K92 Mining Inc. has announced that an updated resource estimate has been completed at its Kora North deposit, based on results from underground grade control, exploration diamond drilling and face sampling.
The updated resource estimate comprises a Measured Resource of 154,000 tonnes @ 18.7 g/t Au, 8.9 g/t Ag and 0.5% Cu; an Indicated Resource of 690,000 tonnes @ 11.6 g/t Au, 14.1 g/t Ag and 0.8% Cu and an Inferred Resource of 1.92 million tonnes @ 10.7 g/t Au, 13.3 g/t Ag and 0.7% Cu. This represents an increase of over 20% in the contained gold equivalent ozs for the Measured and Indicated Resource and almost 30% for the Inferred Resource.
This updated resource estimate is based on results from 80 diamond drill holes drilled from Diamond Drill Cuddies 1, 2, 3 and 4 (DDC1, DDC2, DDC3 & DDC4) and over 1,300 face samples taken from horizontal development and from cut and fill faces along the K1 and K2 lodes. The resource estimate covers an area of approximately 400 to 500 metres along strike by 200 to 350 metres vertically (see K1 and K2 long sections below), representing approximately 15% of the target area of 1,000 metres along strike by up to 1,000 metres vertically which the Company plans to drill from underground over the coming 12 months.
K92 said the updated resource estimate has been defined after just twelve months of underground exploration drilling and represents, at the design production levels of 50 – 70,000 ounces per annum; almost seventeen years of production.
“In just 12 months of underground drilling, K92 has gone from commencing a resource definition program to defining a Measured and Indicated Resource at Kora North of 850,000 tonnes at 14.1 g/t AuEq containing 390,000 AuEq ozs and an Inferred resource of 1.92 million tonnes at 11.9 g/t AuEq containing 740,000 AuEq ozs,” K92’s CEO John Lewins said.
“This resource covers under 15% of the total area of 1,000 metres by 1,000 metres that we plan to drill out from underground over the next twelve months. The Measured and Indicated Resources alone represents almost six years of production at current design levels of 50 – 70,000 ozs AuEq. This has been achieved while at the same time establishing a new mining operation on the Kora deposit which is on track to produce 45,000 ozs AuEq for 2018 at a cash cost of less than US$600 per oz AuEq and an AISC of less than US$800 per ounce.”
The new resource estimate is currently being used to update the existing Preliminary Economic Assessment (PEA) which K92 has filed and made available for download on the Company’s SEDAR profile. It is anticipated that the new PEA will be completed in approximately one month.