- First two holes from K92’s maiden drill program at the Arakompa project (“Arakompa”), located ~4.5 km from the Kainantu process plant, recorded significant mineralization, with 4 high grade lodes intersected in hole KARDD0002 recording 7.20 m at 24.76 g/t AuEq, 5.70 m at 9.94 g/t AuEq, 5.30 m at 6.06 g/t AuEq and 3.60 m at 3.38 g/t AuEq (See Fig 1), and similar mineralization to the producing high grade Kora and Judd vein systems (See Fig 5-6). Significant chalcopyrite, and also bornite observed in the 5.7 m at 9.94 g/t AuEq intersection, with the copper component grading 1.71%.
- The target size of Arakompa is very large, with mineralization demonstrated from drill holes, rock samples and surface workings for at least 1.7 km of strike, hosted within an approximately 150-225 m wide mineralized intense phyllic altered package, and exhibits a vertical extent of +500 m (see Fig 2-3).
- Between the high grade lodes, the tonalite to dioritic host rock is overprinted with porphyry style mineralization increasing the potential for bulk mining. Hole KARDD0002 recorded a bulk intersection of 219.8 m at 1.59 g/t AuEq with a higher grade core of 149.4m at 2.12 g/t AuEq, starting at 5.2 m from surface (see Fig 1). Importantly, hole KARDD0002 drilled only approximately two-thirds of the width of the mineralized corridor, with the eastern one-third untested (see Fig 2-3).
- Arakompa is sparsely drilled, open along strike, at depth and along its width. K92’s maiden drill results represent the first drilling on the project completed in 32 years. A total of 18 holes were drilled historically, with the vast majority shallow, recording significant high grade, including 15 intersections above 5 g/t AuEq, 8 intersections above 10 g/t AuEq and 3 intersections above 20 g/t AuEq, with highlights including: 4.00 m at 32.03 g/t AuEq, 4.00 m at 20.21 g/t AuEq, 2.00 m at 32.01 g/t AuEq, 2.80 m at 16.18 g/t AuEq and 9.20 m at 10.67 g/t AuEq (see Table 2 for historic drill holes). K92’s hole KARDD0002 is the longest hole drilled to date at Arakompa and plans are already in place to expand exploration activities near-term.
Notes:
(1) Drill highlights presented above are core lengths (not true widths).
(2) Gold equivalent (AuEq) exploration results are calculated using longer-term commodity prices with a copper price of US$4.00/lb, a silver price of US$22.50/oz and a gold price of US$1,750/oz.
John Lewins, K92 Chief Executive Officer and Director, stated, “We are very excited to be announcing the first two drill hole results from Arakompa, demonstrating very high potential from both the multiple intersections and significant size potential from surface sampling, drill holes and local workings covering a strike of 1.7 km, a mineralized corridor of approximately 150 to 225 metres wide, and a demonstrated vertical extent of over 500 metres.
Arakompa is also near infrastructure, located closer to the process plant than Kora and Judd, with relatively gradual terrain for road access up from the Markham Valley, and importantly, represents a highly prospective opportunity to potentially grow production at Kainantu beyond the Stage 4 Expansion (see Figure 4).
Plans have already been actioned to expand the program at Arakompa in the near-term.”
Chris Muller, K92 Executive Vice President Exploration, stated, “The Arakompa project represents another vein system analogous to the Kora-Judd consolidated corridor, with just as much potential. In addition to the high grade massive sulphide veins, the intervening gold mineralization at Arakompa is well developed and intimately associated with widespread phyllic alteration likely representing the upper expressions of a fertile porphyry at depth.
Almost all of the 18 holes drilled by former operators, Renison Goldfields Consolidated Limited and Highlands Gold Limited, intersected excellent gold-rich intercepts, even with only 1,766 metres drilled historically. Though drill tested over a substantial strike length, drilling by these companies only tested the very shallow parts of the veins. Clear indications of the vein system at surface, around 1000m RL, are a testament to even greater strike potential to the north and exceptional depth extent as well.
The proximity of the Arakompa mineralized corridor to the Kainantu Gold Mine infrastructure, even closer to the Lae-Madang Highway than Kora, is a significant attribute and will enable a major drilling campaign to be carried out cost effectively. We look forward to working with our stakeholders to delineate potentially the next major resource for Papua New Guinea.”
