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Drill results from K92 Mining’s (TSX: KNT) pre-resource stage Arakompa gold-silver-copper project in Papua New Guinea has extended the strike to 750 metres, showing high-grade veins and bulk-mineable zones.
Among the 19 holes released late Tuesday were some of the best at Arakompa yet. Hole KARDD0029 hit 20.6 metres at 9.87 grams of gold equivalent per tonne from 240.6 metres depth. This included 10.7 metres at 14.97 grams gold equivalent. Hole KARDD0025 returned 23.6 metres at 6.57 grams gold equivalent. Drilling confirmed bulk mining potential given broad intercepts such as 100.8 metres at 1.92 grams gold equivalent and another that cut 111.62 metres at 1.53 grams gold equivalent per tonne.
The company’s executive vice president for exploration Chris Muller says Arakompa mineralization is comparable to the company’s producing Kainantu mine’s Kora and Judd veins. Kainantu is expected to operate until 2034, but the company aims to extend its lifespan further through expansions and exploration at the Kora, Judd, and Arakompa deposits.
“The grades and thicknesses at Arakompa mirror the Kora veins, making it just as prospective,” Muller said in a news release.
Located 4.5 km from the cornerstone Kainantu mine in the country’s Eastern Highlands, the Arakompa deposit hosts a historical resource of 800,000 oz. at 9 grams gold per tonne. It’s seen as critical for sustaining K92’s future production and could cut development costs by using existing infrastructure.
K92’s CEO, John Lewins, said the results opened up selective and bulk mining opportunities. “With Arakompa delivering grades and thicknesses like these, it fits seamlessly into our long-term strategy,” he said in the release.
Running the first drill program in 32 years on Arakompa, K92 has ramped up exploration, increasing from one to four drill rigs this year. The deposit is open along strike and at depth. The company plans to release an initial resource estimate by early next year.
Last year, Kainantu produced 117,607 oz. gold equivalent, including 100,533 oz. gold, 7.7 million lb. copper, and 160,628 oz. silver, beating guidance of 111,000 to 116,000 gold equivalent ounces. It forecasts 2024 output at about 130,000 oz. gold equivalent at the midpoint.
K92 released updated resource estimates for Kora and Judd deposits in December. Kora’s measured and indicated resource now stands at 6.9 million tonnes grading 10.24 grams gold equivalent per tonne, up 8% from 2.1 million oz. in October 2021. Its inferred grew to 14.3 million tonnes at 8.6 grams per tonne for 3.9 million oz., a 58% jump, thanks to drilling along the deposit’s southern extensions of the K1 and K2 lodes.
Judd’s measured and indicated resource increased to 1.2 million tonnes at 8.7 grams gold equivalent for 350,000 oz., a 167% rise from the Dec. 2021 estimate. The inferred resource tripled to 2.3 million tonnes grading 7.7 grams gold equivalent per tonne for 560,000 oz., driven by more drilling and a 130% increase in the strike length since the end of 2021.
Kainantu has measured and indicated resources of 8.7 million tonnes at 10.2 grams gold equivalent per tonne, or 2.9 million ounces. It also has inferred resources of 17.1 million tonnes at 8.6 grams per tonne, or 4.7 million ounces.
The company’s Toronto-quoted shares last traded down 1% at C$9.37, having touched C$4.64 and C$9.90 over the past 12 months. It has a market capitalization of C$2.2 billion.
