K92 extends PNG mine lease, goes ahead with Stage 3-4 expansions

K92 Mining (TSX: KNT; OTC: KNTNF) announced on Tuesday two major developments for its Kainantu gold-copper-silver mine in Papua New Guinea, the first […]
The Kainantu Gold Mine is located in the Eastern Highlands Province of Papua New Guinea, approximately 180 km west-northwest of Lae. Credit: K92 Mining Inc.

K92 Mining (TSX: KNT; OTC: KNTNF) announced on Tuesday two major developments for its Kainantu gold-copper-silver mine in Papua New Guinea, the first being an extension of the mine lease by 10 years to June 2034, followed by the board's approval for the mine's Stage 3 and 4 expansions.

The staged expansions would increase Kainantu's annual processing throughput to 1.2 million tonnes per annum and then to 1.7 million tonnes per annum. This represents a 140% increase and 240% increase, respectively, from the Stage 2A processing capacity.

The current Stage 2A run-rate throughput of 500,000 tonnes per annum has already been achieved, with the last major process plant upgrade, the installation of flotation cells to double rougher capacity, expected in early 2023.

According to K92, the expansions are expected to be "transformational" for Kainantu, as demonstrated in its integrated development plan (IDP) for the Stage 4 preliminary economic assessment, outlining a peak annual production of 500,192 ounces of gold-equivalent (AuEq) in 2027, with a life-of-mine average all-in sustaining cost of US$687/oz (co-product) or US$444/oz net of byproduct credits.

Importantly, as detailed in a Sept. 12 news release, 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 all expected to be self-funded from mine cash flow at US$1,600/oz. Tendering for long-lead time items for the expansion has already commenced.

Comments

Your email address will not be published. Required fields are marked *

Dec 01 2024 - Dec 02 2024
Dec 03 2024 - Dec 05 2024