K92 Mining Kora Expansion Update
Suite 488 – 1090 West Georgia Street
Vancouver, British Columbia
Canada V6E 3V7
Telephone: +1 (604) 687-7130
Facsimile: +1 (604) 608-9110
www.k92mining.com
NEWS RELEASE
July 31, 2019 Vancouver, British Columbia
K92 MINING KORA EXPANSION UPDATE
K92 provides an update on the Kora Expansion Project at the Kainantu Gold Mine:
• Installation of Gravity Circuit complete and commissioning underway, which is
expected to increase recoveries and payabilities
• Underground Mining Fleet expanded with delivery of new grader and larger trucks
and loaders
• New ventilation system commissioned and installation of 3x new 132 kW ventilation
fans underway for significant increase in airflow (replacing 2 x 55 kW fans)
• Additional mobile plant in transit including two additional Sandvik twin boom jumbo
drill rigs and a Sandvik EJC 430 truck
• New long hole jumbo drill ordered and due November 2019
• Design, engineering and ordering of major equipment for the process plant expansion
completed
K92 Mining Inc. (TSX-V: KNT; OTCQX: KNTNF) (“K92” or the “Company”) is pleased to
provide an update on the Kora Expansion Project at its Kainantu Gold Mine in Papua New Guinea.
Mining
The expansion of the mining fleet to enable the expanded production rate of 400,000 tonnes per
annum is well progressed with the following equipment on site, in transit or on order:
• Two off Caterpillar AD45B (45 tonne) low profile trucks on site and operational
• One off Sandvik LH517i loader on site and operational
• Two off Caterpillar loaders (930K & 924K) on site and operational
• One off Getman Underground Grader on site and operational
• Two off Sandvik twin boom jumbos in transit
• One off Minecat integrated emulsion charging unit due for arrival in September
• One off Sandvik DL421-15C long hole drill rig on order and due for delivery in December
• One off Sandvik EJC 430 (30 tonne) low profile truck in transit
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The addition of the above equipment to the existing fleet provides sufficient capacity to achieve
the expanded production rate.
In addition to the above, there are a number of mining projects under way as part of the expansion:
• Main incline debottlenecking is 60% complete with the excavation of passing points at
Muck Bay (“MB”) 4, MB 7 and MB 9
• Following the commissioning of the new return airway system in Q2 2019, the
installation of three off 1 32 kW fans to replace the existing two off 55 kW fans is
underway and due for commissioning in the current quarter
• A new underground magazine at the 1210 level has been completed
• Design of the new workshop and offices at the 800 portal is complete, orders placed,
and work has commenced
• A new b ulk emulsion charging system was fully implemented in Q2 2019, making
Kainantu the first mine in PNG to introduce a full UG emulsion charging system
Current production is focused on the 1170 mRL, 1185 mRL and 1205 mRL levels. Development
of the decline has reached the 1150 mRL, while the incline has reached the 1225 mRL level. The
development of the decline and incline will continue with access to the 1130 mRL and 1245 mRL
levels, expected in Q4 2019.
Process Plant
The installation of the gravity circuit, including gold room, new mill classification circuit and new
flotation feed tank has been completed and commissioning is currently under way. The gravity
circuit is designed to treat the entire process stream to maximize recovery of gravity gold.
The design and engineering for the process plant expansion are complete and all major equipment
has been ordered with most either on site or in transit. Following the completion of the
commissioning of the gravity circuit, work on the balance of the plant expansion will commence.
This work includes modifications to the crushing circui t, including installation of a larger
secondary crusher, expansion of flotation circuit including installation of new cleaner -recleaner
circuit, upgrade of process control system together with various pumps, pipes and installation of
various ancillary equipment.
Infrastructure
The camp has been expanded over the past twelve months from the previous capacity of 450
persons to 600 persons. The most recent construction of a new 64-man block, including ablutions
was completed in July and construction of a new kitchen and mess has commenced.
A new workshop and store for the two underground diamond drill rigs which the Company
acquired in Q2 2019 has been constructed and is operational.
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John Lewins, K92 Chief Executive Officer and Director, stated, “The Company is moving forward
rapidly with the Kora Expansion Project and is on track to complete the process plant expansion
by end of 2019. The ramp up of production from underground, which has already seen record
production in the first half of 2019, is on track to achieve the expanded throughput in Q3 2020.
The combination of above budget production and below budget cash costs during th e first half of
2019 has enabled the Company to fund the expansion from operational cash flow. This will now
be supplemented by the recently announced US$15 million debt facility from Trafigura which will
allow the Company to continue to fund the expansion while also increasing cash reserves and
funding the drilling and exploration work necessary to underpin potential future developments.”
About K92
K92 Mining Inc. is engaged in the production of gold, copper and silver from the Kora/Kora North
deposit of the Kainantu Gold Mine in the Eastern Highlands province of Papua New Guinea, as
well as exploration and development of m ineral deposits in the immediate vicinity of the mine.
The Company declared commercial production from Kainantu in February 2018 and has
commenced an expansion of the mine. An updated Preliminary Economic Assessment on the
property was published in January 2019. K92 is operated by a team of mining company
professionals with extensive international mine-building experience.
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 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
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 differ
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 information, including statements regarding
the realization of the preliminary economic analysis for the Kainantu Mine, expectations of future
cash flows, the planned plant expansion, planned increased production rate, 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, metal prices,
exchange rates, taxation, the estimation, timing and amount of future exploration and
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development, capital and operating costs, the availabi lity of financing, the receipt of regulatory
approvals, environmental 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 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 materi ally 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.