Vancouver, British Columbia, May 14, 2020 – K92 Mining Inc. (“K92” or the “Company”) (TSXV: KNT; OTCQB:  KNTNF) is pleased to announce results from its financial statements for the three months ended March 31, 2020.

Strong safety record continues, with no lost time injuries and one of the best safety records in the Australasia region since start of operations.
Proactive and focused management of COVID-19, with no confirmed cases amongst employees. K92 continues to operate and has strong preventative and response plans.
Q1 production of 19,240 oz of gold, 339,993 lbs copper and 6,937 oz silver for a total of 19,934 gold equivalent (“AuEq”) oz, representing the second highest quarter on record.
Record material movements of 125,500 tonnes and record underground development of 1,560 metres, increasing from Q1 2019 by 110% and 215%, respectively.
Commenced long hole stoping at Kainantu with the first stope from the K1 vein.
Record tonnage of 47,313 tonnes treated, a 76% increase from Q1 2019.
Cash costs of US$708/oz gold and all-in sustaining costs of US$886/oz gold.
Sold 18,747 ounces of gold, 306,993 lbs of copper and 7,165 ounces of silver for revenues of US$27,633. Gold equivalent concentrate inventories increased by 746 ounces during the quarter, to 4,913 ounces.
EBITDA of US$9.8 million or US$0.05 per share and operating cash flow (before working capital adjustments) of US$12.5 million or US$0.06 per share.
High-grade drill results continue to be reported at Kora North, which will contribute to our upcoming resource expected in May 2020 and Stage 3 Expansion PEA.
Record stockpile of 17,982 tonnes built ahead of the plant expansion commissioning.
For complete details of the annual audited consolidated financial statements and associated management’s discussion and analysis, please refer to the Company’s website or profile on SEDAR (www.sedar.com).  All amounts are in U.S. dollars unless otherwise indicated.

John Lewins, K92 Chief Executive Officer and Director, stated,

“The first quarter demonstrated the tremendous growth potential of the Kainantu Mine, both operationally and through exploration. Operationally, the completion of infrastructure projects and fleet expansions in prior quarters delivered record material movements and development rates. The development rates, importantly, are consistent with the advance rates required long-term and material movements have built stockpiles for over one month of process plant production. Production from our first long hole stope on the K1 vein also commenced during the quarter and represents a major milestone. Long hole stoping to date has performed well, and we are very encouraged by the enhanced operational flexibility that comes with this mining method.

On exploration, we continued to deliver high-grade step-out and infill results from both underground and surface drilling at Kora North. Since the latest resource estimate in Q4 2018, step-out drilling has consistently intersected the structure along strike to the South, to depth and up-dip. Mining has also steadily delivered positive grade and tonnage reconciliations. We look forward to providing our updated resource estimate in the near-term and a Preliminary Economic Assessment (“PEA”) on the Stage 3 Expansion shortly thereafter.

Most importantly, I would like to acknowledge the outstanding commitment of our workforce and the strong support from Government during the COVID-19 pandemic environment.”

MARCH 31, 2020
MARCH 31, 2020
Head grade (Au g/t) 13.6 23.6
Gold recovery (%) 93.0% 93.7%
Gold ounces produced 19,240 19,125
Gold ounces equivalent produced (1) 19,934 19,788
Tonnes of copper produced 154 120
Silver ounces produced 6,937 5,564
Gold ounces sold 18,747 18,416
Revenues from concentrate sales US$27,633 US$23,994
Mine operating expenses US$7,716 US$4,369
Other mine expenses US$5,951 US$3,435
Depreciation and depletion US$1,556 US$1,517
Average realized selling price per ounce, net US$1,502 US$1,247
Cash cost per ounce US$708 US$391
All-in sustaining cost per ounce US$886 US$567

Gold equivalent for 2020 based on the following prices: gold $1,500 per ounce; silver $17.75 per ounce; and copper $2.70 per pound. Gold equivalent for 2019 based on the following metal prices: gold $1,300 per ounce; silver $16.50 per ounce; and copper $2.90 per pound.
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 in the Company’s management’s discussion and analysis dated May 14, 2020, 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.

The Company is withdrawing its full-year 2020 production guidance as a result of timing uncertainty related to international travel for commissioning of our Stage 2 Plant Expansion due to the COVID-19 National State of Emergency declared in Papua New Guinea on March 20, 2020. Once clarity on timing is reached, we will provide updated guidance. The Kainantu Mine continues to operate at the Stage 1 plant throughput with modifications made to mine sequencing already implemented to increase cash flow. There are no confirmed cases of COVID-19 within our workforce and we are encouraged by the progressive relaxing of restrictions in PNG.

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K92 Mining Ltd spends over K325mil in Kainantu Gold Mine operations in PNG

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