The company said the first Judd Vein #1 1265 Level development results showed "significant high-grade mineralisation".

K92 reported a strike length of more than 83m and average vein thickness of 3.5m at 16.48g/t gold-equivalent, or 13.56 g/t gold, 1.77% copper and 32g/t silver from channel sampling.

"The frequency of high-grade faces was also strong, with 57% of development faces recording grades over 10g/t Au-eq from channel sampling," CEO John Lewins said.

"Importantly, the results correspond well with our first sublevel developed at Judd, the 1235 Level, which has reported 288m of development averaging 3.7m vein thickness at 11.64g/t Au-eq, including 179m of development at 3.7m vein thickness at 15.39g/t Au-eq.

"The establishment of a new mining front at Judd is expected to also provide a tremendous boost to operational flexibility plus another high-grade feed source, benefitting the operation near-term and well beyond."

The company is eying a strong finish to 2021 after an "unexpectedly challenging" first half, which was impacted by a surge in COVID-19 cases and the suspension of expatriate travel between Australia and PNG.

K92 had produced about 43,700oz Au-eq in the first half and has not changed 2021 guidance of 115,000-135,000oz.

It started this quarter debt-free and with US$56 million in cash.

BMO Capital Markets last week had an outperform rating and price target of C$11 for K92.

The miner's shares (TSX: KNT) closed up 7.2% yesterday to $7.39, valuing it at $1.64 billion (US$1.3 billion).