Of the 32 holes, 24 intercepts exceeded 10g/t gold-equivalent and six exceeded 40g/t Au-eq, CEO John Lewins said.

"The results also featured some of the higher-grade holes reported to date, including KMDD0383 at 6.45m at 106.95g/t Au-eq and KMDD0373 recording 5.30m at 96.85g/t Au-eq," he said.

The results demonstrated the continuity of high-grade cores within the K1 and K2 veins at Kora, BMO Capital Markets' Andrew Mikitchook said.

The first results from infill drilling also intersected higher grades than historical data suggested, he said, opening the door to positive grade reconciliation of near-surface mineralisation compared with the company's existing data.

K92 had reported high-grade mineralisation from drilling at the Judd Vein, the next mining front, last month.

The upcoming resource update is expected to form the basis of a stage three expansion feasibility study slated for next year.

The self-funded expansion is expected to take production to a run-rate of 318,000 ounces Au-eq annually, according to a preliminary economic assessment released in July 2020.

K92 expects to produce 115,000-135,000oz Au-eq this year, with a strong second half.

BMO has an outperform rating and price target of C$11.

K92 shares (TSX: KNT) lost 4.2% yesterday on a downbeat day for most gold equities to close at $7.06, valuing it at $1.6 billion (US$1.3 billion).

The company will be added to the S&P/TSX Composite Index from September 20.