K92 says mining lease extension granted for Kainantu gold mine, approves its expansion
(Kitco News) - K92 Mining (TSX: KNT) announced Tuesday that the Government of Papua New Guinea has granted an extension of Mining Lease 150 for the Kainantu gold mine in Papua New Guinea for a period of 10 years to June 13, 2034.
“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,” the company said in its statement.
According to the press release, concurrent with the Mining Lease extension, K92 Mining’s Board of Directors has 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, outlining peak annual production of 500,192 ounces gold equivalent 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,” K92 said.
Importantly, the company added that the tendering process for long-lead time expansion items has already commenced.
K92 Mining is engaged in the production of gold, copper and silver 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.
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