K92 Mining expects another significant, year-over-year, increase in gold equivalent production of 16-36% to 115,000 to 135,000 ounces, while also delivering low-cost production, with an estimated cash cost of $515-$565 per ounce gold and all-in sustaining cost of $825-$875 per ounce gold. 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 $14-17 million. Over the course of 2020, the drill fleet doubled to ten rigs and an eleventh drill rig is expected to arrive imminently. 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 $25-30 million, which includes the ongoing twin incline development. The twin incline is designed for a throughput capacity of up to 2 million tonnes per annum, or 3 million tonnes per annum with conveyors.
John Lewins, K92 Chief Executive Officer and Director, stated “2020 was certainly a very strong year for K92, with year-over-year production growth of 20%; significant exploration progress on multiple vein systems; increases of +180% and +50% in Kora’s M&I and inferred resource estimates, respectively, and; completion of our Stage 3 Expansion PEA outlining Tier 1 Asset potential of +318,000 oz AuEq run-rate. In addition, the quality and importance of Kora has been recognized, with K92 being awarded the prestigious Thayer Lindsley Award for Best Global Discovery from the Prospectors & 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 Government in Papua New Guinea on all levels."
"While we expect the COVID-19 environment to persist through the majority of 2021, we believe 2021 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 2020. We believe the future for Kainantu and K92 looks very exciting.”
