First concentrate from production at Kora deposit of K92 Mining’s Kainantu Gold Project in Papua New Guinea has been shipped to the Port of Lae. This is part of a new offtake agreement and provisional payment of 90% of the shipment’s total value has been received by K92.
Processing of the first 4000 tonnes of Kora material in October resulted in the production of 163 tonnes of concentrate at 143 g/t gold, 196 g/t silver and 18.4% copper containing 750 ounces of gold, 1030 ounces of silver and 66,000 pounds of copper
The new offtake agreement includes a provision for funding of US$15 million in non-dilutive financing from one of the world's largest commodity trading groups, to secure the long-term offtake for production from Kora.
The $15 million in financing is subject to a number of closing conditions, which the two parties are pursuing. Prior to removal of these conditions, K92 will ship Kora concentrate under an agreement with interim provisions facilitating the same.
K92 anticipates utilising the $15 million to target an expansion of the mining and processing rate to a level envisioned in the preliminary economic assessment.
K92 CEO John Lewins said, “This offtake agreement allows for immediate shipping of concentrate that K92 is producing from Kora. At the same time, it provides a potential path for a non-dilutive financing to target significant production expansion. The offtaker is one of the world’s largest commodity traders, is very active in Papua New Guinea and is familiar with K92 and our operations.
“The discovery of the Kora extension area adjacent to our current mining area has been game-changing for the company and we are continuing to drill and mine in this area.”
The current Kora/Eutompi inferred resource, as defined by previous drilling to date, is 4.36 million tonnes at a grade of 7.3 g/t gold, 35 g/t silver and 2.23% copper, or 11.2 g/t gold equivalent, and is open for expansion at depth and in both directions along strike.