K92 Mining Announces Bulk Sample Preliminary Results at Judd Vein System and Commencement of Phase 1 Judd Drill Program - Seite 2

See Figure 1 for location map of Judd Vein target and other proximal interpreted vein targets.

The bulk sample was completed on the 1235 mRL level as multi-purpose, mine infrastructure development drive with oversized ventilation return airway dimensions of 5.5m x 5.5m. Approximately 109 metres of development was completed and from grade control channel sampling, an estimated 6,200 tonnes at 5.5 g/t gold equivalent or 3.6g/t gold, 1.11% copper and 19 g/t silver with an average thickness of 3.4 metres was extracted from Judd #1 Vein. Incorporating excess dilution from the oversized 5.5m x 5.5m return airway drive, an estimated 10,130 tonnes at 3.6 g/t AuEq or 2.40 g/t Au, 0.70% Cu and 12 g/t Ag was extracted.

A majority of the bulk sample has been stockpiled, with earlier mined material processed through the Kainantu processing plant. The remaining bulk sample and additional material mined will be processed separately through the Kainantu plant once the Stage 2 Process Plant Expansion commissioning is completed. Ground conditions are competent and are expected to be amenable to mining widths similar to the average Judd #1 Vein thickness and those currently mined at Kora, which is a minimum of 2 metres wide for long hole stoping and minimum 3 metres wide for cut and fill.

See Figure 2 for a plan view of the underground channel sampling and Judd #1 Vein interpretation.

As a result of the promising results to date, an underground diamond drill rig has been mobilized for a Phase 1 Judd Vein system drilling program. The initial drill program planned is a 33-hole program, targeting strike extensions from the development drive of approximately 250 metres in addition to up-dip and down-dip step-out drilling. The bulk sample development drive will also be extended.

See Figure 3 for a plan view of the Phase 1 Judd Vein System drill program.

(Gold Equivalent (AuEq) is calculated using copper price of US$3.05/lb, silver price of US$16.05/oz and gold price of US$1,400/oz.)

John Lewins, K92 Chief Executive Officer and Director, stated, “We are certainly excited by these initial results from the bulk sampling of the Judd #1 Vein. The results mark the first significant exploration program on the Judd target by K92. With a potential strike length of ~2.5km, a known vertical extent of over 700 metres that remains open at depth, similar gold-copper-silver mineralization to Kora and encouraging grades, we are very encouraged about its potential. As a result, we have mobilized a drill rig to commence the Phase 1 Judd Exploration program and will continue to extend the development drive.