K92 Mining will incorporate a larger mineral resource estimate at the Kainantu gold mine after a successful updated integrated development plan (IDP).
The IDP comprises two scenarios: the Kainantu stage three expansion definitive feasibility study (DFS) case, and the Kainantu stage four expansion preliminary economic assessment (PEA) case.
The DFS has evaluated the stage three expansion to 1.2 million tonnes per annum (Mtpa), representing a 100 per cent throughput increase from the 600,000tpa stage 2A expansion design throughput.
Stage three involves a 1.2Mtpa process plant and supporting infrastructure currently under construction.
“The updated IDP is a major milestone for K92, marking a significant improvement to mine economics by incorporating a larger updated mineral resource estimate, a new off-take agreement with Trafigura, more robust engineering designs and information from our ongoing construction activities, along with margin expansion from improved commodity prices,” K92 chief executive officer and director John Lewins said.
“Importantly, the realisation of strong cash flow and the economic benefits of the updated IDP are expected near-term.
“In less than nine months, the commissioning of the stage three plant expansion is planned to begin, marking the start of K92’s transformation into a Tier-1 mid-tier producer.”
Both the DFS and PEA cases have a low environmental impact, being supplied with clean hydroelectricity, mining high grades outlining a low footprint, no-cyanide operation, and a majority of tailings reporting underground as pastefill.
“Concurrent with advancing the stage three and four expansions, we remain very active in improving upon the outcomes of the study, particularly through exploration,” Lewins said.
“There are currently 11 drill rigs on site of which six are operating underground and five on the surface, focused on upgrading and expanding resources both near-mine and across our highly prospective gold-copper district.
“We are excited to host a large group of analysts and investors on-site to showcase our progress to date in multiple areas and also the mining-friendly jurisdiction of Papua New Guinea.”
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