K92 Mining to expand production capacity at Kainantu gold mine
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(Kitco News) - K92 Mining (TSX: KNT) announced Thursday that its Board of Directors has approved the Stage 2A Expansion, expanding the annual processing throughput to 500,000 tonnes per annum at its Kainantu gold mine in Papua New Guinea.
The company said that this represents a +25% increase from the Stage 2 processing capacity of 400,000 tonnes per annum. Full commissioning of the Stage 2A Expansion is expected to commence in 3Q 2022.
CEO John Lewins stated, “Expanding the existing process plant to 500,000 tonnes per annum is a major positive development for the Kainantu gold mine. Importantly, at an estimated plant expansion capital cost of US$2.5 million, the expansion is not only funded from existing cash flow but is also expected to considerably strengthen our near-term ability to self-fund the Stage 3 Expansion while continuing to advance our vein field and porphyry exploration.”
K92 Mining is engaged in the production of gold, copper and silver from the Kora deposit at the Kainantu gold mine in the Eastern Highlands province of Papua New Guinea, as well as exploration and development of mineral deposits in the immediate vicinity of the mine. The company declared commercial production from Kainantu in February 2018.