Prime Minister Hon. James Marape has emphasised the need for all parties involved in the New Porgera Mine to avoid any further delays in reopening the mine. The call comes in the wake of a ruling recently by the Supreme Court against a court order issued last Friday, which had sought to halt the proceedings of the New Porgera Development Forum scheduled to take place in Wabag .

Following the Supreme Court's decision, the development forum is proceeding as planned in Wabag. The forum aims to pave the way for the earliest possible reopening of the mine and is expected to last for a minimum of two weeks in order to address all pertinent concerns among stakeholders.

Prime Minister Marape welcomed the Supreme Court's ruling, stating, "The New Porgera Development Forum's process is a required step to reopen the mine. Reopening the Porgera Mine is a matter of great national significance, and unnecessary delays must be avoided."

The Prime Minister urged all stakeholders, including landowners and all provincial governments, to heed the call made by Mining Minister Hon. Sir Ano Pala for Section 3 consultations to be started.He acknowledged the existence of various outstanding issues among landowners such as SML, LMP, Riverine, Power plant and Power Pylon, which should be thoroughly discussed during the development forum.

“Under my administration, the government is committed to ensuring a more favorable arrangement in the New Porgera, building upon the insights gained from the past three decades," Prime Minister Marape affirmed.

Stressing the significance of the forum, Prime Minister Marape stated, "Tomorrow is the first step in a process that will span at least two weeks, allowing for a comprehensive resolution of all pertinent matters."

The Prime Minister underscored his commitment to addressing both his Tari-Pori seat and national leadership responsibilities in order to resolve all pending matters in Porgera. As a result, he called upon all stakeholders to engage in the development forum proceedings.

“I assure all landowners that the New Porgera Development Forum will serve as a platform to effectively address all concerns," Prime Minister Marape assured.

Mayur Resources Limited is pleased to formally announce the appointment of Mr John McBride as CEO of Mayur’s Central Lime Project. The appointment of Mr McBride follows the recent agreement with Sir Mick Davis’ Vison Blue Resources to invest US$40m in the Central Lime Project for a 49% equity stake.

Mr McBride has extensive experience in global materials companies with his background spanning technical, operational and commercial responsibilities. Mr McBride was the CEO of Sibelco’s Lime Division and most recently was President of APAC at Graymont, a global leader in lime and lime solutions.

During his time with Graymont and Sibelco Lime, Mr McBride:

• Delivered Graymont's organisational vision to become a global player by spearheading entry into the broader Asia Pacific region and accelerated business growth by reconfiguring manufacturing networks and supply chains through a ten-year strategic plan; 
• Established additional revenue and market growth in Sibelco’s Lime supply chain networks through innovative initiatives and the commissioning of greenfield startups in Indonesia and the Philippines; 
• Established Graymont’s global procurement function through the development of categorical and transactional teams, influencing the global organisation and stakeholders on cost control measures; and 
• Partnered with the global leadership to evaluate decarbonisation strategies and initiated the switch to renewable energy asset investments.

Mr McBride is a proven and experienced business leader whose track record demonstrates his ability to thrive in complex environments, generate value by improving organisational capabilities, deliver projects, increase revenue and operational scale, and implement business plans and strategies to grow. 

Mr McBride will formally commence his role as CEO in early November 2023. 

Mayur’s Managing Director, Mr Paul Mulder, said: 

"We are excited to have attracted talent of the calibre of John to lead our Central Lime Project. John’s industry, developmental and operational skills are world class, and he will be a major contributor to the successful development and commencement of commercial operations at our Central Lime Project.”

 

“Establishing a world class board and execution team is vital in ensuring the ‘base case’ of the first 2 kilns of Quicklime production capacity is achieved (400,000 tonne per annum). The true value of this import displacement and export-oriented manufacturing facility will be realised, however, by more fully utilising the 197 million tonne high grade limestone JORC resource on the Kido peninsula* where the 2 kiln base case only estimates utilising less than 15% of such JORC resource inventory. There remains large scale upside potential of producing circa 4 times the productive output of the 2 kiln base case, being 1.6 million tonnes of Quicklime per annum (8 kilns), with exceptionally low estimated incremental expansion capital costs. Economics are expected to materially improve on the US$25m per annum EBITDA reported for the initial 2 kilns of productive output (where the capital costs of US$100m for this 2 kiln operation also includes the establishment of Wharf, Roads, Bridges, Power, Water, Quarry, Camp, Workshops, etc)**. Expansions beyond the 2 kiln base case will not incur such deep greenfield capital establishment costs and EBITDA margins are expected to materially improve for each additional kiln added.

 

We have therefore ensured that John has been incentivised to achieve such a bold expansion goal. With an expected ongoing regional supply deficit, the realisation of this expanded outcome would be a significant benefit to the local Landowners, PNG stakeholders, Mayur Shareholders, its Partners and put PNG on the map as a major Quicklime producer in the APAC region.”

Mr John McBride added:

“The Central Lime Project provides the unique opportunity to support the global energy transition to renewables and contribute to nation-building at world-class ESG and sustainability standards. The fundamentals of the project are compelling, both in the quality of resources, technology and location to established and emerging markets. The financial benefits and business cases are unparalleled. I am excited to join Mayur Resources and partner with the Board, our equity partner Vision Blue Resources and broader stakeholders to deliver the initial phase of 400ktpa of Lime production and future expansions.”

The Central Lime Project's strategic location, 24 km from the capital city of Port Moresby and adjacent to the US$18 billion PNG LNG facility, within its own unique Special Economic Zone, provides an extraordinary platform for growth and positions the Central Lime Project to become a regional lime industry leader. Construction commenced in June 2023 and high-grade raw limestone will be produced as an early saleable product throughout the construction phase of the lime facility producing early cashflows in 2024.

Mayur Resources Limited is pleased to announce that it has executed a Term Sheet with Vision Blue Resources (“VBR”), a clean energy related investment firm led by Sir Mick Davis, for an investment of US$40 million for a 49% equity share in the Project. Mayur believes that the Proposed Investment will be sufficient to satisfy the total equity funding required for completion of the Project’s development and construction works, implement onsite carbon reduction initiatives, and enter commercial production.

The Proposed Investment is subject to a number of conditions precedent including, but not limited to, negotiation of long form investment documents and Project-related documents, securing requested fiscal approvals by applicable PNG government bodies, required debt funding and ongoing commitments to ensure the production of low carbon lime. VBR and Mayur are working together to secure debt financing of approximately US$70 million to fully fund and complete the Project. Due to the Project’s economic significance in the APAC region, including its importance in supporting the critical minerals sector in Australia, the Company is in negotiations with the Australian Government as one of its preferred debt funders with a view to enhancing bilateral ties between the two countries.

Sir Mick Davis, CEO of VBR, said:

"The importance of lime supply to the processing of minerals and metals linked to the energy transition is considerable and the Mayur leadership team’s credentials in this market are world- class. The project in PNG is compelling in terms of its size, scalability and quality, given the high calcium content of the deposit. The Project has an attractive low risk profile which aligns well with VBR’s investment criteria, is fully permitted, construction is underway, and benefits from project developed road and port infrastructure– all located in a strategic location, to support the PNG and greater APAC markets. We look forward to working with the Mayur team to negotiate the long form transaction documents and satisfy the conditions required for the Proposed Investment to complete.”

Mayur’s Managing Director, Mr Paul Mulder, added:

“We are thrilled to welcome VBR, a partner of impeccable pedigree, to collaborate on our Central Lime Project. VBR’s recognition of the pivotal role of lime in meeting the escalating demand across various environmental and renewable energy sectors is evident.”

“The Project will see PNG become a pivotal contributor to the regional and global lime industry, with demand for lime set to continue to rapidly expand as a key input in the global energy transition.”

“The Project also promises substantial benefits for the domestic PNG economy. It paves the way for an import substitution downstream processing business, while providing significant local employment opportunities. The enhancement of living standards and benefits for local landowners remain at the forefront of our mission."

“According to Wood Mackenzie forecast lime consumer demand vs. the producer ‘supply response’ clearly evidences the increasing supply deficit and dislocation in a supply chain being able to respond in the APAC region where material upward pressure on lime prices is forecast. The Australian market in recent times has shown consumers are now willing to import higher grade, cleaner better performing lime from abroad. Collectively with our partners VBR we plan to become a dominant player not only in Australia, but also the APAC region. Indonesia has significant forecast demand for lime in the foreseeable future for its Nickel HPAL (High Pressure Acid Leach) plants, being constructed at an unprecedented rate where again we plan to play a material role. This key downstream processing of its raw minerals opens a sizeable market opportunity in close proximity to the Project, with PNG’s Prime Minister and Indonesia’s President having just last month resolved to markedly pursue increased bilateral trade relations.”

Development of the Project will leverage, and benefit from Mayur’s Executive Team, which includes several veterans from the global lime industry. Notably, it includes Mr. Brad Lemmon, former Executive General Manager of Lime and Cement at Adelaide Brighton; Mr. Campbell Jones, former Managing Director of Sibelco Australia and Americas; Mr. Bruno Wauters, former President of Sibelco South East Asia, and incoming CEO of the Central Lime Project, Mr. John McBride, who served previously as the President of Graymont SE Asia and CEO of Sibelco Lime and will be returning home to PNG having been born in Rabaul.

The Project's strategic location, 24 km from the capital city of Port Moresby and adjacent to the US$18 billion PNG LNG facility, within its own unique Special Economic Zone, provides an extraordinary platform for growth and positions the Project to become a regional lime industry leader. Construction is expected to continue until the middle of 2025 with lime to be produced shortly thereafter. High grade raw limestone will be produced as an early saleable product throughout the construction phase of the lime facility.

Warden’s Hearing for the Porgera Mine has been successfully concluded.

The hearing was held at Paiam Oval in Porgera on July 31, and in Tari Town Square Hela Province on Aug 1, with regards to the Special Mining Lease (SML) 13 and 15 supporting tenements.

Major stakeholders to the hearing process were the impacted landowners and the applicant New Porgera Limited (NPL). The NPL was represented by Chad Coulin, who is the Executive Manager of Barrick Niuigni Limited (BNL). BNL will be the operator of NPL.

Mr Coulin outlined the company’s proposals for reopening the mine and potential benefits that are expected.

The Chief Mining Warden of PNG Mineral Resources Authority (MRA), Mr Ovi Patrick, conducted the hearing at Paiam and Tari, following an application for an SML by NPL in June this year, to reopen and operate the Porgera mine.

Proceedings at Paiam was attended by about three thousand SML, Lease for Mining Purposes (LMP) and Mining Easements (ME) landowners. The landowners came with placards and banners carrying messages pertaining to their views on whether they wanted NPL to operate the mine or not.

Treasurer of the Porgera Land Owners Association (PLOA) Nixon Mangape, represented the PLOA amongst other leaders. Other stakeholders who were present were Enga Provincial Government, Porgera District Administration and the Local Level Government.

The hearing at Tari town square was graced by the participation of the Governor for Hela Province, Hon Philip Undialu and the Provincial Administrator Marago Dagoba. About five thousand impacted landowners gathered to witness and present their views at the event.

Mr Patrick explained to the landowners that a Warden’s Hearing is a statutory process, under section 108 in the Mining Act 1992. He said the objective of a Warden’s Hearing was to gauge the views of the impacted landowners, on whether they accept or object to applications.

In the case of Porgera, the Warden’s Hearing reports together with technical assessment report of the applications, will be submitted to the Mining Advisory Council (MAC). The MAC then makes recommendations to the Minister for Mining, who then submits the recommendations to the National Executive Council (NEC). The NEC will then advice the Head of State on whether to grant or refuse the applications for the SML and its associated tenements.

Barrick Gold Corporation is aiming to restart operations at the Porgera gold mine later this year, president and chief executive Mark Bristow says.

This follows the Security Forum and the opening of the Development Forum on July 20, a precondition for the granting of a special mining lease, by the Minister of Mining, the Hon Sir Ano Pala, at an event attended by the Prime Minister, the Hon James Marape, the Governor of Enga Province, Sir Peter Ipatas and several thousand Porgerans. At the same event, the Mining Minister told the audience the maintenance of law and order was critical for the successful restart and operation of the mine.

Bristow commented that, if all goes according to plan, Porgera could be back in operation before the end of 2023. In preparation for the restart, the mobile fleet and fixed plant are being recommissioned, the mining and metallurgy plans have been updated, and the personnel recruitment plan has been finalized, with preference given to local employment.

“It’s been a long journey but in the process we have secured the buy-in of all the stakeholders. For Barrick, the re-opening of the mine represents another victory for our host country partnership model which has been so successful in Tanzania and has also been adopted for the Reko Diq project in Pakistan,” he said.

Papua New Guinea stakeholders own 51% of New Porgera with Barrick Niugini Limited, which will operate the mine, holding 49%. Economic benefits will be shared 53% by the PNG stakeholders and 47% by Barrick Niugini.

The Independent Consumer and Competition Commission (ICCC) has given the Newmont Corporation the green light to proceed with its proposed acquisition of Newcrest Mining Ltd. Newmont's Chief Executive Officer, Tom Palmer, expressed his appreciation to the ICCC in PNG for their meticulous review and clearance of the acquisition proposal for Newcrest, paving the way for the transaction's closure in the final quarter of this year.

“We appreciate the ICCC in PNG for carefully reviewing and clearing our proposed acquisition of Newcrest,” Palmer said. “Lihir is one of the world’s great gold mines and a Tier One operation by any measure. We also see profitable gold and copper growth through the world-class Wafi-Golpu project. We remain committed to building strong, mutually beneficial and longlasting relationships with the Government and communities. Newmont plans to establish PNG as a standalone fifth region in our portfolio with an in-country senior leadership presence, and pursue a secondary listing of Newmont depositary interests on the PNGX (PNG stock exchange).”

The acquisition of Newcrest opens up significant opportunities for Newmont, with Lihir being one of the world's premier gold mines and a highly regarded Tier One operation. Additionally, Newmont sees promising potential in gold and copper growth through the Wafi-Golpu project, which is renowned for its world-class standards. Newmont is dedicated to forging robust and lasting relationships with the Government and local communities in the region.

Furthermore, Newmont has strategic plans to establish PNG as an essential and independent region within its portfolio, accompanied by an in-country senior leadership presence. They also intend to pursue a secondary listing of Newmont depositary interests on the PNGX (PNG stock exchange).

Despite receiving approval from the ICCC, Newmont and Newcrest will continue engaging with the Government and regulators to secure other necessary approvals and clearances for the proposed transaction. The definitive agreement for the acquisition of Newcrest was announced by Newmont on May 14.

ICCC Commissioner and CEO, Paulus Ain, clarified that the approval was solely based on competition grounds. He acknowledged that there are other areas of national interest currently under scrutiny concerning this acquisition. However, the ICCC's jurisdiction is limited to the assessment of competition effects only. Matters related to investment and capital market listings fall outside the purview of the ICCC and should be addressed by relevant authorities.

“The ICCC understands that there are areas of national interest currently under scrutiny pertaining to this proposed acquisition,” Ain said. “However, the process under which this approval was given is on the competition effects only. Issues on investment and capital market listings are outside of ICCC’s mandate and can be addressed by relevant authorities. While the ICCC has cleared this proposed acquisition on competition grounds, it is not to be taken as the final regulatory approval for the proposed acquisition in PNG.”

K92 Mining Inc. is pleased to announce that the Board of Directors has authorized the Company’s award of the engineering, procurement, construction and commissioning (“ EPC ”) Lump Sum Contract for the 1.2 million-tonnes-per-annum (“ mtpa ”) Stage 3 Expansion Process Plant to GR Engineering Services Limited (“ GRES ”) following a tender process.

The EPC Lump Sum Contract award amount is US$81 million and is fixed price / lump sum, significantly de-risking potential cost increases to K92. In addition to the award of the contract, all process plant long-lead item contracts have already been awarded on a fixed price (excluding freight), to CITIC HIC Australia Pty Ltd for the SAG and ball mills, Jord International Pty Ltd for the filter press, and Metso Outotec Australia Limited for the tank flotation cells, flash flotation cells and high-rate thickeners.

Following the award of the EPC Lump Sum Contract and the placement of orders for the long lead items, the forecast cost of the 1.2 mtpa Stage 3 Process Plant is within 10% of the capital cost outlined in the Kainantu Integrated Development Plan (“ IDP ”) Definitive Feasibility and Preliminary Economic Assessment cases ( see September 12, 2022 press release – K92 Mining Inc Announces Robust Kainantu Gold Mine Integrated Development Plan ), and importantly approximately 94% of the forecast capital cost has been fixed. This significantly mitigates K92’s cost inflation risk for the largest growth capital cost item for the Stage 3 Expansion (the 1.2 mtpa Stage 3 Process Plant), representing over half of the forecast growth capital (inclusive of attributable EPCM costs) as outlined in the IDP. Approximately 6% of the remaining unfixed price capital cost is for projects led by K92, including bulk earthworks and long-lead item freight logistics. The mitigation of the Process Plant’s inflation risk as noted above has notably strengthened the Company’s self-funding position for the Stage 3 Expansion.

With the award of the long-lead items and the EPC contract, commissioning of the 1.2 mtpa Stage 3 Expansion Process Plant is targeting the end of Q1 2025. The mobilization of the construction contractor is forecasted for early 2024, with bulk process plant earthworks to be completed prior. The EPC contract with GRES is expected to be executed by the end of August. The multi-year growth capital estimate for the Stage 3 Expansion project is planned to be provided at the end of the 3 rd Quarter.

John Lewins, K92 Chief Executive Officer and Director, stated, “The award of the EPC contract for the 1.2 mtpa Stage 3 Expansion Process Plant is a major milestone and de-risking event for the Company. Combined with the long-lead items, the Company has awarded approximately 94% of the process plant capital cost, our largest growth capital item for the expansion, forecasted to represent over half of the growth capital, on a fixed price basis, significantly mitigating potential capital cost increases. Importantly, the forecasted cost of the process plant has tracked well with the Integrated Development Plan and the mitigation of the Process Plant’s capital inflation risk strengthens our position to self-fund the Stage 3 Expansion.

We are also very pleased to be working with GRES, a world-class engineering and contracting firm. GRES brings not only significant expertise in the design and construction of process plants but also extensive experience in Papua New Guinea.”

Stage 3 Expansion Activities Update

In addition to the 1.2 mtpa Process Plant, multiple activities are progressing considerably for the Stage 3 Expansion including, but not limited to:

• Pastefill Plant Front End Engineering and Design (“ FEED ”) proceeding this quarter, with final contract to be awarded in the Q4 2023;
• Tailings dam lift 1C well underway (60% complete) and targeting completion by end of 2023;
• Tender process underway for various underground and surface infrastructure packages including vertical development, power and transportation; and
• Ongoing expansion of accommodation facilities.

About GR Engineering Services Limited

GRES is a leading Australian engineering consulting and contracting company, that specializes in providing fixed price engineering design and construction services to the global resources and mineral processing industries. GRES has a proven track record of delivering integrated project solutions in over 20 countries across all major commodity types, including extensive experience in Papua New Guinea. As a group, GRES employs more than 500 professional, technical and support staff throughout Australia and internationally, in addition to a direct construction workforce and subcontracted personnel.

The PNG Chamber of Mines and Petroleum (“the Chamber”) is pleased to welcome on board Touchstone NDT Limited as its newest member.

As a new service member Touchstone NDT Limited like all other service members can participate in Chamber events at discounted offers which adds more value to their business by networking with other service members as well as those from the full and associate member categories.

Managing Director and Founder of Touchstone NDT Limited Mr. Lawa Kiriwi said it was timely for his company to sign up as a member with the Chamber given the different projects within the industry.

“We endeavor to become Papua New Guinea’s leading Non – Destructive Testing (NDT) and Asset Integrity Company through best technology methods, business partnerships, and human resource development by providing training and employment. We look forward to participating at Chamber events as this is a great platform for us to grow our business and add value to the communities we operate in and overall, the industry.”

Touchstone NDT Limited is a 100% PNG owned company specializing in offering Conventional and Advanced Non-Destructive Testing (NDT), Lifting Gear Inspections, Load Testing, Plant Storage Tanks, Pressure Vessels & Piping, Inspections and Dropped Object Prevention Solutions (DROPS) survey which are services needed by operators in the mining and petroleum industry.

The first step towards reopening of the new Porgera Mine has started today following a Security Forum where leaders and security forces appealed to warring tribes surrounding the mine to stop their tribal conflicts, which affects the mine, businesses and the Porgera Valley.

“The National Government is working day and night to ensure the mine is reopened in September so benefits can flow to the people.

"I appeal to you, the people of Porgera and the surrounding communities to stop fighting and do away with the guns and tap into spin off benefits from the mine.

“Let your children live in peace and get the benefits from the mine and stop the killings.”

These were the strong sentiments echoed by Prime Minister James Marape at the Security Forum at Paiam Town oval in Porgera this morning (20/07/23).

He also appealed to all the affected communities, landowners, mine license areas to bring their issues and grievances and what benefits they would like to get at the new Porgera Mine Development Forum in Wabag next month (August).

"We want to hear from you. We want to know what you want and how we can share the benefits from our 51 per cent stake in the New Porgera Mine,” he said.

Prime Minister Marape said this following the formal announcement of the Wardens Hearing and the Porgera Mine Development Forum by the Minister for Mining Sir Ano Pala at Paiam Town in Porgera Enga Province today.

The National Government wants the next 10 years not to be wasted like the last 30 years.

The Prime Minister said, “I am sorry and we apologize for the closure of the mine for the last 4 years but it was a short-term pain for the long-term gains.

"We have wasted 30 years with the benefits and there is nothing to show for and yet we complain for the four years of closure to negotiate for more.

"You must stop your tribal fight, drop your guns and pick up businesses from the mine.

"The Government, Police and the security forces will come down hard and after you if you keep on fighting.

"The people have suffered enough and the fights must stop,” said Prime Minister Marape.

He appealed to the communities to listen and work with the security forces and maintain law and order.

Prime Minister Marape said the National Government is looking forward to the Porgera Mine Development Forum in Wabag and wants all parties to take their issues to the table.

The Prime Minister also presented cheques totalling more than K18 million to the Enga Provincial Government, Porgera Development Authority and Paiam Town areas to start preparations towards hosting the Development Forum in Wabag next month.

The National Government has also announced a total of K700 million for a 7-year infrastructure development grant, which is meant to also address outstanding issues like resettling of people away from the mine area.

Prime Minister Marape also appealed to other people who do nothing and cause trouble to move back to their provinces and villages.

The Prime Minister said the first gold and revenue from the new Porgera Mine is anticipated by October this year or thereafter.

The National Government will issue or sign the Mining License by the end of August this year following the Mine Development Forum.

President and CEO of Barrick Gold Corporation, Mark Bristow, has on Monday (17.07.23) met with Prime Minister Hon. James Marape to discuss recent progress and the status of the matters remaining to be completed in anticipation of the reopening of Porgera Mine.

Prime Minister Marape welcomed Mr Bristow’s statement that Barrick was committed to PNG “for the long haul” and his pledge that Barrick Niugini Limited, for its part, would do everything under its control to meet the 16 September 2023 re-opening date that the Prime Minister had set as target, and to which both parties are now working diligently toward.

A Development Forum preceding the reopening is imminent within the next several weeks to ensure all landowners and provincial governments are met to iron out, amongst other things, their benefit distributions.

The Government has committed an additional K900 million on top of major gains from project benefits that averages to PNG beneficiaries getting 53 percent to Barrick Gold getting 47 percent in New Porgera.

Both parties committed to fix legacy issues such as proper resettlement, increase land rates and compensation consistent to law, education and health developments, infrastructure developments, and a better law and order environment in Porgera and all project area footprint, including riverine and other project support areas.

To meet the September target, both parties committed to attend to all these maters at hand.

The resource in Porgera can be easily harvested at over 500,000 ounces a year, capable of bringing millions of dollars back into the country at the high gold prices at present.

K92 Mining Inc. is pleased to announce production results for the second quarter (“ Q2 ”) of 2023 at its Kainantu Gold Mine in Papua New Guinea, of 30,794 oz AuEq or 27,405 oz gold, 1,526,547 lbs copper and 34,001 oz silver, representing an increase of 18% from Q2 2022 and 43% from Q1 2023, respectively. Sales during the quarter were 28,141 oz gold, 1,657,115 lbs copper and 36,253 oz silver.

Underground mine performance strengthened significantly after early April, which was impacted by an area of localized challenging ground conditions. Long hole stoping performed to design, with mining focusing on Kora’s K1 and K2 veins, and Judd’s J1 Vein. During the quarter, 10 levels were mined for a total of 109,155 ore tonnes mined, and the mill head grade averaged 9.23 g/t AuEq or 8.20 g/t gold, 0.66% copper and 11.56 g/t silver. Mining on Kora was conducted on the 1130, 1150, 1170, 1205, 1265, 1285, 1305 and 1325 levels, and Judd on the 1235 and 1325 levels.

In May, a major milestone was achieved; the commissioning of the final component of the Stage 2A Plant Expansion resulting in the doubling of rougher flotation circuit capacity. After commissioning, the process plant recorded a significant increase in metallurgical recoveries for gold and copper. In June, the first full month of the Stage 2A Expansion being fully commissioned, recoveries averaged 93.0% for gold and 92.9% for copper. Recoveries for Q2 averaged 92.4% for gold and 92.8% for copper, the highest since Q4 2021 for both gold and copper, and significantly higher than the 2022 average of 90.4% for gold and 90.5% for copper. Total ore processed during the quarter was 112,471 tonnes. With the Stage 2A Plant Expansion now commissioned, optimization efforts are underway, including to increase throughput that we believe has the potential to be materially greater than its nameplate design.

As previously reported, underground mining operations were briefly suspended on June 28 following an underground vehicular incident (see June 28, 2023 press release - K92 Mining Reports Mine Accident Resulting in Two Fatalities ). There was limited impact to surface activities and surface stockpiles were treated during the suspension. Underground mining operations resumed on July 6 (see July 6, 2023 press release - K92 Mining Resumes Mining Operations at Kainantu Gold Mine ).

Notably, production and cost guidance for 2023 remain unchanged, with the second half of 2023 expected to be our strongest in terms of production, and 2023 production being within the lower half of the guidance range (as previously disclosed). The anticipated stronger production for the second half of 2023 is based on an expected significant increase to our operational flexibility and stope sequencing.

Note - Gold equivalent for Q2 2023 is calculated based on: gold $1,976 per ounce; silver $24.13 per ounce; and copper $3.85 per pound. Gold equivalent for Q1 2023 is calculated based on: gold $1,890 per ounce; silver $22.55 per ounce; and copper $4.05 per pound. Gold equivalent for 2022 is calculated based on: gold $1,793 per ounce; silver $22 per ounce; and copper $3.95 per pound. Gold equivalent for Q4 2022 is calculated based on: gold $1,728 per ounce; silver $21 per ounce; and copper $3.63 per pound. Gold equivalent for Q3 2022 is calculated based on: gold $1,730 per ounce; silver $19 per ounce; and copper $3.51 per pound. Gold equivalent for Q2 2022 is calculated based on: gold $1,870 per ounce; silver $23 per ounce; and copper $4.32 per pound.

John Lewins, K92 Chief Executive Officer and Director, stated, “The second quarter of 2023 has demonstrated that we have moved beyond the localized geotechnical challenges encountered in the second half of Q1, and the initial part of Q2, with the operation delivering near-budget production and showing that Kainantu production is well positioned for the balance of 2023. As we have been guiding since the beginning of the year, the second half of 2023 is expected to be our strongest, driven by stope sequence and operational flexibility significantly increasing through the remainder of the year.

We are very pleased with the performance of the process plant, especially after completing the final commissioning of the Stage 2A Plant Expansion in May. Plant recoveries in Q2 were the highest for both gold and copper since Q4 2021 and in June, the first full month after completing commissioning, strong recoveries of 93.0% for gold and 92.9% for copper were recorded. These recoveries are significantly higher than the 2022 average of 90.4% for gold and 90.5% for copper, and the gold recovery from June already achieved the recovery parameter of 93% in the Kainantu Integrated Development Plan economic study (see September 12, 2022 press release - K92 Mining Inc Announces Robust Kainantu Gold Mine Integrated Development Plan).

For the second half of the year, there is a tremendous amount of sense of anticipation in the Company. On the process plant, now that the Stage 2A Plant Expansion is complete, optimization efforts are underway to thoroughly test its recovery and throughput potential. We believe throughput has the potential to be notably above design nameplate. On mining, we continue to benefit from the arrival of more equipment, with a new jumbo scheduled to arrive this month and multiple long-term infrastructure projects that will drive efficiencies and boost operational flexibility such as the twin incline, also progressing well. We are also active in exploration, with our underground program currently drilling Kora Deeps and Judd South in addition to Kora and Judd. Surface exploration is drilling Judd, Judd South and Kora South, in addition to the A1 Porphyry. And lastly, the tender process for our major growth capital packages for the Stage 3 and 4 Expansions are well advanced and we look forward to providing an update near-term.”

The Government of Papua New Guinea, through the Mineral Resources Authority, has granted six exploration licenses to PanAust, the parent company of Frieda River Limited.

Mining Minister, Sir Ano Pala, stated, "The approval of these exploration licenses is a demonstration of the government's commitment to move the Frieda River Project forward."

PanAust has invested over $260 million US, equivalent to K870 million, in the Frieda River Project since 2014. Phil McCormack, PanAust General Manager Studies, emphasized, "This includes ongoing community support, government relations, and stakeholder engagements."

McCormack further expressed the company's dedication, saying, "We are willing and waiting to work with the government of PNG to ensure that we can deliver a world-class project that PNG can be proud of... in this great country of Papua New Guinea."

With a staff of 26 on-site, PanAust provides various forms of support, including medical emergency helicopter assistance and contributions to education, health, and local communities. This support has been ongoing since the company's establishment in 2014.

McCormack stated, "We are willing and waiting to work with the government of PNG to ensure that we can deliver [a] world-class project that PNG can be proud of... in this great country of Papua New Guinea."

Jerry Garry, Acting Managing Director of the Mineral Resource Authority (MRA), explained the resource constraints faced by the MRA's state team, stating, "The state team's manpower is stretched between the Wafi Goldpu Project and Porgera mine project, and thus has not progressed the assessment of the Frieda River Project at this stage."

However, Garry assured, "But as soon as we get one of the projects off the ground, we will seriously look into that, assessing and permitting Frieda River Project."

Garry added, "It is my pleasure to have the Minister sign off on the six supporting exploration tenements, those grounds will ultimately hold various infrastructures for Frieda River project. Such as airstrip, the dam, the power plant, processing plant, and the other supporting infrastructures."

Sir Ano Pala reaffirmed the government's commitment to advancing the Frieda River Project, stating, "The approval of these exploration licenses is a demonstration of the government's commitment to move the Frieda River Project forward."

The MRA emphasized that the Frieda River Project represents a significant untapped resource in Papua New Guinea. Garry stated, "The state is looking to ensure that all effort is given towards permitting the project after the Wafi Golpu and Porgera Mine projects are sorted."

Minister for International Trade and Investment, Hon. Richard Maru says there will be no merger between the Newcrest Mining Limited and the Newmont Corporation unless the National Interest Test requirements are met. Minister Maru said this recently in his meeting with the high-level Executives of Newcrest Mining and Newmont Corporation including the President and the CEO of the Newmont Corporation, Mr. Tom Palmer.

“We are excited for Newmont Corporation to come but according to Section 277 (6) of the Capital Market Act 2015 we cannot approve the merger unless the requirements of the National Interest Test are met,” said Minister Maru.

“As far as we are concerned, these requirements include building a township at Nadzab (no fly in and fly out), maintaining the listing in our Papua New Guinea National Stock Exchange (PNGX), provide Papua New Guinea investors an opportunity to invest in the Wafi-Golpu Mine or in Newmont to raise over a billion Kina under Initial Public Offering (IPO) only for our citizens and PNG institutions like the Nasfund. Another requirement is that company must be domiciled in Papua New Guinea with their Country Headquarters and PNG Management located in Port Moresby or anywhere in Papua New Guinea and not outside the country,” said Minister Maru.

Minister Maru offered them to use the land available within the Paga Hill Special Economic Zone to build their Country Headquarters and also to build accommodation for their staff.

Minister Maru said: “The Lihir Mine and the Wafi-Golpu Mine are our God-given resources and we as citizens and our country must maximize our benefits from our resources. Papua New Guinea is looking at how we can benefit under a win-win partnership because the gold belongs to Papua New Guinea and we must maximize our take so the whole country gets more value as part of our wealth creation drive under our Take Back PNG mantra, not just the landowners, the Provincial Governments, and the State, but for all our citizens.”

“What we are asking for is reasonable and sensible; they have been done before by the BCL, which is still one of the best mining companies that ever came into our country. This is something that the Marape-Rosso Government wants to bring back,” said Minister Maru.

“I am excited about this merger, and I am looking forward to the closing of the deal with Newmont Corporation. The world’s leading gold company that has been in the industry for over 100 years coming to PNG would promote our country and its image as an attractive investment destination,” said Minister Maru.

“I will be one of their greatest supporters if we can accommodate both their needs as an investor and our needs as the resource owners under a win-win long-term partnership,” added Minister Maru.

First revenues from the CCL project expected in 1H CY2024.

Mayur Resources Limited is pleased to advise that it has commenced pioneering and site enabling construction works at its Central Cement & Lime Project (the CCL Project) in the Central Province of Papua New Guinea.

Construction crew, mobile machinery, and building materials arrived at the site by barge in the month of June. Mayur’s dual objective is continue the bulk sample test pits for end user customers, and construction commencement to build the pioneer wharf and associated site enabling works. Mayur is now working with the MRA and Chief Inspector of Mines to progress these works. Equipment mobilised included two 30 tonne excavators, a 6WD all terrain truck, a D7 dozer, drill rig, and service truck.

An official groundbreaking ceremony was held on 29 June 2023, which was attended by a number of dignitaries including the Local Member Hon Keith Iduhu, Ward Councillor Kaia Podi, as well as local Clan Head village representatives.

During the ceremony, the Hon Keith Iduhu member for Hiri – Koiari commented on the significant benefits Mayur’s CCL project had for the domestic economy as an import replacement downstream processing business whilst also adding that it was critical to be pro business but also have at the forefront the betterment of living standards and benefits for local Landowners. Hon Keith Iduhu said “Whilst the construction commences for the CCL jetty, I have asked the PNG Government in the coming weeks to convene the consultative Forum enabling the finalisation of the benefit sharing for Landowners, Provincial Government and District and the PNG State.”

Mayur Executive Director, Mr Tim Crossley, commented, “We thank the many dignitaries for their attendance at our ground breaking ceremony yesterday and thank the community for their support over a period of more than eight years as our CCL project transitioned from a discovery through to a reality today with these early construction works paving the way for full construction to commence. We particularly acknowledge the MRA for their continued support and their proactive push to diversify PNG’s mineral base. We are pleased to see the project move to full construction that will create large scale local employment jobs and spin off business opportunities for the Kido community for decades to come. As highlighted by Hon Keith Iduhu, our project will also be significant to the PNG domestic economy, replacing imports and underpinning the beginning of a new export industry as the first commercial manufacturing capability for Lime in PNG.”

When constructed, the Phase 1 CCL Project will be a new large scale low-cost, high-grade aggregates and quicklime manufacturing facility to meet critical demand from battery minerals and environmental sectors in support of the global energy transition. Mayur expects first revenues from the CCL project in 1H CY2024, with a life of project EBITDA above US$25 million (A$37.8 million) per annum, exceeding US$770 million (A$1,164 million) over the Phase 1 project life of 30 years.1 The project will also create more than 400 permanent direct and indirect jobs over the 30 year project life while having capacity to replace all of PNGs current imports of Lime valued at approximately K$100 million (A$42.8 million) per year.

Mayur is also in discussions with the PNG Government on how the Phase 2 CCL Project can underpin the huge road and infrastructure building needs that exist in PNG where our CCL project will eliminate the 100% reliance PNG has on imported Clinker and Cement for its nation building needs.

K92 Mining Inc. is pleased to announce that the Company has set its inaugural energy and greenhouse gas (“GHG”) emissions reduction target as part of its ongoing overall sustainability commitments.

After completing detailed energy and GHG forecasts for its Stage 3 and Stage 4 Expansions, and identifying opportunities for energy reductions, the Company has set a target to reduce Scope 1 and Scope 2 emissions by 25% on a business-as-usual basis by 2030 (a 25% reduction against forecast Scope 1 and 2 GHG emissions by 2030 assuming no mitigation measures are implemented to reduce carbon emissions). Additional information on the GHG target and the overall approach to sustainability will be available in the Company’s forthcoming Sustainability Report covering 2022.

K92 Mining’s CEO and Director John Lewins stated, “As part of our commitment to help combat the negative impacts of climate change, we are pleased to announce our inaugural GHG reduction target, aiming to reduce our Scope 1 and Scope 2 emissions by 25% on a business-as-usual basis by 2030. The Kainantu mine is a high-grade, underground operation with a significant amount of power sourced from hydroelectricity, a cleaner, renewable power source. As a result, we have one of the lower carbon footprints in the industry and we continue to look for opportunities to improve upon this.

Importantly, we have already taken action to reduce our emissions through our partnership with PNG Power Ltd., which aims to upgrade grid power infrastructure near Kainantu. We recently completed a dedicated 22kV powerline to site to increase the reliability of clean hydroelectric power from the grid and reduce the use of backup diesel gensets. Additional power upgrades to increase our renewable energy profile are being investigated.

Beyond this, we are also exploring the potential electrification of our fleet and carbon sequestration. In combination with other energy reduction initiatives, we are confident we can achieve our GHG reduction goals, and we remain committed to working with our partners and our stakeholders in support of the world’s transition to a low-carbon economy.”

Prime Minister Hon. James Marape has recently commended Barrick Niugini Limited for agreeing to pay the base tax that has been an outstanding issue for some time.

In doing so, the Prime Minister also conveyed his high commendations to Barrick for its steadfastness in reopening the mine and open-mindedness in its negotiations with the government on revenue and cost sharing.

“I want to commend Barrick and our Internal Revenue Commission for finding an amicable solution, and for Barrick to pay the principle of what is owed as I appreciate the effort to resolve the tax issue that has been outstanding for SML 1,” said PM Marape.

“I also thank Barrick for carrying the cost of care and maintenance of the mine as well as paying for costs of the mine start up with no immediate burden on State parties for its 51 percent stake in New Porgera.

“Because of Barrick’s strong partnership with Papua New Guinea, the government or our mining company Kumul Minerals Holdings Ltd have been prevented from going out to borrow money for the re-start of the mine, as Barrick has taken onboard the full costs of starting up New Porgera.

“This means our landowners, the Enga Provincial Government and the State are winners from Day 1, while KMHL and Barrick work on recovering the money that has gone into care and maintenance and the reopening of the mine.

“I commend Barrick for its strong leadership, commitment and continued faith in our country,” said PM Marape.

The Prime Minister also noted that the developer has already recruited over 1500 staff to prepare the mine for reopening, while preparations are taking place for the final lot of consultations preceding the restart to take place.

“I am pleased to note that we are coming to the final round in the opening of New Porgera.

“Barrick has recruited over 1500 staff to prepare the mine for reopening.

“Early next month in July, we will be having a security forum and a landowners consultation forum so that we are on one page. We are working to meet all statutory requirements of landowners in all impact areas as far as the Mining Act is concerned.

“For New Porgera, we will do better. We will focus on resettlement and making sure that there are minimal environmental costs. We will resettle properly; tidy Porgera Valley; rebuild the police and restore Law & Order presence on the ground; support vocational schools in Porgera Valley and Enga to prepare young people to continue working the mine and participating in the spin-offs.”

PM Marape said from information to him, first gold should be out by the third quarter of this year if all things go according to schedule.

“I want to inform everyone that I have received indication that in the 3rd Quarter of this year, if all things go as scheduled, we should expect first gold to be processed in Porgera.”

PM Marape added that New Porgera would be employing over 3000 people and will provide many spin-offs.

“This is a big benefit to the country, not just in terms of royalty and equity and tax, but also in Mr Bristow’s personal commitment and Barrick’s commitment that they will ramp up on more local content and more of the spin-offs to benefit our local economy rather than exporting spin-offs to other countries.”

The Prime Minister once more highlighted the monetary value landowners and the Enga Provincial Government would be getting out of New Porgera.

“Earlier you were only beneficiary to 2.5 percent each. Today, your combined benefit is 15 percent starting from first gold. This is only weeks away.

“I want to ask every one of us – let us focus to come to the development forum, put all our issues on the table where the State will process them according to law.

“We are looking forward to New Porgera becoming better in delivering to expectations, the protection of environment, landowners happiness, proper settlement and, in the end, becoming a blessing to the country.”