K92 Mining begins production in EHP

Business

THE K92 Mining Incorporated company has commenced commercial production at its Kainantu gold mine in Eastern Highlands, effective of Feb 1.
The company in a market release said production for last month exceeded 2700 ozs gold equivalent (2500 ozs gold).
K92 chief executive officer and director John Lewins said: “We
are extremely pleased to have reached this very significant milestone.”
Lewins defined their commercial production as having commenced stope production underground; achieving a minimum of 60 per cent of designed gold production; and a minimum of 90 per cent of designed metal recovery from the process plant over a 30-day period.
“These metrics were achieved last month and the company expects that to be maintained going forward,” Lewins said.
Production levels from Kora North are anticipated to continue building up in the coming months from development and tonnage from the cut and fill stopes.
Design levels are expected to be achieved during the June quarter, when the first long-hole stope production commences.
“That we have achieved mining the Kora North lode, eight months after drilling the first discovery hole and just four months after commencing grade control drilling and the treatment of the initial bulk sample, is a testament to the professionalism, enthusiasm and ability of the entire team at our Kainantu operation.”
Lewin said K92 has not “based its production decisions on ongoing mine production or mineral reserve estimates or feasibility studies.”
Historically, he said, such projects have increased uncertainty and risk of failure.
“Mineral resources that are not mineral reserves do not have demonstrated economic viability.”
K92 Mining has also commenced gold production from the Irumafimpa gold deposit, which together with the Kora gold deposit, is part of the company’s Kainantu gold project.