WITH the production re-start process at the high-grade Irumafimpa gold deposit well advanced, on schedule and on budget, K92 Mining has commenced an exploration drilling program targeting an expansion of resources. A second diamond rig is now on site targeting an expansion of the Judd Vein System.
|Underground development at K92 Mining’s Irumafimpa gold deposit in PNG.|
K92 was fully funded to restart production at Irumafimpa, which forms part of the Kainantu project, when it began trading publicly on the TSXV on May 25, 2016. Since then the company has received approximately $18.5 million in additional capital through private placements and the exercise of warrants.
The additional capital provides K92 with increased financial flexibility to accelerate completion of the underground incline drive from Irumafimpa deposit to the Kora deposit, with drill testing along the way, and expansion drilling in the Irumafimpa area.
K92 has engaged Quest Exploration Drilling (QED) to undertake diamond drilling underground at Irumafimpa due to its extensive experience in the Asia Pacific, including in PNG where QED has a regional office and workshop in the city of Lae, near the Kainantu project site. QED has provided two rigs, one focused on drilling out the Irumafimpa ore body for grade control and mine planning purposes, and the second for drilling of the Judd Vein System.
The initial resource estimate for Kora and Irumafimpa deposits is 1.84 million inferred ounces @ 11.6 grams/tonne (g/t) gold equivalent and 240,000 indicated ounces @ 13.3 g/t. This is based on 78,935 metres of drilling from 767 holes and 18,312 metres of assayed intervals across all lodes. Kora remains open in all directions and strongly mineralised at the extent of drilling.
Judd was identified from earlier drilling by previous owner Barrick Gold, and exploration work, as having a strike length of at least 2500 metres running parallel to and to the east of the Irumafimpa and Kora deposits, only 50 to 100 metres from the main incline.
To guide the resource expansion and exploration mandate, K92 has appointed Chris Muller as exploration manager.
K92’s chief operating officer and director John Lewins said, “The technical team onsite has done an excellent job with the production re-start and we are on schedule and on budget. With that focus on track, and with the enhanced financial flexibility resulting from our recent financings, we are now looking to target a resource expansion that we believe exists.”