K92 Mining (TSXV: KNT) on Tuesday reported a significant resource increase at the high-grade Kora deposit of its Kainantu gold mine in Papua New Guinea. The updated resource estimate is based on surface and underground exploration diamond drilling and underground face sampling (grade control).
Measured and indicated resource now total 1.1 million ounces at 10.45 g/t gold equivalent (AuEq), representing a 180% increase over the previous estimate of 390,000 ounces AuEq in October 2018. Inferred resource also increased 50% to 3.7 million ounces at 9.01 g/t AuEq.
The company says a significant component of the updated resource is high grade, with only moderate reductions in overall ounces as cut-off grade increases.
The Kora North, Kora and Eutompi deposits have also been combined as they are shown to be one continuous deposit, open at depth and open along strike to the south. The property was previously mined by Highlands Pacific and Barrick Gold from 2006-2009.
“In eighteen months of underground and surface drilling, K92 has significantly increased our resource at Kora and at a very low discovery cost of less than $5 per oz,” K92 CEO John Lewins stated in a press release, adding that there remains “tremendous potential” to increase resources at Kainantu going forward.
“At Kora, approximately 75% of the originally planned 1,000m by 1,000m target area was drilled for this resource. The remaining drill target area is highly prospective and continuing exploration drilling from underground has already shown continuity of mineralization into this area. In addition, there are also multiple high priority near-mine targets that are planned to be drilled this year.”
With the resource estimate updated, the company is now working on a preliminary economic assessment for a potential expansion at Kainantu.
K92 Mining’s stock traded 4.1% higher at Tuesday’s market close, bringing the company’s market capitalization to C$858.5 million.