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K92 Mining Announces Robust Kainantu Gold Mine Integrated Development Plan
VANCOUVER, British Columbia, Sept. 12, 2022 (GLOBE NEWSWIRE) -- K92 Mining Inc. (“K92” or the “Company”) (TSX: KNT; OTCQX: KNTNF) is pleased to announce the res
About this update from K92 Mining, Inc.
[{"type":"text","content":" VANCOUVER, British Columbia, Sept. 12, 2022 (GLOBE NEWSWIRE) -- K92 Mining Inc. (“K92” or the “Company”) (TSX: KNT; OTCQX: KNTNF) is pleased to announce the results of its Integrated Development Plan (“IDP”) for its Kainantu Gold Mine Project (the “Kainantu Project”) in Papua New Guinea. The IDP comprises two scenarios: 1) Kainantu Stage 3 Expansion Definitive Feasibility Study Case (“DFS” or “DFS Case”); and 2) Kainantu Stage 4 Expansion Preliminary Economic Assessment Case (“PEA” or “PEA Case”). The results of the IDP will be set forth in an independent technical report prepared in accordance with National Instrument 43-101- Standards for Disclosure of Mineral Projects (“NI 43-101”) within forty-five days from this date. Integrated Development Plan Highlights: The DFS Case evaluates the Stage 3 Expansion to 1.2 million tonnes per annum (“mtpa”), representing a 140% throughput increase from the Stage 2A Expansion. Stage 3 involves a new standalone 1.2 mtpa process plant and supporting infrastructure constructed with mining focused on the Kora Central Zone within the Kora Deposit and Judd Deposit, utilizing a cut-off grade of 3.0 grams per tonne (“g/t”) gold equivalent (“AuEq”). After-tax NPV5% of US$586 million at US$1,600 per ounce gold, with no internal rate of return (“IRR”) as the project generates cashflow during construction. After-tax NPV5% of US$855 million at US$2,000 per ounce gold. Average annual run-rate production of 290,771 ounces AuEq per annum, run-rate achieved in 2025 and a peak annual production of 308,793 ounces AuEq in 2026. Life of Mine average cash costs of US$366 per gold ounce and all-in sustaining cost (“AISC”)(2) of US$545 per gold ounce over a 7-year mine life. Growth capital cost of US$177 million, sustaining capital cost prior to commissioning of US$125 million and life of mine sustaining capital cost of US$218 million. The alternate PEA Case evaluates two-stages of expansions to a run-rate throughput of 1.7 mtpa, representing a 240% throughput increase from the Stage 2A Expansion. The ultimate run-rate throughput of the second expansion is referred to as Kainantu Stage 4 Expansion, operating two standalone process plants, larger surface infrastructure and mining throughputs achieved through mining Kora Upper, Lower, and Central Zones within the Kora Deposit, and the Judd Deposit, utilizing a cut-...