K92 Mining Incorporated is spending K1 billion over the next two years expanding production to 300,000 ounces by 2025 and 450,000 ounces by the end of 2026.
Chief executive officer and director John Lewins told The National that this expanded resource meant a significant extension to the life of the K92 project.
On a similar note, he said Papua New Guinea, landowners and other stakeholders would directly benefit from the mine going into 2026.
Leiwins’ comments came after the miner had announced its results following updated resource estimates from the Kora and Judd deposits.
“The updated Kora and Judd resource estimates significantly exceeded the company’s expectations for both the measured and indicated resource, as well as inferred (or secondary) resource,” he said.
“The resource growth was achieved efficiently, over a period of less than two years and at discovery cost of less than US$7.5 (about K28.40) per ounce of gold equivalent.
“We also just announced an updated resource of 2.6 million gold equivalent ounces of measured and indicated resource and 4.5 million gold equivalent ounces of inferred resource for a total of 7.1 million ounces.
“This is an increase of more than 40 per cent on the previous resource of 4.9 million ounces, with 2.5 million ounces of gold equivalent added.
“K92 Mining is spending K1 billion over the next two years expanding production to 2026.”
Lewins added that in order to achieve this, K92 had invested considerable capital into exploration, “increasing our investment for several few years”.
K92 will spend K75 million on exploration in 2024, making K92 Mining the largest explorer in the mining industry. Lewins said the K92 project had also increased its exploration expenditure guidance to US$20 million (about K75.4 million) in October.
Furthermore, the K92 Mining CEO said the company was looking forward to announcing results from multiple target areas near-term in addition to operational announcements as it transforms K92 into a tier 1 mid-tier producer over the next 18 months with construction of the stages three and four expansions underway.
TheNational/PacificMiningWatch
Also read: PNG's OK Tedi Mine works on female staff talent, skills