K92 Mining Ltd., the operator of the Kainantu Gold Mine in Eastern Highlands Province, has reported its strongest first quarter (“Q1”) results to date, with 47,817 ounces gold equivalent (“AuEq”) produced in Q1 2025. The result significantly exceeded budget, marking a 74% increase from Q1 2024 and the second highest quarterly production in the Company’s history.
The strong quarterly results were driven by high-grade stopes from both the Kora and Judd deposits, a positive grade reconciliation compared to the resource model, combined with excellent plant performance. Metallurgical recoveries remained high at 95.8% for gold and 95.1% for copper, both marking the second highest on record. The process plant treated 103,449 tonnes of ore at a head grade of 14.9 grams per tonne AuEq. Underground operations mined 104,052 tonnes of ore, with total material movement reaching 315,182 tonnes, the second highest on record. Additionally, underground lateral development was also strong, setting a new monthly record in March with 954 metres of advance. This was supported by a number of major infrastructure upgrades commissioned earlier in the quarter.
During the quarter, K92 continued to advance its transformative Stage 3 Expansion, which is designed to establish Kainantu as a Tier 1, Mid-Tier Producer. Construction is progressing well, with approximately 75% of the growth capital either spent or committed as at March 31, 2025. The commissioning of the new process plant is scheduled to commence in the second half of Q2 2025.
While investing significant capital in the mine during the quarter, K92 also made a corporate tax payment of PGK 48 million during the quarter. The strong quarterly operational results reinforce K92’s capability to deliver on the upcoming expansions, which will significantly contribute to the economic development of Papua New Guinea while maintaining its commitment to safety, environmental stewardship, and community development.
John Lewins, K92 Mining’s Chief Executive Officer, said, “We are off to a great start in 2025 with our strongest Q1 to date. Operations have continued its momentum coming off a record year in 2024, achieving several records and near-records. As our operation expands and becomes more successful, we are also very proud to contribute to the economic well-being of Papua New Guinea by making yet another corporate tax payment during the quarter. With commissioning of the new 1.2 million tonne per annum process plant set to begin shortly, this is shaping up to be a milestone year for both Kainantu and Papua New Guinea as we move closer to becoming a Tier 1 Mid-Tier gold producer.”
