![\"\"](\"https:\/\/icrowdnewswire.com\/wp-content\/uploads\/2020\/07\/4000-k92.jpg\")
<\/p>\n<\/p>\n
K92 Mining Inc<\/strong>. is pleased to announce the results of the Preliminary Economic Assessment (“PEA”) on its Kora gold deposit (“Kora”), which together with its Irumafimpa gold deposit (“Irumafimpa”) comprise the Kainantu Gold Mine Project (the “Kainantu Project”) in Papua New Guinea. Based on the results of the study, the Company is proceeding to a Definitive Feasibility Study (“DFS”) for the Kora Stage 3 Expansion.<\/p>\n Stage 3 Expansion PEA Study Highlights<\/strong><\/p>\n The PEA is preliminary in nature and includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves, and there is no certainty that the PEA will be realized. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.<\/p>\n John Lewins, K92 Chief Executive Officer and Director, stated, “Over the past three years, Kainantu has delivered tremendous production and exploration growth and we are very pleased to report the results for the next major growth plan – Stage 3 Expansion. The PEA economics are robust, with run-rate production of ~318,000 oz AuEq per annum; low average all-in sustaining costs net of by-product credits of $362\/oz gold which benefitted from higher copper grades and economies of scale, and; an after-tax NPV5%<\/sub> of US$1.5 billion at US$1,500\/oz. Importantly, the Stage 3 Expansion is a low capital intensity project and within our ability to self-fund from scheduled mine cash flow.<\/em><\/p>\n As a result, we are initiating a Definitive Feasibility Study (“DFS”) for Stage 3, targeting mid-2021. Work on the new twin incline is underway and we currently have four diamond drill rigs operational underground focused on upgrading the resource for the DFS and expanding the known resource to the south and at depth. Surface exploration is also rapidly expanding, from the current 3 diamond drill rigs to 5 drill rigs by year-end, adding even greater focus on resource growth near-mine and regionally.”<\/em><\/p>\n PEA Overview<\/strong><\/p>\n The Kora Stage 3 Expansion PEA considers an expansion to underground mining with on-site treatment of mine material by conventional milling, gravity and flotation recovery through a standalone 1-million-tonne-per annum (“Mtpa”) process plant. The PEA is derived from the Company’s Mineral Resource Estimate for Kora (effective date of April 2, 2020) and does not incorporate post resource drilling results.<\/p>\n An updated technical report prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects<\/em> (“NI 43-101”), titled, “NI 43-101 Independent Technical Report and Preliminary Economic Assessment for Expansion of the Kainantu Project to treat 1 Mtpa from the Kora Gold Deposit, Kainantu, Papua New Guinea”, which will include the results of the PEA discussed in this news release together with an updated Mineral Resource Estimate for the Kora Deposit, will be filed on SEDAR at www.sedar.com under the Company’s profile by July 31, 2020.<\/p>\n Table 1: Kainantu Stage 3 Expansion – Preliminary Economic Assessment Highlights<\/strong><\/p>\n Kora Mineral Resource Estimate<\/strong><\/p>\n The Company’s current Mineral Resource Estimate for Kora (effective date of April 2, 2020) was completed by H & S Consultants Pty. Ltd. (Table 2). The Kora resource estimate provides the resource base for the PEA, while the Irumafimpa deposit was not included in the PEA.<\/p>\n Table 2 – Global Kora Mineral Resource (Effective Date April 2, 2020, 1 g\/t gold cut-off)<\/strong><\/p>\n\n
\n
\n\n
\n US Dollars unless otherwise stated<\/em><\/td>\n Life of Mine<\/strong>
(starting January 2021)<\/strong><\/td>\nPost Stage 3 Completion<\/strong>
(2024 onwards)<\/strong><\/td>\n<\/tr>\n\n Production<\/strong><\/td>\n <\/strong><\/td>\n <\/strong><\/td>\n<\/tr>\n \n Mine life (years)<\/td>\n 12 years<\/td>\n <\/strong><\/td>\n<\/tr>\n \n Total mill feed (000s tonnes)<\/td>\n 9,788<\/td>\n <\/strong><\/td>\n<\/tr>\n \n Average mill throughput (tonnes per annum)<\/td>\n 816 ktpa<\/td>\n 1.0 Mtpa (run-rate)(1)<\/sup><\/td>\n<\/tr>\n \n <\/td>\n <\/td>\n <\/strong><\/td>\n<\/tr>\n \n Total Metal Production<\/em><\/td>\n <\/td>\n <\/td>\n<\/tr>\n \n AuEq (000s ounces)<\/td>\n 3,096<\/td>\n 2,639<\/td>\n<\/tr>\n \n Gold (000s ounces)<\/td>\n 2,642<\/td>\n 2,229<\/td>\n<\/tr>\n \n Copper (mlbs)<\/td>\n 195<\/td>\n 177<\/td>\n<\/tr>\n \n Silver (000s ounces)<\/td>\n 4,248<\/td>\n 3,833<\/td>\n<\/tr>\n \n <\/td>\n <\/td>\n <\/strong><\/td>\n<\/tr>\n \n Average Annual Metal Production<\/em><\/td>\n <\/td>\n <\/td>\n<\/tr>\n \n AuEq (000s ounces per annum)<\/strong><\/td>\n 258<\/strong><\/td>\n 318 (run-rate)<\/strong>(1)<\/sup><\/td>\n<\/tr>\n \n Gold (000s ounces per annum)<\/td>\n 220<\/td>\n 270 (run-rate)(1)<\/sup><\/td>\n<\/tr>\n \n Copper (mlbs per annum)<\/td>\n 16<\/td>\n 21 (run-rate)(1)<\/sup><\/td>\n<\/tr>\n \n Silver (000s ounces per annum)<\/td>\n 354<\/td>\n 450 (run-rate)(1)<\/sup><\/td>\n<\/tr>\n \n <\/td>\n <\/td>\n <\/strong><\/td>\n<\/tr>\n \n Average Grade<\/em><\/td>\n <\/td>\n <\/td>\n<\/tr>\n \n AuEq grade (g\/t)<\/strong><\/td>\n 10.4 g\/t<\/strong><\/td>\n <\/strong><\/td>\n<\/tr>\n \n Gold grade (g\/t)<\/td>\n 8.84 g\/t<\/td>\n <\/strong><\/td>\n<\/tr>\n \n Copper grade (%)<\/td>\n 1.0%<\/td>\n <\/strong><\/td>\n<\/tr>\n \n Silver grade (g\/t)<\/td>\n 18 g\/t<\/td>\n <\/strong><\/td>\n<\/tr>\n \n <\/td>\n <\/td>\n <\/strong><\/td>\n<\/tr>\n \n Average Recovery<\/em><\/td>\n <\/td>\n <\/strong><\/td>\n<\/tr>\n \n Gold Recovery (%)<\/td>\n 95%<\/td>\n <\/td>\n<\/tr>\n \n Copper Recovery (%)<\/td>\n 95%<\/td>\n <\/td>\n<\/tr>\n \n Silver Recovery (%)<\/td>\n 77%<\/td>\n <\/td>\n<\/tr>\n \n <\/td>\n <\/strong><\/td>\n <\/strong><\/td>\n<\/tr>\n \n Costs<\/strong><\/td>\n <\/strong><\/td>\n <\/strong><\/td>\n<\/tr>\n \n Mining cost per tonne (US$\/t)<\/td>\n $41.41<\/td>\n $40.18<\/td>\n<\/tr>\n \n Processing cost per tonne (US$\/t)<\/td>\n $25.20<\/td>\n $24.77<\/td>\n<\/tr>\n \n G&A cost per tonne (US$\/t)<\/td>\n $27.01<\/td>\n $23.84<\/td>\n<\/tr>\n \n Total operating cost per tonne of mill feed (US$\/t)<\/strong><\/td>\n $<\/strong>93.62<\/strong><\/td>\n $<\/strong>88.79<\/strong><\/td>\n<\/tr>\n \n Sustaining capital per tonne of mill feed (US$\/t)<\/td>\n $34.63<\/td>\n $24.84<\/td>\n<\/tr>\n \n Total cost per tonne of mill feed (US$\/t)<\/strong><\/td>\n $<\/strong>128.26<\/strong><\/td>\n $<\/strong>113.63<\/strong><\/td>\n<\/tr>\n \n <\/td>\n <\/strong><\/td>\n <\/strong><\/td>\n<\/tr>\n \n Initial pre-expansion capital expenditure ($m)<\/td>\n $125<\/td>\n <\/td>\n<\/tr>\n \n Sustaining capital expenditure ($m)<\/td>\n $341<\/td>\n <\/td>\n<\/tr>\n \n Total capital expenditure ($m)<\/strong><\/td>\n $<\/strong>466<\/strong><\/td>\n <\/strong><\/td>\n<\/tr>\n \n <\/td>\n <\/td>\n <\/td>\n<\/tr>\n \n Cash cost per ounce AuEq ($\/oz)(2)<\/sup>
All-in sustaining cost per ounce AuEq ($\/oz)(3)<\/sup>
Cash cost per ounce gold ($\/oz)(2)<\/sup><\/td>\n$353
$489
$202<\/td>\n$341
$445
$177<\/td>\n<\/tr>\n\n All-in sustaining cost per ounce gold ($\/oz)(3)<\/sup><\/td>\n $362<\/td>\n $301<\/td>\n<\/tr>\n \n <\/td>\n <\/strong><\/td>\n <\/strong><\/td>\n<\/tr>\n \n Base Case Economic Analysis at US$1,500\/oz Gold, US$3.00\/lb Copper and US$18.00\/oz Silver<\/strong><\/td>\n <\/td>\n <\/td>\n<\/tr>\n \n After-tax NPV0%<\/td>\n $2.0 billion<\/td>\n <\/strong><\/td>\n<\/tr>\n \n After-tax NPV5%<\/td>\n $1.5 billion<\/td>\n <\/strong><\/td>\n<\/tr>\n \n IRR (%) and Payback Period (years)<\/td>\n N\/A (Self-Funded)<\/td>\n <\/td>\n<\/tr>\n \n <\/td>\n <\/strong><\/td>\n <\/strong><\/td>\n<\/tr>\n \n Economic Analysis at $1,900\/oz Gold, US$3.00\/lb Copper and US$18.00\/oz Silver<\/strong><\/td>\n <\/td>\n <\/td>\n<\/tr>\n \n After-tax NPV0%<\/td>\n $2.7 billion<\/td>\n <\/strong><\/td>\n<\/tr>\n \n After-tax NPV5%<\/td>\n $2.0 billion<\/td>\n <\/strong><\/td>\n<\/tr>\n \n IRR (%) and Payback Period (years)<\/td>\n N\/A (Self-Funded)<\/td>\n <\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \n
\n\n
\n <\/td>\n Tonnes<\/td>\n Gold<\/td>\n Copper<\/td>\n Copper<\/td>\n AuEq<\/td>\n<\/tr>\n \n <\/td>\n (Mt)<\/td>\n (g\/t)<\/td>\n (Moz)<\/td>\n (g\/t)<\/td>\n (Moz)<\/td>\n (%)<\/td>\n (kt)<\/td>\n (g\/t)<\/td>\n (Moz)<\/td>\n<\/tr>\n \n Measured<\/td>\n 0.66<\/td>\n 13.34<\/td>\n 0.28<\/td>\n 11.6<\/td>\n 0.25<\/td>\n 0.51<\/td>\n 3.4<\/td>\n 14.14<\/td>\n 0.3<\/td>\n<\/tr>\n \n Indicated<\/td>\n 2.47<\/td>\n 8.44<\/td>\n 0.67<\/td>\n 16.3<\/td>\n 1.29<\/td>\n 0.63<\/td>\n 15.6<\/td>\n 9.46<\/td>\n 0.8<\/td>\n<\/tr>\n \n Total M&I<\/strong><\/td>\n 3.13<\/strong><\/td>\n 9.47<\/strong><\/td>\n 0.95<\/strong><\/td>\n 15.3<\/strong><\/td>\n 1.54<\/strong><\/td>\n 0.61<\/strong><\/td>\n 19<\/strong><\/td>\n 10.45<\/strong><\/td>\n 1.1<\/strong><\/td>\n<\/tr>\n \n Inferred<\/td>\n 12.67<\/td>\n 7.32<\/td>\n 2.98<\/td>\n 19.9<\/td>\n 8.11<\/td>\n 1.1<\/td>\n 139.4<\/td>\n 9.01<\/td>\n 3.7<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \n