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Papua Guinea extends Mining Lease 150 for Kainantu Gold Mine

The Government of Papua New Guinea has approved an extension of Mining Lease 150 for the Kainantu Gold Mine in Papua New Guinea.

K92 Mining Inc. revealed the extension allow for stage 3 and stage 4 expansions of the project to run for a period of 10 years to June 13, 2034. The Expansions are expected to be transformational for Kainantu, as demonstrated in the Integrated Development Plan (“IDP”) Stage 4 PEA Case, outlining a peak annual production of 500,192 oz AuEq in 2027, a life of mine average all-in sustaining cost of $687/oz (co-product) or $444/oz net of by-product credits.

Kainantu Gold Mine

Importantly, the growth capital cost of US$187 million, sustaining capital cost until operating both process plants of approximately US$60 million per annum, and life of mine sustaining capital cost of US$429 million are expected to be self-funded from mine cash flow at US$1,600/oz Au. Tendering for long-lead time items for the expansion has already commenced.

The expansion is set to increase the annual processing throughput to 1.2 mtpa and 1.7 mtpa, to the respective stages. This represents a 140% increase and 240% increase, respectively, from the Stage 2A processing capacity of 500,000 tonnes per annum. The current Stage 2A Expansion run-rate throughput has already been achieved, with the last major process plant upgrade, the installation of flotation cells to double rougher capacity expected in early 2023.

The throughput increase, will transform Kainantu into a Tier 1 mine, with peak production of 500,192 oz AuEq in 2027, low life of mine average all-in sustaining costs of $687/oz (co-product) or $444/oz net of by-product credits and capital self-funded from mine cash flow.

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