K92 Mining Inc. (“
K92” or the
“
Company”) (TSX-V:
KNT; OTCQX:
KNTNF) is pleased to provide an update on its
operations and Stage 2 Expansion at its producing underground
Kainantu Gold Mine (“
Kainantu”) in Papua New
Guinea.
Mining Fleet
Since K92 announced the formal decision for the
Stage 2 Expansion on March 13, 2019 (see Press Release: K92 Mining
to Expand Kainantu Gold Mine, PNG), Kainantu has undergone a
significant expansion and modernization of the mining fleet. The
fleet expansion includes not only an increase in the quantity of
equipment but also a significant increase in equipment size. In
late-2019, Kainantu received its latest major equipment delivery
including:
- Sandvik LH517i UG LHD loader on
site and operational
- Sandvik DL421-15C long hole
production drill rig on site and commissioning
- Sandvik DD422i Platinum twin boom
development (Autodrill capable) jumbo on site and
commissioning
- Minecat integrated emulsion
charging unit on site and commissioning
See Fig 1-3 for recent equipment received.
The arrival of the Sandvik long hole production
drill is of particular importance as it marks the beginning of
implementing lower-cost, high-productivity long hole stoping. The
Kora and Kora North deposit is especially amenable to this mining
method given its sub-vertical orientation, strike lengths and
thickness. Cut and fill has been the mining method at Kainantu
since it restarted in October 2016 and will continue to be
implemented as well. Long hole drilling will focus on Kora North’s
K2 Vein, and the potential for long-holing other veins is an
opportunity that is being assessed.
The late-2019 equipment arrivals, are in
addition to the other equipment arrivals in 2019 including:
- Materials Handling
- Two Caterpillar AD45B (45 tonne) low profile trucks on site and
operational
- One Sandvik LH517i loader on site and operational
- Two Caterpillar loaders (930K & 924K) on site and
operational
- One Sandvik EJC 430 (30 tonne) low profile on site and
operational
- Drill and Blast
- Two Sandvik twin boom jumbos on
site and operational:
- One Sandvik DD420 twin boom
jumbo
- One Sandvik DD421 twin boom
jumbo
- One Minecat integrated emulsion
charging unit on site and operational
- Mine Services
- One Getman Underground Grader on
site and operational
The mining fleet is planned to expand further in
early 2020, including the acquisition of:
- Third Caterpillar AD45B (45 tonne)
low profile truck expected to arrive in Q1 2020
- Third Sandvik LH517i loader with
teleremote automine expected to arrive in Q1 2020
- Sandvik DS421 cable bolter expected
to arrive in Q2 2020
- Jacon X5 underground cement truck
expected to arrive in Q1 2020
- Modular batching plant expected to
arrive in Q2 2020
Mine Infrastructure
In 2019, Kainantu’s underground mine
infrastructure was considerably upgraded and expanded, with several
key projects completed including:
- Installation of two 132 kW fans,
which replaced the two 55 kW fans in December 2019. This represents
a ~3x increase in fan power. To date, primary underground
ventilation flow-rates have increased more than 100%, providing an
immediate improvement to the mining cycle and operational
flexibility.
- Main incline debottlenecking
program completed in Q3 2019, with areas of the incline widened and
the excavation of three bypass drives to improve traffic management
and equipment efficiencies.
- New underground magazine at the
1210 mRL level 90% completed in December 2019 and to be finalized
in January 2020.
- Bulk emulsion charging system
implemented in Q2 2019, increasing development advance rates by
over 0.5m per cut and making Kainantu the first mine in PNG to
introduce full underground emulsion charging systems.
- Establishment of seven sublevels
between 1150 mRL to 1245 mRL. This represents a considerable
increase to mine operational flexibility. In 2018, Kainantu had
only three sublevels established and the majority of production
came from the 1205 mRL level.
There are several additional projects underway
including:
- Construction of equipment
maintenance workshop and office at portal, with completion of
office expected in Q1 2020 and completion of workshop expected in
Q3 2020.
- New high-tech underground
communications system including wifi, personnel tracking, advanced
remote equipment communications and real-time safety tracking
system. Completion expected in Q1 2020.
Kainantu Twin Incline
Early earthworks for the two 3-km twin inclines
have commenced with incline development expected to commence in Q1
2020. The design for the twin incline could handle production of up
to 2 million tonnes per annum.
Process Plant
Completion of the plant expansion is in the
final stages, with commissioning expected to begin in February
2019. The gravity circuit and gold room was installed in Q3 2019
and the new secondary crusher was installed in December 2019. The
focus is on the installation of the flotation tanks, with
foundations and tanks installed and piping and electrical
installations underway.
See Fig 4 – New Secondary Crusher installed and
due for commission in Q1 2020
See Fig 5 – Flotation Tanks Foundation and
Tanks Installed, Piping and Electrical Underway - expected
completion Q1 2020
John Lewins, K92 Chief Executive Officer and
Director, stated, “The Company is moving forward rapidly with
the Kora Expansion Project expected to significantly increase
throughput, achieving 400,000 tpa annualized process plant run-rate
by the end of 2020. In Q4 2019, Kainantu achieved record material
movement rates of 120,000 t, an increase from under 60,000 in Q1
2019; and is being further bolstered by multiple positive
developments including ongoing expansion to the mining fleet; the
commencement of higher productivity long hole stoping in Q1 2020,
and; the completion of key infrastructure projects in the second
half of 2019. The completion of the incline debottlenecking program
and the ventilation upgrade, in particular, has had an immediate
positive impact on equipment efficiencies and cycle times.
We are also very excited to have commenced the
development of our twin incline. The incline is being designed for
throughputs of up to 2 million tonnes per annum. This is materially
greater than the Stage 2 Expansion throughput of 400,000 tpa, and
the decision was based on our view that the mine has further
expansion potential as indicated from our exploration results to
date.
It is important to highlight that the
combination of above-budget production and below-budget cash costs
has enabled the Company to fund the expansion as well near-mine and
regional exploration from operational cash flow. While 2019 was
very much a transformational year for K92, we expect 2020 to build
on this and enable our Company to move towards the next level.”
About K92
K92 Mining Inc. is engaged in the production of
gold, copper and silver from the Kora and Kora North deposits of
the Kainantu Gold Mine in the Eastern Highlands province of Papua
New Guinea, as well as exploration and development of mineral
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 and operational
experience.
ON BEHALF OF THE
COMPANY,
John Lewins, Chief Executive Officer and
Director
For further information, please contact David
Medilek, P.Eng., CFA at +1-604-687-7130.
www.k92mining.com
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 regarding K92 Mining Inc.’s
future financial, and current and projected operating performance
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 forward-looking
statements in this news release are based on the opinions and
estimates of management as of the date such statements are made and
are subject to important risk factors and uncertainties, many of
which are beyond the Company’s ability to control or predict. 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 Gold Mine; the generation of further drilling results;
expectations of future cash flows; expectations of future
production results; expected success of the proposed plant
expansion; potential expansion of resources; any which may or may
not occur. Forward-looking statements and information contained
herein are based on certain factors and assumptions regarding,
among other things: there being no significant disruptions
affecting the Company’s operations; political and legal
developments in Papua New Guinea being consistent with the
Company’s current expectations; the accuracy of K92’s current
mineral reserve and mineral resource estimates; the exchange rate
between the Canadian dollar and U.S. dollar, and the Papua New
Guinea Kina, being approximately consistent with current levels;
prices for fuel, electricity and other key supplies being
approximately consistent with current levels; equipment, labour and
materials costs increasing on a basis consistent with K92’s current
expectations; all required permits, licenses and authorizations
being obtained from the relevant governments and other relevant
stakeholders within the expected timelines and the absence of
material negative comments during the applicable regulatory
processes; the market price of the Company’s securities; metal
price; 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.
Fig 1 – End of 2019 arrival of (from
left to right) DL421-15C long hole production drill rig, Sandvik
LH517i UG LHD loader (17 t bucket) and Sandvik DD422i Platinum twin
boom development (Autodrill capable)
jumbo:https://www.globenewswire.com/NewsRoom/AttachmentNg/7a992a2e-5836-42f3-b3aa-1d1490b51a6b
Fig 2 – End of 2019 arrival of Minecat
integrated emulsion charging unit on
site:https://www.globenewswire.com/NewsRoom/AttachmentNg/22af855d-72a9-4ee6-975e-479d8410e9d8
Fig 3 – Minecat integrated emulsion
charging unit on site and commissioning at the underground
development
face:https://www.globenewswire.com/NewsRoom/AttachmentNg/968dea84-da24-43b6-b6e8-9740531ea024
Fig 4 – New Secondary Crusher Installed
and due for commission in Q1
2020:https://www.globenewswire.com/NewsRoom/AttachmentNg/a9359af1-763c-4b08-9c39-6fa2c7e27fec
Fig 5 – Flotation Tanks Foundation and
Tanks Installed, Piping and Electrical Underway - expected
completion Q1
2020:https://www.globenewswire.com/NewsRoom/AttachmentNg/ed22f906-0387-4b8e-abf7-6b826de8672d
K92 Mining (TSXV:KNT)
Historical Stock Chart
From Aug 2024 to Sep 2024
K92 Mining (TSXV:KNT)
Historical Stock Chart
From Sep 2023 to Sep 2024