Slide 1: K92 Mining Inc.
K92 MINING INC.
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS 2 This presentation, and the information contained herein, is not for release, distribution or publication into or new information, future events or otherwise. No person should place undue reliance on forward-looking in the United States or any other jurisdiction where app
Slide 3: Investment Highlights
INVESTMENT HIGHLIGHTS 3 Mining Lease to § K92’s principal project is the Kainantu Gold Mine located in the Eastern Highlands province of Papua New Guinea Past Producing § Mining leases and associated permits renewed for 10 years on February 16th, 2015 Mine § Environmental permit valid, with 40 years
Slide 4: Company Background
COMPANY BACKGROUND 4 Company § K92 Holdings International Limited ("K92") is a Vancouver-based gold exploration and development company operating in Papua New Guinea ("PNG") Overview § K92 was purpose built for the acquisition of the Kainantu gold project (the "Project") from Barrick, K92’s only min
Slide 5: Board, Management and Advisors
BOARD, MANAGEMENT AND ADVISORS 5 Management Board of Directors § Ian Stalker, CEO § Tookie Angus, Chairman § Ian Stalker § Bryan Slusarchuk, President § John Lewins § Graham Wheelock § John Lewins, COO § Bryan Slusarchuck § Justin Blanchet, CFO § Mark Eaton § Peter (Duppie) du Plessis, § Saurabh Han
Slide 6: Kainantu Mine advisor quote
6 KAINANTU MINE “ The structures hosting the lodes strike for several kilometres and have known vertical extents of hundreds of metres, and are open beyond this. This indicates additional resource potential proximal to the existing resource, and the probability of discovering parallel veins is high.
Slide 7: Papua New Guinea - Facts
PAPUA NEW GUINEA - FACTS 7 § Land of large mines § Commonwealth country § Democratic government with the Prime Minister as Head of Government § Population of approximately 7 million people over a land area of 462,840 km2 § Mining a major source of economic activity with multiple major mining compani
Slide 8: Peers in Papua New Guinea
PEERS IN PAPUA NEW GUINEA 8 Lihir (Au) Porgera (Au) Barrick Frieda (Cu-Au) Xstrata/Highlands Kainantu OK Tedi (Cu-Au) OTML Wafi-golpu (Au-Ag) Newcrest/Harmony Hidden valley (Au-Ag) Newcrest/Harmony
Slide 9: Kainantu Gold Project Overview
KAINANTU GOLD PROJECT OVERVIEW 9 § The Kainantu gold project covers a total area of 405km2 in the Eastern Highlands province of PNG, 180km northwest of Lae (second largest city in PNG) and 110km northwest of the Wafi-Golpu deposit § Mineralization includes gold, silver and copper occurring in epithe
Slide 10: Mining & Exploration Licenses
10 MINING & EXPLORATION LICENSES Located in the Eastern Highlands Province of Papua New Guinea, 180km northwest of Lae 4 Exploration Licenses 1 Mining Lease 2 Mining Easements 1 Lease for Mining Purposes 405 km2 Total Land
Slide 11: Substantial investment to date
11 Substantial investment to date § Barrick purchased project for USD $141.5 million in December 2007 § USD $100 million invested in underground mine development along with processing facilities infrastructure § USD $41.3 million invested in exploration drilling and definition drilling with the curr
Slide 12: Project History
PROJECT HISTORY 12 GOLD PRICE April 2015: Otterburn raises $1.27m via February 2016: June 2014: subscription K92 completes January 2006: Agreement by $10.5M finaning December 2007: Barrick to sell to receipts at Commercial Sold to Barrick K92 for US$2M in C$0.35 per receipt & w/ Cartesian Capital Gr
Slide 13: Mine Infrastructure & Site Access
MINE INFRASTRUCTURE & SITE ACCESS 13 § Reliable main hydro power supply 350 person camp § Last industrial tariff 11 cents / kWh § Capacity of power station being doubled § Paved highway from Lae to camp (2 hour drive) § Airstrip and helicopter pad established at site § Fully updated and established
Slide 14: Mill, Processing Plant & Offices
14 ß Camp 3km Tailings Storage EXPLORATION MAINTENANCE PROCESS MILLING, FLOTATION WATER & DISPATCH YARD LABS STORES WORKSHOP FINE ORE BIN OFFICES ROM & PRIMARY CRUSH ACTIVE LAYDOWN FUEL POWER MILL, PROCESSING PLANT & OFFICES (ROOM FOR EXPANSION) K A I N A N T U O P E R AT I O N S I T E C I R C A 2 0
Slide 15: Underground Mine Development Existing Today
UNDERGROUND MINE DEVELOPMENT EXISTING TODAY 15 Mineral Resources
Slide 16: Planning for Success – Restart of Operations
PLANNING FOR SUCCESS – RESTART OF OPERATIONS 16 Mining § AMC Study - Potential for underground to sustain production of 200,000 tpa from Irumafimpa Orebody - Target historical mined grade previously achieved by Highlands: 7.5 - 8 g/t Au - Continue with conversion to mechanised mining – Long Hole Sto
Slide 17: Planning for Success – Operational Improvements
PLANNING FOR SUCCESS – OPERATIONAL IMPROVEMENTS 17 Mining – Planned Initiatives § Use of experienced Australian/PNG Mining Contractor § Expanded Experienced Technical Team § Expanded Underground Mobile Fleet § Continued Conversion to Mechanised Mining - Long Hole Stoping § Increased Grade Control Dr
Slide 18: Planning for Success – Restart Timeline
PLANNING FOR SUCCESS – RESTART TIMELINE 18 February 2016 July 2016 § Award of Contracts – Plant Refurbishment, Mining, § Drum Scrubber installed Maintenance, Underground Drilling § Ore Feed to Crusher § Mobilisation – Plant Refurbishment, Maintenance, § Load Commission Mill & Float Mining § Schedule
Slide 19: Planning for Success – Contractors and Consultants
PLANNING FOR SUCCESS – RESTART TIMELINE 19 Mining Contractor – Ken West § 20 years experience in underground mining in PNG § Developed original decline at Kainantu for Highlands Pacific § Experienced in narrow vein mining in PNG Process Engineers – Mincore/Sun Engineering § Australian Process Engine
Slide 20: Mine Resources & Future Development
MINE RESOURCES & FUTURE DEVELOPMENT 20 § Exploration will continue at Kora with the goal to expand its current Inferred Resource Kora Eutompi 500 m Resource Category Irumafimpa Indicated Inferred Not Classified Mined Out Irumafimpa Development N 850 Portal Notes 1. Strong mineralization open to grid
Slide 21: Expansion Targeted
EXPANSION TARGETED 21 The Irumafimpa - Kora vein system is open at depth. Drill hole BKDD0023 is well mineralized at depth EXISTING (30.6m from 920.8m 2.0 g/t Au, 4.8 g/t Ag (IRUMAFIMPA) and 1.3pct Cu or 4.3 g/t AuEq (see page 14 of Independent TARGET AREA FOR Technical Report, EXPANSION Resource Es
Slide 22: Preliminary Metallurgical Test Work on Kora Deposit
22 PRELIMINARY METALLURGICAL TEST WORK ON KORA DEPOSIT Composite 1 : Composite 2: High Au Interval High Cu Interval (Mixed Mill & Robinson) (Mill Lode) Gravity Recovery Au 66.0% 61.6% Au 25.9% 28.7% Copper Mineral Flotation recovery Cu 91.3% 90.8% Au 91.9% 90.3% Overall Recovery Cu 91.3% 90.8% Compo
Slide 23: Historical Estimates
23 HISTORICAL ESTIMATES Maniape § A total of 16 drill holes over a 1km strike length drilled. Historic open pit resource estimate of 560,000oz Au* Arakompe § A total of 18 drill holes with an average 3.2 meter width at 13.3 g/t Au with over 1 km strike length. Historic underground resource estimate
Slide 24: EL470 & EL693 Exploration Targets
EL470 & EL693 EXPLORATION TARGETS 24 Mati Arakompa Maniape Irumafimpa Judd Karempa Kora Timpa-DT Colloform-crustiform quartz event
Slide 25: Kora Section
25 KORA SECTION 58600N LEFT KORA SECTION 58400N RIGHT
Slide 26: Arakompa Prospect
26 ARAKOMPA PROSPECT § Reef structure ~1000m long § Open at Depth § Previous work includes Air Magnetic & Electromagnetic Surveys, trenching, soil sampling and drilling § Drilled to 150m depth, known vertical extent 320m § Historic Resource – 800,000 oz. Au @ 2.2g Au/t
Slide 27: Recent Project Milestones
RECENT PROJECT MILESTONES 27 § Since entering into the agreement to acquire the Project from Barrick in 2014, K92 has transformed from a company with no mining licenses or resources to one with a mining lease, existing mine and processing facility § Recent milestones include: - Closed acquisition of
Slide 28: Proforma Share Structure
PROFORMA SHARE STRUCTURE 28 AS of may 16, 2016 Shell (Otterburn) 4,459,778 K92 Holdings Intl. 49,126,666 New Equity Placement 21,452,878* Total Shares Outstanding 75,572,752 Warrants 32,135,420** Options 7,557,275*** Cartesian Preferred Shares Issuable Upon 19,007,324 Conversion Fully Diluted 134,27
Slide 29: Cartesian Deal Terms
CARTESIAN DEAL TERMS 29 § $10.5m CDN financing comprised of: - $3.5m equity investment at $0.35/share with a full warrant at $0.75 for 2 years (force exercise if K92 trades above $1.25 for 10 consecutive days) - $7m gold prepayment investment § Gold Prepayment Terms - Cartesian receives a percentage
Slide 30: Selected Market Comparables
SELECTED MARKET COMPARABLES 30 TOTAL AUEQ Avg RECENT Capex COMPANY LOCATION STAGE TYPE SHARES F/D F/D M Cap EV EV/OZ OZ (000's OZ) Grade PRICE MM DEVELOPERS AUREUS MINING Liberia Construction OP 2,545,000 2.5 620,400,000 $0.06 $37,224,000 $131,324,000 $52 $172 GUYANA GOLDFIELDS Guyana Construction O
Slide 31: Advisor quote and investor contact
“ I think the Kainantu project is one of the most prospective in Papua New Guinea. The strength of the structures and veins are most impressive. And they contain significant high grade gold! – ALEX DAVIDSON Former Executive VP, Exploration & Corp. Dev., Barrick Gold & Current K92 Advisor K92 Mining
Slide 32: K92 Mining Inc.
K92 MINING INC.
Slide 33: Management
MANAGEMENT 33 § Mr. Stalker is a mining executive with 40 years of experience in mine development and operations in Europe, Africa and Australia § He was the chief executive officer of UraMin Inc., a London-listed and Toronto-listed uranium company, from July, 2005, until its US Ian Stalker $2.5-bil
Slide 34: Directors and Advisors
DIRECTORS AND ADVISORS 34 § Mr. Angus is an independent business advisor to the mining industry and has focused on structuring and financing R. Stuart significant international exploration, development and mining ventures for the past 30 years (Tookie) Angus § He is chairman of Nevsun Resources Ltd.
Slide 35: Directors and Advisors (Cont'd)
DIRECTORS AND ADVISORS (CONT'D) 35 § Mr. Kirwin is an independent geologist with 45 years of international exploration experience, including five years in Papua New Guinea. As a member of the joint discovery team for the Hugo Dummett deposit at Oyu Tolgoi in Mongolia, Mr. Kirwin was a co-recipient o
Slide 36: Historical Cost Summary
HISTORICAL COST SUMMARY 36 § Barrick operated the mine for only 6 Unit Cost Summary – Barrick Operations months, using the same mining methods Haulage US$/t 12 (shrink stope mining) and mining personnel as the previous operator Long Hole Mining US$/t 28 § Recommendations by Barrick consultants Shrin
Slide 37: Robinson
ROBINSON 37 LS EPITHERMAL BRECCIA VEIN vg vg Refer to Section 2 for additional disclosure information. ABOVE LEFT: ABOVE RIGHT: BKDD0015 080BD04 Au 6130g/t Au 15,300 g/t Ag 775ppm Ag 1845ppm Cu 0.13% Cu 0.28% Bi 6420 ppm Bi 6000 ppm Te 4170 ppm Te 4800 ppm W 790ppm
Slide 38: Mill Zone Type Mineralization
MILL ZONE TYPE MINERALIZATION Refer to Section 2 for additional disclosure information. 38 LEFT: ABOVE: BKDD0002 BKDD0002 Au 11g/t Au 8 g/t Ag 41.5ppm Ag 19.3 ppm Cu 2.49% Cu 4.18% Bi 160 ppm Bi 304 ppm Te 40 ppm Te 180 ppm W 40 ppm W 170 ppm
Slide 39: Section 2: Disclosure of Historical Data
SECTION 2: DISCLOSURE OF HISTORICAL DATA 39 On page 20, historical estimates are referred to for the areas Maniape and Arakompe. A qualified person has not done sufficient work to classify the historical estimates as current mineral resource or mineral reserves. The Company is not treating the histo