K92 Mining Inc. (the "Company" or "K92")is pleased to provide an update on the progress on the refurbishment and rehabilitation of its Kainantu Mine.
The refurbishment of the Kainantu Processing Plant has now been completed and the restart of mining and processing operations is on schedule and on budget.
K92 also advises that in addition to the previously reported scoping study for the development of the Kora deposit being undertaken Australian Mine Design and Development Pty Ltd of Brisbane, Australia, the Company has now engaged Mincore of Melbourne, Australia to complete a scoping study for the expansion of the existing processing plant to double its capacity to approximately 400,000 tonnes per annum. It is anticipated that the above studies will be completed in early September.
The Company expects to commence underground diamond drilling of the Irumafimpa orebody in the coming week.
K92 additionally expects a second drill rig to arrive onsite by the end of August, which will allow the Company to also conduct concurrent drilling of the Judd Vein System which has been identified from earlier drilling and exploration work by Highlands Pacific and Barrick. The Judd Lode is known to have a strike length of at least 2,500 metres running parallel and to the East of the Irumafimpa and Kora deposits, only approximately 100 metres from the main incline. Previously reported drilling results from Judd include 3m @ 278.2 g/t Au & 0.21% Cu and 9m @ 8.32 g/t Au & 1.11% Cu.
Brian Lueck, 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 July 29, 2016, the Company granted a total of 100,000 incentive stock options to an investor relations provider. The options were granted in accordance with the terms of the Company's stock option plan. They are exercisable at a price of CAD$1.93 per share, vest over a period of 18 months, with the initial vesting six months following the date of grant and expire on July 29, 2021.
On behalf of the Company,
Ian Stalker, Chief Executive Officer and Director