Beirut incident impacted K92 Mining’s first quarter production at Kainantu
(Kitco News) - K92 Mining (TSX: KNT; OTCQX: KNTNF) announced Friday production in Q1 2021 at its Kainantu gold mine in Papua New Guinea of 18,654 oz AuEq, or 17,774 oz of gold, 426,153 lbs of copper and 7,925 oz of silver. Q1 2021 production was 6% lower than 19,944 AuEq oz mined in Q1 2020.
The company said that long hole stoping continuing to perform well and to design on both the K1 and K2 veins, with stoping operations interrupted for ~3 weeks in March and recommenced near the end of the quarter, following an incident involving an underground loader, which prevented backfilling operations.
K92 added that operations were also impacted from mid-January to late-February due to a shortage of bulk emulsion explosives as a result of unforeseen COVID-19 international shipping logistical issues compounded by increasing global transport restrictions as a result of the Beirut Incident.
The company noted that by late February, a significant shipment of bulk emulsion explosives arrived on site. The supplier has diversified sources and is expected to commence domestic production in May, nearby in Lae, to totally mitigate this issue.
K92 pointed out that financially, the company is in its strongest position ever, paying down the last $5 million of debt and increasing cash to historic levels to $66 million at the end of the quarter.