VANCOUVER, British Columbia, Feb. 20, 2018
(GLOBE NEWSWIRE) -- K92 Mining Inc. (“K92”) (TSXV:KNT) is pleased
to advise it has awarded the contract from the installation of a
gold gravity recovery circuit into the Process Plant at its
Kainantu Gold Mine in Papua New Guinea to Mincore Pty Ltd
(“Mincore”).
Previous testwork carried out on samples from
the Kora deposit indicated that up to 65% of the gold could be
recovered by gravity concentration. These results are supported by
ongoing plant scale testwork carried out by K92 on Kora North
material currently being treated through the process plant. The
gravity circuit will comprise centrifugal concentrators and a gold
room containing a shaking table and induction furnace for the
production of gold dore bars.
The cost of the gravity circuit is expected to
be US$1 million and the installation of the gravity circuit is
expected to improve gold recovery by between 2% and 5% and also
increase the payment terms for the gold produced in dore form by
approximately 3% to 4% giving a net increase in gold revenue of at
least 4%.
The ongoing high grades being treated through
the process plant make the installation of the gravity circuit a
priority. The feed grade to the plant has averaged almost 20 g/t Au
during February, requiring the throughput of the plant to be
significantly reduced to ensure acceptable recoveries are achieved.
While currently gold recoveries of over 92% are being achieved,
testwork has indicated that the installation of a gravity circuit
will allow design throughput to be maintained while also achieving
up to 95% recovery. Importantly the gravity circuit being installed
will be sized to be able to treat the increase in throughput
envisaged in the Preliminary Economic Assessment (“PEA”) referenced
below, of 400,000 tpa.
Mincore carried out the refurbishment of the
Kainantu Processing Plant prior to the restart of operations and
also completed the metallurgical component as reported in the
“Independent Technical Report, Mineral Resource Update and
Preliminary Economic Assessment of Irumafimpa and Kora Gold
Deposits, Kainantu Project, Papua New Guinea," with an effective
date of March 2, 2017.
John Lewins, K92 Chief Executive Officer and
Director, states, “The award of the contract for the
installation of the gravity circuit is not only a major step in
optimizing the performance of the process plant when treating Kora
North material, but also the first step in increasing the plant
capacity from 200,000 tpa to 400,000 tpa. The anticipated payback
for the US$1 million investment, based on an improved gold recovery
and payability, is less than one year. We are also extremely
pleased to be continuing our association with Mincore, who
completed the initial refurbishment of the Kainantu Process Plant
within a very tight budget and who are also extremely familiar with
both the process plant and the metallurgy of the Kora
deposit.”
K92 has filed and made available for download on
the company's SEDAR profile a technical report titled "Independent
Technical Report, Mineral Resource Update and Preliminary Economic
Assessment of Irumafimpa and Kora Gold Deposits, Kainantu Project,
Papua New Guinea," with an effective date of March 2, 2017, that
provides additional information on the geology of the deposits,
drilling and sampling procedures, lab analysis, and quality
assurance/quality control for the project, and additional details
on the resource estimates.
The PEA estimates for Kora, based on the current
resource estimates (4.36 million tonnes of 7.3 g/t Au, 35 g/t Ag
and 2.23 per cent Cu):
- Over a nine-year operating life,
the plant would treat 3.2 million tonnes averaging 7.1 g/t Au, 25
g/t Ag and 1.7 per cent Cu (9.3 g/t AuEq (1));
- This would generate an estimated
positive cash flow of $537-million (U.S.) using current metal
prices if 15-metre levels are used in mining; if 25-metre levels
are used, then net cash flows are estimated as $558-million (U.S.);
this cash flow includes conceptual allowances for capital;
- Production of an estimated average
of 108,000 AuEq (1) ounces per annum over an eight-year period from
year 2 through to year 9;
- An estimated pretax net present
value (NPV) of $415-million (U.S.) for 25-metre levels, or
$397-million (U.S.) for 15-metre levels, using current metal
prices, exchange rates and a 5-per-cent discount;
- An estimated after-tax NPV of
$329-million (U.S.) for 25-metre levels, or $316-million (U.S.) for
15-metre levels, using current metal prices, exchange rates and a
5-per-cent discount;
- Initial capital cost is estimated
to be $13.8-million (U.S.), including the $3.3-million (U.S.) for
the plant upgrade identified in the Mincore scoping study, but
excluding the proposed Kora exploration inclines and diamond
drilling; sustaining capital cost is estimated to a further
$64-million (U.S.) spent over the life of the Kora mining for
25-metre levels, or $83-million (U.S.) for 15-metre levels;
- Operating cost per tonne is
estimated to be $125 (U.S.) per tonne for 25-metre levels, or $126
(U.S.) per tonne for 15-metre mining levels;
- Excluding initial capital
expenditure of $14-million (U.S.), cash cost is estimated to be
$547 (U.S.) per ounce AuEq (inclusive of a 2.5-per-cent net smelter
return (NSR) royalty) and all-in sustaining cost (AISC) of $619
(U.S.) per ounce AuEq for 25-metre mining levels, or $549 (U.S.)
per ounce (inclusive of a 2.5-per-cent NSR royalty) and AISC of
$644 (U.S.) per ounce AuEq for 15-metre mining levels.
Metal prices used were $1,300 per ounce for
gold, $18 (U.S.) per ounce for silver and $4,800 per tonne for
copper.
(1) Gold equivalent calculated on above metal
prices.
Kora remains open for expansion in every
direction and strongly mineralized at the extent of all
drilling.
The PEA is preliminary in nature and includes
inferred mineral resources that are considered too speculative
geologically to have the economic considerations applied to them
that would enable them to be categorized as mineral reserves, and
there is no certainty that the PEA will be realized. K92 has not
based its production decisions on ongoing mine production or
mineral reserve estimates or feasibility studies, and historically
such projects have increased uncertainty and risk of failure.
The technical report contains a full description
of all underlying assumptions relating to the PEA. Mineral
resources that are not mineral reserves and do not have
demonstrated economic viability.
|
|
Table
3.0 |
IRUMAFIMPA AND KORA/EUTOMPI
RESOURCES
|
|
|
|
Resource by Deposit and Category |
Deposit |
Resource
Category |
Tonnes |
Gold |
Silver |
Copper |
Gold Equivalent |
Mt |
g/t |
MOz |
g/t |
MOz |
% |
Mlb |
g/t |
MOz |
Irumafimpa |
Indicated |
0.56 |
12.8 |
0.23 |
9 |
0.16 |
0.28 |
37 |
13.4 |
0.24 |
Inferred |
0.53 |
10.9 |
0.19 |
9 |
0.16 |
0.27 |
74 |
11.5 |
0.20 |
Kora/Eutompi |
Inferred |
4.36 |
7.3 |
1.02 |
35 |
4.9 |
2.23 |
215 |
11.2 |
1.57 |
Total Indicated |
0.56 |
12.8 |
0.23 |
9 |
0.16 |
0.3 |
4 |
13.4 |
0.24 |
Total Inferred |
4.89 |
7.7 |
1.21 |
32 |
5.06 |
2.0 |
218 |
11.2 |
1.76 |
|
|
|
|
|
|
|
|
|
|
M in Table is millions. Reported tonnage and
grade figures are rounded from raw estimates to reflect the order
of accuracy of the estimate. Minor variations may occur during the
addition of rounded numbers. Gold equivalents are calculated as
AuEq = Au g/t + Cu%*1.52+ Ag g/t*0.0141.
On behalf of the company,
John Lewins
Chief Executive Officer and Director
Suite 488 – 1090 West Georgia Street
Vancouver, British Columbia
Canada V6E 3V7
Telephone: (604) 687-7130
Facsimile: (604) 608-9110
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 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 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 Project,
expectations of future cash flows, the proposed plant expansion,
potential expansion of resources and the generation of further
drilling results which may or may not occur. Forward-looking
statements and information contained herein are based on certain
factors and assumptions regarding, among other things, the market
price of the Company’s securities, metal prices, exchange rates,
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.
K92 Mining (QX) (USOTC:KNTNF)
Historical Stock Chart
From Aug 2024 to Sep 2024
K92 Mining (QX) (USOTC:KNTNF)
Historical Stock Chart
From Sep 2023 to Sep 2024