K92 sees potential for growth

K92 Mining, the operator of the Kainantu gold mine in Eastern Highlands, believes it has the potential to continue its growth and further expand production this year.
Chief executive officer and director John Lewins said last year was a strong year for the company with a year-over-year production growth of 20 per cent, significant exploration progress on multiple vein systems, and an increases of more than 180 per cent and 50 per cent in Kora and inferred resource estimates respectively.
He also noted the completion of the mine’s stage three expansion preliminary economic assessment outlining a tier one asset potential of +318,000 oz AuEq run-rate.
The company said in a statement that it expected another significant increase in gold equivalent production of 16-36 per cent to 115,000 to 135,000 ounces, while also delivering low-cost production, with an estimated cash cost of US$515-US$565 (K18,05.73–K19,81.04) per ounce gold and all-in sustaining cost of US$825 to US$875 (K2,892–K3070) per ounce.
Additionally, the company plans to ramp-up exploration activities and invest in future production growth.
On exploration, 2021 is forecasted to have a significant increase in both near-mine and regional activities with a forecasted expenditure of US$14-17 million (K49.09– K59.61mil).
Over the course of 2020, the drill fleet doubled to 10 rigs and an 11th drill rig is expected to arrive soon.
Exploration plans are to target the Judd, Karempe, Kora and Kora South vein systems, and the Blue Lake porphyry in addition to continuing generative surface exploration.
Growth capital is forecasted to be between US$25-30mil (K87.66 –K105.19mil), which includes the ongoing twin incline development.
The twin incline is designed for a throughput capacity of up to two million tonnes per annum, or three million tonnes per annum with conveyors.
While highlighting the company’s achievement’s last year, Lewins said: “In addition, the quality and importance of Kora has been recognised, with K92 being awarded the prestigious Thayer Lindsley award for best global discovery from the prospectors and developers association of Canada (PDAC) for Kora North.
“Importantly, all of these milestones were achieved during the Covid-19 pandemic and were made possible due to the extraordinary commitment of our workforce, exceptional resource at Kora and also the support of the PNG Government on all levels.
“While we expect the Covid-19 environment to persist through the majority of 2021, we believe this year has the potential to continue the growth of our company as we further expand production at Kainantu, significantly ramp-up exploration on multiple vein and porphyry targets, and complete our next resource update and stage 3 definitive feasibility study in the second half of 2021.
“The future for Kainantu and K92 looks very exciting,” Lewins said.