K92 Min­ing es­ti­mates equip­ment dam­age at $1.4M (U.S.)

Stockwatch Daily - - MINES & METALS - Mr. John Lewins re­ports

AN EX­TEN­SIVE eval­u­a­tion of un­der­ground van­dal­ism re­ported in Au­gust has re­vealed only mi­nor dam­age to K92 Min­ing Inc.’s un­der­ground equip­ment and in­fra­struc­ture.

Equip­ment dam­age on site as de­scribed in the Aug. 24, 2017, K92 news re­lease has been lim­ited to two MT2010 low-pro­file trucks, a small loader/tele­han­dler and sur­face in­fra­struc­ture with a to­tal es­ti­mated value of less than $1.4-mil­lion (U.S.). The com­pany notes that, with re­spect to the dam­age to this equip­ment, it is in the process of work­ing with its in­surer and tak­ing ap­pro­pri­ate claim ac­tion based on these poli­cies.

The com­pany has a third MT2010 low-pro­file truck due to ar­rive in Pa­pua New Guinea on Sept. 30, while on site, the com­pany has a Volvo 30-tonne ADT (ar­tic­u­lated dump truck) that is de­signed to go un­der­ground to pick up mined ma te rial and tw o Ko­matsu 35-tonne ADTs that can tram on sur­face, so it does not an­tic­i­pate that truck­ing will be a sig­nif­i­cant hin­drance to op­er­a­tions. As noted, all other equip­ment, in­clud­ing the com­pany’s load-hauldump (LHD) load­ers and the drill rigs, is fully op­er­a­tional. The work­shop and con­tain­ers near the 800 por­tal were dam­aged; how­ever, the main work­shop where K92 does all

ma­jor work is at the plant site and was not af­fected.

K92 ac­knowl­edges the con­sid­er­able work and good­will re­lat­ing to the com­ing restart of min­ing, pro­cess­ing and drilling op­er­a­tions by Min­ing Min­is­ter John­son Tuke, the Min­eral Re­source Au­thor­ity un­der man­ag­ing di­rec­tor Philip Sa­mar, and rep­re­sen­ta­tives of the East­ern High­lands pro­vin­cial and Kainantu lo­cal gov­ern­ments and thanks them for their ef­forts.

K92 notes that a fur­ther six con­tain­ers of con­cen­trates con­tain­ing ap­prox­i­mately 600 ounces of gold have been shipped since the in­ci­dent with pay­ment un­der its off­take agree­ment ex­pected by early next week.

K92 chief ex­ec­u­tive of­fi­cer John Lewins stated: “This iso­lated but un­for­tu­nate in­ci­dent has de­tracted at­ten­tion from the sig­nif­i­cant op­por­tu­nity pre­sented within this project to all stake­hold­ers. For­tu­nately, the dam­age, while not in­signif­i­cant, was mi­nor in re­la­tion to the project as a whole, and we look for­ward to recom­menc­ing op­er­a­tions. Ex­plo­ration drilling to fol­low up on the re­cently an­nounced Kora de­posit ex­ten­sion dis­cov­ery is ready to start and mine pro­duc­tion from on site is tar­geted to recom­mence shortly. We will pro­vide an op­er­a­tional up­date next week.”

K92 ex­plo­ration man­ager Chris Muller, PGeo, a qual­i­fied per­son un­der the mean­ing of Na­tional In­stru­ment 43-101, has re­viewed and is re­spon­si­ble for the tech­ni­cal con­tent of this news re­lease. Data ver­i­fi­ca­tion by Mr. Muller in­cludes sig­nif­i­cant time on site re­view­ing drill core, sur­face ex­po­sures and un­der­ground work­ings as well as dis­cussing work pro­grams and re­sults with ex­plo­ration staff.

We seek Safe Har­bor.

Robert Stu­art An­gus, Mark Price Ea­ton, Sau­rabh Handa, John D Lewins, Bryan James Rees Slusarchuk, John Ian Stalker, Gra­ham Whee­lock

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