May 24, 2017 12:50 ET
VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 24, 2017) -
K92 Mining Inc. (TSX VENTURE:KNT)(OTCQB:KNTNF) ("K92" or the "Company") is pleased to announce the first exploration hole drilled in a program designed to test for extensions of the Kora Deposit has intersected high grade gold mineralization.
The intersection is approximately 500 metres along strike and 150 metres down dip from the closest point of the currently defined Kora Deposit Inferred Resource (see Table 3 and Figure 1).
This intersection, recording 5.4 metres @ 11.68 g/t Au, 25.5 g/t Ag and 1.33% Cu and a gold equivalent grade of 14.1 g/t AuEq is typical of the Kora/Eutompi mineralisation. The current Kora/Eutompi Inferred Resource is 4.36 million tonnes at a grade of 7.3 g/t Au, 35 g/t Ag and 2.23% Cu or 11.2 g/t AuEq (see Table 3).
The diamond drill hole, KMDD0009, intersected what the Company interprets as the Kora/Eutompi Vein System 154.1 metres down hole or approximately 130 metres from the Kora drive. Given the results from this hole, the company is now accelerating exploration drilling and has 9 holes planned from the initial drill cuddy, targeting an area of approximately 200 metres along strike by 200 metres on dip.
The interpreted strike length of the Kora/Eutompi Vein System is approximately 1,100 metres at surface, but potentially based on limited drill testing to date, this reduces at depths greater than 200 metres to 500 metres strike length, although it is open for expansion both at depth and along strike in both directions. The deepest intersection in hole BKDD0023 is 900 metres below the surface outcrop of the Vein System and almost 500 metres below the deepest Inferred Resource (see Figure 1). The KMDD0009 intersection is approximately 700 metres below the surface and 500 metres along strike from BKDD0023.
The Kora 5m x 5m drive is designed to provide access to the Kora deposit, where K92 is assessing the commencement of production in First Half 2018, while also providing the Company with the ability to drill test between Irumafimpa and Kora from underground drill cuddies. This area has not been previously tested due to topographical challenges associated with drilling from the surface and is considered highly prospective given the current interpretation of Irumafimpa and Kora being on the same structure.
| Table 1 Kainantu Gold Mine - Significant Intercepts from Kora Extension Drilling |
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| True | ||||||||
| From | To | Interval | width | Gold | Cu | Silver | Gold | |
| Hole_id | (m) | (m) | (m) | (m) | g/t | (%) | g/t | Eq |
| KMDD0009 | 117.80 | 122.00 | 4.20 | 3.74 | 0.80 | 0.52 | 8.08 | 1.70 |
| including | 117.80 | 118.40 | 0.60 | 0.53 | 2.11 | 0.03 | 15.50 | 2.37 |
| including | 121.40 | 122.00 | 0.60 | 0.53 | 1.58 | 3.34 | 31.40 | 7.10 |
| KMDD0009 | 154.10 | 154.80 | 5.40 | 4.81 | 11.68 | 1.33 | 25.46 | 14.06 |
| including | 155.25 | 159.50 | 4.25 | 3.79 | 14.63 | 1.68 | 32.32 | 17.64 |
| including | 157.15 | 159.50 | 2.35 | 2.09 | 23.60 | 2.90 | 57.27 | 28.82 |
| including | 157.15 | 157.90 | 0.75 | 0.67 | 71.94 | 8.51 | 168.70 | 87.25 |
| including | 155.25 | 156.00 | 0.75 | 0.67 | 8.77 | 0.09 | 2.60 | 8.94 |
| Gold equivalents are calculated as AuEq = Au g/t + Cu%*1.52+ Ag g/t*0.0141. |
| Table 2 Kainantu Gold Mine - Collar Location and Orientation for Kora Extension Drilling |
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| Hole_id |
Collar location | Collar orientation | EOH depth (m) |
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| Local North | Local East | mRL | Dip | Local Azimuth | ||
| KMDD0009 | 59173 | 29973 | 1184.1 | 0 | 243 | 210.4 |
K92 Chief Executive Officer, Ian Stalker, states, "The results from the first hole drilled by K92 on the Kora Vein System and first drilled from underground can only be described as outstanding. Based on the interpretation of our geological team we have an intersection of 5.4 metres at 14.1 g/t AuEq from some 500 metres along strike and 150 metres down dip from the known Kora Inferred Resource. The implication is that there is potential for this high grade Kora Deposit to become much larger. With today's results in hand, we will push the Kora drive at an increased pace and with an expanded drilling program."
In addition to drilling between the Irumafimpa and Kora deposits, K92 will also be drilling down dip from the known resource to infill between the known resource and the single deepest known hole drilled on the deposit BKDD0023, which was drilled by Barrick Gold Corporation. This hole recorded an intersection of 30.6 metres @ 2.0 g/t Au, 4.8 g/t Ag and 1.3% CU, including 6.4 metres @ 5.52 g. /t Au and 8M @ 3.7% Cu from 920.8 metres, approximately 500 metres below the current resource.
Consideration will be given to extending the drive beyond the Mining Lease 150 into the adjacent Exploration Lease (EL 693) which is also held by K92, to allow exploration drilling to be undertaken to potentially extend the known limit of mineralization to the South.
K92 has filed and made available for download on the Company's SEDAR profile, a technical report titled "Independent Technical Report, Mineral Resource Update and Preliminary Economic Assessment ("PEA") of Irumafimpa and Kora Gold Deposits, Kainantu Project, Papua New Guinea" with an effective date of March 2, 2017 (the "Technical Report").
The PEA estimates for Kora, based on the current resource estimates (4.36 million tonnes of 7.3 g/t Au, 35 g/t Ag and 2.23% Cu);
Metal prices used were Au - $1300; Ag - US $18/oz; Cu - US $4800/tonne
*AuEq calculated on above metal prices
Kora remains open for expansion in every direction and strongly mineralized at the extent of all drilling.
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. The Technical Report contains a full description of all underlying assumptions relating to the PEA. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
| Table 3 Irumafimpa and Kora/Eutompi Resources |
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| Resource by Deposit and Category | ||||||||||
| Deposit | Resource Category |
Tonnes | Gold | Silver | Copper | Gold Equivalent | ||||
| Mt | g/t | MOz | g/t | MOz | % | Mlb | g/t | MOz | ||
| Irumafimpa | Indicated | 0.56 | 12.8 | 0.23 | 9 | 0.16 | 0.28 | 37 | 13.4 | 0.24 |
| Inferred | 0.53 | 10.9 | 0.19 | 9 | 0.16 | 0.27 | 74 | 11.5 | 0.20 | |
| Kora/Eutompi | Inferred | 4.36 | 7.3 | 1.02 | 35 | 4.9 | 2.23 | 215 | 11.2 | 1.57 |
| Total Indicated | 0.56 | 12.8 | 0.23 | 9 | 0.16 | 0.3 | 4 | 13.4 | 0.24 | |
| Total Inferred | 4.89 | 7.7 | 1.21 | 32 | 5.06 | 2.0 | 218 | 11.2 | 1.76 | |
| M in Table is millions. Reported 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. Gold equivalents are calculated as AuEq = Au g/t + Cu%*1.52+ Ag g/t*0.0141. |
ON BEHALF OF THE COMPANY,
Ian Stalker, Chief Executive Officer and Director
The TSXV has neither approved nor disapproved the contents of this press release.
K92 Exploration Manager, Chris Muller, P.Geo, a qualified person under the meaning of Canadian National Instrument 43-101, has reviewed and is responsible for the technical content of this news release.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) 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 Project, expectations of future cash flows, the proposed plant expansion, 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, 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.
To view Figure 1, photographs and images, please click on the following link: http://media3.marketwire.com/docs/KNT0524.pdf