K92 ANNOUNCES COVID-19 OPERATIONAL UPDATE AND RESPONSE PLAN
March 23 2020 - 09:30AM
K92 Mining Inc. (“
K92” or the
“
Company”) (TSX-V
: KNT;
OTCQX
: KNTNF) is providing an operational update
on the impact of the Covid-19 pandemic and emergency response
plans.
To date there has been no significant impact on
operations at the Company’s Kainantu Gold Mine in Papua New Guinea
as a result of the Covid-19 pandemic. The Company initiated a
Covid-19 Management Plan at the operation, which addresses major
issues such as occupational health, hygiene and safety, business
continuity, travel, supply chain, statutory compliance,
communications, testing, risk assessment and contingency
planning.
The Company has been increasing stock levels of
spares and consumables to between four and six months, although to
date there has been almost no impact seen to our supply chain.
On Friday, March 20, Papua New Guinea reported
its first case of Covid-19 infection, following the testing of an
international visitor shortly after arrival in PNG. It is
understood that the visitor was isolated, and no additional
infections have been reported to date, with testing ongoing. As a
result of this reported infection, the PNG Government has today
declared a National State of Emergency (“SOE”) for a period of 14
days. Under the SOE there are international and domestic travel
restrictions, with no foreign nationals permitted to enter the
country and all travel between Provinces restricted to essential
services.
In line with other mining operations in country,
the Company intends to maintain normal operations at the mine and
associated facilities, but will be curtailing all non-essential
works, including major capital projects and all field exploration
activities. As a result, the commissioning of the plant expansion
will be delayed until the current travel restrictions are lifted
allowing the necessary external contractors to travel to site.
The Company is making no change to its
production guidance at this time but will be reviewing this over
the coming month as the situation in country develops.
The Company has the necessary complement of
expatriate and PNG National workforce to maintain operations for
the foreseeable future but will be evaluating developments on an
ongoing basis.
The work by external consultants to update the
Kora – Kora North resource estimate is continuing and it is
anticipated that this will be completed shortly. In addition, the
work on a Preliminary Economic Assessment (“PEA”) on the next phase
of expansion of the project is also continuing and it is
anticipated that this report will be completed in the second
quarter.
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.
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