EXPLORATION & DEVELOPMENT

K92 hits commercial production and best hole

K92 Mining (CN:KNT) has hit “the best hole we have drilled” in Kora North about a week after declaring commercial production at its Kainantu gold mine in Papua New Guinea.

Staff reporter
Hits 6.8m at 53.34g/t gold, 106g/t silver and 1.16% copper

Hits 6.8m at 53.34g/t gold, 106g/t silver and 1.16% copper

It intersected 6.8m at 56.45g/t gold-equivalent, or 53.34g/t gold, 106g/t silver and 1.16% copper, which it said was the highest grade and best intersection from Kora vein K2 and possibly the best hole drilled to date in Kora North.

The drill hole was oriented upwards, above the current working level and CEO John Lewins said K92 looked forward to defining the potential of the Kora deposit.

K92 bought the project from Barrick Gold (CN:ABX) in 2015 and has been working towards achieving commercial production, with the ramp-up temporarily hampered last year by vandalism over landowner issues. 

K92 last week declared commercial production effective February 1, mining the Kora North lode eight months after the first discovery hole and expects to achieve design level in the June quarter when longhole stope production begins.

K92 did not base its decision to mine on reserve estimates or feasibility studies.

The mine produced more than 2,700 gold equivalent ounces in January and K92 expected total cash costs for the month to be below US$850/oz AuEq.

Shares in the company, which were trading above C$1 a year ago, lost 1c on Friday to 48.5c, capitalising it at $78.4 million.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.

editions

Mining Journal Intelligence Global Leadership Report 2023: Social licence

Gain insights into social licence trends and best practices from interviews with 20+ top mining company executives and an industrywide survey.