K92 Mining Reports Significant Resource Upgrade at High-Grade Kora Deposit and Maiden Judd Resource Estimate
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NEWS RELEASE
K92 MINING REPORTS SIGNIFICANT RESOURCE UPGRADE AT HIGH-GRADE
KORA DEPOSIT AND MAIDEN JUDD RESOURCE ESTIMATE
Vancouver, B ritish Columbia, February 23 , 2022 - K92 Mining Inc. (“K92” or the
“Company”) (TSX: KNT; OTCQB: KNTNF) is pleased to announce results from the updated
resource estimate completed on the Kora deposit and the maiden resource for the Judd deposit, at
its producing Kainantu Gold Mine in Papua New Guinea. The resource estimate is based on surface
and underground exploration diamond drilling and underground face sampling . The focus of
exploration at Kora since the previous resource estimate from April 2020 was on upgrading
Inferred Resources to Measured and Indicated through infill drilling for the Stage 3 Defin itive
Feasibility Study (“Stage 3 DFS”). The maiden resource estimate at Judd follows the discovery of
high-grade underground mineralization in Q4 of 2020.
Kora Deposit Mineral Resource Estimate Highlights
• Kora Measured and Indicated Resource of 2.1 million ounces at 9.2 0 g/t gold
equivalent (“AuEq”) (for a gold cut-off grade of 1.75 g/t) representing a 91% increase
from the previous resource estimate of 1.1 million ounces AuEq in April 2020. The
large increase was achieved after net mining depletion of 348 kt at 16.33 g/t AuEq or
182 koz AuEq from the previous resource estimate.
• Kora Inferred Resource remains substantial at 2.5 million ounces at 9.48 g/t AuEq.
• Significant component of the updated Kora Mineral Resource is high grade, with only
moderate reductions in overall ounces as cut -off grade increases (see Table s 2 and 3
for grade sensitivity table).
o Measured and Indicated Resource of 1.88 million ounces at 11.65 g/t AuEq at
3 g/t gold cut-off and 1.53 million ounces at 15.68 g/t AuEq at 5 g/t gold cut off.
o Inferred Resource of 2.03 million ounces at 12.91 g/t AuEq at 3 g/t gold cut-off
and 1.62 million ounces at 17.12 g/t AuEq at 5 g/t gold cut off.
• Positive g old reconciliation compared to updated resource model. Mill production
actuals (based on ounces recovered) exceeded the depleted updated resource estimate
by ~7%.
Judd Deposit Maiden Mineral Resource Estimate highlights:
• Measured and Indicated Resource of 0.13 million ounces at 11 .00 g/t AuEq and
Inferred Resource of 0.18 million ounces at 5.66 g/t AuEq (for a gold cut-off grade of
2
1.75g/t). The resource is net of mining depletion of 64 kt at 12. 2 g/t AuEq or 2 5 koz
AuEq.
• Similar to Kora, a large portion of the Judd Mineral R esource is high grade,
particularly for Measured and Indicated Resources , with moderate reductions in
overall ounces as cut-off grade increases (see Tables 4 and 5 for grade sensitivity table).
o Measured and Indicated Resource of 0.12 million ounces at 13.98 g/t AuEq at
3 g/t gold cut-off and 0.11 million ounces at 18.35 g/t AuEq at 5 g/t gold cut off.
o Inferred Resource of 0.13 million ounces at 8.28 g/t AuEq at 3 g/t gold cut -off
and 0.08 million ounces at 10.83 g/t AuEq at 5 g/t gold cut off.
Resource Growth Opportunities and Exploration Targets
• The Kainantu vein field has numerous opportunities to expand Mineral R esources
from near-mine high-priority exploration areas including: Kora , Kora Deeps, Kora
South, Judd, Judd South, Karempe, and Arakompa and Maniape (see Figure 10).
• Kora remains open along strike and at depth, while Judd remains open in all
directions.
• After completing an extensive infill drilling program focused on upgrading Mineral
Resources at Kora, exploration is now almost entirely focused on resource growth,
with drilling underway at Kora, Kora South, Judd South, in addition to the Blue Lake
Porphyry.
• Plans are in place to drill Kora Deeps and test northern extensions to Kora in H2 2022.
• Currently up to 11 drill rigs operating.
Table 1 – Global Kora and Judd Mineral Resource (Effective Date October 31, 2021 for Kora
and December 31, 2021 for Judd, 1.75 g/t gold cut-off)
Tonnes Gold Silver Copper AuEq
Mt g/t moz g/t moz % kt g/t moz
Kora
Measured 2.8 9.07 0.8 15.7 1.4 0.85 24.1 10.51 1.0
Indicated 4.4 6.68 0.9 20.2 2.8 0.97 42.4 8.35 1.2
Total M&I 7.2 7.62 1.8 18.4 4.3 0.92 66.4 9.20 2.1
Inferred 8.1 7.12 1.8 27.3 7.1 1.38 111.1 9.48 2.5
Judd
Measured 0.22 11.26 0.08 19.9 0.14 0.72 1.59 12.56 0.09
Indicated 0.15 7.46 0.04 13.9 0.07 0.77 1.20 8.76 0.04
Total M&I 0.38 9.70 0.12 17.5 0.21 0.74 2.79 11.00 0.13
Inferred 1.01 4.24 0.14 11.0 0.36 0.87 8.82 5.66 0.18
Kora and Judd
Measured 3.1 9.23 0.9 16.0 1.6 0.84 25.7 10.66 1.0
Indicated 4.5 6.70 1.0 20.0 2.9 0.97 43.6 8.36 1.2
Total M&I 7.6 7.72 1.9 18.3 4.5 0.91 69.2 9.29 2.3
Inferred 9.1 6.80 2.0 25.5 7.4 1.32 0.1 9.05 2.6
3
• Estimates are in Technical Report titled, “Independent Technical Report, Mineral
Resources Estimate Update Kora and Judd Gold Deposit, 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 estimate is October 31, 2021 for Kora and December 31, 2021 for Judd.
• Mineral Resources are not Mineral Reserves and do not have demonstrated economic
viability.
• Resources were compiled at 1.75,2.5,3,4,5,6,7,8,9 and 10 g/t gold cut-off grades for Kora
and 1.75,2.5,3,4,5 for Judd.
• Density (t/m3) is on a per zone basis, K1, K2: 2.84 t/m3; Kora Link: 2.74 t/m3; Judd: 2.71
t/m3; Waste: 2.67 t/m3
• Minimun mining width for wireframes: Kora: 5.2 m; Judd: 5.2 m.
• 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*92.8% + Ag
g/t*0.0125*89%. Gold price US$1,600/oz; Silver US$20/oz; Copper US$3.75/lb. Metal
payabilities and recoveries are incorporated into the AuEq formula. Recoveries of 92.8%
for copper and 89% for silver.
Table 2 – Sensitivity to Au Cut-off grade for Kora Measured and Indicated Resource Block
Model (see Fig 5 for Grade Tonnage Curve)
(Resource Statement is for 1.75 g/t Au cut-off; tabulation of other cut -off values for information
only)
Measured and Indicated Resources
Au Cut-
Off Grade
Tonnes Gold Silver Copper AuEq
g/t mt g/t moz g/t moz % kt g/t moz
1.75 7.19 7.62 1.76 18.4 4.25 0.92 66.4 9.20 2.13
2.5 5.76 8.99 1.66 19.7 3.64 0.98 56.3 10.67 1.98
3 5.01 9.92 1.60 20.4 3.29 1.01 50.5 11.65 1.88
4 3.87 11.84 1.47 21.3 2.65 1.04 40.3 13.63 1.69
5 3.03 13.86 1.35 21.8 2.13 1.06 32.1 15.68 1.53
6 2.44 15.91 1.25 22.1 1.73 1.05 25.7 17.73 1.39
7 2.00 17.96 1.16 22.4 1.44 1.04 20.8 19.76 1.27
8 1.69 19.89 1.08 23.7 1.23 1.02 17.3 21.67 1.18
9 1.36 21.60 0.94 29.2 1.28 1.17 15.9 23.67 1.04
10 1.26 23.63 0.96 23.0 0.93 0.98 12.3 25.34 1.03
4
Table 3 – Sensitivity to Au Cut -off for Kora Inferred Resource Block Model (see Fig 5 for
Grade Tonnage Curve)
(Resource Statement is for 1.75 g/t Au Cut-off; tabulation of other cut -off values for information
only)
Inferred Resources
Au Cut-
Off Grade
Tonnes Gold Silver Copper AuEq
g/t mt g/t moz g/t moz % kt g/t moz
1.75 8.08 7.12 1.85 27.3 1.85 1.38 111.1 9.48 2.46
2.5 5.79 9.11 1.70 31.0 1.70 1.50 86.6 11.68 2.18
3 4.89 10.28 1.62 32.0 1.62 1.52 74.5 12.91 2.03
4 3.66 12.58 1.48 31.9 1.48 1.53 56.1 15.23 1.79
5 2.94 14.58 1.38 30.2 1.38 1.48 43.4 17.12 1.62
6 2.39 16.67 1.28 29.3 2.25 1.41 33.7 19.10 1.47
7 2.00 18.63 1.20 29.8 1.92 1.37 27.5 21.00 1.35
8 1.69 20.71 1.12 30.7 1.67 1.34 22.6 23.05 1.25
9 1.43 22.91 1.05 31.9 1.47 1.31 18.7 25.21 1.16
10 1.22 25.22 0.99 33.2 0.99 1.30 15.9 27.53 1.08
Table 4 – Sensitivity to Au Cut-off grade for Judd Measured and Indicated Resource Block
Model (see Fig 8 for Grade Tonnage Curve)
(Resource Statement is for 1.75 g/t Au cut-off; tabulation of other cut -off values for information
only)
Measured and Indicated Resources
Au Cut-
Off Grade
Tonnes Gold Silver Copper AuEq
g/t mt g/t moz g/t moz % kt g/t moz
1.75 0.38 9.70 0.12 17.5 0.21 0.74 2.8 11.00 0.13
2.5 0.31 11.29 0.11 19.2 0.19 0.80 2.5 12.69 0.13
3 0.27 12.53 0.11 20.5 0.18 0.82 2.2 13.98 0.12
4 0.22 14.87 0.10 22.6 0.16 0.83 1.8 16.37 0.11
5 0.18 16.82 0.10 24.4 0.14 0.84 1.5 18.35 0.11
5
Table 5 – Sensitivity to Au Cut -off for Judd Inferred Resource Block Model (see Fig 8 for
Grade Tonnage Curve)
(Resource Statement is for 1.75 g/t Au Cut-off; tabulation of other cut -off values for information
only)
Inferred Resources
Au Cut-
Off Grade
Tonnes Gold Silver Copper AuEq
g/t mt g/t moz g/t moz % kt g/t moz
1.75 1.01 4.24 0.14 11.0 0.36 0.87 8.8 5.66 0.18
2.5 0.63 5.57 0.11 12.4 0.25 1.00 6.3 7.20 0.15
3 0.47 6.51 0.10 12.8 0.19 1.09 5.1 8.28 0.13
4 0.32 8.02 0.08 12.6 0.13 1.09 3.5 9.79 0.10
5 0.24 9.17 0.07 12.1 0.09 1.03 2.5 10.83 0.08
John Lewins, K92 Chief Executive Officer and Director, stated, “The updated Kora Resource and
maiden Judd Resource has significantly exceeded our goal to increase Measured and Indicated
Resources to 2.0 million ounces AuEq after depletion for the Stage 3 DFS, with a combined Kora
and Judd Measured and Indicated Resource of 7.6 million tonnes at 9.29 g/t AuEq for 2.3 million
ounces AuEq. The Inferred Resource is also significant with a total of 9.1 million tonnes at 9.05
g/t AuEq for 2.6 million ounces. The increase in Measured and Indicated Resources is especially
significant when factoring in mining depletion, where 348kt at 16.33 g/t AuEq or 182 koz AuEq
was depleted from Kora and 64kt at 12.2 g/t AuEq or 25 koz AuEq was depleted from Judd. When
comparing the updat ed resource model’s depletion to mill actuals, Kainantu has delivered a
positive reconciliation of ~7%.
The resource estimate at both Kora and Judd has also demonstrated significant high -grade
operational flexibility going forward at both deposits, with moderate reductions in overall ounces,
and significant increases in grade at increasing cut-off grades. This operational flexibility will be
leveraged for the upcoming Stage 3 DFS and also an updated Preliminary Economic Assessment
that will incorporate the Inferred Resource. Both studies are well underway and we look forward
to announcing the results in Q2 2022.
Looking ahead, there remains tremendous potential to increase resources at Kainantu on multiple
fronts. The limits of Kora have not been found, and it remains open along strike and at depth .
Judd, running sub -parallel to Kora, is open in all directions and we believe exploration is only
just beginning to understand its potential after discovering high -grade mineralization
underground in Q4 2020. Last week, Kora South and Judd South reported maiden drilling results
from its first two step-out holes, including 6.20 m at 17.26 g/t AuEq from K2 Vein , 15.25 m at
15.87 g/t AuEq in the J1 Vei n. Those intersections w ere within dilatant zones discovered, which
recorded 66.55 m at 5.02 g/t AuEq at Judd South and Kora South at 35.90 m at 5.98 g/t AuEq .
This is the first time that K92 or any prior operator has drilled Kora South or Judd South.
The results of our advanced geophysics also shows significant near-mine and regional exploration
potential, including the potential for vein mineralization continuing for kilometr es from Kora
South and Judd South. Porphyry exploration also continues to progress at Blue Lake with two drill
6
rigs currently operating. We look forward to announcing exploration results from multiple areas
near-term.”
Kora Deposit Background
The Kora Deposit comprises two parallel, steeply west dipping, north -south striking quartz -
sulphide vein systems, K1 and K2, within an encompassing dilatant structural zone hosted by
phyllite. An additional structure, the Kora Link, has also been defined for part of the area between
K1 and K2. The K3 vein, encountered in several drill holes but was not a diamond drilling focus,
was not included in the resource and requires additional drilling.
The current Kora resource estimate area covers an area of approximately 1250 metres along strike
by 1050 to 1150 metres vertically (see Fig 2 to 4), representing ~80% of the drill target area. K92
plans to continue to drill the area not yet drilled, and the deposit remains open to the south at depth
and to the north at depth . The updated resource estimate includes results from 509 diamond drill
holes in addition to face samples taken from horizontal development and from cut and fill faces
along the K1 and K2 veins.
Judd Deposit Background
The Judd Deposit is subparallel to the Kora deposit, located between 150 and 200 metres to the
east. It comprises a steeply west dipping, north-south striking quartz-sulphide vein system, within
an encompassing dilatant structural zone hosted by phyllite. Underground drilling has encountered
the main J1 lode and two other veins J2 and J3 with the latter two not a drilling focus, and were
not included in the resource. J2 and J3 require additional drilling.
The current Judd resource estimate area covers an area of approximately 700 metres along strike
by 100 to 700 metres vertically (see Fig 7 and 8). The high grade mineralization at the Judd deposit
was discovered in Q4 2020, with development to date completed on two sublevels, the 1235 level
and 1265 level. The maiden resource estimate includes results from 48 underground and 1 surface
diamond drill holes in addition to face samples taken from horizontal development along the J1
vein. A small amount of surface drilling has intersected moderately minerali zed zones in the
anticipated position for the J1 lode, but there is insufficient confidence to include them in the
resource estimate at present.
Key Assumptions and Parameters
Underground drilling consists of diamond core for a range of core sizes depending on the length
of hole and expected ground conditions. Sampling is sawn half core under geological control and
generally ranges between 0.5m to 1.0m. Underground face sampling is completed for every fired
round and is to industry standard. QAQC data indicated no significant issues with the sampling or
the accuracy of the on-site analysis. Current core recovery of the mineral zone is +95%, with initial
drilling around the 90% mark.
Geological logging is consistent and is based on a full set of logging codes covering lithology,
alteration, and mineralization. All sampling and analytical work for the mine exploration program
is performed by Intertek Testing Services (PNG) LTD, a n independent accredited laboratory that
7
is located on site. External check assays for QA/QC purposes are performed at SGS Australia Pty
Ltd in Townsville, Queensland, Australia.
The geological interpretation of the vein systems is represented as 3D wiref rame solids snapped
to a combination of diamond drillhole data and underground face sampling (see Fig 1 and 6).
Definition of the wireframes is based on identified gold (and copper and silver) mineralization in
drill core nominally at a 0.1-0.2 g/t Au gold-off in conjunction with geological control/sense and
current mining widths. A minimum mining width of 5.2m was applied for the wireframes for the
K1, K2 and 5.2m for the J1 lode. The Kora Link is a broader zone of more variably continuous
mineralization and butts onto both the K1 and K2 lodes in various places.
The wireframes were used to extract 1-metre composites (minimum of 0.5m) from the drillhole &
sampling database for gold, copper and silver. A gold top cut of 1000 g/t was applied to K2, a 400
g/t top cut for Kora Link and a 400 g/t top cut for J1 composites. No top cuts were applied to silver
or copper. Variography was generally poor, as would likely be expected for the s tyle of
mineralization, although K1 and J1 indicated better along strike grade continuity as a result of the
inclusion of the face sampling data.
Grade interpolation of the composite data was completed using Ordinary Kriging with a block size
of 1m (X direction) by 5m (Y direction) by 5m (Z direction). A larger block size check model
indicated no evidence of over-smoothing of gold grade with the smaller block size.
Default average density values have been applied to the different lodes. The defaults are based on
limited core measurements using the immersion in water Archimedes Method (weight in
air/weight in water). Density (t/m3) is on a per zone basis, with K1 and K2: 2.84 t/m3; Kora Link
2.74 t/m3; J1: 2.71 t/m3; Waste: 2.67 t/m3.
A three-pass search strategy was applied to the grade interpolation. Search ellipse parameters are
listed below. Search ellipse orientations generally reflected the subtle changes in dip and strike of
the vein systems, with up to 8 search domains used for the K1 and K2 lodes. The much smaller
Kora Link Lode required only 2 search domains. The J1 Lode required 6 search domains.
Table 5 – Mineral Resource Search Ellipse Pass Specifications
Pass No X radius
(m)
Y radius
(m)
Z radius
(m) Min Data Min Octants Max Data
1 2 25 25 12 4 32
2 4 50 50 12 4 32
3 12 125 125 6 2 32
Allocation of the classification of the Mineral Resources is derived from the search pass numbers
which essentially is a function of the drillhole and face sample data point distribution. Additional
considerations were included in the assessment of the classification; in particular, the geological
understanding and complexity of the deposit, sample recovery, quality of the QAQC sampling and
outcomes, density data and reconciliation with production.
8
Table 6 – Resource Classification by Pass Category
Pass Category Resource Classification
1 Measured
2 Indicated
3 Inferred
All material mined within the mineral wireframes up to the effective date (of October 31, 2021 for
Kora and December 31, 2021 for Judd) has been removed from the model. Gold reconciliation of
the resource model with the mill production up to the effective dat e has been reasonably good in
terms of recovered ounces from the mill being 7% above that estimated by the model.
The Inferred Mineral Resources in this estimate have a lower level of confidence than that applied
to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably
expected that the majority of the I nferred Mineral Resource could be updated to an Indicated
Mineral Resource with continued exploration.
Gold Equivalent (AuEq) g/t was calculated using the formula AuEq = Au g/t + Cu%*1.607*92.8%
+ Ag g/t*0.0125*89%. Gold price US$1,600/oz; Silver US$20/oz; Copper US$3.75/lb. Metal
payabilities and recoveries are incorporated into the AuEq formula. Recoveries of 92.8% for
copper and 89% for silver.
The estimate of Mineral Resources may be materially affected by environmental, permitting, legal,
title, taxation, socio-political, marketing, or other relevant issues.
Mineral Resources, which are not Mineral Reserves, do not have demonstrated economic viability.
The complete Technical Report prepared in accordance with National Instrument 43 -101 -
Standards of Disclosure for Mineral Projects (“NI 43-101”) will be released within 45 days of this
news release.
The new resource estimate will be used for the upcoming DFS and updated PEA, which is expected
in Q2 2022.
Conference Call and Webcast to Present Results
K92 Mining will host a conference call and webcast to present the results of the updated Kora
mineral resource at 8:30am (Eastern Time) on Wednesday, February 23.
• Listeners may access the conference call by dialing toll-free 1-800-319-4610 within North
America or +1-604-638-5340 from international locations.
• The conference call will also be broadcast live (webcast) and may be accessed via the
following link:
• http://services.choruscall.ca/links/k92mining20220223.html