Strong quarterly production, the second highest on record, of 32,995 oz of gold equivalent (“AuEq”) (1) or 29,256 oz gold, 1,666,076 lbs copper and 32,161 oz silver and quarterly sales of 25,297 oz gold, 1,551,981 lbs copper and 28,396 oz silver.
Record quarterly plant throughput of 117,938 tonnes processed or 1,282 tpd (“tonnes per day”), significantly exceeding Stage 2 Expansion run-rate (1,100 tpd) and a 35% increase from Q3 2021. Head grade during the quarter of 8.67 g/t gold, 0.72% copper and 11.53 g/t silver (9.81 g/t AuEq), with gold grades exceeding budget by 3%.
Record mine production, with 122,035 tonnes ore mined during the quarter, or 1,326 tpd, an increase of 37% from Q3 2021. With the mine outperforming the mill, as at September 30, 2022, the mill stockpile reached its highest level at quarter end since late-2020.
Record daily mill tonnes processed achieved on July 14, of 1,642 tonnes and record monthly average mill throughput achieved in August of 1,373 tpd, exceeding Stage 2A Expansion run-rate of 1,370 tpd. Importantly, the records were achieved prior to commissioning of a major Stage 2A Expansion plant upgrade, the flotation expansion, with commissioning planned for late-Q4 2022/early Q1 2023.
Significant advancement of the twin incline in Q3, with incline #2 (6m x 6.5m) advanced to 1,543 metres and #3 (5m x 5.5m) advanced to 1,581 metres as of September 30, 2022. Overall mine development was 1,887 m, an increase of 19% from Q3 2021 and second highest on record.
Note (1): Gold equivalent for Q3 2022 is based on the London Metal Exchange quarterly spot average price: gold $1,730 per ounce; silver $19 per ounce; and copper $3.51 per pound.

VANCOUVER, British Columbia, Oct. 06, 2022 (GLOBE NEWSWIRE) -- K92 Mining Inc . (“ K92 ” or the “ Company ”) (TSX : KNT; OTCQX : KNTNF) announces production results for the third quarter (“ Q3 ”) of 2022 at its Kainantu Gold Mine in Papua New Guinea, of 32,995 oz AuEq or 29,256 oz gold, 1,666,076 lbs copper and 32,161 oz silver. Sales during the third quarter were 25,297 oz gold, 1,551,981 lbs copper and 28,396 oz silver.

During the third quarter, the process plant delivered record quarterly throughput of 117,938 tonnes processed or 1,282 tpd, an increase of 35% from Q3 2021 and 17% greater than the Stage 2 Expansion run-rate of 1,100 tpd. Importantly, in August, the process plant achieved record monthly throughput of 1,373 tpd, reaching the Stage 2A Expansion run-rate of 1,370 tpd. September throughput was also strong, averaging 1,336 tpd. The strong throughput is especially significant as the Stage 2A Expansion plant upgrades are not yet complete, with the flotation expansion that will double rougher capacity expected to be commissioned in late-Q4 2022/early-Q1 2023.

The flotation expansion is expected to provide a boost to metallurgical recoveries and provide flexibility to potentially increase throughput further and beyond the Stage 2A design-run rate (500,000 tpa / 1,370 tpd). The additional flotation tanks are expected to be commissioned in late-Q4 2022/early Q1 2023. The new filter press and TC-1000 secondary/tertiary crusher for Stage 2A are installed and operational.

Mine performance achieved a quarterly record of 122,035 tonnes of ore mined; an increase of 37% from Q3 2021. Total material mined (ore plus waste) also delivered a record, with 223,472 tonnes mined, increasing 30% from Q3 2021. During the quarter, long hole stoping continued to perform to the design, with operations focused on Kora’s K1 and K2 veins, and Judd’s J1 Vein for a total of 10 levels mined. Mining on Kora was conducted on the 1150, 1170, 1225, 1245, 1265 and 1285 levels, and Judd on the 1235, 1265, 1285 and 1305 levels. Mining exceeded processing rates, resulting in the largest mill stockpile at quarter-end since late 2020.

The operation delivered head grades of 8.67 g/t gold, 0.72% copper and 11.53 g/t silver (9.81 g/t AuEq) in Q3, with gold grades 3% higher than budget. Metallurgical recoveries averaged 88.9% for gold and 88.4% for copper during the quarter, with recoveries expected to improve upon the commissioning of the flotation expansion in late-Q4 2022/early-2023.

Twin incline development made significant progress, advancing 33% above budget during Q3. As of September 30, 2022, incline #2 (6m x 6.5m) advanced to 1,543 metres and #3 (5m x 5.5m) advanced to 1,581 metres. Year-to-date, twin incline development has advanced 36% above budget. Overall, mine development performed well, advancing 1,887 metres in Q3 (including the twin incline), a 19% increase from Q3 2021, and the second highest quarter on record.

The solid results year-to-date, and a strong throughput and higher grade stoping sequence planned for 4Q 2022, well positions Kainantu to achieve its 2022 production guidance of 115,000 to 140,000 oz AuEq.

See Figure 1: Quarterly Total Mill Throughput, Development Metres Advanced and Total Mined Material Chart

https://www.globenewswire.com/NewsRoom/AttachmentNg/ae55116d-a064-41c9-9191-1401e40380c9

COVID-19 Operational Resiliency

The Kainantu Gold Mine operates under a comprehensive COVID-19 Management Plan that has continuously operated during the pandemic. A considerable focus is on health and safety and risk-mitigation. Under the COVID-19 Management Plan, K92 has: established a Government-recognized testing lab facility utilizing qualified medical personnel on site; set up quarantine and isolation facilities for incoming staff (currently not in use); and implemented enhanced hygiene, disinfecting and training systems and procedures. A focus has been supporting Government efforts at a national, provincial and local level through the 1.5 million PGK (Papua New Guinea Kina) COVID-19 Assistance Fund, and a further 1.0 million PGK of additional assistance funding to Eastern Highlands Province.

In addition to its various control measures, K92 continues to make considerable progress increasing resiliency through vaccinations of our expatriate and PNG national workforce, with vaccinations continuing to be administered on site. Over 75% of our workforce (employees and contractors) have received at least one vaccine dose. The Company is in close communications with the provincial and national health authorities of Papua New Guinea and the Government of Australia in addition to the Papua New Guinea Chamber of Mines and Petroleum to deliver an effective pandemic response.

Table 1 – Q3 2022 & 2021 Annual Production Data

Q3 2021 2021 Q1 2022 Q2 2022 Q3 2022
Tonnes Processed T 87,621
336,221 99,611 108,853 117,938
Feed Grade Au g/t 9.0 9.8 8.3 7.2 8.7
Feed Grade Cu % 0.48% 0.51 % 0.76% 0.56% 0.72%
Recovery (%) Au % 86.1% 89.4 % 90.9% 91.0% 88.9%
Recovery (%) Cu % 87.2% 88.8 % 91.1% 90.9% 88.4%
Metal in Conc Prod Au Oz 21,908 95,055 24,152 22,934 29,256
Metal in Conc Prod Cu T 364 1,531 692 558 756
Metal in Conc Prod Ag Oz 19,736 70,792 28,142 25,224 32,161
Gold Equivalent Production Oz 24,122 104,196 28,188 26,085 32,995
Note - Gold equivalent for Q3 2022 is based on the London Metal Exchange quarterly spot average price: gold $1,730 per ounce; silver $19 per ounce; and copper $3.51 per pound. Gold equivalent for Q2 2022 is based on the London Metal Exchange quarterly spot average price: gold $1,870 per ounce; silver $23 per ounce; and copper $4.32 per pound. Gold equivalent for Q1 2022 is based on the London Metal Exchange quarterly spot average price: gold $1,879 per ounce; silver $24 per ounce; and copper $4.53 per pound. Gold equivalent for 2021 is based on the following prices:

gold $1,800 per ounce; silver $25 per ounce; and copper $4.35 per pound.

John Lewins, K92 Chief Executive Officer and Director, stated, “In the third quarter, Kainantu delivered one of our most complete quarters to date and marked another important step forward in expanding operations with near-record production and multiple operational records achieved.

In the processing plant, 3Q delivered record mill throughput of 1,282 tpd, significantly greater than the Stage 2 Expansion of 1,100 tpd and increasing 35% from Q3 2021. A new daily record was achieved on July 14, of 1,642 tonnes, September delivered our second highest monthly average throughput to date and August recording our highest ever, averaging 1,373 tpd. This is especially significant as the mill has effectively achieved Stage 2A Expansion levels, ahead of schedule and ahead of the last major plant upgrade, the installation of the flotation expansion. The flotation expansion is expected to not only provide a boost to metallurgical recoveries but also increase plant throughput flexibility further, with the potential to ultimately exceed the Stage 2A Expansion run-rate.

In the mine, record ore mined was realized, increasing 37% from Q3 2021. Mining exceeded milling during the quarter, resulting in our largest mill ore stockpile at quarter end since late 2020, providing an additional boost to operating flexibility. A key contributor to the strong mining rates has been the additions of new equipment combined with improving operating productivities, and I am pleased to report that on October 2, 2022, we delivered yet another record, with 1,833 tonnes ore mined in a single day via tele-remote loaders from stopes.

3Q delivered our second highest overall development on record, with the twin incline also progressing well, advancing 33% more than budgeted. Increasing the development rate remains a focus, a new jumbo arrived in Q3 and multiple pieces of mobile equipment are expected to arrive over the coming months.

The strong performance to date and a fourth quarter that is expected to also be strong well-positions K92 to meet our annual production guidance of 115,000 oz to 140,000 oz AuEq.

On exploration, there are 10 drill rigs currently operating, focusing on resource growth and drilling multiple target areas concurrently, including Kora South and Judd South from surface, in addition to Kora, Judd, Kora South, Judd South and Kora Northern Deeps from underground. With our financial position the strongest it has ever been, we expect to continue to increase our exploration activities.”

Qualified Person

K92 Mine Geology Manager and Mine Exploration Manager, Andrew Kohler, PGeo, a qualified person under the meaning of Canadian National Instrument 43-101 – Standards of Disclosure for Mineral Projects , has reviewed and is responsible for the technical content of this news release. Data verification by Mr. Kohler includes significant time onsite reviewing drill core, face sampling, underground workings, and discussing work programs and results with geology and mining personnel.