Kainantu operations and COVID-19 update
VANCOUVER, British Columbia, March 18, 2021 (GLOBE NEWSWIRE) – Mines K92 Inc. (“K92“or the”Society“) (TSX: KNT; OTCQX: KNTNF) provides the following update on Kainantu’s operations and the growing presence of COVID-19 in Papua New Guinea.
The Kainantu Gold Mine, located in Papua New Guinea’s Eastern Highlands Province, continues to operate, with a number of COVID-19 cases identified through our containment measures, tracing contact tracing , quarantine procedures and routine testing. K92 has on-site quarantine facilities, which have been significantly expanded over the past year. Additional protocols have been activated and our number one priority is to protect the health and well-being of our staff and local communities.
Yesterday, the Australian government announced the temporary introduction of restrictions on travel between Papua New Guinea and Australia. The restriction includes the suspension of the movement of expatriate resource sector labor between Papua New Guinea and Australia for a period of two weeks. The Company engages with the governments of Australia and Papua New Guinea through the Papua New Guinea Chamber of Mines and Petroleum to ensure that protocols in place will allow travel to resume. after the period of suspension. The suspension will result in a reduction in the number of expatriates in the short term, but this is not expected to have a significant impact on production, although some non-production activities may be affected.
The Company also informs that shutdown operations were also interrupted for a period of approximately two weeks following an incident involving an underground loader, which prevented backfilling operations. As backfill operations will resume shortly, this will result in the postponement of production at four high grade stope from the current quarter to the second quarter, which will result in the plant processing more storage material. low grade during the current quarter. It should be noted that this should not have an impact on the production of guidance for 2021.
Following the record production recorded in the fourth quarter of 2020, the Company took the opportunity to repay the outstanding balance of US $ 5 million due on the Trafigura loan during the current quarter, leaving the Company debt-free and a balance historically high cash flow of over US $ 67. million.
K92 Mining Inc. is engaged in the production of gold, copper and silver from the Kora deposit of the Kainantu gold mine in the Eastern Highlands Province of Papua New Guinea, as well as in the exploration and development of mineral deposits in the immediate vicinity of the mine. . The Company declared Kainantu commercial production in February 2018 and is in a strong financial position.
The Company has started an expansion of the mine based on an updated Preliminary Economic Assessment on the property which was released in January 2019 and updated in July 2020. K92 is operated by a professional team of mining companies with extensive international experience in the construction and operation of mines.
On behalf of the company,
John Lewins, CEO and Director
For more information, please contact David Medilek, P.Eng., CFA at + 1-604-687-7130.
CAUTION REGARDING FORWARD-LOOKING INFORMATION: This press release includes certain “forward-looking statements” under applicable Canadian securities laws. Forward-looking statements are necessarily based on a number of estimates and assumptions which, although believed to be reasonable, are subject to known and unknown risks, uncertainties and other factors that may cause actual results and future events differ materially from those expressed or implied. by such forward-looking statements. All statements that deal with future plans, activities, events or developments that the Company believes, anticipates or anticipates will occur or may occur are forward-looking information, including statements regarding the achievement of the future. Preliminary economic analysis for the Kainantu mine, future cash flow expectations, planned mill expansion, production results, cost of sales, production sales, potential resource expansion and generation additional drilling results that may or may not occur. The forward-looking statements and the information contained in this document are based on certain factors and assumptions concerning, among others, the market price of the Company’s securities, metal prices, exchange rates, taxation, estimation, the timing and amount of future exploration and development work, capital and operating costs, availability of financing, receipt of regulatory approvals, environmental risks, title disputes, facility failure, equipment or processes to function as intended, accidents, labor disputes, claims and limitations of insurance coverage and other risks of the mining industry, changes in national and local government regulations mining operations in PNG, mitigation of the Covid-19 pandemic, continued lifting of the state of emergency, and regulations and other qu are. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Therefore, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.