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"The production was achieved from operating less than 75% of the quarter"

K92 Mining (TSX-V: KNT) CEO and director John Lewins said he was “extremely pleased” with September quarter production of almost 10,000 gold-equivalent ounces from the high-grade Kainantu gold mine in Papua New Guinea, after operations were hampered by a fall of ground incident.
"The production was achieved from operating less than 75% of the quarter" "The production was achieved from operating less than 75% of the quarter" "The production was achieved from operating less than 75% of the quarter" "The production was achieved from operating less than 75% of the quarter" "The production was achieved from operating less than 75% of the quarter"

K92's high-grade gold mine moves past fall of ground incident

Staff reporter

Mining operations were disrupted for about three weeks after the incident in the incline and production was achieved by operating less than 75% of the quarter, K92 said.

"Excluding this stoppage, production exceeded 1,000oz [AuEq] per week for the balance of the quarter," Lewins said.

The former Barrick Gold asset produced 9,549oz of gold, 146,315 pounds of copper and 2,551oz of silver, or 9,910oz AuEq for the period.

It reported average grades of 16.7g/t gold and 0.38% copper, with recoveries of 94% and 93.2% respectively.

The company had produced 10,485oz of gold, or 10,800oz AuEq in the previous quarter.

K92 had reaffirmed its 2018 production guidance at the end of the June quarter, of 42,000-46,000oz AuEq for the year at an all-in sustaining cost of US$720-$780/oz.

At the time, it said the fall of ground incident near the end of June brought forward scheduled remediation and ground support replacement work, which had been planned to take an extended period to spread the effect of disruption.

However it said the work was completed in about three weeks and had not changed production guidance for the year.

The company will report financial details for Q3 production in an upcoming filing and expects to achieve positive cash flow for the period.

K92's shares have almost doubled since 12 months ago, when the company's ramp-up towards commercial production - achieved in February - was hampered by vandalism over landowner issues.

Shares closed up 1% on Friday to C97c, close to a recent 52-week high of $1.04, capitalising it around $176 million.