K92 Mining Announces Latest High-Grade Drill Results at Kora, Including 9.80 m at 84.92 g/t AuEq
Drill Hole KMDD0261 records multiple intersections including 9.80 m at 84.92 g/t gold equivalent (“AuEq”) or 83.27 g/t Au, 10 g/t Ag and 1.03% Cu, extending a known high-grade area ~50 metres up-dip.
Drill Hole KMDD0262 records multiple intersections including 3.80 m at 36.23 g/t AuEq or 31.34 g/t Au, 83 g/t Ag and 2.63% Cu.
Drill Hole KMDD0229 records multiple intersections including 1.67 m at 31.15 g/t AuEq or 29.76 g/t Au, 8 g/t Ag and 0.87% Cu from our most southerly drill cuddy.
Drill Hole KMDD0259 records multiple intersections including 13.20 m at 25.20 g/t AuEq or 24.66 g/t Au, 7 g/t Ag and 0.30% Cu.
Drill Hole KMDD0233 records multiple intersections including 7.41 m at 21.88 g/t AuEq or 21.46 g/t Au, 7 g/t Ag and 0.23% Cu.VANCOUVER, British Columbia, Nov. 30, 2020 (GLOBE NEWSWIRE) — K92 Mining Inc. (“K92” or the “Company”) (TSX-V: KNT; OTCQX: KNTNF) is pleased to announce results from the ongoing diamond drilling of the Kora deposit at the Kainantu gold mine in Papua New Guinea.The results for the latest 28 diamond drill holes completed from underground into the Kora deposit are summarized in Table 1 below. The results continue to demonstrate the high-grade and continuity of Kora with intersections largely focused on increasing drill density to upgrade resources for the Stage 3 Expansion Feasibility Study in addition to some step-out drilling. All drill holes intersected mineralization.The drilling results are highlighted by hole KMDD0261 which recorded multiple high-grade intersections including 9.80 m at 83.27 g/t Au, 10 g/t Ag and 1.03% Cu (84.92 g/t AuEq, 6.63 m true width) at the K1 Vein. KMDD0261 extended a known high-grade area approximately 50 metres up-dip. The high grade extension was also supported by proximal hole KMDD0259, located 25 metres south and 25 metres deeper, recording multiple intersections including 13.20 m at 24.66 g/t Au, 7 g/t Ag and 0.30% Cu (25.20 g/t AuEq, 9.52 m true width) at the K1 Vein.Drilling to the south continued to intersect significant mineralization, highlighted by KMDD0229 recording multiple intersections including 1.67 m at 29.76 g/t Au, 8 g/t Ag and 0.87% Cu (31.15 g/t AuEq, 1.11 m true width) at the K1 Vein. KMDD0229 was drilled from the most southerly drill cuddy. On the K2 Vein, southerly drilling at KMDD0255 recorded multiple intersections including 10.40 m at 7.41 g/t Au, 37 g/t Ag and 2.97% Cu (12.26 g/t AuEq, 7.99 m true width).The drill results once again intersected potentially bulk mineable zones from holes KMDD0257 and KMDD0247. KMDD0257 recorded multiple intersections including 26.34 m at 7.82 g/t Au, 4 g/t Ag and 0.16% Cu (8.11 g/t AuEq, 14.21 m true width) when combining the K1, Kora Link and K2 Veins. KMDD0247 recorded a bulk intersection of 12.60 m at 2.53 g/t Au, 35 g/t Ag and 3.01% Cu (7.42 g/t AuEq, 10.17 m true width) when combining the K1, Kora Link and K2 Veins. Opportunities for higher productivity, bulk mineable areas continue to be assessed for the Stage 3 Expansion Definitive Feasibility Study.Other high-grade intersection highlights were: KMDD0262 and KMDD0233. KMDD0262, recorded multiple intersections, including 3.80 m at 31.34 g/t Au, 83 g/t Ag and 2.63% Cu (36.23 g/t AuEq, 2.62 m true width) at the K1 Vein. KMDD0233 recorded multiple intersections including 7.41 m at 21.46 g/t Au, 7 g/t Ag and 0.23% Cu (21.88 g/t AuEq, 7.25 m true width) at the K1 Vein.Long sections of K1 and K2 showing the location of the latest drill holes are provided in Figures 1 and 2, respectively. Long section showing Kora drilling to date is provided in Figure 3. A core photograph of drill hole KMDD0261 is provided in Figure 4.(Gold Equivalent (AuEq) is calculated using copper price of US$3.05/lb, silver price of US$16.05/oz and gold price of US$1,400/oz.)John Lewins, K92 Chief Executive Officer and Director, stated, “The recent drilling results at Kora continue to demonstrate the high-grade pedigree and continuity of the vein system. All twenty-eight holes intersected mineralization, with 18 intersections exceeding +10 g/t AuEq and 29 intersections exceeding +5g/t AuEq. The drill results are highlighted by hole KMDD0261, extending a known high-grade area approximately 50 metres up-dip along the K1 Vein, recording an intersection of 9.80 m at 83.27 g/t Au, 10 g/t Ag and 1.03% Cu (84.92 g/t AuEq, 6.63 m true width). Importantly, this high-grade up-dip extension was supported by proximal hole KMDD0259 reporting 13.20 m at 24.66 g/t Au, 7 g/t Ag and 0.30% Cu (25.20 g/t AuEq, 9.52 m true width) on the K1 Vein.Drilling to the south continues to remain very encouraging with hole KMDD0229 recording 1.67 m at 29.76 g/t Au, 8 g/t Ag and 0.87% Cu (31.15 g/t AuEq, 1.11 m true width) at the K1 Vein from our most southerly cuddy. We are also on the cusp of completing our first drill cuddy at Kora South, which is beyond the southern boundary of the mining lease and targeting drilling before year-end.Lastly, we are pleased to announce the arrival of our tenth drill rig on site. Over the last twelve months, our drill rig fleet has doubled. We intend to continue to add drill rigs through 2021, with our eleventh drill rig scheduled to arrive in Q1. Drilling is underway at Kora, Karempe and Judd epithermal vein systems and the Blue Lake porphyry.”Table 1 - Kainantu Gold Mine – Significant Intercepts from Diamond Drilling(1) Gold Equivalent in Table 1 uses copper price of US$3.05/lb; silver price of US$16.05/oz and gold price of US$1,400/oz.Table 2 – Kainantu Gold Mine – Collar Locations for Kora Diamond DrillingTable 3 – Global Kora Mineral Resource (Effective Date April 2, 2020)Mineral Resource Estimate is included in a technical report titled, “Revised Independent Technical Report, Mineral Resource Estimate Update and Preliminary Economic Assessment for Expansion of the Kainantu Mine to Treat 1 Mtpa from the Kora Gold Deposit, Kainantu Project, Papua New Guinea” with an effective date of April 2, 2020.The Independent and Qualified Person responsible for the Mineral Resource Estimate is Simon Tear, P.Geo. of H & S Consultants Pty. Ltd., Sydney, Australia.Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.Resources were compiled at 1,2,3,4,5,6,7,8,9 and 10 g/t gold cut-off grades.Density (t/m3) is on a per zone basis, K1 and Kora Link: 2.84 t/m3; K2: 2.93 t/m3; Waste: 2.8 t/m3Reported tonnage and grade figures are rounded from raw estimates to reflect the order of accuracy of the estimate.Minor variations may occur during the addition of rounded numbers.Calculations used metric units (metres, tonnes and g/t)Gold equivalents are calculated as AuEq = Au g/t + ((0.923 x Cu%)*1.38)+ (0.77 x Ag g/t*0.0115). Gold price US$1,400/oz; Silver US$16.05/oz; Copper US$3.05/lb. Metal payabilities and recoveries are incorporated into the AuEq formula. Recoveries of 92.3% for copper and 77% for silver.Key Assumptions and Parameters – Kora DepositThe Kora Deposit comprises two parallel, steeply west dipping, north-south striking quartz-sulphide vein systems, K1 and K2, within an encompassing dilatant structural zone hosted by phyllite. An additional structure, the Kora Link, has also been defined between K1 and K2. There are five Kora Link structures identified, of which three are included in the resource estimate.The current resource estimate area covers an area of approximately 1,250 metres along strike by 1,050 to 1,150 metres vertically (see Figure 1), representing ~75% of the drill target area. K92 plans to continue to drill the area not yet drilled. The resource estimate includes results from 266 diamond drill holes in addition to face samples taken from horizontal development and from cut and fill faces along the K1 and K2 veins.Underground drilling consists of diamond core for a range of core sizes depending on the length of hole and expected ground conditions. Sampling is sawn half core under geological control and generally ranges between 0.5 m to 1.0 m. Underground face sampling is completed for every fired round and is to industry standard. QAQC data indicated no significant issues with the sampling or the accuracy of the on-site analysis. Current core recovery of the mineral zone is +95%, with initial drilling around the 90% mark.Geological logging is consistent and is based on a full set of logging codes covering lithology, alteration, and mineralization.The geological interpretation of the vein systems is represented as 3D wireframe solids snapped to a combination of diamond drillhole data and underground face sampling (see Figure 1). Definition of the wireframes is based on identified gold mineralization in drill core nominally at a 0.1-0.2g/t Au gold-off in conjunction with geological control/sense and current mining widths.The wireframes were used to extract 1-metre composites (minimum of 0.5m) from the drillhole and sampling database for gold, copper and silver. A gold top cut of 1,000 g/t was applied to K2 composites and a 150 g/t top cut for the Kora Link #2. No top cuts were applied to silver or copper. Variography was generally poor, as would likely be expected, although K1 indicated better along strike grade continuity.Grade interpolation of the composite data was completed using Ordinary Kriging with a block size of 1 m by 5 m by 5 m. A larger block size check model indicated no evidence of over-smoothing of gold grade with the smaller block size.Default average density values have been applied to the different lodes. The defaults are based on limited core measurements using the Archimedes Method (weight in air/weight in water). Density (t/m3) is on a per zone basis, with K1 and Kora Link: 2.84 t/m3; K2: 2.93 t/m3; Waste: 2.8 t/m3.A three-pass search strategy was applied to the grade interpolation. Search ellipse parameters are listed below. Search ellipse orientations generally reflected the subtle changes in dip and strike of the vein systems, with up to 8 search domains used for each lode.Qualified PersonK92 Mine Geology Manager and Mine Exploration Manager, Andrew Kohler, PGeo, a qualified person under the meaning of Canadian National Instrument 43-101 – Standards of Disclosure for Mineral Projects, has reviewed and is responsible for the technical content of this news release. About K92K92 Mining Inc. is engaged in the production of gold, copper and silver from the Kora deposit at the Kainantu Gold Mine in the Eastern Highlands province of Papua New Guinea, as well as exploration and development of mineral deposits in the immediate vicinity of the mine. The Company declared commercial production from Kainantu in February 2018 and is in a strong financial position.The Company commenced an expansion of the mine based on an updated Preliminary Economic Assessment on the property which was published in January 2019 and updated in July 2020. K92 is operated by a team of mining company professionals with extensive international mine-building and operational experience.On Behalf of the Company,John Lewins, Chief Executive Officer and DirectorFor further information, please contact David Medilek, P.Eng., CFA at +1-604-687-7130.NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. All statements that address future plans, activities, events, or developments that the Company believes, expects or anticipates will or may occur are forward-looking information, including statements regarding the realization of the preliminary economic analysis for the Kainantu Project, expectations of future cash flows, the planned plant expansion, production results, cost of sales, sales of production, potential expansion of resources and the generation of further drilling results which may or may not occur. Forward-looking statements and information contained herein are based on certain factors and assumptions regarding, among other things, the market price of the Company’s securities, metal prices, exchange rates, taxation, the estimation, timing and amount of future exploration and development, capital and operating costs, the availability of financing, the receipt of regulatory approvals, environmental risks, title disputes, failure of plant, equipment or processes to operate as anticipated, accidents, labour disputes, claims and limitations on insurance coverage and other risks of the mining industry, changes in national and local government regulation of mining operations in PNG, mitigation of the Covid-19 pandemic, continuation of the lifted state of emergency, and regulations and other matters. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Figure 1 – K1 Vein Long Section
https://www.globenewswire.com/NewsRoom/AttachmentNg/8082b54f-1d3d-47f2-8d3b-20fc1b83bc9eFigure 2 – K2 Vein Long Section
https://www.globenewswire.com/NewsRoom/AttachmentNg/e6972175-352e-4066-8c82-da285cfd7fd5Figure 3 – Kora-Irumafimpa Mine Section
https://www.globenewswire.com/NewsRoom/AttachmentNg/f3c14234-32d1-42e5-8e56-d7d6aed7e9a6Figure 4 – KMDD0261 Core Photograph, 85.20 – 90.74m; overall intersection downhole interval returned 9.80 m at 83.27 g/t Au, 10 g/t Ag and 1.03% Cu (84.92 g/t AuEq, 6.63 m true width) at the K1 Vein.