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