News Bureau

January 10, 2019

K92 expects 60K Ozs AuEq in 2019

By describing positive results of the Preliminary Economic Assessment PEA K92 says, mining production and plant processing capacity could be increased to 400K tonnes per annum over a period of approximately 12 months. Over a 13-year period, the plant would treat 4.9 million tonnes averaging 9.0 g/t Au. 20 g/t Ag.

Average production would be of over 120K Oz AuEq per annum with cash costs of US$429/ Oz AuEq and all-in sustaining costs. During the first five years, average production would remain over 145K Oz AuEq per annum with Initial Capital Cost of US$13.6 million for the expansion.

John Lewins, K92, Canada, Chief Executive Officer, states, “The results of the PEA show a robust project capable of producing almost 650K ozs Au over the next five years and over 1.3 Mozs over a 13-year life. Importantly, development of a new project, but for an expansion of our producing Kainantu operation which produced over 45K ozs AuEq in 2018 at cash cost of below US$600/oz AuEq.

The operation is expected to produce in excess of 60,000 ozs AuEq in 2019 assuming no expansion, or over 80,000 ozs AuEq with the expansion envisaged in the PEA. K92 has established a strong operations team of mining professionals on the ground in PNG which has seen the Kainantu Mine declare Commercial Production on Kora North on February 1, 2018.