WITH the reverse takeover between Otterburn Resources Corp and K92 Holdings International Limited complete, K92 Mining is concentrating on restarting mining and processing at the Kainantu Gold Project. A new detailed mine plan for the Irumafimpa deposit is guiding the process.
In late May, K92 said underground mining equipment required for the restart was in place on site with the first remnant mined material scheduled to be moved from underground to ROM pad. It also said that first load testing of the rehabilitated crusher section was expected to commence by the end of May.
K92 purchased the project from Barrick Gold Corporation in 2014 after Barrick initiated its divestiture program in South East Asia. Barrick originally purchased Kainantu from Highland Pacific Group in 2007 for US$141.5 million and invested significantly in underground mine development, drilling, regional exploration, roadworks and camp amenities.
In a statement issued on May 30, K92 said remedial work on the main mine access was expected to be completed by month-end, allowing full access to the upper working levels. “Further, the underground mining equipment required for the restart of operations including Twin Boom Jumbo, loaders, compressor and IT are on site, with additional equipment in transit or on order.”
It said a detailed mine plan for Irumafimpa deposit had been prepared by Australian Mine Design and Development with initial load commissioning of the crushing section and water commissioning of the mill and flotation sections scheduled to commence prior to the end of the month.
K92’s CEO Ian Stalker said, “The business plan developed for K92’s restart of operations is being executed and is on track. We have an able team of expert mining professionals on site and substantial surface and underground infrastructure is in place. Additionally, the processing facility enhancements and equipment purchases we set out to make during the rehabilitation phase are almost complete.”
The initial resource estimate for the Kora and Irumafimpa deposits is 1.84 million inferred ounces at 11.6 grams/tonne (g/t) gold equivalent and 240,000 indicated ounces at 13.3 g/t gold equivalent. Kora remains open in all directions and is strongly mineralized at the extent of drilling.