Kainantu Gold Mine in Papua New Guinea has reported outstanding production results for the third quarter of 2024, achieving a record output of 44,304 ounces of gold equivalent (AuEq), which includes 41,702 ounces of gold, 1,278,492 pounds of copper, and 37,613 ounces of silver, according to K92 Mining Inc.
John Lewins, K92 Chief Executive Officer and Director, stated: “As we guided to at the beginning of the year, 2H was expected to be the strongest, and it has certainly delivered thus far, with record ounces produced and sold, and record recoveries while benefiting from record gold prices in Q3.
“Importantly, the results have well positioned the Company to meet its 2024 Operational Guidance, while also delivering a notable strengthening to the Company’s financial position during the Stage 3 Expansion construction, which is very encouraging."
The mine's sales figures were equally impressive, totaling 45,248 ounces of gold, 1,615,185 pounds of copper, and 46,062 ounces of silver.
With over 80 percent of its annual gold equivalent production guidance already met in the first nine months, the company is on track to achieve its 2024 target of 120,000 to 140,000 ounces AuEq.
Lewins said: "In less than 9 months from now, the new Stage 3 Expansion Standalone Plant is scheduled to commence commissioning, marking a major milestone for K92 that has taken multiple years to reach, and it effectively represents the beginning of the Company becoming a Tier 1 Mid-Tier Producer.
“We are also excited to host an analyst and investor tour later this month, highlighting our progress across multiple areas, including current operations, the Stage 3 and 4 Expansions and exploration, while also showcasing the advantages of operating in the mining friendly jurisdiction of Papua New Guinea.”
During the quarter, the processing plant handled 104,992 tonnes of material, with a gold equivalent head grade averaging 13.8 grams per tonne, the highest since Q4 2020. This increase was driven by the mining of higher-grade stopes that had initially been scheduled for the previous quarter, the company said.
The mine's throughput was intentionally reduced to optimize recoveries at this elevated feed grade, K92 said. Notably, metallurgical recoveries also reached new heights, with gold averaging 95.3% and copper at 95.1% for the quarter, surpassing recovery expectations.
The mining operations saw substantial activity, with 112,333 tonnes of ore extracted across nine levels, including significant areas at Kora and Judd, Lewins noted.
The quarter also marked the completion of a 5-metre diameter raise bore for interim ventilation improvements, alongside the successful execution of several smaller raises.
K92 anticipates a significant increase in development rates as it completes multiple infrastructure projects and enhances its mining capabilities with the introduction of additional equipment and initiatives aimed at boosting productivity.
PNG Mineral Resources Authority (MRA) Managing Director Mr Jerry Garry, while giving an update on the mining sector to PNG Business News, commented on K92’s production.
He said: “On track to meet the annual production forecast of 120,000 to 140,000 ounces gold equivalent."
Garry said this will provide much needed financing for the construction of its Stage 3 Expansion, which will produce about 450,000 ounces of gold equivalent annum, comparable to Porgera miners’ annual production of 500,000 ounces per annum.
“This is indeed another sterling performance from K92 mine, and we highly commend their entire team," he added.
