https://www.globenewswire.com/…d-Stage-4-Expansions.html
K92 Mining Announces Extension to Mining Lease 150 and Approval of the Kainantu Gold Mine Stage 3 and Stage 4 Expansions
- Mining Lease 150 (“ML 150” or the “Mining Lease”) has been granted an extension for an additional 10 years, to June 2034, by the Government of Papua New Guinea. The renewal is well in advance of the original expiry date of June 2024, highlighting the significant support of various levels of Government and stakeholders for the Kainantu Gold Mine.
- Concurrent with the Mining Lease extension, the Board of Directors of K92 have approved the Company progressing with Kainantu Gold Mine’s Stage 3 and 4 Expansions. The Stage 3 Expansion plans to increase annual throughput to 1.2 million tonnes per annum (“mtpa”) and the Stage 4 Expansion to 1.7 mtpa, representing a 140% and 240% increase from the Stage 2A Expansion, respectively.
- The expansions are expected to transform Kainantu into a Tier 1 mine, as demonstrated in the Integrated Development Plan’s Stage 4 Preliminary Economic Assessment Case (the “Stage 4 PEA Case”), outlining peak annual production of 500,192 ounces gold equivalent (“AuEq”) in 2027, life of mine average all-in sustaining cost of $687/oz (co-product) or $444/oz net of by-product credits, and self-funded from mine cash flow at $1,600/oz Au. The tendering process for long-lead time expansion items has already commenced.#
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