Posted in | News | Gold | Mining Business

K92 Granted Extension of Mining Lease 150 for the Kainantu Gold Mine in Papua New Guinea

K92 Mining Inc. is pleased to announce that the Government of Papua New Guinea has granted an extension of Mining Lease 150 for the Kainantu Gold Mine in Papua New Guinea for a period of 10 years to June 13, 2034.

Concurrent with this announcement, K92’s Board of Directors have approved the Stage 3 and Stage 4 Expansions (collectively the “Expansions”), increasing the annual processing throughput to 1.2 mtpa and 1.7 mtpa, respectively. This represents a 140% increase and 240% increase, respectively, from the Stage 2A processing capacity of 500,000 tonnes per annum. The current Stage 2A Expansion run-rate throughput has already been achieved, with the last major process plant upgrade, the installation of flotation cells to double rougher capacity expected in early 2023.

The Expansions are expected to be transformational for Kainantu, as demonstrated in the Integrated Development Plan (“IDP”) Stage 4 PEA Case, outlining a peak annual production of 500,192 oz AuEq in 2027, a life of mine average all-in sustaining cost of $687/oz (co-product) or $444/oz net of by-product credits. Importantly, the growth capital cost of US$187 million, sustaining capital cost until operating both process plants of approximately US$60 million per annum, and life of mine sustaining capital cost of US$429 million are expected to be self-funded from mine cash flow at US$1,600/oz Au (see press release dated September 12, 2022 - K92 Mining Inc Announces Robust Kainantu Gold Mine Integrated Development Plan). Tendering for long-lead time items for the expansion has already commenced.

John Lewins, K92 Chief Executive Officer and Director, stated, “The extension of the Mining Lease by the Government of Papua New Guinea and the approval of the Stage 3 and 4 Expansions by the Board of Directors of K92 are major milestones for the Kainantu Gold Mine, Papua New Guinea, our communities, investors and many other stakeholders.

When we acquired the Kainantu Gold Mine in 2015, it was under care and maintenance and had a designed throughput of 150,000 tpa – the Stage 4 Expansion targets throughput of 1.7 million tonnes per annum, a more than 11-fold increase. The throughput increase, as outlined in the IDP Stage 4 PEA Case, transforms Kainantu into a Tier 1 mine, with peak production of 500,192 oz AuEq in 2027, low life of mine average all-in sustaining costs of $687/oz (co-product) or $444/oz net of by-product credits and capital self-funded from mine cash flow. The boost to the economy of Papua New Guinea, in terms of jobs, exports, royalties and income tax will be very significant. We also plan to expand our community programs as we expand the mine so that the benefits to our community continue to grow as the mine grows.

Beyond the mine expansion, as we approach 2023, we are very excited about our exploration programs at Kainantu. We plan to expand the number of drill rigs in 2023 from the 11 currently operating, with a focus on resource expansion of our vein fields and porphyries.

Source: https://k92mining.com/

Tell Us What You Think

Do you have a review, update or anything you would like to add to this news story?

Leave your feedback
Your comment type
Submit
Azthena logo

AZoM.com powered by Azthena AI

Your AI Assistant finding answers from trusted AZoM content

Azthena logo with the word Azthena

Your AI Powered Scientific Assistant

Hi, I'm Azthena, you can trust me to find commercial scientific answers from AZoNetwork.com.

A few things you need to know before we start. Please read and accept to continue.

  • Use of “Azthena” is subject to the terms and conditions of use as set out by OpenAI.
  • Content provided on any AZoNetwork sites are subject to the site Terms & Conditions and Privacy Policy.
  • Large Language Models can make mistakes. Consider checking important information.

Great. Ask your question.

While we only use edited and approved content for Azthena answers, it may on occasions provide incorrect responses. Please confirm any data provided with the related suppliers or authors. We do not provide medical advice, if you search for medical information you must always consult a medical professional before acting on any information provided.

Your questions, but not your email details will be shared with OpenAI and retained for 30 days in accordance with their privacy principles.

Please do not ask questions that use sensitive or confidential information.

Read the full Terms & Conditions.