K92 Mining Provides 2021 Operational Outlook
Production in 2021 is expected to grow 16-36% year over year, with Gold Equivalent (“AuEq”) production of between 115,000 and 135,000 ounces.
High margin production forecasted in 2021, with Cash Costs between $515-565 per ounce gold and All-in Sustaining Costs between $825-$875 per ounce gold.
Exploration to increase significantly, with expenditures of $14-17 million projected in 2021. During the course of 2020, the drill rig fleet doubled to ten drill rigs. Our eleventh drill
rig is expected to arrive on site imminently.
Growth Capital Costs forecasted to be between $25-$30 million, which includes the ongoing twin incline development designed for up to 2 million tonnes per annum throughput, or 3 million
tonnes per annum throughput with conveyors.
Note: All amounts in United States Dollars unless otherwise indicated.
VANCOUVER, British Columbia, Jan. 20, 2021 (GLOBE NEWSWIRE) -- K92 Mining Inc. (“K92” or the “Company”) (TSX: KNT; OTCQX: KNTNF) is pleased to provide its operational outlook for 2021. The Company expects another significant, year-over-year, increase in gold equivalent production of 16-36% to 115,000 to 135,000 ounces, while also delivering low-cost production, with an estimated cash cost of $515-$565 per ounce gold and all-in sustaining cost of $825-$875 per ounce gold. Additionally, the Company plans to ramp-up exploration activities and invest in future production growth.
On exploration, 2021 is forecasted to have a significant increase in both near-mine and regional activities with a forecasted expenditure of $14-17 million. Over the course of 2020, the drill fleet doubled to ten rigs and an eleventh drill rig is expected to arrive imminently. Exploration plans are to target the Judd, Karempe, Kora and Kora South vein systems, and the Blue Lake porphyry in addition to continuing generative surface exploration.
Growth capital is forecasted to be between $25-30 million, which includes the ongoing twin incline development. The twin incline is designed for a throughput capacity of up to 2 million tonnes per annum, or 3 million tonnes per annum with conveyors.
Table 1 – 2021 Operational Outlook Summary
|Gold Equivalent Production(1)||Oz||115,000 to 135,000|
|Cash Costs(2)||$/Oz||$515 to $565 per ounce gold|
|All-in Sustaining Costs(2)||$/Oz||$825 to $875 per ounce gold|
|Growth Capital||US$||$25 to $30 million|
|Exploration||US$||$14 to $17 million|
Note (1) – Gold Equivalent Production based on the following commodity prices: Gold $1,800/oz, Copper $3.25/lb, and Silver $25/oz.