K92 Mining Releases First Quarter Financial Results and Provides 2018 Production Guidance
May 18 2018 - 7:00AM
- Production of 9,324 gold ozs or 9,729 gold equivalent
(AuEq) ozs for the Quarter at a cost of $532/gold oz or $555/ gold
equivalent oz and an all-in sustaining cost of $726/gold oz or
$741/gold equivalent oz1
- Revenue less Cost of Sales for February and March, the
first two months of commercial production, was
US$4,759,371
- Initial production guidance issuance for 2018 expected
to be between 42,000 and 46,000 gold equivalent ozs
- Cash cost guidance for 2018 expected to be US$530 to
US$560 per gold equivalent oz, with all-in sustaining costs
expected to be US$720 to US$780 per gold equivalent
oz1
Note1 - a non-IFRS measure
computed in the Company’s MD&A in the non-IFRS performance
measures section.
VANCOUVER, British Columbia, May 18, 2018 (GLOBE
NEWSWIRE) -- K92 Mining Inc. (TSX-V:KNT) (OTCQX:KNTNF) (the
“Company” or “K92”) is pleased to
announce first quarter financial results and provide 2018
production guidance.
For complete details of the unaudited condensed
consolidated interim financial statements and associated
management's discussion and analysis, please refer to the Company's
filings on SEDAR. All amounts are in U.S. dollars unless
otherwise indicated.
Other Highlights
- An updated resource for Kora North, comprising a Measured
Resource of 33,200 tonnes @ 10.3 g/t Au, 31 g/t Ag and 1.2% Cu; an
Indicated Resource of 103,500 tonnes @ 12.7 g/t Au, 30 g/t Ag and
1.3% Cu and an Inferred Resources of 183,500 tonnes @ 14.4 g/t Au,
27 g/t Ag and 0.9% Cu announced.
- A contract for the installation of a gold gravity recovery
circuit and a new flotation cleaner circuit awarded to Mincore Pty
Ltd.
- Additional underground mobile fleet purchased, including Volvo
A30F haul truck, Cat R1300G and 1700G LHD loaders, Sandvik DD420-60
twin boom jumbo and Qasar single boom jumbo.
- Underground exploration program commenced targeting an area
immediately up dip, down dip and along strike from the initial Kora
North resource.
- Exploration field work identifies a new highly prospective
porphyry target, Blue Lake, containing gold/silver/copper
mineralization and hydrothermal alteration typical of that
encountered in high sulphidation epithermal systems.
John Lewins, K92 Chief Executive Officer and
Director, states, “The first Quarter of 2018 marks a major step
for our Company with the declaration of commercial production on
the Kora deposit on February 1, 2018, just four months after mining
the first bulk sample. The Quarter also saw the Company report an
initial net income in excess of US$3 million including a gross
margin in excess of US$4.7 million from just the first two months
following the declaration of commercial production. Production for
the first three months of the year was just over 9,700 gold
equivalent ozs, approximately 80% of design. Importantly, although
not at design production levels, cash costs were extremely low at
US$532/gold oz, while all-in sustaining costs were just US$726/gold
oz.”
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MINE
OPERATING ACTIVITIES |
|
|
|
|
|
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Three
months ended
March 31, 2018
|
|
|
|
Operating data |
|
|
Head
grade (Au g/t) |
|
16.95 |
Gold
Recovery (%) |
|
91.7 |
Gold
ounces produced |
|
9,324 |
Gold
ounces equivalent produced (1) |
|
9,729 |
Pounds of copper produced |
|
165,976 |
Silver ounces produced |
|
2,752 |
|
|
|
Financial data (in thousands of dollars) |
|
February 1, 2018 – March 31, 2018 |
Revenues -- gold sales |
|
$8,526 |
Mine
operating expenses |
|
($3,223) |
Depreciation and depletion |
|
($526) |
|
|
|
Statistics (in dollars) |
|
|
Average realized selling price (per ounce) |
|
$1,327 |
Cash
cost (per ounce) (1) |
|
$532 |
All-in sustaining cost (per ounce) (1)
|
|
$726 |
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Review of financial results
Net income
The Company's net income for the three-month
period ended March 31, 2018, totalled $3,317,070 or income per
share of two cents compared with net loss of $5,637,593 or a loss
per share of five cents for the three-month period ended March 31,
2017.
Notes
- The Company provides some non-international financial reporting
standard measures as supplementary information that management
believes may be useful to investors to explain the Company's
financial results. Please refer to non-IFRS financial
performance measures of the Company's management's discussion and
analysis dated May 17, 2018, available on SEDAR for reconciliation
of these measures.
K92 has not based its production decisions on
mineral reserve estimates or feasibility studies, and historically
such projects have increased uncertainty and risk of failure.
Mineral resources that are not mineral reserves do not have
demonstrated economic viability.
Qualified Person
K92 mine geology manager and mine exploration
manager, 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 content 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.
For further information regarding the Kainantu
gold mine, please refer to the technical report dated March 2,
2017, and entitled "Independent Technical Report, Mineral Resource
Update and Preliminary Economic Assessment of Irumafimpa and Kora
Gold Deposits, Kainantu Project, Papua New Guinea," available on
SEDAR.
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
Services Provider (as that term is defined in policies of the TSX
Venture Exchange) 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 Project,
expectations of future cash flows, future production, estimated
cash costs, 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, metal 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, 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 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.
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