K92 MINING will use the majority of C$16.554 million raised in placements to fund exploration and development of the Kainantu Gold Project. Ongoing underground drilling at the Irumafimpa and Kora deposits is returning strong results.
|K92 CEO Ian Stalker and COO John Lewins inspect the crusher plant at Kainantu in Eastern Highlands province.|
In one private placement $13 million was arranged by Clarus Securities as lead agent, on behalf of a syndicate of agents that included CIBC World Markets, Eventus Capital Corp and Haywood Securities. An additional $3.554 million was arranged in a concurrent non-brokered private placement.
Kaninatu covers an area of approximately 410sqkm and was previously mined by Highlands Pacific and Barrick Gold from 2006-2009. K92 Mining was purpose-built for acquisition of the mine.
An underground grade drilling program at Irumafimpa deposit has intersected high-grade gold in multiple holes. K92 says a number of the results are important as they show wide, high-grade intersections less than 20 metres from the drill cuddy.
Best results are 8.2 metres from 4.8 metres @ 24.65 g/t gold equivalent and 3.2 metres from 14.5 metres @ 4.77 g/t gold equivalent in one hole; and 4 metres from 3.7 metres @ 60.57 g/t gold equivalent, including 1 metre @ 77.79 g/t gold equivalent and 1 metre @ 95.3 g/t gold equivalent in another hole. The assays include silver and copper mineralisation.
Earlier results from the program include the highest grade intersection recorded to date at Irumafimpa of 1 metre @ 244.09 g/t gold equivalent.
K92’s CEO Ian Stalker said, “The grade control drilling results include some of the widest we have seen to date at Irumafimpa.”
The underground diamond drilling is part of a comprehensive grade control strategy commenced in September 2016. The most recent results are from an area to be mined in the coming nine months.
At Kora, the company is testing for extensions and the first exploration hole in this program returned 5.4 metres @ 11.68 g/t gold, 25.5 g/t silver and 1.33% copper, including 0.75 metres @ 71.94 g/t gold, 168.7 g/t silver and 8.51% copper.
“With these results in hand, we will push Kora drive at an increased pace and with an expanded drilling program,” Ian Stalker said.
The Kora/Eutompi inferred resource is 4.36 million tonnes @ 7.3 g/t gold, 35 g/t silver and 2.23% copper, or 11.2 g/t gold equivalent.