THE K92 Mining Ltd in Papua New Guinea can be operational for more than 30 years, its chief executive officer John Lewins says.
He said the current resource had more than five million ounces of gold (ozs Au).
“We are continuing to increase it with our exploration drilling,” Lewins said.
“The current mine life is more than 10 years with the expansion to 350,000ozs per annum.
“With continuing exploration success, we believe that the mine can be around for more than 30 years.
“K92 has budgeted K50 million for exploration this year.”
He said K92 remained committed to serving the communities and paying tax to the Government.
“With K92’s stage three expansion, we are looking at commissioning the expansion in 2024 and to achieve full production in 2025,” Lewins said.
“This will result in a tripling of its production to 350,000 ounces (oz), with a similar threefold increase in corporate tax (K250 million per year) and royalty payments (K40 to K50 million per year), while salary wages tax will also increase with a doubling of the number of people employed on the operation.
“Completion of our stage two expansion in 2021 which doubled throughput to 400,000 tonnes per annum and the stage 2A expansion, due to be commissioned in the third quarter this year, will increase throughput to 500,000 tonnes per annum.
“Planning and execution of stage three expansion, which will involve capital expenditure of more than K1 billion over the next three years (K300 million in 2022), will increase the throughput at Kainantu to 1.2 million tonnes per annum and increase production to 350,000 ozs per year, making the Kainantu Gold mine a world class mine.”
The National/ Pacific Mining Watch
Next : K92 Mining Limited sets K50 million for Mine Exploration