VANCOUVER, British Columbia, Feb. 07, 2018 (GLOBE NEWSWIRE) --
K92 Mining Inc. (“K92”) (TSX-V:KNT) (OTCQB:KNTNF) is pleased to announce it has achieved and declares commercial
production effective February 1, 2018 at its Kainantu Gold Mine in Papua New Guinea.
Production for the month of January 2018 exceeded 2,700 ozs gold equivalent (2,500 ozs gold). At this level of
production, based on the budgeted monthly operating costs, Total Cash Costs1 for the month of January are expected to be
below US$850/oz gold equivalent.
K92 defined commercial production as having commenced stope production underground, achieving a minimum of 60%
of designed gold production and a minimum of 90% of designed metal recovery from the process plant over a 30 day period. These
metrics were met during the month of January and the company expects them to be maintained going forward and has therefore declared
commercial production effective February 1, 2018.
Production levels from Kora North are anticipated to continue building up over the coming months from
development and tonnage from the cut and fill stopes, with design levels expected to be achieved during the June 2018 Quarter, when
the first long hole stope production commences.
John Lewins, K92 Chief Executive Officer and Director, states, “We are extremely pleased to have reached
this very significant milestone of commercial production. That we have achieved this mining the Kora North Lode, eight months after
drilling the first discovery hole and just four months after commencing grade control drilling and the treatment of the initial
bulk sample is a testament to the professionalism, enthusiasm and ability of the entire team at our Kainantu operation.”
K92 has not based its production decisions on ongoing mine production or mineral reserve estimates or
feasibility studies, and historically such projects have increased uncertainty and risk of failure. Mineral resources that
are not mineral reserves do not have demonstrated economic viability.
(1) “Total Cash Costs” per ounce is a non-GAAP financial measure which is calculated in accordance with a standard developed
by The Gold Institute, a worldwide association of suppliers of gold and gold products that ceased operations in 2002.
Adoption of the standard is voluntary and the cost measures presented may not be comparable to other similarly titled measures of
other companies. K92 believes that certain investors would use this information to evaluate K92’s performance and ability
to generate liquidity through operating cash flow to fund future capital expenditures and working capital needs. Total cash
costs include mine site operation costs such as mining, processing and administration costs, royalties, and selling costs but are
exclusive of amortization, reclamation, capital and exploration costs. Total cash costs are then dividend by ounces of gold
equivalent produced. This data is furnished to provide additional information and is a non-GAAP financial measure.
Total cash costs presented do not have a standardized meaning under IFRS and may not be comparable to similar measures presented
by other mining companies. It should not be considered in isolation or as a substitute for measures of performance prepared
in accordance with IFRS and is not necessarily indicative of cash flow from operations under IFRS or operating costs presented
under GAAP.
On behalf of the company,
John Lewins
Chief Executive Officer and Director
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain “forward-looking
statements” under applicable Canadian securities legislation. Forward-looking statements are necessarily based upon a number of
estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other
factors which may cause the actual results and future events to differ materially from those expressed or implied by such
forward-looking statements. All statements that address future plans, activities, events or developments that the Company believes,
expects or anticipates will or may occur are forward-looking information, including statements regarding the realization of the
preliminary economic analysis for the Project, expectations of future cash flows, the proposed plant expansion, potential expansion
of resources and the generation of further drilling results which may or may not occur. Forward-looking statements and information
contained herein are based on certain factors and assumptions regarding, among other things, the market price of the Company’s
securities, metal prices, exchange rates, taxation, the estimation, timing and amount of future exploration and development,
capital and operating costs, the availability of financing, the receipt of regulatory approvals, environmental risks, title
disputes, failure of plant, equipment or processes to operate as anticipated, accidents, labour disputes, claims and limitations on
insurance coverage and other risks of the mining industry, changes in national and local government regulation of mining
operations, and regulations and other matters. There can be no assurance that such statements will prove to be accurate, as actual
results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place
undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Telephone: (604) 687-7130
Facsimile: (604) 608-9110
