K92 Mining Announces Stage 2A Expansion to Increase Throughput +25% to 500,000 Tonnes Per Annum at Kainantu Gold Mine

by PNG Business News - October 11, 2021

Photo credit: K92 Mining

K92 Mining Inc. is pleased to announce that its Board of Directors has approved the Stage 2A Expansion, expanding the annual processing throughput to 500,000 tonnes per annum at its Kainantu Gold Mine in Papua New Guinea. This represents a +25% increase from the Stage 2 processing capacity of 400,000 tonnes per annum. Full commissioning of the Stage 2A Expansion is expected to commence in 3Q 2022.

The decision to proceed with the Stage 2A Expansion is based on the strong performance of the process plant to date. The process plant has strongly demonstrated that it is capable of a throughput rate well in excess of 400,000 tpa (1,100 tpd), delivering a mill product size that is notably finer than required while also achieving multiple daily throughput records, including a single day record of 1,408 tonnes processed on September 22, 2021.

The Stage 2A Expansion decision is further bolstered by the strong exploration and development results from the Judd Vein System. Judd is located near-mine infrastructure, subparallel to and ~150-200m east from the producing Kora deposit, within the mining lease and with similar metallurgical characteristics to Kora. The proximity of Judd to Kora enables Judd to utilize Kora’s incline and its footwall drive along strike while also being decoupled from Kora’s mining cycle, resulting in considerable development, mining and mine planning efficiencies. Judd production stoping is planned to commence this quarter, providing a near-term boost to mining throughput.

The incremental capital investment to complete the plant expansion is estimated to be US$2.5 million. Several upgrades have already been ordered or installed, with a new filter press being commissioned and an additional T-1000 crusher to be installed this quarter. Key outstanding items are additional flotation cells, pipes and pumping, which are expected to be installed in 2Q 2022. Mobile equipment and development capital expenditures will be accelerated from Stage 3 Expansion capital, with equipment expected to arrive during 1H 2022. Stage 2A Expansion will be funded from existing cash flows from the current Kainantu Gold Mine operations.

John Lewins, K92 Chief Executive Officer and Director, stated, “Expanding the existing process plant to 500,000 tonnes per annum is a major positive development for the Kainantu Gold Mine. Importantly, at an estimated plant expansion capital cost of US$2.5 million, the expansion is not only funded from existing cash flow but is also expected to considerably strengthen our near-term ability to self-fund the Stage 3 Expansion while continuing to advance our vein field and porphyry exploration.

In addition to the strong performance of the process plant to date, a notable driver for the Stage 2A Expansion decision has been the significant exploration and development results at Judd. Judd is near existing Kora infrastructure making it highly efficient to access, while also being essentially decoupled from Kora and has similar metallurgical characteristics. These attractive features make mining Judd and its mine planning highly efficient. The first production stope at Judd is planned to be mined this quarter and is expected to provide a notable boost to the ramp-up of mining material movements, which were particularly impacted earlier in the year by COVID-19.

Judd is also highly efficient to explore, as it is not only proximal to Kora but utilizes the same diamond drill cuddy infrastructure that has been established over the last four years at Kora. With infill drilling nearly complete at Kora, at least two-thirds of the underground drill rigs are planned to be allocated to Judd by late-October, marking the first major exploration program of the vein system.

Lastly, we remain on track for the next Kora resource estimate update planned for late-2021 as well as the release of a maiden resource estimate for Judd. The Stage 3 Expansion Definitive Feasibility Study is also progressing well and findings from certain studies and test work have presented opportunities that will be implemented as part of the Stage 2A Plant Expansion.”

 

Article courtesy of K92 Mining



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PNG Business News - March 23, 2021

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