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K92 Mining (TSX:KNT) announces Q1 production results and record plant throughput at the Kainantu Gold Mine
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  • K92 Mining (KNT) releases Q1 production results and record plant throughput at the Kainantu Gold Mine
  • Record quarterly plant throughput with 73,221 tonnes processed, representing a 54 per cent increase from Q1 2020
  • An average throughput of ~1,000 tonnes per day (TPD), with 18 days exceeding 1,100 tonnes per day
  • The combination of additional levels developed through 2020 and Q1 2021 and strong performance from long hole stoping have provided a notable positive impact on operational flexibility
  • K92 Mining Inc (KNT) isin the grey and is trading at C$7.75 at 3:59 pm ET as of April 15

K92 Mining Inc (KNT) has released first-quarter production results at its Kainantu Gold Mine in Papua New Guinea.

Production results comprise 18,654 oz AuEq, or 17,774 oz of gold, 426,153 lbs of copper and 7,925 oz of silver.

During the first quarter, the operation took a significant step forward towards ramping up to run-rate Stage 2 Expansion throughput, delivering record mill throughput of 73,221 tonnes processed.

This includes 6 consecutive weeks averaging ~1,000 tpd in January and February, with 18 days exceeding 1,100 tpd, 8 days exceeding 1,200 tpd, and a daily record of 1,315 tpd over this period.

By late February, a significant shipment of bulk emulsion explosives arrived on site.

The supplier has diversified sources and is expected to commence domestic production in May, nearby in Lae, to totally mitigate this issue.

An incident involving an underground loader, which prevented backfilling operations for approximately 3 weeks in March.

This resulted in production from four high-grade stopes being deferred to the second quarter, and the plant treating a significantly larger amount of lower grade stockpile material during the first quarter in addition to a non-optimal mill feed head grade blend in March that impacted recoveries and throughput.

Stoping operations and mining of high-grade stopes recommenced in late March.

Additionally, on March 17, 2021, the Government of Australia announced a temporary short-term restriction on travel between Papua New Guinea and Australia due to COVID-19.

In Q1, mining operations focused on Kora’s K1 and K2 veins and Judd’s J1 Vein, for a total of 7 levels mined.

Mining of Kora was conducted on the 1150, 1170, 1185, 1225, 1245 and 1265 levels and Judd on the 1235 level. Importantly, Q1 marked the fourth full quarter of long-hole stoping (modified AVOCA method), which commenced in March 2020 on the K1 vein.

Long hole stoping has continued to perform to design for both the K1 and K2 veins.

The combination of additional levels developed through 2020 and Q1 2021 and strong performance from long hole stoping have provided a notable positive impact on operational flexibility.

Following the establishment of a comprehensive COVID-19 Management Plan, the Kainantu Mine has continued to operate during the pandemic, with a significant focus on health and safety and risk mitigation.

John Lewins, K92 Chief Executive Officer and Director stated, “On the process plant, we continue to test the ultimate throughput potential and it appears to be greater than the 1,100 tpd."

"Financially, K92 is in its strongest position ever, paying down the last $5 million of debt and increasing cash to historic levels to $66 million at the end of the quarter," added Lewins.

K92 Mining Inc (KNT) isin the grey and is trading at C$7.75 at 3:59 pm ET as of April 15.

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