K92 Mining, Inc. · TSX:KNT
K92 Mining — Investor Presentation (March 2022)
57 slides from K92 Mining's investor presentation, March 2022
Slide 1: Growing Production & Transformative Discoveries
2021 THAYER LINDSLEY AWARD (BEST GLOBAL DISCOVERY) Growing Production & Transformative Discoveries INVESTOR PRESENTATION • MARCH 2022 K1 Vein, Kora Deposit Kainantu Gold Mine Papua New Guinea
Slide 2: Forward-Looking and Cautionary Statements
Forward-Looking and Cautionary Statements This Presentation is being provided for information purposes only and does not constitute or form part of, and should not be construed as, an offer or invitation to sell or any solicitation of any offer to purchase or subscribe for any securities of K92Minin
Slide 3: K92 Mining – A Unique Opportunity
K92 Mining – A Unique Opportunity ✓ Rapid, Self-Funded Production Growth AuEq Production & Grade Outlook • Stage 2 expansion completed in late 3Q 2021 to 400,000 tpa • Stage 2A expansion approved to increase annual throughput +25% to 318 500,000 tpa (to be commissioned in 2H 2022) • Stage 3 expansio
Slide 4: Corporate Structure
Corporate Structure Initial Trade Date May 25th, 2016 Institutional shareholders include (and not limited to): Symbol TSX: KNT, OTCQX: KNTNF, Germany: 92K Avg Daily Volume (12m avg) 1.1 million • 1832 Asset Management • Fidelity • Oppenheimer Capital Structure (as at Dec/31/2021) • AGF • Fiera • Pal
Slide 5: Underground Assets
+5mozAuEq Resource, High-Grade Assets (N. America, Australia & Europe Primary Listing) Producer Developer Resource Underground Assets (1) (2) (2) Cut-Off Grade Resource (10 at +6.5g/t) Grade Resource Cut-Off Grade (11 at +3g/t AuEq) Resource Open Pit Assets Grade +5mozAuEq, High-Grade Assets are Glo
Slide 6: Management & Directors
Management & Directors Management Team Board of Directors Mineral engineer with +35yrs of global experience (Africa, Australia, Asia, N. America Independent mining industry business advisor with +40yrs experience focused on John Lewins & former Soviet Union) at project development, operational and c
Slide 7: Socially Responsible Mining For the Prosperity of Papua New Guinea
Socially Responsible Mining For the Prosperity of Papua New Guinea At K92, we have a strong focus on the prosperity and development of PNG and the local communities through socially responsible mining. We are proud to: ▪ Currently employ +1,200 people (employees & contractors) ▪ +95% of employees ar
Slide 8: Socially Responsible Mining For the Prosperity of Papua New Guinea
Socially Responsible Mining For the Prosperity of Papua New Guinea We are proud to: ▪ Advance multiple long-term social and economic development initiatives including (but not limited to): • Creating business opportunities for landowner groups through Joint Venture Agreements with service providers
Slide 9: Kainantu Gold Mine – Location
Kainantu Gold Mine – Location Lowlands PNG, ‘Elephant Country’ Geology and Excellent Infrastructure TSX: KNT Nearby hydropower, highway, airstrip & port OTCQX: KNTNF 9
Slide 10: Kainantu Mine Overview
Kainantu Mine Overview Kainantu Mine Key Facts • Producing high-grade, underground mine • K92 restarted operation in Oct/2016 • Fully mechanized • Employing +1,000 people, +95% PNG nationals • Located in Eastern Highlands Province, PNG • ~830 km2 Land Package – includes ~6 km2 Mining Lease & Lease f
Slide 11: Kainantu Mine Geology – May 2017 (Kora North Discovery)
Kainantu Mine Geology – May 2017 (Kora North Discovery) Mine Lease Long Section – Irumafimpa, Kora and Eutompi TSX: KNT OTCQX: KNTNF 11
Slide 12: Kora, Judd and Irumafimpa Deposit Long Section
Kora, Judd and Irumafimpa Deposit Long Section TSX: KNT OTCQX: KNTNF 12
Slide 13: Operational Performance – Since Commercial Production
Operational Performance – Since Commercial Production AuEq Production (koz) and AISC ($/ozAu) 40koz 36koz 35koz $1,038 $1,057 30koz 30koz $894 24koz $885 27koz $834 25koz $792 $800 25koz 24koz $768 $752 $741 17koz 20koz $703 22koz $658 $678 $672 20koz 20koz 19koz 19koz 19koz $579 $567 15koz 11koz 10
Slide 14: Process Plant Achieved Stage 2 Expansion Throughput
Process Plant Achieved Stage 2 Expansion Throughput 1,538 tpd 1,146 tpd 1,100 tpd 1,084 tpd Stage 2 Run-Rate Q4 Throughput Q4 Throughput Daily Record (Oct 24th) (Excluding 5 Days of Consecutive Downtime for Scheduled Plant Maintenance) Process Plant Is Continuing to Set New Throughput Records Throug
Slide 15: Resource Reconciliation Performance
Resource Reconciliation Performance Gold Reconciliation Comparison vs Resource and Grade Control Model Resource Model & Other Au Sourced Ounces Bi-Monthly Updated Grade Control Model & Other Au Sourced Ounces Reconciled Gold Ounces Delivered to Process Plant 35,000 Total Ounces Modelled and Delivere
Slide 16: Kainantu Mine Strategy – Kora
Kainantu Mine Strategy – Kora Stage 2 – Expansion to 400,000 tonnes per annum COMPLETED • Process Plant Commissioned in Q4 2020 • Mine Ramp up to 1,100 tpd completed in Q4 2021 • Production at run rate +120,000 ozs AuEq per annum Stage 2A – Expansion to 500,000 tonnes per annum UNDERWAY • +25% throu
Slide 17: Kainantu Mine – Stage 2A Expansion
Kainantu Mine – Stage 2A Expansion Key Facts Completed To be Completed • Formal approval for Expansion announced on Oct 7, 2021 to increase existing plant ✓ Additional filter press ❑ Additional TC-1000 Crusher annual throughput by +25% to 500,000 tpa (1,370 tpd) • On site & being commissioned • Inst
Slide 18: Kora Independent Resource Estimate
Kora Independent Resource Estimate Kora Deposit Resource Summary (October 31/2021) Tonnes Gold Silver Copper Gold Equivalent mt g/t moz g/t moz % kt g/t moz Kora Deposit Measured 2.8 9.1 0.8 16 1.4 0.9 24 10.5 1.0 Indicated 4.4 6.7 0.9 20 2.8 1.0 42 8.4 1.2 Measured & Indicated 7.2 7.6 1.8 18 4.3 0.
Slide 19: Kora K1 & K2 Vein Resource Long-Sections – 1.75 g/t Au Cut-Off
Kora K1 & K2 Vein Resource Long-Sections – 1.75 g/t Au Cut-Off K1 Vein (1.75 g/t Au Cut-off, Looking West) K2 Vein (1.75 g/t Au Cut-off, Looking West) 200 m 200 m 200 m 200 m Open Open AuEq Grade 1.75 to 2.5 g/t 2.5 to 5 g/t 5 to 15 g/t +15 g/t Open Open TSX: KNT OTCQX: KNTNF Significant High-Grade
Slide 20: Kora Resource Cross Section
Kora Resource Cross Section Key Points 58900mN Cross Section (Looking North) • K1 and K2 are persistent along strike and dip AuEq Grade • Represent ~94% of the Kora resource 0 to 0.5 g/t • Excellent geometries for mining 0.5 to 1 g/t 1 to 2.5 g/t • High hit rates for both thickness and grade from dr
Slide 21: Kora High Grade Operational Flexibility is Strong
Kora High Grade Operational Flexibility is Strong Kora Resource Sensitivity Table Measured and Indicated Inferred Au Cut Off Grade Tonnes Gold Silver Copper Gold Equivalent Tonnes Gold Silver Copper Gold Equivalent g/t Mt g/t Moz g/t Moz % Kt g/t Moz Mt g/t Moz g/t Moz % Kt g/t Moz 1.75 7.2 7.62 1.8
Slide 22: Judd Independent Resource Estimate
Judd Independent Resource Estimate Judd Deposit Resource Summary (December 31/2021) Tonnes Gold Silver Copper Gold Equivalent mt g/t moz g/t moz % kt g/t moz Judd Deposit Measured 0.22 11.3 0.08 20 0.1 0.7 2 12.6 0.09 Indicated 0.15 7.5 0.04 14 0.1 0.8 1 8.8 0.04 Measured & Indicated 0.38 9.7 0.12 1
Slide 23: Judd Also Has High Grade Flexibility
Judd Also Has High Grade Flexibility Judd Measured and Indicated Inferred Au Cut Off Grade Tonnes Gold Silver Copper Gold Equivalent Tonnes Gold Silver Copper Gold Equivalent g/t Mt g/t Moz g/t Moz % Kt g/t Moz Mt g/t Moz g/t Moz % Kt g/t Moz 1.75 0.4 9.70 0.12 18 0.2 0.74 2.8 11.00 0.13 1.0 4.24 0.
Slide 24: Judd Resource Long-Sections
Judd Resource Long-Sections J1 Vein (1.75 g/t Au Cut-off, Looking West) J1 Vein (5 g/t Au Cut-off, Looking West) 200 m 200 m 200 m 200 m Open Open Open AuEq Grade 1.75 to 2.5 g/t 2.5 to 5 g/t 5 to 15 g/t +15 g/t Open TSX: KNT OTCQX: KNTNF Judd deposit is open in all directions 24
Slide 25: Judd Resource Cross Section
Judd Resource Cross Section Key Points 58620mN Cross Section (Looking North) • J1 is persistent along strike and dip and represents 100% of the Judd resource AuEq Grade • Excellent geometries for mining and solid geotech conditions observed to date 0 to 0.5 g/t • Development and stoping has mined hi
Slide 26: Kainantu Mine – Stage 3 Expansion PEA Summary
Kainantu Mine – Stage 3 Expansion PEA Summary Robust After-tax NPV 5% US$1.5B at $1,500/oz US$2.0B at $1,900/oz Self Funded, Low Capex Tier 1 Asset Scale 12 Year Mine Life US$125m Initial Pre-Expansion 318,000 oz AuEq pa Run-Rate 3.1moz AuEq Produced Capital Expenditure Tier 1 Asset Costs Multiple P
Slide 27: PEA Life of Mine Plan Material Movement Schedule
PEA Life of Mine Plan Material Movement Schedule Development and Stoping Mill Feed Material Movement (kt) and Head Grade (g/t AuEq) Development Tonnage (kt) Stoping Tonnage (kt) Head Grade (g/t AuEq) 985kt 1,002kt 1,004kt 992kt 1,001kt 1,000kt 1,000kt 872kt 11.71 11.50 10.99 11.08 11.03 10.28 10.50
Slide 28: PEA Life of Mine Plan Production Schedule
PEA Life of Mine Plan Production Schedule Production Profile (koz AuEq) and AISC, Net of By-Product Credits (US$/oz Au) $732 353koz 331koz 336koz 337koz 321koz 319koz 315koz $632 $570 234koz $439 170koz $364 143koz $320 $305 $243 $255 $221 $227 92koz 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
Slide 29: PEA Life of Mine Plan Cash Flow Estimates
PEA Life of Mine Plan Cash Flow Estimates After-Tax Free Cash Flows (US$m) After-Tax Operating Cash Flow Capital Costs After-Tax Free Cash Flow $288 $275 $272 $268 $248 $259 $253 $261 $254 $238 $247 $238 $222 $229 $186 $141 $117 $144 $58 $45 $52 $35 ($14) ($10) ($6) ($27) ($25) ($24) ($42) ($37) ($3
Slide 30: Kainantu Mine – Stage 3 Twin Incline Underway
Kainantu Mine – Stage 3 Twin Incline Underway Kora-Irumafimpa Planned Twin Incline and Development Long Section (Looking West) Advance at end of Feb 2022 (1020m)1 Incline mine access profile is highly advantageous to enhance TSX: KNT mine efficiencies and productivities (leveraging gravity) OTCQX: K
Slide 31: Further Expansion and Life Extension Potential Opportunities
Further Expansion and Life Extension Potential Opportunities Fill the 500ktpa Idle Mill Post Stage 3 Expansion • Once Stage 3 commences, existing Stage 2A plant will be placed on care and maintenance. There is the potential for it to operate while Stage 3 is operating, resulting in a 50% throughput
Slide 32: Multiple High Priority Near-Mine Targets
Multiple High Priority Near-Mine Targets Kora & Kora Deeps 1 • • ~20% of original resource target area not yet drilled Kora open to depth and along strike Kora South & Judd South 2 • • Structure extends +1km beyond mining lease Outcrop and historical mining, previously undrilled Judd 3 • • Subparall
Slide 33: Exploration Target: Kora, Kora South & Kora Deeps
Exploration Target: Kora, Kora South & Kora Deeps Significant Resource Expansion Potential – Open at Depth and Open Along Strike First Surface Step-out Hole to the South towards Potential TSX: KNT Major Heat Source (A1 Porphyry) Delivered Strong Results OTCQX: KNTNF 33
Slide 34: Judd and Judd South Vein System is Very Underexplored
Judd and Judd South Vein System is Very Underexplored Judd is Sparsely Drilled, Has at Least 4 Known Veins and Open in All Directions First two step-out surface drill holes at Judd South have Delivered Very Strong Results TSX: KNT OTCQX: KNTNF 34
Slide 35: Kora South and Judd South Maiden Drilling Results (Feb/2022)
Kora South and Judd South Maiden Drilling Results (Feb/2022) Drill Results Key Facts • Judd South – First Two Holes Ever Drilled • Intersected 2 Veins - J1 and J2 • High grades encountered, including 15.25 m at 15.87 g/t AuEq in J1 and 2.90 m at 8.52 g/t AuEq in J2 • Discovered dilatant zone of 66.5
Slide 36: Kora South and Judd South – Extensive Vectors on Surface
Kora South and Judd South – Extensive Vectors on Surface Kora South & Judd South Vein Key Facts Kora & Judd Systems – Looking Northwest • Extension of Kora and Judd Vein Systems, traced for +1km beyond the mining lease (on exploration leases) Kora Drilling Camp • Historically mined in the 1960s and
Slide 37: Airborne Geophysics Identifies Many New Targets
Airborne Geophysics Identifies Many New Targets Key Facts • Advanced MobileMT deep penetrating airborne geophysics flown over the entire ~830 km2 land package • First major geophysics program completed on property in +10 years • Results demonstrate an extensive untested potential strike length to Ko
Slide 38: Exploration Target: Arakompa and Maniape
Exploration Target: Arakompa and Maniape Arakompa and Maniape Veins Key Facts • Arakompa – ~1000m strike and known vertical of 320m (open at depth) • Significant number of high-grade, +15g/tAu intersections • Historic resource of 798koz at 9.0g/tAu • Maniape – ~1100m strike & 220m known vertical • 1
Slide 39: Exploration Targets Summary
Exploration Targets Summary Porphyry Targets Epithermal Targets / Deposits • Tankaunan • Irumafimpa Extension • Kokofimpa (Kokomo) • Timpa • Kora • A1 (Headwaters) • Kora South • Blue Lake • Judd • Efontera • Judd South • Kathnell • Karempe • Yompossa (Yanabo) • Maniape • Aifunka • Arakompa • Yonki
Slide 40: Phase 2 Deeper Targeted Drilling Underway
Phase 2 Deeper Targeted Drilling Underway Drill Program Key Facts • Phase 1 Drilling focused on ~400m-600m vector holes, all holes intersected mineralization with two holes reporting potassic alternation. • Phase 2 Drill program initially a continuation of relatively shallow ~400-600m vector drillin
Slide 41: Appendix
4.6m True Thickness at 116.49g/t Au, 17g/t Ag, 0.96% Cu K1 Vein, Kora Deposit Kainantu Gold Mine Appendix
Slide 42: Papua New Guinea & Mining Industry Key Facts
Papua New Guinea & Mining Industry Key Facts Key Facts 2018 APEC Summit – Port Moresby, PNG • Democratic Nation (Independence from Australia in 1975) • 8.9 million people, 98% Christian, member of APEC • Resources focused economy • Oil & Gas and Mining was ~82% of exports in 2019 • Mining 2nd Larges
Slide 43: Kora Deposit Overview & Mining Conditions Summary
Kora Deposit Overview & Mining Conditions Summary Deposit: Intermediate Sulphidation Multiple sub-vertical Au-Cu-Ag sulphide veins Focus is on the K1 and K2 veins, with the system also hosting other veins and link structures AuEq Grade: ✔ +9g/t with multiple higher grade zones (+20g/t) Thickness: ✔
Slide 44: Judd Deposit Overview & Mining Conditions Summary
Judd Deposit Overview & Mining Conditions Summary Deposit: Intermediate Sulphidation Multiple sub-vertical Au-Cu-Ag sulphide veins, located ~150-200m east of Kora Focus is on the J1 vein, with the system also hosting at least three other veins AuEq Grade: ✔ 11g/t (1.75g/t cut-off – M&I) with higher
Slide 45: Kainantu Mineral Processing Flowsheet
Kainantu Mineral Processing Flowsheet Flowsheet Key Facts • Conventional 2-stage crush • Ball Mill • Flotation • Flash Float; • Roughers; • Cleaners, and; • Recleaners • Drum Scrubber Installed during Refurbishment • ~200g/t Final Concentrate • ~4mt Tailings Dam Capacity • Gravity Circuit commission
Slide 46: Kainantu Mine Strategy – Stage 3 Kora Expansion PEA
Kainantu Mine Strategy – Stage 3 Kora Expansion PEA July/2020 PEA Projections Summary • 12yr mine life, Stage 3 Expansion (~318koz Mine Life & Material Movements Annual Production AuEq pa run-rate) commencing in late 2023 Mine Life (years) 12 Stage 3 Run-Rate (kozpa AuEq) 318 (~258koz AuEq pa LOM av
Slide 47: 2021 Exploration Activity Summary
2021 Exploration Activity Summary US$10-$13m / 35-46m PGK Forecasted Expenditure • Largest exploration drill program this year for the mining industry in Papua New Guinea 6 Targets Drill Tested • Drilling both porphyry and vein field targets – focus on Kora, Judd, Kora South, Judd South and the Blue
Slide 48: Latest Kora Drilling Results Long Section (Dec/8 2021)
Latest Kora Drilling Results Long Section (Dec/8 2021) Kora Drilling Key Facts K1 Vein (Looking West) K2 Vein (Looking West) • 50 holes reported on Dec/8, including some of the highest-grade Open holes drilled to date: • KMDD0415: 4.11m true thickness at 192.92 g/t AuEq • KMDD0312: 4.96m true thickn
Slide 49: Judd Vein 1 Development Update – 1235 Level (1st Level Developed)
Judd Vein 1 Development Update – 1235 Level (1st Level Developed) Key Facts – 1235 Level Development Key Facts – Metallurgical Bulk Sample • On Jan 25 2021, reported results from a 65 metre development extension along the 1235 • On Nov 23 2020, +15% positive grade reconciliation from bulk sample rep
Slide 50: Judd Vein 1 Development Update – 1265 Level (2nd Level Developed)
Judd Vein 1 Development Update – 1265 Level (2nd Level Developed) Key Facts – 1265 Level Development • On Oct 27, 2021, reported results from a 211 metre extension to the North and South along the 1265 Level J1 Vein to bring the total development strike to 294 metres – second and upper sublevel deve
Slide 51: Exploration Target: Karempe Vein
Exploration Target: Karempe Vein Karempe Vein Key Facts • Strike length of +2,000 metres • Interpreted from rock chip sampling, limited drilling and mapping • Five known veins, steeply dipping and similar North- South trend as Kora • Intrusive related Au-Cu-Ag epithermal vein system similar to Kora
Slide 52: Maiden Karempe Vein Drilling Results
Maiden Karempe Vein Drilling Results Karempe Drilling Key Facts • First six holes ever drilled by K92 reported Oct/2020 • Multiple high-grade intersections on the KA1 vein, including: • 2.45 m at 40.18 g/t AuEq (hole KRDD0005) • 3.20 m at 18.28 g/t AuEq (hole KRDD0006) • Significant vein intersectio
Slide 53: Blue Lake Regional Exploration Porphyry Target
Blue Lake Regional Exploration Porphyry Target Blue Lake Target Key Facts • Top Priority Mineralized Porphyry Target – 4km SW of Kainantu Underground Mine • Substantial coincident geological, geochemical (Au, Cu, As & Zn) and geophysical anomalies • Petrology confirms a high-sulphidation overprint o
Slide 54: Blue Lake Exploration Update (December 2019)
Blue Lake Exploration Update (December 2019) Key Observations Blue Lake Long-Section (Looking Southwest) • All holes ended in mineralization • Mineralization reported is almost entirely in the lower temperature, lower grade propylitic alteration zone • Cu, Au grades in the propylitic zone are above
Slide 55: Blue Lake Porphyry Geologic Model Overview
Blue Lake Porphyry Geologic Model Overview Blue Lake Geologic Interpretation (Looking North) Conceptual Porphyry Cu-Au Model Initial drilling to date has bottomed in mineralization in the distal propylitic zone TSX: KNT OTCQX: KNTNF Focus is to vector towards the core of the system / potassic zone 5
Slide 56: Kainantu Consolidated NI 43-101 Resources
Kainantu Consolidated NI 43-101 Resources Tonnes Gold Silver Copper Gold Equivalent mt g/t moz g/t moz % kt g/t moz Kora Deposit Resource Summary (October 31/2021) Measured 2.8 9.07 0.8 16 1.4 0.9 24 10.5 1.0 Indicated 4.4 6.68 0.9 20 2.8 1.0 42 8.4 1.2 Measured & Indicated 7.2 7.6 1.8 18 4.3 0.9 66
Slide 57: John Lewins CEO & Director
John Lewins CEO & Director Contact: David Medilek, P.Eng., CFA Vice President Business Development & Investor Relations E-mail: dmedilek@k92mining.com Phone: +1 (604) 416 4445 17t Bucket Loader Sandvik LH517i LHD Kainantu Gold Mine Papua New Guinea