K92 MINING FILES TECHNICAL REPORT OF KORA PEA K92 Mining files Independent Technical Report, Mineral Resources Estimate Update and Preliminary Economic Assessment of Kora North and Kora Gold Deposits, Kainantu
Suite 488 – 1090 West Georgia Street
Vancouver, British Columbia
Canada V6E 3V7
Telephone: (604) 687-7130
Facsimile: (604) 608-9110
NEWS RELEASE
January 9, 2019 Vancouver, British Columbia
K92 MINING FILES TECHNICAL REPORT OF KORA PEA
K92 Mining files Independent Technical Report, Mineral Resources Estimate Update and
Preliminary Economic Assessment of Kora North and Kora Gold Deposits, Kainantu
Project, Papua New Guinea and corrects cash cost.
K92 Mining Inc. (TSXV: KNT; OTCQX: KNTNF) (“K92” or “the Company”) has filed and
made availab le for download on the Company’s SEDAR profile, a technical report titled ,
“Independent Technical Report, Mineral Resources Estimate Update and Preliminary Economic
Assessment of Kora North and Kora Gold Deposits, Kainantu Project, Papua New Guinea” with
an effective date of September 30, 2018 (the “Technical Report”) prepared by Anthony
Woodward BSc (Hons.), M.Sc., MAIG, Simon Tear BSc (Hons), EurGeol, PGeo IGI, EurGeol,
Christopher Desoe BE (Min)(Hons), FAusIMM, RPEQ, MMICA, Lisa J. Park, BEng (Chem),
GAICD, FAusIMM. Refer to the Company’s news release dated January 8, 2018 for a summary
of the results of the PEA.
The preliminary economic assessment ( “PEA”) is preliminary in nature and includes inferred
mineral resources that are considered too speculative geologically to have the economic
considerations applied to them that would enable them to be categorized as mineral reserves, and
there is no cert ainty that the PEA will be realized. The Technical Report contains a full
description of all underlying assumptions relating to the PEA. Mineral Resources that are not
Mineral Reserves do not have demonstrated economic viability.
Further to the Company’s news release of January 8, 2019, the Company reported cash costs and
all-in sustaining costs (AISC) based on Au /oz rather than AuEq /oz as disclosed. When
computing costs per Au/oz, the Company credited estimated revenue from the sale of copper and
silver against the Company’s costs. The Company should have reported a cash cost of
US$541/oz AuEq* (stated $429) and AISC of US$70 3/oz AuEq* per annum (*AuEq –
calculated on Current Metal Prices of Au - US$1,300/oz; Ag – US$15/oz; Cu – US$2.90/lb.)
K92 Mine Geology Manager and Mine Exploration Manager, Mr. 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 con tent 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.
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 REG ULATION SERVICES PRO VIDER
(AS THAT TERM IS DEF INED IN POLICIES OF THE TSX VENTURE EXCH ANGE)
ACCEPTS RESPONSIBILI TY FOR THE ADEQUACY OR ACCURACY OF THIS
RELEASE.
Non-GAAP Financial Measures
In this press release, we use the terms “cash costs" and "all-in sustaining costs ". These should be
considered as non -GAAP financial measures as defined in applicable Canadian securities laws
and should not be considered in isolation or as a substitute for measures of performance prepared
in accordance with GAAP.
Cash costs per gold equivalent ounce is a non -GAAP term typically used by gold mining
companies to assess the level of gross margin available to the Company by subtracting these
costs from the u nit price realized during the period. This non -GAAP term is also used to assess
the ability of a mining company to generate cash flow from operations. Cash costs per gold
equivalent ounce includes mining and processing costs plus applicable royalties. Cash costs per
gold equivalent ounce is exclusive of exploration costs.
Cash costs per gold equivalent ounce is intended to provide additional information only and does
not have any standardized meaning under IFRS and may not be comparable to similar measu res
presented by other mining companies. It should not be considered in isolation or as a substitute
for measures of performance prepared in accordance with IFRS. The measure is not necessarily
indicative of cash flow from operations under IFRS or operating costs presented under IFRS.
The Company adopted an "all -in sustaining cost ” per gold equivalent ounce, a non-GAAP
performance measure in accordance with the World Gold Council published in June 2013. The
Company believes the measure more fully defines the total costs associated with producing gold;
however, this performance measure has no standardized meaning. Accordingly, there may be
some variation in the method of computation of "all -in sustaining costs " as determined by the
Company compared with oth er mining companies. In this context, "all -in sustaining costs" for
the consolidated Company reflects total mining and processing costs, corporate and
administrative costs, exploration costs, sustaining capital, and other operating costs.
All-in sustainin g costs per gold ounce is intended to provide additional information only and
does not have any standardized meaning under IFRS and may not be comparable to similar
measures presented by other mining companies. It should not be considered in isolation or a s a
substitute for measures of performance prepared in accordance with IFRS.
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
assumptions that, while considered reasonable, are subject to known and unknown risks,
uncertainties, and other factors which may cause the actual results and future events to dif fer
materially from those expressed or implied by such forward -looking statements. All statements
that address future plans, activities, events, or developments that the Company believes, expects,
or anticipates will or may occur are forward -looking inform ation, including statements
regarding the realization of the preliminary economic analysis for the Project, expectations of
future cash flows, the proposed plant expansion, potential expansion of resources and the
generation of further drilling results whi ch 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 estim ation, timing and amount of future exploration and development, capital and
operating costs, the availability of financing, the receipt of regulatory approvals, environmental
risks, title disputes, failure of plant, equipment or processes to operate as ant icipated, accidents,
labour disputes, claims and limitations on insurance coverage 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 assuran ce 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.