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K92 beats production forecast despite disruptions

Papua New Guinea-focused K92 Mining has produced 14% more gold-equivalent ounces than planned despite several disruptions at the Kainantu mine in the September quarter.
K92 beats production forecast despite disruptions K92 beats production forecast despite disruptions K92 beats production forecast despite disruptions K92 beats production forecast despite disruptions K92 beats production forecast despite disruptions

K92 Mining has produced more gold-equivalent ounces than planned during Q3 at Kainantu in Papua New Guinea

Staff Reporter

Production for the three-month period came to 19,170oz Au-eq, comprising 18,636oz gold, 209,287lb copper and 5,284oz silver. Recoveries for the first three quarters of 2019 averaged 93.7% for gold and 92.8% copper.

CEO John Lewins said the company achieved above-budget production despite several disruptions to underground mining caused by ongoing work to upgrade infrastructure and to mine three bypasses in the main incline as the company works to expand the operation.

"The production results for the third quarter reflect the robustness of the Kora North deposit and the ability of the team at Kainantu to deliver on operational performance, while also focusing on major capital and infrastructure projects for the expansion," said Lewins.

The plant treated 32,094t at a head grade of 19.2g/t gold. The mine has now produced 58,610oz Au-eq in the first three quarters of 2019, surpassing the 47,237oz for the entire 2018. Management said the mine remained "well on target" to meet its increased guidance of 72,000-80,000oz Au-eq for 2019.

Vancouver-based K92 is working towards expects to double capacity to 400,000t/y that will lift output to 120,000oz/y.

The company also continued to work on the expansion of the Kora/Kora North resource, with the two surface and three underground rigs operating on the mine lease and 30 holes completed during the quarter.

K92 equity listed in Toronto (TSXC:KNT) has nearly tripled in value since the start of the year to C$2.37 Tuesday. The company has a market capitalisation of $484 million.