K92 Mining Exploration Update - Blue Lake Porphyry Prospect
Suite 488 – 1090 West Georgia Street
Vancouver, British Columbia
Canada V6E 3V7
Telephone: +1 (604) 687-7130
Facsimile: +1 (604) 608-9110
NEWS RELEASE
K92 MINING EXPLORATION UPDATE - BLUE LAKE PORPHYRY PROSPECT
• The second of the six planned 400 to 600 metre deep holes intersected 219.6 metres at
0.16 g/t Au and 0.11 % Cu, including 147.7 metres at 0.21 g/t Au and 0.13% Cu from
456.9 metres to end of hole, with the hole ending in mineralization.
• The third deep hole, KTDD0007 intersected 303.3 met res at 0.22 g/t Au and 0.14%
Cu from 190 metres to termination at 493.3 metres, with the hole ending in
mineralization, including 165.3 metres at 0.22 g/t Au and 0.21% Cu from 328 metres.
• Initial diamond drilling program expanded from 2,400m to 4,000m and planning for
larger and more targeted second phase program underway; first three of six planned
400 – 600-metre-deep holes now completed, as well a s three shallow holes.
• All deep holes, including previously announced (Mar ch 27, 2019) KTDD0001 which
intersected 175 metres at 0.28 g/t Au and 0.22% Cu from 259 metres to termination
at 433.9 metres and ended in mineralization, have e ncountered extensive Au-Cu
propylitic alteration, without any obvious potassic mineralogy. This implies that the
holes are within the shallow or distal environment with respect to the core of the
system. These holes provide useful vectoring information to leverage for a subsequent
larger and more targeted drill program.
Vancouver, B.C. June 18, 2019 - K92 Mining Inc. (“ K92 ” or the “ Company ”) (TSXV: KNT ;
OTCQB: KNTNF ) is pleased to provide an update on exploration at the Blue Lake Porphyry
Prospect located approximately 4 kms southwest of t he Company’s Kora deposit at the Kainantu
gold mine in Papua New Guinea (see Figure 1).
K92 has now completed three of the six planned holes of depth 400 to 600 metres as well as three
shallow holes of depth 50 metres. Each of the three deep holes, KTDD0001/6/7, has intercepted
extensive gold and copper mineralization in porphyr y style propylitic chlorite-epidote-albite-
magnetite alteration as shown in Figures 2 and 3. T he results are considered particularly
encouraging given the distance between intercepts, indicating appreciable size potential. Hole
KTDD0005 was abandoned at 106 metres due to bogging of rods and re-drilled as KTDD0006.
The three shallow holes, KTDD0002/3/4, were designed to test the thickness, geometry and tenor
of the mineralized lithocap. Significant gold inter cepts were encountered in each of these short
holes, associated with leached, silicified intrusives and hydrothermal breccias.
As with the first hole drilled at Blue Lake, KTDD00 01, the subsequent deep hole KTDD0006
intersected a mineralized silica cap, followed by a broad zone of intense argillic alteration
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(pyrophyllite/kaolinite), before drilling strong pr opylitic alteration in diorite, predominantly
chlorite, with epidote increasing towards the end o f the hole. KTDD0007 intersected propylitic
alteration from shallow depths. Significantly, KTDD0006 intersected 219.6 metres at 0.16 g/t Au
and 0.11% Cu from 385 metres to termination at 604.6 metres, while KTDD0007 intersected 303.3
metres at 0.22 g/t Au and 0.14% Cu from 190 metres to termination at 493.3 metres (see Tables 1
and 2). The holes were still in mineralization when completed (see Figures 2 and 3).
Chris Muller, K92 Vice President Exploration, state d, “As with the previously reported first hole
drilled at Blue Lake, these second and third holes have confirmed the potential of Blue Lake as a
fertile Au-Cu porphyry system.
Results to date continue to exceed our expectations, with the initial program expanded from 2,400
metres to 4,000 metres and planning for the second follow up larger and more targeted drilling
program already under way.”
Blue Lake (Kotampa Project)
Field work in the Blue Lake area, EL470, during Sep tember, 2017, identified surficial Au/Ag/Cu
mineralization in enargite-bearing crackle and mill ed breccias, and in vuggy silica exposures. A
major silica-alunite lithocap was also mapped, surr ounded by extensive pervasive dickite-pyrite
and the localized occurrence of stockwork quartz-pyrite±chalcopyrite veins.
A prominent airborne electromagnetic (EM) geophysic al anomaly, adjacent to the mineralized
dickite-altered diorite, was recognized as being coincident with a high Au in soils (widely spaced
ridge and spur) anomaly.
Petrology of rock chip samples confirmed a high sul phidation overprint of outer potassic
alteration/mineralization (i.e., showing a diversity of sulphides of different phases, demonstrating
a later high-sulphidation obliteration/resorption of earlier potassic porphyry style alteration).
K92 geologists commenced an active mapping and sampling program in October 2018, including
detailed mapping at 1: 1,000 and the collection of >900 C horizon soil samples on a 50-metre
equidistant grid. Drilling commenced in January 2019, the first drill hole, KTDD0001 yielding an
open-ended intercept of 174.6m at 0.28 g/t Au, 0.22 % Cu, from 259.3 metres and was terminated
in mineralization at 433.9 metres. Mineralization i s associated with propylitic alteration mineral
assemblages, predominantly chlorite and epidote.
A large coincident gold and copper anomaly (Figure 4) has been revealed, which measures
approximately 1.2 km (along NNE strike) and 0.8 km (across strike).
As illustrated by the porphyry model of Holliday an d Cooke (2007) (Figure 6), silica and argillic
caps may drape over the potassic and propylitic alt eration. At Blue Lake, holes KTDD0001 and
KTDD0006 intersected the lithocap and intermediate argillic (‘pyrite halo’) before drilling into the
‘green rock’ zone (chlorite and progressively epidote dominant) at near identical elevation (Figure
5). Since neither hole drilled obvious potassic min eralogy, it is presumed that both holes are still
within the shallow, or distal environment, with respect to the core of the system.
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Current Drilling Program
The overall intercept in KTDD0006 was diluted by th e presence of several weakly mineralized
inter-mineral felsic intrusives that overprint the earlier intensely chlorite-magnetite-epidote altered
diorite; the latter being mineralized.
There is a distinct potential that multiple porphyry intrusives occur in the Blue Lake Prospect area,
with overprinting mineralized haloes, as at the Gol pu and Oyu Tolgoi porphyry complexes.
Hydrothermal breccia pipes (diatremes) are often as sociated with such intrusives and three such
breccias, with mineralization, have been encountere d at Blue Lake (as marked on Figure 4), two
of which are associated with strong Au in soil geochemical anomalism.
The initial six-hole program with hole depths of 400 – 600m depth, are all planned to be drilled in
a fence across the prospect, through the centre of a primary coincident Au-Cu-As in soil
geochemistry anomaly (Figure 4).
After completing the initial diamond drilling progr am, which has been expanded from 2,400
metres to 4,000 metres, a larger and more targeted drilling program based on the results and
interpretation from the current program.
The priority of the current program is to characterize the mineral assemblages, multi-element grade
shells and structures to build a geological model t hat will assist in focusing on the core of the
porphyry.
All assayed drill holes (KTDD0001 - 4, KTDD0006 and KTDD0007) have returned significant
mineralized intercepts (see Table 1), most notably three long intersections of Au-Cu in propylitic
alteration in holes KTDD0001, KTDD0006 & KTDD0007, all of which ended in mineralization.
The alteration mineral assemblages and associated m ineralization style implies that the porphyry
system is likely preserved, given that there is a thick lithocap, with quartz vein density increasing
with depth. The entire area at surface, coincident with the Au/Cu geochemical in-soil anomaly is
significantly altered by silica, clay and sulphides , with multiple evident overprinting events by
palaeo hydrothermal fluids suggesting that there we re a series of intrusives releasing
volatiles/fluids (some mineralized).
The majority of known porphyry systems in Papua New Guinea and adjacent archipelagos are of
Miocene age, or younger. Since the widely accepted depth of formation for porphyries is between
1 – 3 km depth, most are well preserved, with only the upper, or epithermal, components exposed.
This is contrary to many older (e.g., Ordovician) s ystems in the Americas and in central Asia,
which have been eroded down to the roots, exposing potassic and sodic-calcic alteration at surface.
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Table 1. Blue Lake – Significant Intercepts
Hole_id From (m) To (m) Interval (m) Gold g/t Silver g/t Copper % Gold
equivalent
KTDD0001 5.0 20.0 15.0 0.63 4 0.02 0.7126
KTDD0001 259.3 433.9 174.6 0.28 2 0.22 0.6426
KTDD0002 7.0 22.0 15.0 1.17 3 0.03 1.2549
KTDD0003 8.0 20.0 12.0 0.44 1 0.06 0.5448
KTDD0004 6.9 31.1 24.2 0.48 3 0.03 0.5649
KTDD0006 385.0 604.6 219.6 0.16 1 0.11 0.3413
including 456.9 519.9 63.0 0.27 1 0.16 0.5278
including 596.0 604.6 8.6 0.38 1 0.22 0.7296
KTDD0007 190.0 493.3 303.3 0.22 2 0.14 0.4602
Including 328.0 493.3 165.3 0.22 2 0.21 0.5673
(1) Gold Equivalent uses copper price of US$2.90/lb; si lver price of US$16.5/oz and gold price of US$1,300 /oz
(2) True widths are unknown at this time as all holes ended in mineralization and there is insufficient geological
information on dip and orientation of the mineralized body
Table 2. Blue Lake Hole Parameters
Hole_ID
Easting
(AGD66)
Northing
(AGD66) mRL
Bearing
(AMG)
Bearing
(Magnetic) Inclination Depth (m)
KTDD0001 371391 9316122 1639 120 115 -60 433.9
KTDD0002 371391 9316122 1639 120 115 -75 51
KTDD0003 371391 9316122 1639 120 115 -90 51
KTDD0004 371391 9316122 1639 120 115 -50 50.8
KTDD0005 371254 9316057 1746 120 115 -55 106.0
KTDD0006 371254 9316057 1746 120 115 -60 604.6
KTDD0007 371237 9316276 1574 125 120 -60 493.3
K92 Vice President Exploration, Mr. Chris Muller, P Geo, a Qualified Person under the meaning
of National Instrument 43-101 – Standards of Disclosure for Mineral Projects, has reviewed and
is responsible for the technical content of this ne ws release. Data verification by Mr. Muller
includes significant time onsite reviewing drill core, soil and outcrop sampling, artisanal workings,
as well as discussing work programs and results with geology personnel and external consultants.
About K92 Mining
K92 Mining is currently engaged in the production of gold, copper and silver from the Kora/Kora
North deposit from the Kainantu Gold Mine in Papua New Guinea, as well as exploration and
development of mineral deposits in the immediate vi cinity of the mine. The Company declared
commercial production from Kainantu in February 2018 and announced planned expansion of the
mine in March 2019. An updated Preliminary Economi c Assessment on the property was
published in January 2019.
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ON BEHALF OF THE COMPANY,
John Lewins
Chief Executive Officer and Director
For further information, please contact the Company at +1-604-687-7130.
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SER VICES PROVIDER
(AS THAT TERM IS DEFINED IN POLICIES OF THE TSX VEN TURE EXCHANGE)
ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFO RMATION: This news
release includes certain “forward-looking statement s” under applicable Canadian securities
legislation. Forward-looking statements are necessa rily 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 th e 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 d evelopments that the Company believes, expects,
or anticipates will or may occur are forward-looking information, including statements regarding
the realization of the preliminary economic analysi s for the Kainantu Project, expectations of
future cash flows, the proposed plant expansion, po tential 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 explora tion and development, capital and operating
costs, the availability of financing, the receipt o f regulatory approvals, environmental risks, title
disputes, failure of plant, equipment or processes to operate as anticipated, accidents, labour
disputes, claims and limitations on insurance cover age and other risks of 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 statements will prove to be accurate, as actual
results and future events could differ materially f rom those anticipated in such statements.
Accordingly, readers should not place undue relianc e on forward-looking statements. The
Company disclaims any intention or obligation to up date 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. Blue Lake Porphyry Prospect Location.
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Figure 2. Blue Lake KTDD0001, 413.2m. Classic propylitic por phyry alteration/mineralization.
Quartz-chalcopyrite-magnetite B veins amid pervasive chlorite/albite.
Figure 3. Blue Lake KTDD0006, c. 510m. Quartz-chalcopyrite-m agnetite B veins and
disseminated chalcopyrite, with pervasive chlorite.
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Figure 4. Plan of Blue Lake Prospect (geochem)