An extensive evaluation of underground vandalism reported by K92 Mining in August at the Kainantu Gold Project in Papua New Guinea has revealed only minor damage to underground equipment and infrastructure.

Equipment damage onsite has been limited to two MT2010 low profile trucks, a small Loader/Telehandler and surface infrastructure with a total estimated value of less than US$1.4 million. The company is working with its insurer and taking appropriate claim action based on these policies.

K92 has a third MT2010 low profile truck due to arrive in Papua New Guinea on September 30, while on site the company has a Volvo 30 tonne ADT which is designed to go underground to pick up mined material and two Komatsu 35 tonne ADT's that can tram on surface. It does not anticipate that trucking will be a significant hindrance to operations.

All other equipment including the company's LHD loaders and the drill rigs are fully operational. The workshop and containers near the 800 portal were damaged, however, the main workshop where K92 does all major work is at the plant site and was not affected.

K92 acknowledges the considerable work and goodwill relating to the upcoming restart of mining, processing and drilling operations by the Mining Minister Johnson Tuke, the Mineral Resource Authority under managing director Philip Samar, and representatives of the Eastern Highlands Provincial and Kainantu Local Governments and thanks them for their efforts.

A further six containers of concentrates containing approximately 600 ounces of gold have been shipped since the incident with payment under its offtake agreement expected by early next week.

K92 chief executive officer John Lewins said, “This isolated but unfortunate incident has detracted attention from the significant opportunity presented within this project to all stakeholders.

“Fortunately the damage, while not insignificant, was minor in relation to the project as a whole, and we look forward to recommencing operations.

“Exploration drilling to follow up on the recently announced Kora deposit extension discovery is ready to start and mine production from onsite is targeted to recommence shortly.”

www.k92mining.com

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