K92 board approves expansion

THE board of directors of the K92 Mining Ltd has approved the stage 2A expansion, expanding the annual processing throughput to 500,000 tonnes at its Kainantu gold mine in Eastern Highlands.
This represents a 25 per cent increase from stage 2 processing capacity of 400,000 tonnes per annum.
The full commissioning of the Stage 2A expansion is expected to begin in third quarter of next year.
The decision to proceed with the Stage 2A expansion is based on the strong performance of the process plant to date.
The incremental capital investment to complete the plant expansion is estimated to be US$2.5 million (about K8.57 million).
K92 chief executive officer and director John Lewins said: “Expanding the existing process plant to 500,000 tonnes per annum is a major positive development for the Kainantu gold mine.
“Importantly, at an estimated plant expansion capital cost of US$2.5 million (about K8.57 million), the expansion is not only funded from existing cash flow but is also expected to considerably strengthen our near-term ability to self-fund the stage 3 expansion while continuing to advance our vein field and porphyry exploration.
“In addition to the strong performance of the process plant to date, a notable driver for the stage 2A expansion decision has been the significant exploration and development results at Judd.
“Judd is near the Kora infrastructure making it highly efficient to access, while also being essentially decoupled from Kora and has similar metallurgical characteristics,” Lewins said.
“We remain on track for the next Kora resource estimate update planned for late-2021 as well as the release of a maiden resource estimate for Judd.”