VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 09/15/17 -- K92 Mining Inc. ("K92") (TSX VENTURE: KNT)(OTCQB: KNTNF) reports that an extensive evaluation of underground vandalism reported in August has revealed only minor damage to underground equipment and infrastructure.
Equipment damage onsite as described in the August 24, 2017 K92 News Release has been limited to 2 off MT2010 low profile trucks, a small Loader/Telehandler and surface infrastructure with a total estimated value of less than USD $1.4 million. The Company notes that with respect to the damage to this equipment it is in the process of working with its insurer and taking appropriate claim action based on these policies.
The Company has a third MT2010 low profile truck due to arrive in Papua New Guinea on September 30th, while on site the Company has a Volvo 30 tonne ADT (Articulated Dump Truck) which is designed to go underground to pick up mined material and two Komatsu 35 tonne ADT's that can tram on surface, so does not anticipate that trucking will be a significant hindrance to operations. As noted all other equipment including the company's LHD loaders and the drill rigs are fully operational. The workshop and containers near the 800 portal were damaged, however, the main workshop where K92 does all major work is at the plant site and was not affected.
K92 acknowledges the considerable work and goodwill relating to the upcoming restart of mining, processing and drilling operations by the Mining Minister Johnson Tuke, the Mineral Resource Authority under Managing Director Philip Samar, and representatives of the Eastern Highlands Provincial and Kainantu Local Governments and thanks them for their efforts.
K92 notes that a further 6 containers of concentrates containing approximately 600 ozs of gold have been shipped since the incident with payment under its offtake agreement expected by early next week.
K92 Chief Executive Officer, John Lewins, states, "This isolated but unfortunate incident has detracted attention from the significant opportunity presented within this project to all stakeholders. Fortunately the damage, while not insignificant, was minor in relation to the project as a whole, and we look forward to recommencing operations. Exploration drilling to follow up on the recently announced Kora Deposit extension discovery is ready to start and mine production from onsite is targeted to recommence shortly. We will provide an operational update next week."
K92 exploration manager Chris Muller, PGeo, a qualified person under the meaning of Canadian National Instrument 43-101, has reviewed and is responsible for the technical content of this news release. Data verification by Mr. Muller includes significant time onsite reviewing drill core, surface exposures, underground workings and discussing work programs and results with exploration personnel.
On behalf of the company
John Lewins, Chief Executive Officer and Director
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. All statements that address future plans, activities, events or developments that the Company believes, expects or anticipates will or may occur are forward-looking information, including statements regarding the realization of the preliminary economic analysis for the Project, expectations of future cash flows, the proposed plant expansion, potential expansion of resources and the generation of further drilling results which may or may not occur. Forward-looking statements and information contained herein are based on certain factors and assumptions regarding, among other things, the market price of the Company's securities, metal prices, exchange rates, taxation, the estimation, timing and amount of future exploration and development, capital and operating costs, the availability of financing, the receipt of regulatory approvals, environmental risks, title disputes, failure of plant, equipment or processes to operate as anticipated, accidents, labour disputes, claims and limitations on insurance coverage and other risks of the mining industry, changes in national and local government regulation of mining operations, and regulations and other matters.. 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. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
K92 Mining Inc.
(604) 608-9110 (FAX)