KAINANTU area miner K92 Mining Inc. has announced further promising results from the continuing grade control drilling of the Kora North Extension.

The company reported that tesults from Hole KMDD0086 included 4.20 m at 116.43 g/t Au, 6 g/t Ag and 0.36% Cu (117.06 g/t Au Eq) plus 2.40 m at 22.41 g/t Au, 5 g/t Ag and 0.88% Cu (23.82 g/t AuEq) plus 2.15 m at 11.49 g/t Au, 2 g/t Ag and 0..60% Cu (12.44 g/t Au Eq) plus 5.90 m at 9.81 g/t Au, 22 g/t Ag and 3.00% Cu (14.68 g/t AuEq), while Hole KMDD0088 recorded 3.46 m at 5.35 g/t Au, 2 g/t Ag and 0.34% Cu (5.90 g/t AuEq) plus 12.64 m at 8.34 g/t Au, 33 g/t Ag and 2.10% Cu (11.97 g/t AuEq) plus 2.15 m at 12.50 g/t Au, 17 g/t Ag and 2.85% Cu (17.06 g/t AuEq).

K92 CEO and director, John Lewins, said the results from DDC3 are now the furthest drilled to the south and continue to confirm the consistency of both the K1 and K2 lodes within this area while also further delineating the KL structure and confirming its continuity.
“The K1 intersection in hole KMDD0086 is the highest yet recorded at 117 g/t AuEq over 4.2 metres, while the K2 intersection reported in hole KMDD0088 at 12.64 or 8.3 metres true thickness and assaying at 11.97 g/t AuEq, is the widest yet recorded,” Mr Lewins said.

“These holes are now the furthest drilled to the south, being less than 200 metres along strike from the know Kora resource and have again increased our confidence in the continuity of these Kora veins”.

The current Kora/Eutompi inferred resource, as defined by previous drilling to date, is 4.36 million tonnes at a grade of 7.3 g/t Au, 35 g/t Ag and 2.23 per cent Cu, or 11.2 g/t gold equivalent (see attached table) and is open for expansion at depth and in both directions along strike.

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 per cent Cu):

* Over a nine-year operating life, the plant would treat 3.2 million tonnes averaging 7.1 g/t Au, 25 g/t Ag and 1.7 per cent Cu (9.3 g/t AuEq (1));
* This would generate an estimated positive cash flow of $537-million (U.S.) using current metal prices if 15-metre levels are used in mining; if 25-metre levels are used, then net cash flows are estimated as $558-million (U.S.); this cash flow includes conceptual allowances for capital;
* Production of an estimated average of 108,000 AuEq (1) ounces per annum over an eight-year period from year 2 through to year 9;
* An estimated pretax net present value (NPV) of $415-million (U.S.) for 25-metre levels, or $397-million (U.S.) for 15-metre levels, using current metal prices, exchange rates and a 5-per-cent discount;
* An estimated after-tax NPV of $329-million (U.S.) for 25-metre levels, or $316-million (U.S.) for 15-metre levels, using current metal prices, exchange rates and a 5-per-cent discount;
* Initial capital cost is estimated to be $13.8-million (U.S.), including the $3.3-million (U.S.) for the plant upgrade identified in the Mincore scoping study, but excluding the proposed Kora exploration inclines and diamond drilling; sustaining capital cost is estimated to a further $64-million (U.S.) spent over the life of the Kora mining for 25-metre levels, or $83-million (U.S.) for 15-metre levels;
* Operating cost per tonne is estimated to be $125 (U.S.) per tonne for 25-metre levels, or $126 (U.S.) per tonne for 15-metre mining levels;
* Excluding initial capital expenditure of $14-million (U.S.), cash cost is estimated to be $547 (U.S.) per ounce AuEq (inclusive of a 2.5-per-cent net smelter return (NSR) royalty) and all-in sustaining cost (AISC) of $619 (U.S.) per ounce AuEq for 25-metre mining levels, or $549 (U.S.) per ounce (inclusive of a 2.5-per-cent NSR royalty) and AISC of $644 (U.S.) per ounce AuEq for 15-metre mining levels.

Mr Lewins said Kora remains open for expansion in every direction and strongly mineralised at the extent of all drilling.