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K92 Reports Kora Underground Diamond Drilling Results

K92 Mining Inc. is pleased to announce that the first four exploration holes drilled from an underground cuddy to follow up on the discovery of the northern extension of the Kora Vein have all intersected Kora mineralization, including high grades of copper, gold and silver (see Table 1.0).

These drill results over a strike length of approximately 100 metres confirm K92's initial interpretation that the Kora Vein extends some 500 metres to the north from the closest point of the currently defined Kora Deposit Inferred Resource (see Table 3.0).

Drill intersections include 3.4m at 9.94 g/t Au, 55 g/t Ag and 5.97% Cu, including 0.35m at 28.4 g/t Au, 157 g/t Ag and 12.8% Cu in drill hole KMDD0016 and 4.45m at 9.2 g/t Au, 7.71 g/t Ag and 0.51% Cu, including 1.15m at 32.47 g/t Au, 15.2 g/t Ag and 1.03% Cu in drill hole KMDD0015.

Additional to these high grade drill results, K92 is also pleased to report high grade assay results from Kora face sampling.

Face sampling and mapping has at times recorded massive chalcopyrite, with the best intersection recorded to date being 0.5m @ 475.28 g/t Au, 161.1 g/t Ag and 7.25% Cu. A photograph showing some of the massive chalcopyrite recorded in the Kora development is provided below (sampling of this face averaged 4.1 metres at 8.86 g/t Au, 20.9 g/t Ag and 1.14% Cu).

Face sampling carried out to date on every new Kora face as part of a grade control process within this newly discovered extension area has returned an average grade of approximately 7 g/t Au, and 1% Cu.

John Lewins, K92 Chief Executive Officer and Director, states, "The results from the first four diamond holes drilled from underground covering a strike length of some 100 metres have confirmed our interpretation that the Kora Vein system extends some 500 metres to the north of the existing inferred resource. Further, face sampling to-date has consistently recorded the presence of the vein system, with some extremely high grade zones of mineralization encountered. We are continuing to drill this northern extension, both along strike and up and down dip as well as developing along strike in both a southerly and northerly direction. These results, combined with the excellent results achieved from processing the first part of the bulk sample from Kora give us increasing confidence in the immediate potential of this northern extension".

The previously reported Kora extension discovery hole KMDD0009 recorded an intersection of 5.4 metres at 11.68 g/t gold, 25.5 g/t silver and 1.33 per cent copper from 154 metres downhole, is also located within the 100 metre strike length referred above (see K92 news release dated May 24, 2017, for details including true thicknesses).

Table 1 and 2 below provides a summary of the results from the four diamond grade control which have been drilled into the Kora Vein. Table 1 provides a summary of the significant intercepts from the holes, while Table 2 provides details of collar location and hole orientation.

Table 1.0 Kainantu Gold Mine - Significant Intercepts from Kora Underground Diamond Drilling
Hole_id From To (m) Interval True width Gold Copper Silver Gold equivalent
(m) (m) (m) g/t % g/t g/t
KMDD0013 15.80 16.25 0.45 0.41 3.34 0.06 6.6 3.52
KMDD0013 18.10 19.10 1 0.91 1.27 0.02 8.1 1.40
KMDD0013 50.80 53.65 2.85 2.59 5.36 1.12 8.9 5.65
including 52.35 53.65 1.3 1.18 13.86 1.68 20.1 16.52
KMDD0014 13.20 13.53 0.33 0.33 2.24 0.10 3.7 2.43
KMDD0014 45.80 47.65 1.85 1.83 2.61 0.84 10.2 3.94
including 45.80 46.40 0.6 0.59 5.81 0.59 3.8 6.71
including 47.00 47.65 0.65 0.64 1.96 1.22 20.6 3.97
KMDD0014a 13.75 15.00 1.25 1.24 2.63 0.05 6.4 2.78
Including 13.75 14.25 0.5 0.50 4.31 0.05 4.9 4.44
KMDD0015 14.00 15.00 1.00 0.92 1.40 1.67 29.1 4.33
including 14.60 15.00 0.4 0.37 1.83 1.87 35.4 5.14
KMDD0015 50.25 54.7 4.45 4.12 9.28 0.52 7.7 10.18
including 50.25 50.45 0.2 0.18 2.31 4.08 62.4 9.34
including 51.15 52.3 1.15 1.06 32.47 1.03 15.2 34.23
Including 53.7 54.7 1 0.92 1.41 0.02 1.8 1.47
KMDD0016 22.3 27 4.7 4.24 1.2 0.10 1.2 1.47
Including 24.2 25.4 1.2 1.08 2.27 0.26 18.0 2,89
KMDD0016 64.9 68.3 3.4 3.34 9.94 5.97 55.0 19.78
including 65.9 66.25 0.35 0.32 28.40 12.80 157.0 49.91
including 67.5 67.7 0.2 0.18 13.60 10.27 93.0 30.49


Gold Equivalent uses Copper price - US$2.50/lb; Silver price US$16/oz and Gold price of US$1200/oz

Table 2.0 Kainantu Gold Mine - Collar Locations for Kora Underground Diamond Drilling
Collar EOH depth
Hole_id Collar location orientation (m)
Local north Local East mRL Dip Local azimuth
KMDD0013 59124.65 29876.51 1188.96 13.89 244.83 75.9
KMDD0014 59125.79 29876.39 1188.79 9.45 270.00 61.7
KMDD0014a 59125.79 29876.39 1188.79 11 270.00 17.1
KMDD0015 59126.98 29876.38 1188.70 7.24 295.86 69.7
KMDD0016 59123.70 29876.87 1189.61 25.47 224.91 68.9

To view the photograph associated with this press release, please visit the following link:

Over the past several days, while conducting ongoing drilling and face sampling, the Company also completed the mining of an initial bulk sample at Kora, having mined in excess of 2,000 tonnes from a four-metre-by-four-metre horizontal development extending north and south from the previously reported initial cross cut intersection of the Kora Vein. The first 800 tonnes of mined material were processed and the results were described in K92 News Release, October 11, 2017 (K92 Announces Positive Results from Treating the Initial 800 Tonnes of Bulk Sample from the Kora Vein). The remainder of the mined material from the bulk sample is currently being processed with results pending.

The current Kora/Eutompi inferred resource, as defined by previous drilling to date, is 4.36 million tonnes at a grade of 7.3 g/t Au, 35 g/t Ag and 2.23 per cent Cu, or 11.2 g/t gold equivalent (see attached table) and is open for expansion at depth and in both directions along strike.

K92 has filed and made available for download on the company's SEDAR profile a technical report titled "Independent Technical Report, Mineral Resource Update and Preliminary Economic Assessment of Irumafimpa and Kora Gold Deposits, Kainantu Project, Papua New Guinea," with an effective date of March 2, 2017, that provides additional information on the geology of the deposits, drilling and sampling procedures, lab analysis, and quality assurance/quality control for the project, and additional details on the resource estimates.

The PEA estimates for Kora, based on the current resource estimates (4.36 million tonnes of 7.3 g/t Au, 35 g/t Ag and 2.23 per cent Cu):

  • Over a nine-year operating life, the plant would treat 3.2 million tonnes averaging 7.1 g/t Au, 25 g/t Ag and 1.7 per cent Cu (9.3 g/t AuEq (1));
  • This would generate an estimated positive cash flow of $537-million (U.S.) using current metal prices if 15-metre levels are used in mining; if 25-metre levels are used, then net cash flows are estimated as $558-million (U.S.); this cash flow includes conceptual allowances for capital;
  • Production of an estimated average of 108,000 AuEq (1) ounces per annum over an eight- year period from year 2 through to year 9;
  • An estimated pretax net present value (NPV) of $415-million (U.S.) for 25-metre levels, or $397-million (U.S.) for 15-metre levels, using current metal prices, exchange rates and a 5-per-cent discount;
  • An estimated after-tax NPV of $329-million (U.S.) for 25-metre levels, or $316-million (U.S.) for 15-metre levels, using current metal prices, exchange rates and a 5-per-cent discount;
  • Initial capital cost is estimated to be $13.8-million (U.S.), including the $3.3-million (U.S.) for the plant upgrade identified in the Mincore scoping study, but excluding the proposed Kora exploration inclines and diamond drilling; sustaining capital cost is estimated to a further $64-million (U.S.) spent over the life of the Kora mining for 25-metre levels, or $83-million (U.S.) for 15-metre levels;
  • Operating cost per tonne is estimated to be $125 (U.S.) per tonne for 25-metre levels, or $126 (U.S.) per tonne for 15-metre mining levels;
  • Excluding initial capital expenditure of $14-million (U.S.), cash cost is estimated to be $547 (U.S.) per ounce AuEq (inclusive of a 2.5-per-cent net smelter return (NSR) royalty) and all-in sustaining cost (AISC) of $619 (U.S.) per ounce AuEq for 25-metre mining levels, or $549 (U.S.) per ounce (inclusive of a 2.5-per-cent NSR royalty) and AISC of $644 (U.S.) per ounce AuEq for 15-metre mining levels.

Metal prices used were $1,300 per ounce for gold, $18 (U.S.) per ounce for silver and $4,800 per tonne for copper.

(1) Gold equivalent in PEA calculated on above metal prices.

Kora remains open for expansion in every direction and strongly mineralized at the extent of all drilling.

The 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. The technical report contains a full description of all underlying assumptions relating to the PEA. Mineral resources that are not mineral reserves and do not have demonstrated economic viability.

Resource by Deposit and Category
Resource Tonnes Gold Silver Copper Gold
Deposit Category Equivalent
Mt g/t MOz g/t MOz % Mlb g/t MOz
Irumafimpa Indicated 0.56 12.8 0.23 9 0.16 0.28 37 13.4 0.24
Inferred 0.53 10.9 0.19 9 0.16 0.27 74 11.5 0.20
Kora/Eutompi Inferred 4.36 7.3 1.02 35 4.9 2.23 215 11.2 1.57
Total Indicated 0.56 12.8 0.23 9 0.16 0.3 4 13.4 0.24
Total Inferred 4.89 7.7 1.21 32 5.06 2.0 218 11.2 1.76

M in Table is millions. Reported tonnage and grade figures are rounded from raw estimates to reflect the order of accuracy of the estimate. Minor variations may occur during the addition of rounded numbers. Gold equivalents are calculated as AuEq = Au g/t + Cu%*1.52+ Ag g/t*0.0141.

K92 Vice President Chris Muller, PGeo, 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. Data verification by Mr. Muller includes significant time onsite reviewing drill core, surface exposures, underground workings and discussing work programs and results with exploration personnel.

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