Welcome!

News Feed Item

K92 Drilling Significantly Upgrades Predicted Grade and Contained Ounces in First Two Planned Production Stopes

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 11/30/16 -- K92 (TSX VENTURE:KNT)(OTCQB:KNTNF) is pleased to announce the initial results from the ongoing grade control drilling programme at its high grade Kainantu Gold Mine, that is currently in the start-up phase. The results have significantly increased both the predicted grade and contained gold ounces in the first two planned production stopes.

Highlights include:


--  Grade increase from 5.82 gpt Au in original AMDAD Stope Model to 9.21
    gpt Au 
--  Combined ounces in the two stope designs increase from 1,550 ozs Au to
    2,390 oz Au 
--  Intercepts include 102 gpt Au over 1.1m and 9.21 gpt Au over 0.5m in
    GCDD 002 and 30.19 gpt Au over 2.5m in GCDD 001 

In September 2016, K92 Mining Inc. ("K92") commenced a campaign of close spaced underground diamond drilling as part of a comprehensive grade control strategy. This grade control drilling is designed to bring a significantly higher degree of confidence to the production planning and scheduling by drilling out all scheduled production areas underground ahead of actual development on a closed space pattern of approximately 15 metres by 15 metres. This compares with resource drilling which has been carried out of a 50 metre by 50 metre or greater pattern.

The initial grade control drilling intercepts included high grade gold intercepts including 102 grams per tonne gold ("gpt") over 1.1 metres and 9.21 gpt gold over 0.5 metres in diamond drill hole GCDD 002 and 30.19 gpt gold over 2.5 meters in diamond drill hole GCDD001.

The results from this drilling are then used to finalize the various stope and ore development designs and provide updated information on projected production from the areas in terms of tonnage, grade and contained ozs. Table 1 below provides a comparison between the original AMDAD stope design and the new design based on grade control data, using both cut and uncut data. The stopes are situated at the lowest point in the underground which K92 have planned to mine and are also at the southern edge of the known resource that has only been drilled on a 100 metre by 100 metre pattern.

The updated stope designs based on the grade control drilling indicate the projected grade of the combined stopes has increased from 5.82 g/t Au in the original AMDAD stope model to 9.21 g/t (applying a top cut of 70 g/t Au) in the new stope model using the grade control results. The combined ozs in the two stopes has increased from 1,550 ozs Au to 2,390 ozs Au (applying the top cut of 70 g/t Au).


Table 1 Comparison of Grade Control Stope Design versus AMDAD Stope Design -
 tonnage, grade and contained ozs                                           
                                                                            
                                          Grade Control Model               
----------------------------------------------------------------------------
Elevation                  Volume  Tonnes Au Cut 70  Au Ozs Au Uncut  Au Ozs
----------------------------------------------------------------------------
1205 -greater than 1220    1,358   3,937      4.17     528     4.95     627
----------------------------------------------------------------------------
1220 -greater than 1235    1,427   4,138     14.01   1,864    16.89   2,247
----------------------------------------------------------------------------
Total                       2,785   8,075      9.21   2,392    11.07   2,874
----------------------------------------------------------------------------

Table 1 Comparison of Grade Control Stope Design versus AMDAD Stope Design -
 tonnage, grade and contained ozs                                           
                                                                            
                                       AMDAD stope Design Model             
----------------------------------------------------------------------------
Elevation                        Volume      Tonnes     Au Amdad      Au Ozs
----------------------------------------------------------------------------
1205 -greater than 1220          1,625       4,713         6.05         917
----------------------------------------------------------------------------
1220 -greater than 1235          1,234       3,580         5.53         637
----------------------------------------------------------------------------
Total                             2,859       8,293         5.82       1,553
----------------------------------------------------------------------------

Table 2 and 3 below provides a summary of the results from the first six diamond grade control holes which have been drilled into the first two stope areas it is planned to be mined underground. Table 1 provides a summary of the significant intercepts from the holes, while Table 2 provides details of collar location and hole orientation.


Table 1 Kainantu Gold Mine - Significant Intercepts from Irumafimpa Grade   
 Control                                                                    
                                                                            
           From          Interval True width  Gold Copper  Silver       Gold
 Hole_id    (m)  To (m)       (m)        (m)   g/t      %     g/t equivalent
----------------------------------------------------------------------------
GCDD0001   31.7    33.1       1.4       1.02  2.19   0.17     4.2       2.49
----------------------------------------------------------------------------
GCDD0001     44    46.5       2.5       1.85 30.19   0.31    6.24      30.72
----------------------------------------------------------------------------
GCDD0001   49.1    50.1         1       0.74   6.1   0.08     1.7       6.24
----------------------------------------------------------------------------
GCDD0002   44.9      46       1.1       0.74   102   0.13    13.1     102.36
----------------------------------------------------------------------------
GCDD0002   47.4    48.9       1.5        0.8  2.97   0.04    18.4       3.27
----------------------------------------------------------------------------
GCDD0002   50.1    50.6       0.5       0.34  9.21   0.02     1.2       9.26
----------------------------------------------------------------------------
GCDD0003    5.6     6.5       0.9       0.58  3.21    2.3    33.7       6.95
----------------------------------------------------------------------------
GCDD0003   51.5    51.7       0.2       0.13  4.37   0.24    17.7       4.94
----------------------------------------------------------------------------
GCDD0003     54    55.1       1.1       0.74  2.76   0.33     6.4       3.31
----------------------------------------------------------------------------
GCDD0004     13    14.2       1.2       0.61  4.39   0.03     5.5        4.5
----------------------------------------------------------------------------
GCDD0004   37.1    40.1         3       1.53  3.24   0.18     7.1       3.59
----------------------------------------------------------------------------
GCDD0005   41.8    43.5       1.7       0.94  2.05   0.14    0.37       2.25
----------------------------------------------------------------------------
GCDD0006     46      47         1        0.9  33.8   0.07     8.4      34.01
Notes                                                                       
Shaded rows are the intersections which are included in the designed stopes 
Gold Equivalent uses Copper price - US$2.50/lb; Silver price US$16/oz and   
Gold price of US$1200/oz                                                    
                                                                            
Table 2 Kainantu Gold Mine - Collar Locations and Orientation for Irumafimpa
 Grade Control Drilling                                                     
                                                                            
                                                          EOH               
                                             Collar      depth              
  Hole_id         Collar location          orientation    (m)      Lode     
                                                                            
              Local    Local                     Local                      
              north     East      RL      Dip   azimuth                     
----------------------------------------------------------------------------
  GCDD0001   59561.41  29918.5   1235.22  -0.4    226.38    72  Irumafimpa  
----------------------------------------------------------------------------
  GCDD0002    59560.9 29917.89   1234.63   -13    226.56  69.1  Irumafimpa  
----------------------------------------------------------------------------
  GCDD0003   59560.95 29917.98   1234.01 -26.4    225.45  73.6  Irumafimpa  
----------------------------------------------------------------------------
  GCDD0004   59561.58 29917.28   1235.18  -2.3    239.27  67.1  Irumafimpa  
----------------------------------------------------------------------------
  GCDD0005   59561.57 29917.27   1234.54   -15    239.27    72  Irumafimpa  
----------------------------------------------------------------------------
  GCDD0006   59656.34 29922.65   1247.42 -25.7    292.22  65.7  Irumafimpa  
----------------------------------------------------------------------------

Ian Stalker, K92 Chief Executive Officer and Director, states, "These results are very positive, as the stopes are located at the southern extremity of the resource where data is limited and significantly lower grades were expected. The results, combined with the results from the recently completed Preliminary Economic Assessment ("PEA") on Kora reinforce our belief that this high grade gold system has significant expansion potential. The key focus of the technical team on site is the successful ramp up in our production from the Irumafimpa ore body and these first grade control results certainly indicate we are on track to achieve our targeted design production in the coming quarter."

Recently, K92 Mining announced that initial gold production commenced at the Irumafimpa Gold Deposit and also announced results from a Preliminary Economic Assessment ("PEA") completed at the Kora Gold Deposit, which the company is targeting to bring online in Q1 2018 (key results from the PEA include estimates of 108,000 AuEq ounces per annum of annual production at an all-in sustaining cost of $619/ozAuEq, cash flow of USD $558 million over a 9 year period, an NPV5 of USD $415 million and initial capital costs of USD $13.84 million. See K92 News Release dated October 13, 2016 for the full News Release). The ongoing drill program commenced concurrent with these achievements.

Andrew Kohler, BSc, Geo, a qualified person under the meaning of Canadian National Instrument 43-101, has reviewed and is responsible for the technical content of this news release.

On behalf of the company,

Ian Stalker, Chief Executive Officer and Director

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. All statements that address future plans, activities, events or developments that the Company believes, expects or anticipates will or may occur are forward-looking information, including statements regarding potential ongoing production which may or may not occur and the generation of further production assessment work at deposits, which may or may not occur. The Preliminary Economic Assessment ("PEA") is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized. Forward-looking statements and information contained herein are based on certain factors and assumptions regarding, among other things, the market price of the Company's securities, metal prices, taxation, the estimation, timing and amount of future exploration and development, capital and operating costs, the availability of financing, the receipt of regulatory approvals, environmental risks, title disputes, failure of plant, equipment or processes to operate as anticipated, accidents, labour disputes, claims and limitations on insurance coverage and other risks of the mining industry, changes in national and local government regulation of mining operations, and regulations and other matters. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Contacts:
K92 Mining Inc.
Ian Stalker
Chief Executive Officer and Director
(604) 687-7130
(604) 608-9110 (FAX)

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 20th Cloud Expo, which will take place on June 6-8, 2017 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 add...
There are 66 million network cameras capturing terabytes of data. How did factories in Japan improve physical security at the facilities and improve employee productivity? Edge Computing reduces possible kilobytes of data collected per second to only a few kilobytes of data transmitted to the public cloud every day. Data is aggregated and analyzed close to sensors so only intelligent results need to be transmitted to the cloud. Non-essential data is recycled to optimize storage.
Building custom add-ons does not need to be limited to the ideas you see on a marketplace. In his session at 20th Cloud Expo, Sukhbir Dhillon, CEO and founder of Addteq, will go over some adventures they faced in developing integrations using Atlassian SDK and other technologies/platforms and how it has enabled development teams to experiment with newer paradigms like Serverless and newer features of Atlassian SDKs. In this presentation, you will be taken on a journey of Add-On and Integration ...
"I think that everyone recognizes that for IoT to really realize its full potential and value that it is about creating ecosystems and marketplaces and that no single vendor is able to support what is required," explained Esmeralda Swartz, VP, Marketing Enterprise and Cloud at Ericsson, in this SYS-CON.tv interview at @ThingsExpo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Interoute has announced the integration of its Global Cloud Infrastructure platform with Rancher Labs’ container management platform, Rancher. This approach enables enterprises to accelerate their digital transformation and infrastructure investments. Matthew Finnie, Interoute CTO commented “Enterprises developing and building apps in the cloud and those on a path to Digital Transformation need Digital ICT Infrastructure that allows them to build, test and deploy faster than ever before. The int...
The essence of cloud computing is that all consumable IT resources are delivered as services. In his session at 15th Cloud Expo, Yung Chou, Technology Evangelist at Microsoft, demonstrated the concepts and implementations of two important cloud computing deliveries: Infrastructure as a Service (IaaS) and Platform as a Service (PaaS). He discussed from business and technical viewpoints what exactly they are, why we care, how they are different and in what ways, and the strategies for IT to transi...
Culture is the most important ingredient of DevOps. The challenge for most organizations is defining and communicating a vision of beneficial DevOps culture for their organizations, and then facilitating the changes needed to achieve that. Often this comes down to an ability to provide true leadership. As a CIO, are your direct reports IT managers or are they IT leaders? The hard truth is that many IT managers have risen through the ranks based on their technical skills, not their leadership abi...
Without a clear strategy for cost control and an architecture designed with cloud services in mind, costs and operational performance can quickly get out of control. To avoid multiple architectural redesigns requires extensive thought and planning. Boundary (now part of BMC) launched a new public-facing multi-tenant high resolution monitoring service on Amazon AWS two years ago, facing challenges and learning best practices in the early days of the new service.
Niagara Networks exhibited at the 19th International Cloud Expo, which took place at the Santa Clara Convention Center in Santa Clara, CA, in November 2016. Niagara Networks offers the highest port-density systems, and the most complete Next-Generation Network Visibility systems including Network Packet Brokers, Bypass Switches, and Network TAPs.
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
SYS-CON Events announced today that Outlyer, a monitoring service for DevOps and operations teams, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Outlyer is a monitoring service for DevOps and Operations teams running Cloud, SaaS, Microservices and IoT deployments. Designed for today's dynamic environments that need beyond cloud-scale monitoring, we make monitoring effortless so you ...
Virtualization over the past years has become a key strategy for IT to acquire multi-tenancy, increase utilization, develop elasticity and improve security. And virtual machines (VMs) are quickly becoming a main vehicle for developing and deploying applications. The introduction of containers seems to be bringing another and perhaps overlapped solution for achieving the same above-mentioned benefits. Are a container and a virtual machine fundamentally the same or different? And how? Is one techn...
My team embarked on building a data lake for our sales and marketing data to better understand customer journeys. This required building a hybrid data pipeline to connect our cloud CRM with the new Hadoop Data Lake. One challenge is that IT was not in a position to provide support until we proved value and marketing did not have the experience, so we embarked on the journey ourselves within the product marketing team for our line of business within Progress. In his session at @BigDataExpo, Sum...
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.