K92 Mining Releases 2021 Q1 Financial Results - Record Net Cash & Process Plant Throughput - Seite 2

Growth

• Reported high-grade underground development extensions results on the underexplored Judd Vein #1 (“J1”) with 65 metres of strike recording an average J1 vein thickness of 3.8 metres at 18.70 g/t AuEq (see January 26, 2021 press release: K92 Mining Announces Judd Underground Development Extension Results - Average J1 Vein Grade of 18.70 g/t AuEq at 3.8 m Width).
• Results for 35 diamond drill holes reported for the Kora deposit, with 25 intersections exceeding 10 g/t AuEq, including KMDD0266 recording multiple intersections including 7.20 m at 59.00 g/t Au, 56 g/t Ag and 3.89% Cu (64.88 g/t AuEq, 4.69 m true width) on the K1 Vein and KMDD0280 recording multiple intersections including 6.82 m at 34.80 g/t Au, 22 g/t Ag and 1.59% Cu (37.19 g/t AuEq, 5.05 m true width) on the K2 Vein (see press February 18, 2021 press release: K92 Mining Announces Latest High-Grade Drill Results at Kora, Including 7.20 m at 64.88 g/t AuEq).
• Diamond drill rig fleet increased to 11 at the end of the quarter, targeting multiple vein and porphyry targets concurrently. Manpower ramping up for exploration after Australia-PNG Travel Restrictions lifted for expatriate fly-in fly-out workers (see May 10, 20121 press release: K92 Mining Announces Resumption of Expatriate Fly-In Fly-Out Travel Between Papua New Guinea and Australia)
  

For complete details of the interim consolidated financial statements and associated management’s discussion and analysis, please refer to the Company’s website or profile on SEDAR (www.sedar.com). All amounts are in U.S. dollars unless otherwise indicated.

John Lewins, K92 Chief Executive Officer and Director, stated, “The Company continued to make considerable progress in the first quarter despite multiple short term and unexpected events resulting from COVID-19 travel restrictions, loader incident and international bulk emulsion shipping issues. Financially, the last $5 million of debt was repaid and the cash balance increased to a historically strong $66 million at the end of the quarter. Operationally, process plant throughput potential appears to be greater than the 1,100 tpd with several records achieved, long hope stoping continuing to perform well, and development prior to the short-term disruptions tracking above budget. On exploration, Judd made significant progress with development results now extended to a total of 288 metres of vein strike reported, including the last 179 metres of J1 vein strike averaging 3.7 metres thickness at 15.39 g/t AuEq, and; Kora continued to deliver high grades, with 35 intersections exceeding 10 g/t AuEq from 35 diamond drill holes.