687-7130
Facsimile: (604) 608-9110
NEWS RELEASE
May 24, 2017 Vancouver, British Columbia
K92 MINING INC.
K92 Mining Discovers High Grade Extension of Kora Deposit in First Completed
Exploration Hole
5.4 metres at 11.68 g/t Au, 25.5 g/t Ag and 1.3 3 % Cu including 0.75 metres at 71.94
g/t Au, 168.7 g/t Ag and 8.51 % Cu intercepted in first completed exploration hole
targeting extensions of the Kora Deposit
Intersection reported is above the average grade and thickness for the Kora Deposit
and is approximately 500 metres along stri ke and 150 metres down dip from the
closest point of the currently defined Kora Deposit
Kora is a large and high grade deposit, open for expansion in every direction and
strongly mineralized at the extent of all drilling, with a current Inferred Resource of
4.36 million tonnes of 7.3 g/t Au, 35 g/t Ag and 2.23% Cu
K92 Mining Inc. (TSX VENTURE:KNT) (OTCQB :KNTNF) (“K92” or the “Company”) is
pleased to announce the first exploration hole drilled in a program designed to test for extensions
of the Kora Deposit has intersected high grade gold mineralization.
The intersection is approximately 500 metres along strike and 150 metres down dip from the
closest point of the currently defined Kora Deposit Inferred Resource (see Table 3 and Figure 1).
This intersection, recording 5.4 metres @ 11.68 g/t Au, 25.5 g/t Ag and 1.33 % Cu and a gold
equivalent grade of 14.1 g/t AuEq is typical of the Kora/Eutompi mineralisation. The current
Kora/Eutompi Inferred Resource is 4.36 million t onnes at a grade of 7.3 g/t Au, 35 g/t Ag and
2.23 % Cu or 11.2 g/t AuEq (see Table 3).
The diamond drill hole, KMDD0009, intersected what the Company in terprets as the
Kora/Eutompi Vein System 154.1 metres down hole or approximately 130 metres from the Kora
drive. Given the results from this hole, the co mpany is now accelerating exploration drilling and
has 9 holes planned from the initial drill cuddy, targeting an area of approximately 200 metres
along strike by 200 metres on dip.
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The interpreted strike length of the Kora/Eutompi Vein System is approximately 1,100 metres at
surface, but potentially based on limited drill testing to date, this reduces at depths greater than
200 metres to 500 metres strike length, although it is open for expansion both at depth and along
strike in both directions. The deepest intersection in hole BKDD0023 is 900 metres below the
surface outcrop of the Vein System and almost 500 metres below the deepest Inferred Resource
(see Figure 1). The KMDD0009 intersection is approximately 700 metres below the surface and
500 metres along strike from BKDD0023.
The Kora 5m x 5m drive is designed to provide access to the Kora deposit, where K92 is
assessing the commencement of production in First Half 2018, while also providing the
Company with the ability to drill test between Irumafimpa and Kora from underground drill
cuddies. This area has not been previously tested due to topographical challenges associated with
drilling from the surface and is considered highly prospective given the current interpretation of
Irumafimpa and Kora being on the same structure.
Table 1 Kainantu Gold Mine – Significant Intercepts from Kora Extension Drilling
Gold equivalents are calculated as AuEq = Au g/t + Cu%*1.52+ Ag g/t*0.0141.
Table 2 Kainantu Gold Mine – Collar Location and Orientation for Kora Extension
Drilling
Hole_id Collar location Collar orientation EOH
depth (m) Local North Local East mRL Dip Local Azimuth
KMDD0009 59173 29973 1184.1 0 243 210.4
K92 Chief Executive Officer, Ian Stalker, states , “The results from the first hole drilled by K92
on the Kora Vein System and first drilled from underground can only be described as
outstanding. Based on the interpre tation of our geological team we have an inters ection of 5.4
metres at 14.1 g/t AuEq from some 500 metres along strike and 150 metres down dip from the
known Kora Inferred Resource. The implication is that there is potential for this high grade Kora
Deposit to become much larger. With today’s resu lts in hand, we will push the Kora drive at an
increased pace and with an expanded drilling program.”
Hole_id From (m) To (m) Interval
(m)
True
width
(m)
Gold g/t Cu (%) Silver g/t Gold Eq
KMDD0009 117.80 122.00 4.20 3.74 0.80 0.52 8.08 1.70
including 117.80 118.40 0.60 0.53 2.11 0.03 15.50 2.37
including 121.40 122.00 0.60 0.53 1.58 3.34 31.40 7.10
KMDD0009 154.10 154.80 5.40 4.81 11.68 1.33 25.46 14.06
including 155.25 159.50 4.25 3.79 14.63 1.68 32.32 17.64
including 157.15 159.50 2.35 2.09 23.60 2.90 57.27 28.82
including 157.15 157.90 0.75 0.67 71.94 8.51 168.70 87.25
including 155.25 156.00 0.75 0.67 8.77 0.09 2.60 8.94
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In addition to drilling between the Irumafimpa and Kora deposits, K92 will also be drilling down
dip from the known resource to infill between the known resource and the single deepest known
hole drilled on the deposit BKDD0023, which was drilled by Barrick Gold Corporation. This
hole recorded an intersection of 30.6 metres @ 2.0 g/t Au, 4.8 g/t Ag and 1.3% CU, including 6.4
metres @ 5.52 g. /t Au and 8M @ 3.7% Cu fr om 920.8 metres, approximately 500 metres below
the current resource.
Consideration will be given to extending th e drive beyond the Mining Lease 150 into the
adjacent Exploration Lease (EL 693) which is also held by K92, to allow exploration drilling to
be undertaken to potentially extend the known limit of mineralization to the South.
K92 has filed and made available for downloa d on the Company’s SEDAR profile, a technical
report titled “Independent Tech nical Report, Mineral Resource Update and Preliminary
Economic Assessment (“PEA”) of Irumafimpa and Kora Gold Deposits, Kainantu Project, Papua
New Guinea” with an effective date of March 2, 2017 (the “Technical Report”).
The PEA estimates for Kora, based on the current resource estimates (4.36 million tonnes of 7.3
g/t Au, 35 g/t Ag and 2.23% Cu);
Over a 9 year operating life the plant would treat 3.2 million tonnes averaging 7.1 g/t Au,
25 g/t Ag and 1.7% Cu (9.3 g/t AuEq*)
this would generate an estimated positive cash flow of US $537 million using current
metal prices if 15m levels are used in mini ng. If 25m levels are used then net cashflows
are estimated as US $558 million. This cash flow includes conceptual allowances for
capital
production of an estimated average of 108,00 0 AuEq* ozs per annum over an 8 year
period from Year 2 through to Year 9
An estimated pre-tax NPV of US $415 million for 25m levels; or US $397 million for
15m levels; using current metal prices, exchange rates and a 5% discount
an estimated after-tax NPV of US $329 m illion for 25m levels; or US $316 million for
15m levels; using current metal prices, exchange rates and a 5% discount
initial capital cost is estimated to be US $13.8 million, including the US $3.3 million for
the plant upgrade identified in the Mincor e Scoping Study but excl uding the proposed
Kora exploration inclines and diamond drilling. Sustaining Capital Cost is estimated to a
further US $64 million spent over the life of the Kora mining for 25 m levels or US $83
million for 15m levels
operating cost per tonne is estimated to be US $125/tonne for 25m levels or US $126 /
tonne for 15m mining levels
excluding initial capital expenditu re of US $14 million, cash cost is estimated to be US
$547 / oz AuEq (inclusive of a 2.5% NSR) and AISC of US $619/oz AuEq for 25m
mining levels; or US $549/oz (inclusive of a 2.5% NSR) and AISC of US $644/oz AuEq
for 15m mining levels
Metal prices used were Au – $1300; Ag – US $18/oz; Cu – US $4800/tonne
*AuEq calculated on above metal prices
Kora remains open for expansion in every directi on and strongly mineralized at the extent of all
drilling.
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The PEA is preliminary in nature and includes inferred mineral resources that are considered too
speculative geologically to have the economic consid erations applied to them that would enable
them to be categorized as mineral reserves, and there is no certainty that the PEA will be
realized. The Technical Report cont ains a full description of all underlying assumptions relating
to the PEA. Mineral Resources that are not Mineral Reserv es do not have demonstrated
economic viability.
Table 3 Irumafimpa and Kora/Eutompi Resources
Resource by Deposit and Category
Deposit Resource
Category
Tonnes Gold Silver Copper Gold
Equivalent
Mt g/t MOz g/t MO z % Mlb g/t MOz
Irumafimpa Indicated 0.56 12.8 0.23 9 0.16 0.28 37 13.4 0.24
Inferred 0.53 10.9 0.19 9 0.16 0.27 74 11.5 0.20
Kora/Eutompi Inferred 4.36 7.3 1.02 35 4.9 2.23 215 11.2 1.57
Total Indicated 0.56 12.8 0.23 9 0.16 0.3 4 13.4 0.24
Total Inferred 4.89 7.7 1.21 32 5.06 2.0 218 11.2 1.76
M in Table is millions. 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. Gold equivalents are
calculated as AuEq = Au g/t + Cu%*1.52+ Ag g/t*0.0141.
ON BEHALF OF THE COMPANY,
Ian Stalker, Chief Executive Officer and Director
The TSXV has neither approved nor disapproved the contents of this press release.
K92 Exploration Manager, Chris Muller, P. Geo, a qualified person under the meaning of
Canadian National Instrument 43- 101, has reviewed and is respons ible for the te chnical content
of this news release.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined
in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
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 assu mptions that, while co nsidered 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 Compan y believes, expects or anticipates will
or may occur are forward-looking information, including statements regarding the realization of the preliminary
economic analysis for the Project, expectations of futu re cash flows, the proposed plant expansion, 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, meta l 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, enviro nmental 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
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the mining industry, changes in national and local government regulation of mining operations, and regulations and
other matters.. There can be no assurance that such statem ents will prove to be accurate, as actual results and
future events could differ materially from those anticipat ed 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.
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Figure 1 Long Section through the Irumafimpa and Kora Deposits
KMDD0009 155.25 – 155.40 m KMDD009 157.15 – 157.30m