K92 Mining operates the high-grade (1H19CY: 19.6g/tAu & 0.4%Cu), low cost (1H19CY: $618/ozAu all-in sustaining cost) Kainantu Underground Gold Mine, in Eastern Highlands Province, Papua New Guinea in an area of excellent infrastructure (sealed highway, airstrip and hydropower nearby). The mine achieved commercial production in Feb/2018, which was driven by the high-grade / solid thickness, near-mine infrastructure, Kora North discovery (intermediate sulphidation system), which is +2-3x grade / +2-4x thickness vs the previously mined Irumafimpa Deposit (low sulphidation system). Kora North also has significantly better geotechnical, metallurgy and continuity characteristics vs previously mined Irumafimpa.
A mine expansion is well underway (~US$15m capex), which will see the operation increase production to 400kt per annum (from a capacity of 200kt per annum). The plant expansion is targeting completion in 4Q19CY, and the mine operating at run-rate in 3Q20CY. A