K92 PNG drill results continue to please

Ongoing drilling from K92 Mining at its Kora and Judd deposits at the Kainantu gold mine in Papua New Guinea has brought in results inline-with or better-than the current resource grade which has encouraged the company in its hope for an expansion.

 K92's Kainantu

K92's Kainantu

"The hit rate once again was very strong, with all holes intersecting mineralization, 15 intersections exceeding 20g/t AuEq and 44 intersections exceeding 10g/t AuEq and featured multiple highlight intersections at both Kora and Judd," K92's CEO and director John Lewins said.

At Kora, the company highlighted:

  • 4.20 metres at 33.85g/t Au, 100g/t Ag and 1.41% Cu (37.88g/t AuEq, 2.63 metres true width)
  • 4.92 metres at 18.15g/t Au, 39g/t Ag and 2.81% Cu (23.16g/t AuEq, 2.74 metres true width)
  • 4.27 metres at 20.55g/t Au, 8g/t Ag and 0.76% Cu (21.87g/t AuEq, 2.21 metre true width)
  • 10.05 metres at 22.07g/t Au, 16g/t Ag and 0.57% Cu (23.18g/t AuEq, 5.90 metres true width)
  • 7.37 metres at 21.76g/t AU, 11g/t Ag and 0.78% Cu (23.17g/t AuEq, 3.68 metres true width)

Highlights at Judd included:

  • 8.80 metres at 59.52g/t Au, 37g/t Ag and 0.74% Cu (61.17g/t AuEq, 8.80 metres true width)
  • 1.09 metres at 30.50g/t Au, 73g/t Ag and 4.07% Cu (37.96g/t AuEq, 0.91 metres true width)
  • 2.93 metres at 19.76g/t Au, 3g/t Ag and 0.05%Cu (19.88g/t AuEq, 1.26 metres true width)

"The drill results also highlighted that both Kora and Judd have significant expansion potential—open along strike in both directions and down dip, with Judd also open up-dip towards surface," Lewins said.

Analysts agreed that the results further underscore the quality of the asset.

"The suite of drill results from Kora and Judd again reinforces the unique grade (Au-Ag-Cu) character of these epithermal systems that are proximal and sub-parallel to each other, and the propensity for the intersection of a high proportion of high-grade drill results over widths with 44 of the 116 reported holes showing interesting grades more than 10g/t AuEq (with 94 holes reporting intersections of < 5g/t AuEq)," Haywood Securities said.

Canaccord Genuity Capital Markets analyst said the results were further proof of the "world class nature of Kainantu".

K92 is planning to release its stage 3 definitive feasibility study and updated preliminary assessment this quarter or next.

"We see the likelihood for far more drilling on Judd over the near to the mid-term to better delineate its economic potential (an important facet to provide more minable tonnes and could aid in future plant capacity upgrades well beyond Phase 3 at 1.2 million tonnes per annum," Haywood Securities said.

K92's share price was C$9.34 (US$7.36) on June 10, giving the company a market capitalization of C$2.08 billion.

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.


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