K92 Mining Inc. has reported some exciting high grade results from the early stages of a new exploration programme at the Kainantu Gold Mine.

The company recently announced it had drilled multiple high grade gold intersections in the Irumafimpa area as part of grade control drilling programme at the Kainantu Gold Mine.

Highlight intercepts have included:

  • 8.18m at 33 g/t Au plus 1m at 4.51 g/t Au plus 1.1m at 4.96 g/t Au;
  • 2m at 22.6 g/t Au plus 5.1m at 9.73 g/t Au plus 3.2m at 6.03 g/t Au;
  • 7m at 28.75 g/t Au plus 1m at 2.49 g/t Au;
  • 2m at 32.32 g/t Au;
  • 5m at 73.16 g/t Au plus 0.94m at 4.74 g/t Au plus 1m at 5.44 g/t Au; and
  • 3m at 8.16 g/t Au.

In September of 2016, K92 began a campaign of close spaced underground diamond drilling as part of a comprehensive grade control strategy at Kaintainu. The current grade control drilling programme is focused on the areas of Irumafimpa and is designed to bring a high degree of confidence to the production planning and scheduling.

K92 plans to mine this area in the coming months.

K92 said the closed space drilling pattern of approximately 15m by 15m has significantly increased the confidence in this sparsely drilled area, with most holes recording high grade intersections. The company said that approximately 80% of the holes completed as the time of its announcement had recorded multiple high grade intersections indicating the presence of multiple parallel to sub parallel high grade veins.

K92 CEO Ian Stalker said the results from this drilling are being used to finalise the various stope and ore development designs and provide updated information on projected production from the areas in terms of tonnage, grade and contained ounces.

The drilled grade control holes are situated at the lowest point in the underground which K92 plans to mine and are also at the southern edge of the known resource that was previously only drilled on a 100m by 100m pattern.

“In the context of K92 moving towards achieving Commercial Production, these high grade results are extremely pleasing as they confirm the continuity of the high grade system previously reported in the first six holes,” Mr Stalker said.

“The holes were drilled from an area at the southern extremity of the resource where data is limited and significantly lower grades were expected. The results also show consistent evidence of multiple parallel high grade veins within close proximity to each other, providing the potential for several veins to be mined from the same underground access.”

Exploration excitement

Meanwhile, the company had earlier reported it had drilled high grade intersects including 8.27 g/t Au, 8.1% Cu and 500 g/t Ag over 0.4m and 3.07 g/t Au, 5.1% Cu and 158 g/t Ag over 1.2m in two of the first six holes of the initial exploration drilling programme on the Judd Vein System, at Kainantu.

Mr Stalker said the results have shown that the Judd vein system extends at least 2,000m from previously drilled holes at Judd, which were drilled adjacent to the Kora Deposit.

The previous holes drilled adjacent to Kora included 9m @ 8.8 g/t Au and 1.1% Cu and 3m @ 278 g/t Au.

The Judd Vein System is located within the ML 150 mining lease and runs parallel to the Irumafimpa – Kora Vein System at Kainantu.

It is also parallel to, and between 50 and 100m from the main access decline into the Irumafimpa orebody, which Mr Stalker said would provide for easy access should drilling identify a suitable resource for mining.

In September 2016, K92 Mining Inc. commenced an initial underground diamond drilling programme targeting the Judd Vein System to confirm that the system, which was known to run parallel to the Kora deposit, extends as far north as the Irumafimpa deposit.

The company said every hole drilled, covering a strike length of approximately 200m, returned significant gold copper and silver results,, confirming that the Judd vein system does extend at least to the Irumafimpa orebody.

A proposed exploration drive from the existing Irumafimpa access incline to the known Kora deposit would run parallel to and within 50 to 100m of the Judd Vein System.

Mr Stalker said that importantly, Judd is an exploration target and is not part of the K92 mineral resource nor the mining inventory.

“These high grade results from the first exploration holes drilled at Judd are very positive. While it is significant that the known strike length of Judd has been extended to 2000m with it remaining open along strike, it is also very important to note the high grades of copper and silver alongside the gold in these early exploration results.

“While our technical team on site continues to focus on the successful ramp up in our production from the Irumafimpa ore body, these exploration results give us increasing confidence in the expansion potential of the mine.”

Licence renewed

In other news,  K92 Mining Inc. has received a two year renewal on Exploration License EL-1341 from the PNG Mineral Resources Authority (MRA).

EL-1341 covers a total area of 146.8 sq km and is located to the south of the company’s Mining Lease ML-150 at Kainantu.Earlier last year, K92 completed a helicopter reconnaissance survey of EL-1341 with a goal of identifying and photographing various slips, alteration zones, areas of old and current workings and other features of geologic interest.

This survey identified up to 50 targets for follow up work and including the above targets which showed evidence of substantial historical or current workings.

Power agreement

K92 Mining Inc has also successfully concluded a Power Supply Agreement (PSA) with PNG Power (PPL) for the supply of power to its projects.

The PSA is in place for an initial period of five years and is renewable for a further five years upon the agreement of both parties.

Highlights:

  • Initial contract is for five years with a renewal clause for a further five years
  • Power to be supplied at a competitive rate and locked in for the initial five year period
  • PPL has agreed to fund a Kina 500000 capital programme aimed at increasing the reliability of power to K92’s site
  • K92 has installed a new main process plant switch board on site, ensuring limited disruption to operations during any switchovers to standby power (available at site) should PPL power be interrupted.

K92 CEO Ian Stalker said the power supply agreement is an important milestone for the company.

“It locks in an attractive rate, ensures long term stability of supply and eliminates many of the risks associated with future potential increases in the price of oil. This agreement enables K92 to continue the momentum towards reaching state operations at the mine and mill. In addition to being economically superior to diesel generated power, hydro-electric power is also more environmentally friendly.”