K92 International Holdings has informed investor company Otterburn Resources Corp that the applications for renewal of three exploration licences (ELs) covering a total of almost 439sqkm at the Kainantu Gold Project have been approved by the Mineral Regulatory Authority (MRA) of Papua New Guinea.
Two of the ELs both cover an area of 95sqkm and host many known large lode gold systems found outside of K92’s Mining Licence (ML) 150. The extension of these exploration licences is good until February 05, 2017. The third renewal covers an area of 248.8sqkm and a number of prospective porphyry copper-gold targets. It has been renewed until June 21, 2016.
K92 has the exclusive right to renew these ELs in future provided the terms of the exploration licence, including exploration expenditures, are performed.
While the core focus of K92 is on ML 150, which was recently renewed for 10 years from June 14, 2014, the 438.8sqkm exploration package hosts multiple targets including areas prospective for high grade intrusive gold veins such as found within ML 150 and other areas prospective for porphyry copper-gold mineralization which was the focus of Barrick Gold's past regional work in the area.
K92 technical advisor Douglas Kirwin said, “Because of the extensive geochemical programs and magnetic surveys previously conducted by Barrick, a number of highly prospective untested porphyry copper-gold targets are already defined. With limited additional surface work several of these may be fast-tracked for first phase drilling.”
As to work within the ML 150 area, K92 has about 70 local staff onsite. The number of staff will increase as the company moves from the current transitional stage to project ramp-up. The infrastructure at the Kainantu project, in addition to the underground mine development, includes a mill processing facility, staff housing equipped for 350 people, multiple modern offices and storage facilities, a life of mine tailings pond and office space with information technology systems in place. The site has a dedicated power line from the nearby Yonki hydro electric energy facility and is accessible via a paved road.
The initial resource estimate for the Kora and Irumafimpa deposits within ML 150 is 1.84 million inferred ounces @ 11.6 grams/tonne gold equivalent and 240,000 indicated ounces @ 13.3 grams/tonne gold equivalent.
Otterburn intends to purchase 100% of the shares of K92 in a share purchase agreement.