K92 Mining Releases Strong 2021 Q4 & Annual Financial Results - Record Cash Balance, Throughput & Production

John Lewins, K92 Chief Executive Officer and Director, stated, “ 2021 represented another major step forward for K92. Operationally, Kainantu delivered record throughput, production and finished the year particularly strong. Q4 also provided our most complete quarter to date, including record quarterly production, mine throughput, mill throughput, strong metallurgical recoveries, low all-in sustaining costs of $672/oz and, once again, a positive grade reconciliation to the resource model. This resulted in the Kainantu operation beating our updated guidance on both production and costs. Financially, K92 is the strongest position it has ever been, with a record cash balance of $71m and no debt, well positioning the Company to fund its growth and exploration.

In terms of production growth, we achieved the Stage 2 Expansion run-rate of 400,000 tpa (1,100 tpd) in late-Q3, and in early Q4, announced a Stage 2A Plant Expansion to increase throughput another 25%, as the mill has continued to show that it is very capable of operating at much higher throughput rates. Q4 recorded 21 days with throughput exceeding 1,300 tpd and a daily record of 1,538 tonnes. Commissioning is expected for Stage 2A in the second half of 2022, at a plant expansion capital cost of approximately $2.5m. Subsequent to year-end, we announced a high-grade updated Kora resource estimate and maiden Judd resource estimate, providing the basis for the Definitive Feasibility Study and Updated Preliminary Economic Assessment for the additional expansion, Stage 3. Work is well underway on these studies.

Exploration also delivered strong results during the year, reporting 177 drill holes at Kora and Judd. Drilling recorded some of our highest drill holes recorded to date, with many highlights including hole KMDD0415 recording 7.51 m at 192.50 g/t Au, 8 g/t Ag and 0.22% Cu (192.92 g/t AuEq, 4.11m true width) from the K1 Vein, 6.45 m at 105.96 g/t Au, 11 g/t Ag and 0.60% Cu (106.95 g/t AuEq, 4.06 m true width) from the K1 Vein, and at Judd, hole JDD0022 recording 8.51 m at 48.56 g/t Au, 47 g/t Ag and 0.54% Cu (49.93 g/t AuEq, 6.25 m true width) from the J1 Vein. Importantly, due to the proximity of our exploration to mine infrastructure, production is able to rapidly benefit from exploration success. At Judd, in just over a year from the discovery of high-grade underground, its first long hole stope was mined in Q4 and has become a new major mining front for K92 that is expected to provide a boost to operational flexibility in both the near and long-term.

The recent strong results from surface exploration drilling at Kora South and Judd South, also show very promising potential and plans are well underway to ramp-up exploration, with the second drill rig now operating and a third drill rig planned near-term. Concurrently, Kora South and Judd South surface sampling and mapping is underway, stepping out along strike towards the interpreted A1 Porphyry. Our property wide airborne geophysics results also show that exploration is potentially just scratching the surface in terms of both vein and porphyry exploration. We see an elevated likelihood that our exploration budget will increase for 2022.

Lastly, I would like to underscore that these significant accomplishments were achieved during the burdens from the COVID-19 pandemic. Our workforce has been extraordinary during the last two years and our resiliency towards COVID-19 continues to strengthen. The support of the Governments of both Papua New Guinea and Australia have also been a major factor in our success as well. ”

Article courtesy of K92 Mining. View the full press release HERE