Aug 1 2019
K92 Mining Inc., a company engaged in the production of gold, copper, and silver, has provided an update on the Kora Expansion Project located at its Kainantu Gold Mine in Papua New Guinea.
Mining
The mining fleet expansion to allow the extended production rate of 400,000 tons per annum has advanced well with the following on-site equipment, in transit or on order:
- Two off Caterpillar loaders (924K and 930K) are on-site and operational
- Two off Caterpillar AD45B (45 ton-low-profile trucks are on-site and operational
- Two off Sandvik twin-boom jumbos are in transit
- One off Getman Underground Grader is on-site and operational
- One off Sandvik LH517i loader is on-site and operational
- One off Sandvik EJC 430 (30 ton) low-profile truck is in transit
- One off Sandvik DL421-15C long-hole drill rig is on order and due for delivery in the month of December
- One off Minecat integrated emulsion charging unit is due for arrival in the month of September
The inclusion of the above equipment to the current fleet offers an adequate capacity to realize the expanded production rate.
Apart from the above, several mining projects are ongoing as part of the expansion program:
- Primary incline debottlenecking is 60% complete with the excavation of passing points at Muck Bay 4, Muck Bay 7, and Muck Bay 9
- After the commissioning of the latest return airway system in the second quarter of 2019, the installation of three off 132 kW fans to substitute the current two off 55 kW fans is ongoing and due for commissioning in the present quarter
- At the 1210 level, a new underground magazine has been concluded
- Design of the latest offices and workshop at the 800 portal is complete, orders have been placed, and work has been initiated
- A new bulk emulsion charging system was fully implemented in the second quarter of 2019, rendering Kainantu as the first mine in PNG to launch a complete UG emulsion charging system
Present production is targeted on the 1205 mRL, 1185 mRL, and 1170 mRL levels.While the incline has reached the 1225 mRL level, development of the decline has reached the 1150 mRL. The development of the incline and decline will continue with access to the 1245 mRL and 1130 mRL levels, anticipated in the fourth quarter of 2019.
Process Plant
In addition, the installation of the gravity circuit, which also includes new flotation feed tank, new mill classification circuit, and gold room, has been concluded and commissioning is presently ongoing. The gravity circuit has been developed to treat the whole process stream so as to increase the recovery of gravity gold.
For the process plant expansion, both design and engineering have been completed and all vital equipment has been ordered with most of these being either in transit or on-site. After the gravity circuit has been commissioned, work on the remaining plant expansion will begin.
This work comprises alterations to the crushing circuit, such as the expansion of flotation circuit including installation of the latest cleaner-recleaner, installation of a bigger secondary crusher, scale-up of the process control system along with numerous pipes and pumps, and deployment of numerous supplementary equipment.
Infrastructure
In the past 12 months, the camp has been extended from the earlier capacity of 450 persons to 600 persons. A new 64-man block, including ablution, was recently constructed and concluded in July. In addition, the construction of a new kitchen and mess is ongoing.
New store and workshop for the two underground diamond drill rigs, which was acquired by K92 Mining Inc. in the second quarter, have been built and is operational.
The Company is moving forward rapidly with the Kora Expansion Project and is on track to complete the process plant expansion by end of 2019. The ramp-up of production from underground, which has already seen record production in the first half of 2019, is on track to achieve the expanded throughput in Q3 2020.
John Lewins, Chief Executive Officer and Director, K92 Mining Inc.
Lewins continued, “the combination of above budget production and below budget cash costs during the first half of 2019 has enabled the Company to fund the expansion from operational cash flow. This will now be supplemented by the recently announced US$15 million debt facility from Trafigura which will allow the Company to continue to fund the expansion while also increasing cash reserves and funding the drilling and exploration work necessary to underpin potential future developments.”