K92 Min­ing pro­duces 9,549 oz Au in Q3

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

K92 MIN­ING Inc. has pro­vided an up­date on op­er­a­tions dur­ing Q3 2018 at its Kainantu gold mine in Pa­pua New Guinea. Dur­ing Q3, K92 pro­duced 9,549 ounces of gold, 146,315 pounds of cop­per and 2,551 oz of sil­ver or 9,910 AuEq oz (based on a gold price of $1,300 (U.S.) per oz; sil­ver $16.5 (U.S.)/oz; cop­per $2.90 (U.S.)/lb).

As pre­vi­ously re­ported, min­ing op­er­a­tions were dis­rupted for a pe­riod of over three weeks in July due to a fall of ground (FOG) near muck bay 4 in the in­cline, which ne­ces­si­tated re­me­di­a­tion ac­tion and re­place­ment of ground sup­port in the area. The pro­duc­tion was achieved from op­er­at­ing less than 75 per cent of the quar­ter, while dur­ing the bal­ance of the quar­ter pro­duc­tion ex­ceeded 1,000 oz AuEq per week.

Min­ing op­er­a­tions fo­cused on Kora North, com­pris­ing cut and fill stope min­ing from the K2 vein over a 200-me­tre strike length and cut and fill stope min­ing on the K1 vein over a 250-me­tre strike length.

The blend of pri­mar­ily K1 ma­te­rial with some and K2 ma­te­rial pro­vided an av­er­age grade treated through the process plant for Q3 of 16.7 grams per tonne Au and 0.38 per cent Cu. Re­cov­er­ies for the quar­ter av­er­aged 94 per cent for gold and 93.2 per cent cop­per.

Grade con­trol drilling from the third drill cuddy diamond drill cuddy 3 (DDC3) con­tin­ued dur­ing the quar­ter, while ex­plo­ration drilling com­menced from DDC4.

John Lewins, K92 chief ex­ec­u­tive of­fi­cer and di­rec­tor, states: “We are ex­tremely pleased with the pro­duc­tion of al­most 10,000 AuEq ozs achieved dur­ing this quar­ter, es­pe­cially given that un­der­ground min­ing pro­duc­tion was dis rupted by a fal l of ground (FOG) in the in­cline, which re­sulted in over three weeks of un­der­ground mine pro­duc­tion be­ing lost dur­ing the quar­ter. Ex­clud­ing this stop­page, pro­duc­tion ex­ceeded 1,000 oz per week for the bal­ance of the quar­ter. In ad­di­tion, we saw an im­prove­ment in gold re­cover to 94 per cent while through­put in Septem­ber was the best yet achieved at over 9,500 tonnes for the month.”

Fur­ther fi­nan­cial de­tails re­gard­ing Q3 pro­duc­tion will be avail­able within the up­com­ing quar­terly fi­nan­cial fil­ing. Based on bud­get, K92 an­tic­i­pates op­er­a­tions achieved pos­i­tive cash flow for the quar­ter.

We seek Safe Har­bor.

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

(KNT) Shares: 181,311,619

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